Slides
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2026TT ELECTRONICS HALF YEAR RESULTS
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HY 2026 IN REVIEWERIC LAKIN, CEO
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HY 2026 HIGHLIGHTS: STRATEGIC EXECUTION DRIVING IMPROVED OPERATING PERFORMANCE From operational turnaround to disciplined execution and delivery •Materially improved profitability, margin expansion and stronger commercial momentum, reflecting strategic actions taken during 2025, improved execution, and the delivery of strategic priorities in H1 2026.•Adjusted operating profit up 37.0% to £18.5m, with organic¹ operating margin up 230bps, reflecting:oBenefits of the operational actions taken in the Electronic Manufacturing Services division (EMS), with the Cleveland turnaround delivered and the site profitable in the period.oReturn of the Components business to profitability, driven by business improvement and the closure of the site in Plano, which was significantly loss-making in H1 2025.oDivisional realignment implemented, substantial completion of the cost reduction programme, and strong momentum in order intake across the Group in the half.•Board now expects 2026 adjusted operating profit to be ahead of current market expectations2 1 - Organic measures are presented on a constant currency basis. Constant currency performance is calculated by translating prior period performance at the current period’s FX rates. 2 - Company compiled consensus for adjusted operating profit is a range £32.6 million to £38.5 million. 3
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DISCIPLINED FRAMEWORK DELIVERING OPERATIONAL & FINANCIAL PROGRESS Tangible progress across our strategic priorities in the first half DIVISIONAL REALIGNMENT SALES TRANSFORMATION COST REDUCTION PROGRAMME PORTFOLIO OPTIMISATION 4
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DIVISIONAL REALIGNMENT •Successfully implemented the transition to a product-led organisational structure, better aligned to how customers engage with TT •Improved collaboration across our global footprint, with clearer accountability and simplified decision-making •Focused investment in next-generation technologies, strengthening our competitive position and commercial pipeline •Early operational and commercial benefits already evident, including new customer wins spanning multiple sites Creating a more agile, customer-focused organisation5 Aligning the Group around Power, EMS and Components to improve collaboration, accountability and execution.
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COST REDUCTION PROGRAMME •Programme implementation substantially completed•Restructuring costs recognised above the line in the first half, with financial benefits building through H2•Approximately £3 million of net savings expected during FY2026 and annualised savings expected to be more than £6 million from FY2027 onwards•Creates a stronger platform for continued margin expansion and sustainable profitability Building a leaner, more efficient operating model6 Simplifying the cost base to create a leaner operating model while maintaining our engineering capability and customer service.
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SALES TRANSFORMATION •Continued investment in sales and business development, supported by enhanced CRM capability and pipeline management •Greater commercial discipline driving stronger order intake and a book-to-bill ratio of 112% •Encouraging new customer wins and improved conversion of commercial opportunities•Building a stronger commercial organisation to support sustainable long-term growth Building a stronger commercial engine for growth7 Strengthening our commercial capability to improve order intake, customer engagement and long-term organic growth.
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PORTFOLIO OPTIMISATION •Strategic review of the Components business complete with the Board evaluating a potential divestment following receipt of encouraging indications of interest•Any transaction remains subject to value, with no certainty as to the outcome•Return to profitability of Components during the period reinforces confidence in the underlying business•Disciplined capital allocation remains a priority Active portfolio optimisation to enhance long-term value 8 Actively optimising the Group's portfolio to sharpen strategic focus and enhance long-term shareholder value.
