Essentra Plc · LSE:ESNT
Essentra — H1 2026 Earnings Presentation
44 slides from Essentra's earnings presentation, Jul 28, 2026
Slide 1: Essentra plc Half Year Results 2026
Essentra plc Half Year Results 2026 28 July 2026
Slide 2: Welcome and Overview
Welcome and Overview Scott Fawcett CEO 2
Slide 3: Agenda
Agenda 1 H1 2026 summary 2 Financial performance 3 Regional updates 4 Strategic update 5 Outlook 6 Q&A 3
Slide 4: Strong H1 financial and strategic progress
Strong H1 financial and strategic progress H1 2026 performance in line with expectations • Revenue growth of 9.0% to £166.1m. +7.8% growth like - for - like 1 • Adjusted 2 operating profit growth of 9.7% to £18.1m with 10.9% margin • Robust cash conversion of 79% Good strategic progress, focused on
Slide 5: Financial performance
Financial performance Rowan Baker CFO 5
Slide 6: H1 2026: Earnings momentum with self-help actions building
H1 2026: Earnings momentum with self - help actions building Total revenue Adjusted 1 operating Adjusted 1 operating Adjusted 1 Earnings profit profit margin per Share £166.1m +9.0% £18.1m +9.7% 10.9% +10bps 4.3p +26.5% H1 2025: £152.4m H1 2025: £16.5m H1 2025: 10.8% H1 2025: 3.4p Net debt to adjust
Slide 7: Strong profit growth driving EPS progression
Strong profit growth driving EPS progression • Gross margin remained resilient. EMEA and £m H1 2026 H1 2025 APAC regions delivered year - on - year growth offset by temporary dilution in the Americas Revenue 166.1 152.4 Gross profit 71.4 66.5 • Adjusted operating profit increased 9.7% to £18.1m thro
Slide 8: Revenue growth driven by volume recovery and pricing discipline
Revenue growth driven by volume recovery and pricing discipline • 9.8% constant currency growth, £166.1m reflecting volume and pricing +2.0% +4.2% inorganic 0.8% benefit FX translation £152.4m +3.6% pricing incl. • 7.8% like - for - like 1 growth: volume surcharges • EMEA +8.9% 7.8% like - for - lik
Slide 9: Increasing exposure to faster-growth target end-markets
Increasing exposure to faster - growth target end - markets • We continue to prioritise five faster - growing Revenue growth by end - market end - markets with attractive structural growth drivers Digital infrastructure Specialist vehicles • c.47% of Group sales delivering 8.5% +8.5% like - for - li
Slide 10: Adjusted operating profit growth supported by volume and efficiencies
Adjusted 1 operating profit growth supported by volume and efficiencies • Pricing actions offsetting inflationary pressures, with further benefit expected Efficiencies Volume FX £18.1m in H2 Pricing Inorganic and mix Inflation £16.5m Service Reinvestment • Manufacturing efficiencies and operating le
Slide 11: Adjusting items: ERP implementation approaching completion
Adjusting items: ERP implementation approaching completion Software as a Service £m H1 H1 • £1.7m reduction in SaaS related spend in 2026 2025 the first half Software as a Service (“SaaS”) 3.2 4.9 • FY26 represents the final full year of ERP Acquisitions, disposals and restructuring 2.2 0.5 related
Slide 12: Net debt bridge and working capital opportunity
Net debt bridge and working capital opportunity Net debt 1 bridge to 30 June 2026 (£m) • Growth & Simplification initiatives support a new 21% average net working capital 31 Dec target in 2028 30 June 2025 2026 68.2 Adjusted operating Interest and • H2 cash conversion is expected to improve, cash fl
Slide 13: 2026 guidance
2026 guidance • Total Group revenue growth: 6- 7% • Adjusted operating profit margin: Build back of variable compensation in 2026 as previously guided is expected to offset underlying margin progression, resulting in margins remaining broadly flat year - on - year • Final full year of ERP - related
Slide 14: Regional update
Regional update Scott Fawcett CEO 14
Slide 15: EMEA: Strong organic growth and margin performance
EMEA: Strong organic growth and margin performance • 8.9% like - for - like 1 revenue growth, supported by volume and H1 2026 H1 2025 price Revenue 89.6 82.0 • High single - digit growth in faster - growing end - markets, led by Gross Profit 44.1 39.9 digital infrastructure and energy transformation
Slide 16: Americas: Revenue growth sustained with temporary margin dilution
