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Highlights:

  • TTG’s group revenue fell 5.5% YoY for the five months to 31 May 2025.
  • TT Electronics to shut down loss-making Plano, Texas site by year-end.
  • TTG board maintains FY25 adjusted operating profit guidance amid market uncertainty.

TT Electronics plc (LSE:TTG), a UK-based global provider of engineered electronics, issued a trading update ahead of its Annual General Meeting, covering the Group’s performance for the five months ending 31 May 2025. The company reported a 5.5% decline in organic revenue compared to the same period in the previous year. While business activity in Europe remained resilient, challenges in North America and Asia weighed on overall results.

The Group’s book-to-bill ratio stood at 101%, sustained by demand from aerospace and defence customers in Europe. However, ongoing weakness in the North American segment, combined with recent U.S. order deferrals impacting Asia, contributed to an uneven performance. The company cited customer uncertainty around tariffs as a factor affecting regional demand.

TT Electronics also provided updates on operational changes. As part of its strategic review initiated in April 2025, the company confirmed it will close its Plano, Texas site, which recorded a GBP 5.7 million operating loss in 2024 prior to group recharges. The closure is expected to complete by the end of 2025. TT stated it would support affected employees, customers, and suppliers through the transition.

The Components division, which includes operations in Plano, Juarez (Mexico), the majority of Mexicali, and part of Bedlington (UK), will begin operating as a separately managed unit starting 1 July 2025. This change is aimed at increasing oversight and focus.

Meanwhile, the Cleveland, Ohio site continues to undergo an operational improvement program. External consultants have been engaged to assist with improving contract profitability, reviewing inventory, and enhancing operational efficiency. However, the company reiterated that the full benefits of these measures will take time, depending on production volume increases and productivity gains.

In terms of outlook, TT Electronics noted that aerospace and defence demand remains stable, but warned of broader market uncertainty. Despite the mixed trading environment, the Board said it continues to expect adjusted operating profit for FY25 to align with previous guidance issued in April. That guidance placed expected adjusted operating profit within a GBP 32 million to GBP 40 million range, with the latest market consensus at approximately GBP 34.7 million.

The company flagged that due to the expected second-half concentration of profit and cash collection, its leverage ratio in June 2025 is likely to exceed 2x, though it did not indicate a change to financial policy or guidance as a result.

Acting CEO Eric Lakin stated that TT remains focused on executing customer contracts, improving operational efficiency, and managing key restructuring efforts.

The Board also confirmed it will announce the appointment of a permanent CEO in the second half of 2025.

TT Electronics will report its interim results for the six months ending 30 June 2025 on 24 September 2025, which will include additional updates on the progress of the Cleveland and Plano projects and the Components business review.

As of 30 June 2025, TT Electronics shares were trading at GBX 103.97, down 6.50% on the day.