TT Electronics reports mixed trading, in line with expectations

(Sharecast News) - TT Electronics said on Friday that trading in the first four months of 2026 was in line with expectations, as weaker demand in its electronic manufacturing services markets offset continued strength in aerospace and defence. The London-listed engineer and manufacturer of electronic solutions for critical applications said group revenue for the four months to 30 April was down 4.8% year-on-year on an organic basis, reflecting softer EMS end-market demand that had been flagged at the time of its 2025 results.

Revenue linked to a previously highlighted EMS customer transferred from TT Suzhou to TT Kuantan was £10m lower than the same period last year, reflecting the effect of safety stock built ahead of the transfer.

Excluding that customer and the closure of the Plano site, group revenue rose 2.9% organically.

TT said book-to-bill stood at 107%, supported mainly by aerospace and defence, where structural tailwinds continued to drive strong customer demand.

The company said it was making progress against the four strategic priorities set out in March, including the transition to a divisional structure, which had now been implemented.

It said the move improved alignment between how the group operates and how customers engage with the business.

Its targeted cost reduction programme was also progressing in line with expectations and remained on track to deliver a net benefit of about £3m in 2026, with the medium-term annualised run-rate expected to reach double that level.

TT said its sales transformation programme was gaining traction, with investment in business development capability, customer relationship management and pricing discipline beginning to yield results.

The board also continued to evaluate options for the Components business "in a disciplined and value-led manner".

The company said demand in EMS markets continued to be affected by macroeconomic uncertainty and customer caution, although aerospace and defence remained buoyant.

Full-year guidance was unchanged, with the board continuing to expect adjusted operating profit to be in line with company-compiled consensus.

Chief executive officer Eric Lakin said TT was "making good progress" against its strategic priorities and that the business was in "a meaningfully stronger position than it was a year ago".

"While we are mindful of near-term uncertainty in some end markets, we are encouraged by the continued strength in Aerospace & Defence and the progress we are making operationally," he said.

"Our full year guidance is unchanged, and the Board remains confident in the Group's ability to deliver further operational and financial progress."

TT also confirmed that Ian Ashton would join as chief financial officer on 29 June following the completion of his notice period at SIG.

He will succeed Richard Webb, who will remain in role after Ashton's arrival to support an orderly handover.

The company said interim results for the six months to 30 June would be announced on 2 September.

At 1108 BST, shares in TT Electronics were flat at 118p.

Reporting by Josh White for Sharecast.com.

See latest RNS on Investegate