Americas: Revenue growth sustained with temporary margin dilution • 5.7% like - for - like 1 revenue growth led by pricing and supported H1 2026 H1 2025 by improving demand Revenue 54.3 50.0 • Device Technologies performing in line with expectations Gross Profit 19.0 19.4 Gross Margin % 35.0% 38.8%
Slide 17: APAC: Improving customer mix driving profitable growth
APAC: Improving customer mix driving profitable growth • 8.2% like - for - like 1 revenue growth, led by volume from new H1 2026 H1 2025 business wins and pricing actions Revenue 22.2 20.4 • Continued momentum in faster - growing target end - markets, Gross Profit 8.3 7.2 led by machine building & a
Slide 18: Strategic update
Strategic update I E JESSENTRA 18
Slide 19: Driving higher-quality growth through market focus and targeted investment
Driving higher - quality growth through market focus and targeted investment •1 We are a global service - led business with breadth and depth of manufacturing and product expertise •2 Strategic focus is on end - market sectors with strong structural growth fundamentals •3 We win customers through ou
Slide 20: Enhancing our go-to-market approach
Enhancing our go - to - market approach Breadth and depth of product expertise Machine components Protection Access hardware Electronics hardware & cable management Fasteners 20
Slide 21: Enhancing our go-to-market approach
Enhancing our go - to - market approach Breadth and depth of Serving five faster - growth product expertise target end - markets Machine components Defence & aerospace Protection Digital infrastructure Access hardware Specialist vehicles Electronics hardware & Energy transformation cable management
Slide 22: Enhancing our go-to-market approach
Enhancing our go - to - market approach Breadth and depth of Growth & Simplification Serving five faster - growth product expertise programme target end - markets A dual proposition and Machine components go - to - market strategy based on Defence & aerospace 80:20 principles Protection Sharper focu
Slide 23: Growth & Simplification: a dual customer proposition based on 80:20 principles
Growth & Simplification: a dual customer proposition based on 80:20 principles Simplification will: • Enable differentiated pricing and service • Improve alignment between customer value and cost - to - serve • Reduce working capital and operating costs In turn, this creates Growth through: • Improv
Slide 24: High quality acquisitions enhancing our customer proposition
High quality acquisitions enhancing our customer proposition December 2022 £29.5m / 9.0x EBITDA • New product adjacencies across machine & December 2025 June 2026 automation end - markets $6.7m / 6.6x EBITDA €7.4m / 6.5x EBITDA • >£1.1m cross - selling over three years • Substantial margin improveme
Slide 25: Technology investments enabling Growth & Simplification
Technology investments enabling Growth & Simplification Latest generation digital platforms will support our dual customer proposition Reduced cost - to - serve • Aligning manufacturing and product expertise with customer for smaller customers needs • Digitally - led capability for smaller volume cu
Slide 26: Optimising our footprint and reducing cost-to-serve
Optimising our footprint and reducing cost - to - serve • Predominantly local - for - local manufacturing and distribution footprint • Well - positioned with global supply chains • We continue to simplify the footprint to reduce cost - to - serve and improve operating leverage. Over the past three y
Slide 27: Simplification driving margin expansion and cash generation
Simplification driving margin expansion and cash generation Strategic investment in Growth & Simplification 2028 targets: programme, underpinned by 80:20 principles • 14% adjusted operating Aligning resources, service levels and inventory margin investment to customer value • c.150bps of margin Deli
Slide 28: A clear 14% milestone in 2028 towards the medium-term 18% margin target
A clear 14% milestone in 2028 towards the Group’s medium - term 18% operating margin target M&A New cost actions Market identified driving Market growth Price above share c.18% c.150bps in 2028 Price above inflation inflation M&A Cost savings Variable Market & efficiencies Reinvestment Market share
Slide 29: Outlook
Outlook I E JESSENTRA 27
Slide 30: Trading in line with expectations. 2026 guidance unchanged
