TT Electronics (LON:TTG) Releases Earnings Results

TT Electronics (LON:TTG) announced its earnings results on Wednesday. The company reported GBX 6.90 earnings per share (EPS) for the quarter, Digital Look Earnings reports. TT Electronics had a negative return on equity of 37.50% and a negative net margin of 14.38%.

Here are the key takeaways from TT Electronics’ conference call:

• Strong cash and balance‑sheet improvement: free cash flow rose to £29.9m with 150% cash conversion, net debt fell by ~£30m to £50.3m and leverage declined to 1.1x, with the revolving credit facility extended and expected to be undrawn.
• North America turnaround completed: Cleveland is stabilized with higher productivity, yield and on‑time delivery returning the region to profitability, and the planned closure of loss‑making Plano removes a structural drag (though last‑time buys from Plano will not recur in 2026).
• Value‑creation program launched: a divisional realignment (Power, EMS, Components), a targeted cost reset expected to deliver ~£3m net benefit in 2026 (≈£5m gross) and a sales transformation are intended to drive sustainable margin expansion and profitable growth.
• Components strategic review underway: management has separated the Components business and the board is evaluating a value‑led disposal process (no sale commitment), so outcomes and timing remain uncertain.
• Caution on 2026 outlook and headwinds: company expects 2026 revenue and adjusted operating profit broadly in line with consensus but cites continued EMS weakness, geopolitical uncertainty and a high effective tax rate (57% in 2025) that depressed EPS.

TT Electronics Trading Up 5.2%

LON TTG traded up GBX 5.40 on Wednesday, hitting GBX 109.40. 212,736 shares of the stock were exchanged, compared to its average volume of 478,323. TT Electronics has a 52-week low of GBX 61.90 and a 52-week high of GBX 154.80. The company has a debt-to-equity ratio of 81.11, a current ratio of 1.90 and a quick ratio of 0.93. The company has a market capitalization of £194.80 million, a price-to-earnings ratio of -2.91, a P/E/G ratio of 0.60 and a beta of 0.95. The company’s 50-day moving average price is GBX 117.74 and its two-hundred day moving average price is GBX 117.98.

Wall Street Analysts Forecast Growth

Separately, Berenberg Bank reissued a “hold” rating and issued a GBX 120 price target on shares of TT Electronics in a research note on Wednesday. Three research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of GBX 103.33.

Insider Activity

In other news, insider Warren Tucker sold 44,532 shares of the stock in a transaction on Thursday, January 8th. The stock was sold at an average price of GBX 111, for a total value of £49,430.52. 8.76% of the stock is owned by insiders.

TT Electronics Company Profile

TT Electronics is a global provider of engineered electronics for performance critical applications.
TT engineers and manufactures electronic solutions enabling a safer, healthier and more sustainable world. TT benefits from enduring megatrends in structurally high-growth markets including healthcare, aerospace, defence, automation and electrification. TT invests in R&D to create designed-in products where reliability is mission critical. Products designed and manufactured include sensors, power management and connectivity solutions.