Coats Group Plc · LSE:COA
Coats — H1 2026 Earnings Presentation
30 slides from Coats's earnings presentation, Jul 28, 2026
Slide 1: Ongoing Market Outperformance: 2026 Half Year Results
ONGOING MARKET OUTPERFORMANCE 2026 Half Year Results 28 July 2026
Slide 2: Disclaimer
DISCLAIMER Restricted distribution This presentation is not for release, publication or distribution, in whole or in part, directly or indirectly, in, into or from any jurisdiction where to do so would constitute a violation of the relevant laws or regulations of such jurisdiction (the ‘Restricted J
Slide 3: Agenda
AGENDA 01. Highlights 02. Financial Results 03. Strategic Update 04. Summary & Outlook 05. Appendix COATS GROUP PLC | 2026 INTERIM RESULTS 3
Slide 4: HY26 Highlights
HY26 HIGHLIGHTS GOOD MARKET PROGRESS 1% Organic revenue growth 19.8% Group adjusted EBIT margin maintained Mid-single digit market outperformance in Apparel Organic Footwear acceleration in Q2 (+6% YoY) Significant OrthoLite sales synergies identified COATS GROUP PLC | 2026 INTERIM RESULTS 4
Slide 5: HY26 Financial Results
HY26 FINANCIAL RESULTS ONGOING MARKET OUTPERFORMANCE Revenue EBIT EBIT Margin $837m $166m 19.8% +1% organic CER (2%) organic CER +0bps (H1 2025: $705m) (H1 2025: $140m) (H1 2025: 19.8%) EPS Free Cash Flow1 Leverage 4.4c $30m 2.3x (H1 2025: 4.7c) (H1 2025: $38m) (FY 2025: 2.2x) 1. Free cash flow afte
Slide 6: Apparel
APPAREL FINANCIAL PERFORMANCE $m H1 26 H1 25 Organic CER Revenue 486 482 1% EBIT 92 93 (2%) EBIT (%) 18.9% 19.4% CONTINUED STRONG PERFORMANCE Apparel thread market estimated down mid-single digit Broad-based share gains, including China domestic and automotive Strengthened market leadership in 100%
Slide 7: Footwear
FOOTWEAR FINANCIAL PERFORMANCE $m H1 26 H1 25 Organic CER Revenue 351 223 0% EBIT 74 47 (2%) EBIT (%) 21.1% 20.8% GROWTH AND MARGIN IMPROVEMENT Footwear market estimated down mid-single digit Sequential growth acceleration in Q2 in a soft market Share gains in thread and components, strong growth in
Slide 8: Income Statement
INCOME STATEMENT Exceptional / acquisition related items $m H1 2026 H1 2025 Exceptional: $7m costs to deliver OrthoLite integration and divisional Adjusted EBIT 166 140 structure change, partly offset by $4m property sales benefit Acquisition related: increase in acquisition intangibles due to Excep
Slide 9: Cash Flow and Leverage
CASH FLOW AND LEVERAGE STRONG FREE CASH FLOW H1 2026 $m $m H1 2026 H1 2025 191 (35) Free cash flow1 30 38 (16) (31) Acquisitions and disposals (13) 16 (43) (12) 30 Dividends paid to equity shareholders (43) (35) (11) (11) EBITDA Working Capex Interest Taxation Minority Leases Other Adj FCF FX and ot
Slide 10: Modelling Guidance
MODELLING GUIDANCE CONFIDENCE IN H2 EBIT IMPROVEMENT 2026 GUIDANCE UNCHANGED Working Capital c.12% of sales Expect H2 working capital unwind based on typical seasonality Capital c.$40-45m Expenditure Plus $5m related to OrthoLite integration capex (see below) Finance costs $60-65m Cash interest expe
Slide 11: Focus on Innovation and Operational Excellence: Strategic Update
Focus on Innovation and Operational Excellence Strategic Update
Slide 12: Strategic Highlights
STRATEGIC HIGHLIGHTS MSD% of market outperformance in H1 Market-leading manufacturing footprint with system-driven operational agility Broadest product portfolio, leader in sustainability, increased focus on innovation Footwear division enhanced to drive accelerated growth Four product P&Ls with ded
Slide 13: Our Building Blocks for Growth
OUR BUILDING BLOCKS FOR GROWTH MARKET SHARE TARGET GROUP GROWTH GAINS ADJACENCIES TOTAL MEDIUM-TERM GUIDANCE 3% CAGR 1-2% CAGR c.1% CAGR >5% CAGR1 PERFORMANCE c.(MSD%) +c.MSD% +1% +1% H1 2026 Cautious customer ordering; Strong share gains across Strong growth in composite MSD outperformance vs. Tari
Slide 14: Industry Environment
INDUSTRY ENVIRONMENT LEAN INVENTORIES FOLLOWING THREE QUARTERS OF INDUSTRY DESTOCKING 60,000 Demand Trends1 2010-’19 6,000 58,000 Footwear 5,500 Industry demand below historical averages 56,000 Average 54,000 Both apparel and footwear volumes below 2010-19 average 5,000 52,000 50,000 2010-’19 4,500
Slide 15: Continued Share Gain Momentum
CONTINUED SHARE GAIN MOMENTUM MID-SINGLE DIGIT MARKET OUTPERFORMANCE IN H1 INDUSTRY CONSOLIDATION TRENDS COATS’ DIFFERENTIATION Faster fashion cycles Shorter lead times Fast prototyping; Production planning systems Tier 1 productivity Product quality and consistency Best quality and consistency; col
