Source: Sharecast
TTE, which last year closed its components facility in Plano and implemented operational turnarounds to improve productivity and cut costs, said the strategic review of its Components business has now completed with the board "assessing a range of options including a potential disposal subject to market conditions".
Adjusted operating profits were up 2.2% on an organic basis at £37.2m in 2025, despite a 2.7% decline in adjusted organic revenues to £481.4m.
However, statutory results showed an operating loss of £28.2m, worse than the £23.5m reported in 2024, due to £65.4m of one-off charges mostly relating to write-offs in North America and restructuring costs.
The top line was weaker year-on-year as a strong performance in Europe, driven by the aerospace and defence markets, was offset by challenges in parts of North America and softer demand in certain electronic manufacturing services end markets, the company said.
However, TTE said its performance improved in the second half, puts it on "much stronger footing as we enter 2026".
"2025 was a year of transition for TT Electronics, and I am pleased to report an improved financial position of the group in my first set of annual results as chief executive officer," said Eric Lakin in a statement.
"During the year, we addressed operational challenges, strengthened accountability and restored control across the business, resulting in a materially improved performance in the second half."
TTE expects 2026 revenue and adjusted operating profit to be in line with company-compiled consensus, which puts revenues at £447.1m-487.1m and adjusted operating profit at £31.9m-37.6m.
He added: "We enter the new financial year with a clearer strategic direction and a stronger platform for growth, underpinned by our four priorities of divisional realignment, cost reduction, sales transformation and portfolio optimisation. Whilst we are mindful of the current elevated geopolitical uncertainty, we remain confident in our ability to deliver further operational and financial progress over time."
Shares were up 4.2% at 108.4p by 0930 GMT.
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