Avon Technologies (LSE:AVON) has raised its expectations for FY26 and outlined new financial targets as part of its next-stage strategy, called “Improve. Grow. Compound.”
The company now expects FY26 results to exceed current market expectations, with revenue growth of approximately 12.5%. Adjusted operating margin is expected to be comfortably above its previous 14% to 16% range.
Avon also expects a significant increase in return on invested capital (ROIC) and said it anticipates ending the period with low leverage.
The revised outlook follows order intake across the company’s Avon Protection and Team Wendy businesses, including orders associated with defence programmes in Europe, the US and Australia.
Avon Targets More Than $175 Million of Free Cash Flow
At an investor event in London, Avon set out medium-term targets including annual revenue growth of more than 5% on a compound annual growth rate basis and an adjusted operating margin of between 16% and 18%.
The company is also targeting annual earnings per share growth of more than 10% and cumulative free cash flow exceeding $175 million over the next three years.
Over the longer term, Avon is targeting annual revenue above $600 million and ROIC exceeding 18%.
The strategy incorporates the company’s Business Improvement System, which Avon intends to use to support operational improvements and organic growth. The group also plans to consider selective acquisitions within the protection technology sector.
About Avon Technologies
Avon Technologies provides protective equipment for military and law-enforcement customers through its Avon Protection and Team Wendy businesses.
Avon Protection develops respiratory and integrated protective systems, while Team Wendy supplies ballistic and impact-protection helmet systems.
The company’s products are used by more than four million military personnel and first responders across more than 70 markets.
Leave a Reply