TT Electronics (7TT) Q2 2026 Earnings Report
DE:7TT Q2 2026 EPS Results
- Actual EPS
- EUR 0.07
- Consensus EPS
- EUR 0.05
- Beat/Miss
- Beat by +EUR 0.02
- One Year Ago EPS
- EUR 0.02
DE:7TT Q2 2026 Revenue Results
- Actual Revenue
- EUR 265.42M
- Expected Revenue
- EUR 265.71M
- Beat/Miss
- Missed by -EUR 290.91K
- YoY Revenue Growth
- -4.12%
Earnings Announcement Details
- Quarter
- Q2 2026
- Date
- 09/02/2026
- Time
- Before Open
- Conference Call
- Wednesday, September 2, 2026
DE:7TT Upcoming Earnings
TT Electronics's next earnings date is estimated for March 10, 2027, based on past reporting schedules.
Q2 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Management reported a 37% increase in adjusted operating profit, margin expansion, a 20% year-over-year increase in the order book, improving performance in EMS and Components, multiple significant customer and defense program wins, strengthened financing, and upgraded full-year operating profit expectations. These positives outweighed the H1 revenue decline, nil free cash flow, tax and exceptional cash outflows, ongoing execution work, and the decision not to reinstate the dividend for 2026.
Company Guidance
The Board expects adjusted operating profit for the year to be ahead of current market expectations, revenue to return to organic growth in the second half, and free cash flow to be positive in H2 and, therefore, the year as a whole; the £3 million of net savings is expected during 2026, with the annualized benefit from 2027 onwards expected to be more than £6 million, cash tax is expected to be about £6 million outflow in the second half, leverage is expected to reduce further in the second half with further deleveraging expected for the full year, and the group aims to keep leverage below 1.5x, while around 4% is described as a reasonable steer as to broadly where H2 organic growth might be expected to be.
- Adjusted Operating Profit Increased 37%Adjusted operating profit increased 37% to £18.5 million in H1 2026, while operating margin increased 32 basis points to 8.1% versus the first half of last year.
- Profit Improvement DriversThe profit improvement was driven by the operational turnaround at EMS Cleveland, which delivered consistent profitability throughout the period; the return of Components to profitability, supported by the closure of the loss-making Plano site; and delivery of the group's strategic priorities.
- Order Book and Commercial MomentumOrder momentum was broad based across multiple sectors. The order book at the end of June was approximately £550 million, 20% higher than the same point last year, providing good visibility of revenue coverage into the second half. The group book-to-bill ratio was 112%.
- Upgraded Full-Year Operating Profit OutlookThe Board expects adjusted operating profit for 2026 to be ahead of current market expectations, reflecting order momentum and the benefits of the cost program building through the second half.
- Divisional Realignment CompletedThe transition to a product-led organization was completed in April, with the group aligned around three divisions: Power, EMS, and Components. Management said the structure better aligns sites around common technologies and production characteristics and has improved collaboration, customer focus, and agility.
- Technology Investment and New Customer WinsPower investments included next-generation silicon carbide power modules, additive layer manufactured products, and an R&D center of excellence. These technology platforms strengthened global collaboration and the sales pipeline, and the group secured new customer wins spanning multiple sites.
- Cost Reduction Program Substantially CompleteThe cost reduction program was substantially completed during H1. The approximately £3 million of program costs were recognized in H1 operating profit and were effectively self-funded during the period. TT remains on track to deliver the previously announced £3 million of net savings during 2026, with annualized benefits expected to be more than £6 million from 2027 onwards.
- Administrative Cost Actions Preserved Core CapabilitiesManagement said cost reductions were made at administrative levels while continuing to preserve and invest in specialist engineering skills, operational and supply chain excellence, and commercial talent with relevant domain knowledge.
- Sales Transformation Delivering Stronger Order IntakeTT continued investing in its commercial organization by expanding business development resources, particularly in North America and China; improving strategic selling; strengthening pricing and bid review processes; improving CRM deployment; and strengthening pipeline management. These initiatives contributed to improved opportunity conversion, new customer logos, NBO wins, and stronger order intake.
- Components Returned to ProfitabilityComponents returned to profitability in H1, supported by better markets, better execution, and the closure of the Plano site. The division delivered 6% sales growth despite an approximately 5% impact from the Plano closure, and management expects positive momentum to continue.
- EMS Turnaround and Underlying GrowthEMS operating margin improved to 8%, with the Cleveland site profitable throughout H1 under new leadership. Excluding the one-off impact of product transfers from Suzhou to Kuantan, EMS revenue grew around 7%.
