TT Electronics (LSE:TTG) reported a 37% increase in adjusted operating profit for the six months ended 30 June 2026, despite a slight decline in organic revenue.

Adjusted operating margins increased during the period as the company implemented changes across its operations, including measures within its EMS business, the closure of a loss-making Components facility in Plano and a realignment of its divisions.

The group also returned to statutory profit during the half year, while leverage declined to 1.1x.

Order Intake Produces 112% Book-to-Bill Ratio

TT Electronics reported a book-to-bill ratio of 112% following changes to its sales and business development activities.

The company secured contracts with customers including Rolls-Royce and MBDA during the period. Its products are used across applications including aerospace, defence, healthcare, electrification and automation.

Free cash flow during the first half was affected by investment in inventory, which the company said was undertaken in preparation for expected growth during the second half.

TT Electronics Expects Full-Year Profit Above Market Forecasts

The Board now expects full-year adjusted operating profit to be ahead of current market expectations.

TT Electronics also expects revenue to return to organic growth during the second half, supported by its existing order book. These remain company forecasts rather than established outcomes.

The group’s cost reduction programme is largely complete and is expected to generate approximately £3 million of net savings in 2026, increasing to more than £6 million annually from 2027.

TT Electronics is also evaluating a potential divestment of its Components business as part of its review of the group’s portfolio.

More About TT Electronics

TT Electronics is a global provider of engineered electronics used in performance-critical applications across healthcare, aerospace, defence, electrification and automation.

Its operations include Power, EMS and Components divisions, with products covering areas such as sensors and power management solutions. The group has manufacturing operations across multiple regions, including Asia and North America.