Slide 16: Acceleration in Footwear
ACCELERATION IN FOOTWEAR +6% GROWTH IN Q2 YEAR-ON-YEAR IN A DECLINING MARKET, BUILDING MOMENTUM SIGNIFICANT STRUCTURAL ENHANCING A WORLD-CLASS INVESTING FOR THE FUTURE – CHANGE IN H2 25 «DELIVERY» ORGANISATION ACCELERATING INNOVATION From 3 to 2 Divisions PROGRESS: Commercial Excellence IMPACT • Str
Slide 17: Investment in Target Adjacencies
INVESTMENT IN TARGET ADJACENCIES 1% OF GROUP REVENUE GROWTH IN H1, ONGOING INVESTMENT TO SUPPORT FUTURE GROWTH One-step adjacencies Combined TAM c.$2bn Differentiated Known customers Growing >5% CAGR Coats offerings SAFETY ENERGY COATS PROWEAVE LIFESTYLE FABRICS TAPES DIGITAL H1 PROGRESS • New produ
Slide 18: Target Adjacencies: Energy Tapes
TARGET ADJACENCIES: ENERGY TAPES $11M OF SALES IN 2025, $40M+ POTENTIAL BY 2030 INDUSTRY DRIVERS Increased deepwater oil exploration in the Americas driving high pipe demand Engineered polymer tapes displacing steel layers in pipes due to harsh environment Concentrated customer base with long qualif
Slide 19: OrthoLite: Progress Since Acquisition
ORTHOLITE: PROGRESS SINCE ACQUISITION AT LEAST $20M ANNUALISED COST SYNERGIES BY FY28 FOR C.$35M ONE-OFF COST CURRENT PERFORMANCE SOURCES OF COST SYNERGIES Footprint optimisation On Track Operational Indonesia in progress Operational excellence and Management Pleret insole production Q1 27 automatio
Slide 20: $40M+ OrthoLite Sales Synergies
$40M+ ORTHOLITE SALES SYNERGIES EXPANDED TAM OPENS SALES SYNERGY OPPORTUNITY, NOT INCLUDED IN ACQUISITION CASE 2030 TOTAL ADDRESSABLE MARKET 2026 PROGRESS Safety Insoles Product qualified by 5 brands Core Business $700m in 2024 Expect first launch in H2 c.$1 billion by 2030 SCF Insoles Adjacencies N
Slide 21: Cirql: Innovation in Midsole
CIRQL: INNOVATION IN MIDSOLE SUSTAINABLE MIDSOLES FOR NEW EU REGULATION WHY CIRQL? New EU ESPR regulation (2027-30) will drive carbon footprint reduction in footwear Midsole represents 25-30% of total shoe carbon footprint Cirql is a step change in sustainability for “low-density” (SCF) foam midsole
Slide 22: Summary and Outlook
SUMMARY AND OUTLOOK MARKET LEADING POSITION STRENGTHENED Full year expectations unchanged Assuming modest market decline in H2 despite low inventory levels Good year-on-year earnings growth in full year Continued outperformance from share gains Secured pricing will offset expected inflation New plat
Slide 23: Q&A
Q&A
Slide 24: Appendix
APPENDIX
Slide 25: The Coats Investment Case
THE COATS INVESTMENT CASE World leader in our markets A leading Tier 2 supplier of critical components to the apparel and footwear industry Consistently outperforming our markets Unrivalled global manufacturing capability, proprietary technology platforms & continued innovation c.$1bn Improved quali
Slide 26: Key Differentiators for Driving Share Gains
KEY DIFFERENTIATORS FOR DRIVING SHARE GAINS WIN WHERE IT MATTERS SUSTAINABILITY INNOVATION DIGITAL Sustainable portfolio Customer breadth and depth ShopCoats digital platform Sustainable operations Scale & financial power Transparency & compliance & suppliers OPERATIONAL EXCELLENCE COMMERCIAL EXCELL
Slide 27: Medium Term Modelling Guidance
MEDIUM TERM MODELLING GUIDANCE GUIDANCE AREA 2026 MEDIUM TERM (2027 ONWARDS) Working Capital c.12% of sales c.12% of sales Expect H2 working capital unwind based on typical seasonality Capital Expenditure c.$40-45m including OrthoLite run rate c.2.5% of sales Plus $5m related to OrthoLite integratio
Slide 28: Medium Term Targets
MEDIUM TERM TARGETS ANNOUNCED IN MARCH 2026 Medium-term financial framework >5% on average through the cycle Revenue Growth1 200+bps outperformance vs market EBIT % 21-23% FCF1,2 (cumulative) c.$1bn over 5 years Total EPS1 (CAGR) >10% 1. From a 2026 baseline 2. Free cash flow after interest, tax, mi
Slide 29: Capital Allocation
CAPITAL ALLOCATION TAKING A DISCIPLINED AND RETURNS BASED APPROACH TO CAPITAL ALLOCATION PRIORITIES CAPITAL ALLOCATION c.$1bn FCF1 over 5 year period 01. Reinvest in organic growth Buybacks or M&A 02. Progressive dividend EPS growth >10%2 03. Share buybacks and / or disciplined M&A Dividends Illustr
Slide 30: Operating Margin Bridge
OPERATING MARGIN BRIDGE RESILIENT MARGIN THROUGH STRONG EXECUTION AND ACQUISITIONS CONTRIBUTION 19.8% margin 19.8% margin 29 166 $m 3 12 140 1 137 (8) (11) H1 2025 EBIT Volume Price/mix Net inflation Productivity Other SG&A H1 2026 Contribution from H1 2026 EBIT impact benefits (Organic) acquisition