TT Electronics plc (TTG) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning everyone and welcome to our full year results presentation for 2025. I'm Eric Lakin, CEO and I'm joined today by our interim CFO Richard Webb. Very happy to be with you all again for my first full year announcement at TT. 2025 has been a year of transition for TT Electronics It was a year where we faced clear operational challenges, but also one in which we took swift action to address them. Our focus has been on restoring operational control, strengthening our balance sheet and creating a solid platform for future growth. While there is a lot of work still to do, I'm pleased that we have delivered a stable performance and we enter 2026 with a much stronger operational and financial foundation. Let's start with a look at the headlines for the year. Despite the macro headwinds we faced, we delivered results in line with expectations, with momentum notably strengthened in the second half. We saw improved operating profit, margins and cash flow, driven by better execution and strict cost discipline across the group. Notably, our cash generation was very strong. We have significantly reduced our net debt and strengthened the balance sheet, which Richard will detail shortly. We have successfully restored operational control following the conclusive actions we took earlier in the year, particularly at the Plano and Cleveland sites, and I'll cover this in more detail later. Performance was mixed by region, but for clear reasons. Europe performed strongly, driven by structural growth in aerospace and defence. Meanwhile, North America materially improved and we have ceased production at Plano as we complete the closure of that site. Asia was impacted by softer macro-driven demand in EMS, but we view the region as better positioned operationally as we enter 2026. ...