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FINANCIAL REVIEWIAN ASHTON, CFO
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GROUP FINANCIAL PERFORMANCE£m HY 2026HY 2025Change1 Revenue (organic)228.1234.5(2.7)% Adjusted operating profit (organic)18.513.537.0% Adjusted operating profit margin (organic)8.1%5.8%230bps Adjusted profit before tax15.88.585.9% Adjusted EPS (pence)5.7p1.9p200.0% ROIC (%) 17.7%10.0%770bps Net debt (excl. lease liabilities)(52.0)(73.3)(29.1)% Leverage1.1x1.9x(0.8)x •Revenue down 2.7% organically; up c4% excluding the Plano closure and the TT Suzhou to TT Kuantan EMS customer transfer•Adjusted operating profit up 37.0%, driven by success of actions taken in 2025, notablyCleveland turnaround and return to profitability of Components•Adjusted operating margin up 230bps to 8.1%•On a normalised basis, if a deferred tax asset could be recognised, adjusted EPS would have been 6.5p•ROIC improved 770bps to 17.7%•Net debt (excl. leases) down to £52.0m; leverage 1.1x (HY 2025: 1.9x) – materially stronger financial position 1 - Organic measures are presented on a constant currency basis. Constant currency performance is calculated by translating prior period performance at the current period’s FX rates. 10
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237.9 234.5 0.1 2.0 (3.4) (8.5) 228.1 HY 2025FXOrganicPowerEMSComponentsHY 2026100 120 140 160 180 200 220 240 Improved momentum in Components division, offsetting Plano closure Revenue reductionprimarily from customer site transfer Strength in A&D but some customer driven delays pushed to H2 Revenue (2.7)% YoYREVENUE BRIDGE£m 11
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13.0 0.5 13.5 (1.2) 2.9 18.5 HY 2025FXOrganicPowerEMSComponentsHY 20265 7 9 11 13 15 17 19 ADJUSTED OPERATING PROFIT £m 3.3 Operating profit +37.0% YoY Near term margin reduction from customer order phasing Benefits of operational actions taken in 2025 in Cleveland Improving momentum driving increase; Plano closure benefit 12
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POWER – A&D STRENGTH AND ORDER MOMENTUM£m HY 2026HY 2025Change1 Revenue97.397.20.1% Adjusted operating profit13.815.0(8.0)% Adjusted operating profit margin14.2%15.4%(120)bps •Revenue of £97.3m, broadly flat organically, with sustained A&D demand across our European operations•Certain key customer agreements now finalised, with associated demand and price phasing into H2•Margin performance in H1 impacted by the above•Strong A&D order momentum, supported by a healthy programme pipeline•This momentum is reflected in the 114% book to bill ratio with growth across all sites131 - Organic measures are presented on a constant currency basis . Constant currency performance is calculated by translating prior period performance at the current period’s FX rates.
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EMS – MARGIN RECOVERY UNDERWAY£m HY 2026HY 2025Change1 Revenue94.1102.6(8.3)% Adjusted operating profit7.44.180.5% Adjusted operating profit margin7.9%4.0%390bps •Revenue down 8.3%, reflecting the one-off TT Kuantan single customer transfer; up approximately 7% after excluding this.•Adjusted operating profit up 80.5% to £7.4m, with margin up 390bps to 7.9%•Cleveland turnaround complete, with the site profitable in the period; ongoing focus on operational improvement•TT Kuantan transfer complete and now ramping up, positioned to support higher volumes in second half 141 - Organic measures are presented on a constant currency basis. Constant currency performance is calculated by translating prior period performance at the current period’s FX rates.
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COMPONENTS – IMPROVING MOMENTUM£m HY 2026HY 2025Change1 Revenue36.734.75.8% Adjusted operating profit1.0(1.9)n/a Adjusted operating profit margin2.7%(5.5)%820bps •Revenue up 5.8% to £36.7m, despite Plano closure headwind, with improving momentum division-wide •Return to profitability, with adjusted operating profit of £1.0m (HY 2025: £1.9m loss) and margin of 2.7%•2026 benefitting from closure of Plano site last year•Strategic review complete, with encouraging number of indications of interest received; any transaction remains subject to value 151 - Organic measures are presented on a constant currency basis. Constant currency performance is calculated by translating prior period performance at the current period’s FX rates.
