TT Electronics (LON:TTG) Issues Earnings Results

TT Electronics (LON:TTG) posted its quarterly earnings data on Wednesday. The company reported GBX 5.70 EPS for the quarter, Digital Look Earnings reports. TT Electronics had a negative return on equity of 31.21% and a negative net margin of 10.51%.

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 10.7%

Shares of TT Electronics stock traded up GBX 14.40 on Wednesday, hitting GBX 149.40. 3,931,830 shares of the company’s stock traded hands, compared to its average volume of 420,671. The company has a fifty day moving average of GBX 125.83 and a two-hundred day moving average of GBX 120.77. TT Electronics has a one year low of GBX 93 and a one year high of GBX 155. The company has a market capitalization of £266.57 million, a price-to-earnings ratio of -5.24, a price-to-earnings-growth ratio of 0.60 and a beta of 0.83. The company has a debt-to-equity ratio of 70.10, a current ratio of 1.71 and a quick ratio of 0.93.

Insider Activity

In other TT Electronics news, insider Phil Swash bought 100,000 shares of the stock in a transaction that occurred on Tuesday, June 9th. The shares were bought at an average price of GBX 119 per share, for a total transaction of £119,000. 8.80% of the stock is owned by company insiders.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on TTG shares. Jefferies Financial Group reiterated a “hold” rating and set a GBX 110 price target on shares of TT Electronics in a research note on Wednesday. Berenberg Bank raised their target price on shares of TT Electronics from GBX 150 to GBX 200 and gave the stock a “buy” rating in a report on Wednesday. Two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, TT Electronics presently has a consensus rating of “Moderate Buy” and an average price target of GBX 140.

Key Stories Impacting TT Electronics

Here are the key news stories impacting TT Electronics this week:

• Positive Sentiment: TT Electronics reported that it returned to profit in the first half, helped by improved margins, and raised its FY26 adjusted-profit guidance to a level ahead of market expectations. This is the main catalyst for the stock’s advance. TT Electronics Turns To Profit In H1, Lifts FY26 Adjusted Profit View To Ahead Of Market; Stock Climbs
• Positive Sentiment: The company’s full-year profit outlook was increased following the first-half margin improvement, suggesting that cost controls and operational recovery may be translating into better profitability. TT Electronics Raises Full-Year Profit Outlook Following First-Half Margin Improvement
• Positive Sentiment: Berenberg raised its price target from GBX 150 to GBX 200 and upgraded the shares to “buy,” reinforcing the bullish interpretation of the earnings update.
• Neutral Sentiment: Investors Chronicle’s “prepares for take-off” assessment reflects improving expectations around TT Electronics’ recovery and growth prospects. TT Electronics Prepares for Take-Off
• Neutral Sentiment: TT Electronics reported quarterly EPS of GBX 5.70, although the company continues to show a negative net margin and negative return on equity, highlighting that the turnaround is not yet complete. TT Electronics Earnings Report
• Negative Sentiment: Jefferies reaffirmed its “hold” rating and GBX 110 price target, well below Berenberg’s target, signaling that some analysts remain cautious about the sustainability of the recovery.

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.