Trading in line with expectations. 2026 guidance unchanged Trading to date in line with the Board's expectations • Sequential improvement, all three regions demonstrating revenue growth • New business wins in faster - growth target end - markets, focusing on the highest potential customers • Underly
Slide 31: Q&A
Q&A Essentra plc Half Year Results 2026
Slide 32: Appendices
Appendices I E JESSENTRA 29
Slide 33: Strong business model supporting delivery of medium-term targets
Strong business model supporting delivery of medium - term targets Supplier of low - cost but essential components, where service is the key customer purchasing criteria History of organic & inorganic growth resulting in diverse Revenue Growth c. 5% organic customer, product and geographic mix (c.10
Slide 34: Our investment proposition
Our investment proposition Global presence Differentiated product Focused strategy and scale offering for growth • 16 manufacturing sites • Breadth and depth of product • Organic growth strategy • Regional sales presence expertise focused on faster growth end - across EMEA, Americas and • Diverse ra
Slide 35: Driving growth through market focus and targeted strategic investment
Driving growth through market focus and targeted strategic investment Breadth and depth of product expertise Our strong balance sheet enables disciplined across low - cost components : investment in future growth through: Protection New Product Introductions Electronics hardware Sustainable products
Slide 36: Overview and regional presence
Overview and regional presence APAC 13% £166.1m Americas HY26 54% EMEA 33% revenue Access hardware 16 27 37 Injection and dip Manufacturing Distribution Sales plastic moulding sites sites locations • Predominately local - for - local, in region c.60m c.76k Parts produced Customers manufacturing with
Slide 37: Revenue diversification
Revenue diversification Revenue by end - market Revenue by product expertise Machine building Fastening Other solutions Other 1% 15% Machine and 11% automation Energy 25% 28% transformation 47% 12% 22% revenue driven Access 53% by growth hardware end - markets Metal 9% 24% 14% Specialist fabrication
Slide 38: Improving PMI supports volume recovery
Improving PMI supports volume recovery Rolling twelve - month sales volume • We continue to target organic growth above vs Global Manufacturing PMI the market driven primarily by share gains £60,000,000 56 £50,000,000 55 • Our internal volume trends remain closely £40,000,000 54 correlated with PMI
Slide 39: Unchanged capital allocation policy
Unchanged capital allocation policy 1. Organic investment • Capital investment remains core to strategic growth, driving future efficiencies Cash Net debt to • Medium - term capex guidance 4% - 5% of sales Conversion EBITDA 2. Innovation • Digitalising the customer experience • Sustainable new produ
Slide 40: We maintain an active pipeline of value-enhancing M&A
VALUE ENHANCING M&A We maintain an active pipeline of value - enhancing M&A • We continue to apply a disciplined approach to deal rationale • Focus on expanding our product offering and targeting new product capabilities • ESG considerations increasingly included within selection process • Rigorous
Slide 41: Sustainability as a source of competitive differentiation
Sustainability as a source of competitive differentiation Innovative product design and material choices • Global expansion of trials : 73 bio - based alternative trials completed including materials approved for commercial use in Italy, Spain and Thailand • Product introductions: c.14,000 products
Slide 42: Income Statement – Reported basis
Income Statement – Reported basis H1 2026 H1 2025 £m £m Adjusted operating profit 18.1 16.5 Intangible amortisation of acquired assets (4.8) (5.5) Adjusting items (6.1) (5.7) Reported operating profit 7.2 5.3 Net finance charge (4.1) (4.0) Profit before tax 3.1 1.3 Net income tax credit / (charge) 0
Slide 43: Banking facilities
Banking facilities • Revolving Credit Facility ("RCF") totalling Type Amount Interest Rate Maturity £200.0m RCF £200.00m Floating July 2030 • $102.5m of long dated US Private Placement debt (“USPP”). Average coupon rate of 3.8% USPP $32.80m 3.62% July 2030 • Covenants in place: Leverage <3.0x, inter
Slide 44: DISCLAIMER: Important legal notice
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