TT Electronics (LON:TTG) Announces Earnings Results

TT Electronics (LON:TTG - Get Free Report) released its earnings results on Wednesday. The company reported GBX 5.70 EPS for the quarter, Digital Look Earnings reports. TT Electronics had a negative net margin of 7.80% and a negative return on equity of 24.38%.

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

• Adjusted operating profit rose 37% to £18.5 million in the first half, while operating margin expanded 230 basis points to 8.1%, driven by the Cleveland turnaround, the return to profitability of Components, and cost actions.
• Commercial momentum strengthened, with a book-to-bill ratio of 112% and an order book of approximately £550 million, up 20% year over year. Management expects second-half organic revenue growth and now forecasts full-year adjusted operating profit ahead of current market expectations.
• The cost-reduction program is substantially complete, with £3 million of net savings expected in 2026 and more than £6 million of annualized benefits from 2027 onward. The group also expects stronger second-half cash generation and further deleveraging from leverage of 1.1 times.
• TT is evaluating potential offers for its Components division after receiving several indications of interest, but any divestment remains subject to valuation and there is no certainty a transaction will occur. The company also does not currently expect to reinstate its dividend for 2026.
• New and extended commercial awards—including a multi-decade Rolls-Royce agreement, further Eurofighter work, an MBDA letter of intent, and a multimillion-dollar subsea contract—support long-term revenue visibility across aerospace, defense, healthcare, and industrial markets.

TT Electronics Trading Up 0.7%

LON:TTG traded up GBX 1 during trading hours on Friday, reaching GBX 151.40. 507,605 shares of the company were exchanged, compared to its average volume of 424,381. The firm has a market cap of £270.13 million, a price-to-earnings ratio of -5.31, a PEG ratio of 0.60 and a beta of 0.83. The stock has a 50 day simple moving average of GBX 127.99 and a 200 day simple moving average of GBX 121.26. TT Electronics has a 52-week low of GBX 93 and a 52-week high of GBX 155. The company has a debt-to-equity ratio of 65.61, a current ratio of 1.67 and a quick ratio of 0.93.

Insider Activity

In other news, insider Phil Swash acquired 100,000 shares of the company's stock in a transaction dated Tuesday, June 9th. The stock was acquired at an average cost of GBX 119 per share, for a total transaction of £119,000. 8.80% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

TTG has been the subject of a number of recent analyst reports. Jefferies Financial Group reaffirmed a "hold" rating and issued a GBX 110 price objective on shares of TT Electronics in a research report on Wednesday. Berenberg Bank raised their price target on TT Electronics from GBX 150 to GBX 200 and gave the stock a "buy" rating in a research note on Wednesday. Finally, Royal Bank Of Canada raised their price target on TT Electronics from GBX 115 to GBX 160 and gave the stock a "sector perform" rating in a research note on Thursday. Two research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of GBX 144.

About TT Electronics

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.