Coats Group (COA) Q1 2026 TU earnings summary

Executive summary

• Revenue for the four months to 30 April 2026 was 1% lower year-over-year at constant exchange rates, reflecting a robust performance against a strong prior period.

• Apparel revenue grew 1%, outperforming the core thread market and gaining share, including in China and automotive thread.

• Footwear revenue declined 4% organically, in line with industry trends, with OrthoLite impacted by a strong prior year and temporary capacity issues in Indonesia.

• Group EBIT margin improved slightly year-over-year, benefiting from 2025 footprint consolidation and OrthoLite's contribution.

Financial highlights

• Group revenue was 1% lower year-over-year at constant exchange rates for the period.

• Apparel revenue increased 1% year-over-year; Footwear revenue decreased 4% organically.

• OrthoLite revenue was lower than the prior year on a proforma basis.

• EBIT margin was slightly higher than the same period last year.

Outlook and guidance

• Full-year expectations remain unchanged, with a modest second-half profit weighting due to inflation cost recovery timing.

• Strong full-year free cash flow generation is expected, supporting further leverage reduction toward a 1-2x target by year-end.

• Interim results will be released on 28 July 2026.