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SECTORGEOGRAPHY 23.1% 33.6%27.0% 16.3% HealthcareA&DAuto ElecDistribution 22.2% 16.0%36.1% 24.9%0.8% United KingdomEUAmericasAsiaRoW REVENUE BY SECTOR AND GEOGRAPHY Broad and well-established exposure to macro growth drivers 1 – Totals refer to H1 2026 Revenue. 16
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18.5 5.5 24.0 (12.7) (4.6)1.0 7.7 (3.8)(2.1)(2.2)(0.4) Operating ProfitD&AEBITDAWorking CapitalCapital & Dev ExOther Operating Cash FlowRestructuringInterest & TaxLeasesFree Cash Flow -5 0 5 10 15 20 25 CASH FLOW BRIDGE£m 17 Cash Conversion 42% (108% on LTM basis) Targeted inventory build to support H2 growth, & timing of customer receipts •Operating cash inflow of £7.7m, affected by planned inventory investment•Cash conversion of 42% (HY 2025: 135%), and 108% on a last-12-months basis•Neutral at the free cash flow level for the half.•Cash generation expected to strengthen in second half as working capital unwinds, with the full year target unchanged
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BALANCE SHEET & FINANCING£m HY 2026HY 2025Change1 Net debt (excl. lease liabilities)(52.0)(73.3)(29.1)% Leverage1 1.1x1.9x(0.8)x 1 - Net debt / adjusted EBITDA calculated as per bank covenant - pre-IFRS 16. •Net debt (excl. leases) reduced to £52.0m, down £21.3m YoY•Leverage reduced to 1.1x (HY 2025: 1.9x), with net interest cover of 7.9x•RCF drawn £8m at period-end•RCF amended and extended in H1: June 2028 expiry date, with facility size of £105m•Interest cover covenant reverted to 4.0x under the amended facility, with the Group compliant throughout the period•Leverage covenant remains at 3x 18 FundingSize (£m)MaturityRate Revolving credit facility105.0Jun 2028SONIA/SOFR plus margin, based on leveragePrivate Placement Notes37.5Dec 2028Blended rate of 3.65%Private Placement Notes37.5Dec 2031 Modest leverage, significant room on covenants, and appropriate financing structure in place
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IMPROVING ORGANIC CASH GENERATION DISCIPLINED CAPITAL ALLOCATIONORGANIC BUSINESSFREE CASH FLOW APPLICATION•Revenue growth – stronger commercial execution in growing markets•Sustained growth in operating profit and OP margin – leveraging fixed costs and capacity, and continued focus on costs•Robust cash conversion % of higher profits•Highly disciplined reinvestment in organic business CONTINUED DELEVERAGING Further deleveraging expected in FY 2026Ongoing target leverage: below 1.5x SHAREHOLDER RETURNS Board will keep dividend policy under review – further update in March 2027 PORTFOLIO OPTIMISATION AND M&A PIPELINE Potential divestment of ComponentsProceeds would provide enhanced financial flexibility and strategic optionality In medium term, Board will consider selective, EPS-accretive bolt-on acquisitions DISCIPLINED DEPLOYMENT OF CAPITAL A materially stronger balance sheet creating capacity to invest and grow 19
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LOOKING AHEADERIC LAKIN, CEO
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NEW CUSTOMER WINS BROAD COMMERCIAL MOMENTUM 21Building a stronger commercial pipeline to support future growth •Investment in our commercial organisation driving a stronger pipeline and increasing customer wins •Material contract awards secured across multiple end markets, including a multi-million-pound lifetime agreement with Rolls-Royce and a new strategic partnership with MBDA •Commercial pipeline continues to strengthen, including growing demand across multiple sectors, and participation in major next-generation defence programmes•New customer wins for EMS in Healthcare and growth in the semiconductor capex market, demonstrating broader commercial traction beyond Aerospace & Defence SELECT CUSTOMER WINS
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ROLLS-ROYCE A LONG-TERM STRATEGIC CUSTOMER RELATIONSHIP 22 Engineering partnerships that are built to last MISSION-CRITICAL TECHNOLOGY LONG-TERM VALUE LONG-TERM AGREEMENT TRUSTED PARTNER Multi-year agreement to supply high-reliability power electronics solutions for all large civil aircraft engines throughout their operational lifetime Mission-critical power electronics and precision magnetics that support the performance and reliability of Rolls-Royce's large civil aircraft engines Builds on more than four decades of collaboration and reinforces TT's position as a trusted design and manufacturing partner to Rolls-Royce Provides attractive revenue visibility and demonstrates TT's ability to secure strategic customer partnerships
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EUROFIGHTER TYPHOON LONG-TERM POSITION ON KEY DEFENCE PROGRAMME 23 From Eurofighter Typhoon today, to FCAS tomorrow HY 2026 MOMENTUM ENGINEERING EXPERTISE LONG-TERM PROGRAMME NEXT-GEN PLATFORM Supporting the Typhoon programme for almost 30 years, providing long-term revenue visibility through production, upgrade and in-service support Secured further material contract awards during HY 2026, reinforcing TT's position on one of Europe's leading air defence programmes Engaged on the Future Combat Air System, supporting the transition from today's Typhoon platform to Europe's next-generation combat aircraft TT supports highly skilled engineering capability across Manchester, Barnstaple, Bedlington and Fairford, creating a strong platform for future defence programmes
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OUTLOOK 2026 adjusted operating profit expected to be abovecurrent market expectations¹ •Strong order momentum and attractive positions in structurally growing markets support a return to sustainable organic growth.Revenue & Market •A leaner, more disciplined operating model provides a platform for continued margin expansion and improved profitability.Operational Performance •Delivery against our strategic priorities is strengthening commercial execution and operational excellence, positioning TT for long-term value creation.Strategic Execution •Stronger cash generation and continued deleveraging will provide increasing flexibility for investment and future shareholder returns.Cash & Balance Sheet 24 1- Company compiled consensus for adjusted operating profit is a range £32.6 million to £38.5 million.
