Avon Technologies plc (AVON), a specialist in military and law enforcement protective equipment, has reported preliminary results for the year ended 30 September 2026, delivering a strong set of financials that exceeded every medium-term target set under its STAR transformation programme, one year ahead of schedule. Group revenue rose 12.7% to $353.7m, while adjusted operating profit surged 50.6% to $60.7m. The results reflect record helmet production, record filter volumes, significant new contract wins across both business units, and a materially strengthened balance sheet, developments investors in defence and protection technology will be watching closely.

Key Points

  • Avon Technologies plc (AVON) — military and law enforcement protective equipment specialist operating two units: Avon Protection and Team Wendy
  • FY26 revenue grew 12.7% to $353.7m; adjusted operating profit margin expanded 440 basis points to 17.2%
  • Adjusted basic EPS rose 57.1% to 143.3c; total dividend per share increased 8.9% to 26.8c; leverage fell to 0.43x from 0.86x
  • Investors should watch progress on the US CBRN suits programme, international helmet expansion, and execution of the new Improve. Grow. Compound. strategy

STAR Transformation Completed With All 2027 Financial Targets Beaten in FY26

Avon Technologies confirmed the successful completion of its STAR transformation programme in FY26, having achieved all targets originally set for 2027 a full year ahead of schedule. Adjusted operating profit margin reached 17.2%, well above the 14–16% target range, while return on invested capital climbed to 27.6% against a target of greater than 17%. Free cash flow improved significantly to $30.9m from $12.6m the prior year, and leverage fell to 0.43x, comfortably below the 1–2x target. Total transformation spend in FY26 was $7.4m, materially below FY25's $15.4m, as the programme concluded. Cash conversion stood at 92.7%.

Record Filter Volumes and $80m-Plus of ACH and NG IHPS Helmet Orders Underpin Demand

Avon Protection delivered record filter volumes during the year, supported by a $14m US Department of Defence filter order and a $13m order from a Middle Eastern customer. The NATO Support and Procurement Agency framework secured more than $45m of additional respiratory orders, now covering 16 NATO nations. Team Wendy produced a record 200,000 helmets in FY26 and secured a $40m NG IHPS award alongside two ACH Gen II orders worth $20.1m and $20.3m respectively. A new Australian Defence Force contract of up to seven years for EXFIL helmets and $19m of new EXFIL orders from the US Air Force further broadened the customer base.

Avon Technologies Launches Improve. Grow. Compound. Strategy Targeting Adjacent Protection Markets

With the STAR programme concluded, Avon Technologies has launched its next strategic framework — Improve. Grow. Compound. — centred on continuous improvement, core market growth, and selective acquisition of complementary businesses within fragmented protection technology markets. The company advanced to the down-select stage of the US CBRN suits programme, securing an initial contract to deliver 1,500 suit systems in FY27. Team Wendy's international revenue grew 44% to $20.9m in FY26, and the group secured its first European military helmet contract. The announcement states that the company has identified adjacencies with potential to materially extend its total addressable market.

Balance Sheet Strengthens as Net Debt Falls and Dividend Rises 8.9%

Avon Technologies closed FY26 with net debt excluding lease liabilities of $33.7m, down from $50.1m in FY25, reflecting improved profitability and cash generation. Statutory profit before tax reached $42.0m, more than three times the prior year's $13.1m. The board declared a total dividend per share of 26.8c, an 8.9% increase on the 24.6c paid in FY25. The closing order book stood at $262.7m, broadly flat year-on-year, with Team Wendy's order book growing to $152m including $69m of ACH Gen II and $63m of NG IHPS orders. The group operates across more than 70 countries, supplying protection equipment trusted by over four million service personnel and first responders.