- Power Margin and H2 ConfidencePower generated £14 million of profit in H1 and maintained a 14% operating margin. Management said the division's sales phasing-related performance should recover in H2, supported by recently signed agreements, a robust book-to-bill ratio, and the strong macro outlook in aerospace and defense.
- Commercial Contract Awards Across End MarketsTT secured two new EMS customer logos in scientific and analytical instruments and won a new Power contract supplying power electronics for subsea oil and gas applications. The subsea award was described as a multimillion-dollar win and provided a reference logo in a high-growth sector.
- Rolls-Royce Multi-Year AgreementAfter the period end, TT signed a significant multi-year agreement with Rolls-Royce to supply high-reliability power electronics and precision magnetics for all of Rolls-Royce's wide-body civil aircraft engines throughout their operational lifetime. The agreement formalizes and extends a relationship of more than four decades and provides attractive long-term revenue visibility.
- Defense Program PositioningTT secured further material contract awards on the Eurofighter Typhoon program, which it has supported for almost 30 years, and remains engaged on the Future Combat Air System, Boxer and Challenger armored vehicle programs, and the Typhoon and F-35 platforms. The company also signed a letter of intent with MBDA based on its ruggedized power electronics capabilities.
- Broad-Based Market and Geographic ExposureAerospace and defense represented around two-thirds of the Power business, followed by auto and electrification, industrials, and health care. TT highlighted exposure to the United States and Asia, described as currently stronger-growing regions, and said commercial traction extended beyond aerospace and defense into health care, life sciences, semiconductor capital markets, and subsea oil and gas.
- Balance Sheet and Financing StrengthReturn on invested capital was 18%. Net debt excluding leases was £52 million at the period end, leverage was 1.1x, and the £105 million revolving credit facility was almost entirely undrawn. The facility was extended to June 2028, while private placement notes mature in 2028 and 2031 at an average rate of 3.65%.
- Expected Deleveraging and Capital Allocation DisciplineManagement expects leverage to reduce further in H2 and intends to keep leverage below 1.5x absent anything more transformational. Capital allocation priorities are sustainable and increasing free cash flow, organic investment, further deleveraging, potential capital returns, and disciplined evaluation of portfolio and bolt-on M&A opportunities.
- Potential Components DivestmentTT received an encouraging number of indications of interest in acquiring the Components business and the Board is evaluating a potential divestment. Management emphasized that any transaction remains subject to value and that there can be no certainty as to the outcome.
- Expected H2 Organic Growth and Cash Flow ImprovementTT expects revenue to return to organic growth in H2, supported by the strong order book, improving aerospace and defense demand, better health care and life sciences conditions, the successful Asia production transition, and order growth in the semiconductor supply chain. Cash generation is expected to strengthen significantly in H2, with further deleveraging expected for the full year.
- Talent Recruitment ProgressManagement reported good success attracting engineering and business development talent globally, particularly in the United States and China. TT added dedicated business development resources in China and recruited a business development professional from a top-three EMS company in China.
- EMS and Power SynergiesManagement described a strong synergy and fit between EMS and Power, including material intercompany transfers and vertically integrated supply of PCB assemblies for power conversion products. The combination was said to support design authority, speed to manufacture, quality control, cross-selling, and aerospace and defense opportunities.
DE:7TT Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 10, 2027 | 2026 (Q4) | ―- | -0.26 | ― | ― |
| Sep 02, 2026 | 2026 (Q2) | 0.050.07 | 0.02 | 194.74% (+0.04) | |
| Mar 25, 2026 | 2025 (Q4) | ―-0.26 | -0.39 | 32.24% (+0.13) | |
| Sep 24, 2025 | 2025 (Q2) | 0.040.02 | 0.08 | -73.61% (-0.06) | |
| Apr 10, 2025 | 2024 (Q4) | 0.03-0.39 | 0.14 | -383.90% (-0.53) | |
| Aug 08, 2024 | 2024 (Q2) | 0.080.08 | 0.1 | -17.24% (-0.02) | |
| Mar 07, 2024 | 2023 (Q4) | 0.120.14 | 0.11 | 25.53% (+0.03) | |
| Aug 03, 2023 | 2023 (Q2) | 0.100.10 | 0.08 | 33.85% (+0.03) | |
| Mar 08, 2023 | 2022 (Q4) | 0.110.11 | 0.1 | 4.44% (+0.00) | |
| Aug 04, 2022 | 2022 (Q2) | 0.060.08 | 0.07 | 1.56% (+0.00) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed