TT Electronics Navigates Uncertainties, Eyes Year-End Push

TT Electronics (LON: TTG) faces a crucial final two months of 2025 to meet its previously issued guidance, even as market headwinds persist.

The company's trading update on Monday underscores the challenges and opportunities ahead for the global electronics manufacturer.

Group revenue for the four-month period ended October 25, 2025, remained flat compared to the first half of the year, registering £150.4 million. All regions performed in line with board expectations. Net debt (excluding lease liabilities) edged up to £77 million, compared to £73 million at the end of June 2025.

TT Electronics reaffirmed its full-year 2025 adjusted operating profit guidance of £33.7 million, aligning with prior consensus expectations.

However, achieving this target hinges on a substantial performance surge in November and December, requiring approximately £12 million in adjusted operating profit. This includes an estimated £2 million boost from non-repeat “last time buys” related to the Plano site closure.

While order intake is consistent with delivering this needed upswing, the company acknowledges reliance on timely order fulfillment. The Board’s confidence is cautiously optimistic, pending actual execution, with markets carefully watching whether current challenges will further delay or prevent the company from meeting its expected targets.

European operations demonstrate continued strength, but the company has yet to witness a market recovery in EMS (Electronic Manufacturing Services) or Components. The order book mirrors this reality, remaining broadly similar to last year, with EMS activity lagging due to macroeconomic and tariff uncertainties affecting major customers.

Looking ahead to 2026, the TT Board expresses caution, citing ongoing market uncertainties. If current market conditions persist, underlying trading in 2026 is expected to be broadly in line with 2025, absent the £2 million benefit from the Plano site closure.

In response to these uncertainties, the company said it is proactively budgeting and making operational decisions based on this likely scenario. This includes a comprehensive analysis of further cost-cutting measures.