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Q&A
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APPENDIX
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Interest§c.£2m reduction vs 2025 due to reduced debtTax §Effective rate would be in mid 20s%, but will be c.mid-high 30s% for 2026 due to non-recognition of deferred tax assetrelated to US tax losses§Cash tax payments c.£6mCapital and development expenditure§Capex and devex c.£10-13mWorking capital§Cash conversion 70-80% (following 150% in FY25 and 117% in FY24)§Modest outflow in respect of working capital Adjusting items cash spend §c.£6m primarily from Plano and Mexicali EMS closure, plus fees related to Cicor approachPension§Buy-out and wind-up expected to complete in Q4 2026 or early 2027Foreign exchange for H2 2026§USD 1 cent = c.£0.1m operating profit impact§RMB 0.1 = c.£0.1m operating profit impact FINANCIAL GUIDANCE FOR 2026 27
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£m HY 2026HY 2025Revenue 228.1237.9Adjusted operating profit 18.5 13.0Net finance cost (2.7) (4.5)Adjusted profit before taxation 15.8 8.5Adjusting items (8.8) (16.0)Profit/(loss) before taxation7.0 (7.5)Taxation (3.5) (0.7)Profit/(loss) after taxation 3.5 (8.2) SUMMARY INCOME STATEMENT 28
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INCOME STATEMENT & CASH FLOW ADJUSTING ITEMS 29 £m HY 2026 ProfitHY 2026 CashHY 2025 ProfitHY 2025 CashOperating profit / (loss)9.7 (3.0)Net cash generated from operating activities8.8 16.4Adjusted to exclude:Restructuring and other itemsMexicali closure costs(1.0)(0.2)- -Plano closure costs(0.4)(2.4)(6.7)-Other restructuring costs- (0.4)(7.1)(1.1)Pension restructuring costs(1.7)-(0.9)-(3.1)(3.0)(14.7)(1.1)Asset impairmentsMexicali non-current assets (3.8)- -(3.8) -Acquisition and disposal related costsAmortisation of intangible assets arising on business combinations(1.3)-(1.3)-Disposal related costs(0.6)(0.8)- (0.3)(1.9)(0.8)(1.3)(0.3)Total operating adjusting items(8.8)(3.8)(16.0)(1.4)Tax refunded / (paid) 0.3 (3.6)Adjusted operating profit18.5 13.0Adjusted operating cash flow12.3 21.4
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30 MOVEMENT IN NET DEBT£m HY 2026HY 2025Adjusted operating cash flow post-capex 7.717.6Net interest and tax (2.1)(7.8)Lease payments (2.2)(2.0)Restructuring and acquisition costs (3.8)(1.4)Free cash flow (0.4)6.4Lease payments 2.22.0Equity issued 0.10.2Other (1.7)-Cashflow impacting net debt0.28.6Opening net debt (64.7)(97.4)Other non-cash (new leases and lease reassessments)(0.3)(0.6)FX (3.2)1.7Closing net debt (68.0)(87.7)IFRS 16 Leases 16.014.4Closing net debt exc. IFRS 16 Leases(52.0)(73.3)
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For the purposes of the following disclaimers, references to this ‘document’ shall be deemed to include references to the presenters’ speeches, the Q&A session, and any other related verbal or written communications.This document contains forward-looking statements. These have been made by the Directors in good faith based on the information available to them up to the time of their approval of this report. The Directors can give no assurance that these expectations will prove to have been correct. Due to the inherent uncertainties, including both economic and business risk factors underlying such forward-looking information, actual results may differ materially from those expressed or implied by these forward-looking statements. The Directors undertake no obligation to update any forward-looking statements whether as a result of new information, future events, or otherwise. CAUTIONARY STATEMENT