Trifast (TRI) H2 2026 earnings summary

Executive summary

• FY 2026 marked the first year of the 'rebuild' phase, focusing on engineering solutions, supply chain simplification, and higher-value, design-led offerings, with 60% of revenue now tied to these value propositions.

• Strategic pivot toward higher growth sectors (smart infrastructure, medical equipment) and markets (North America, India, Asia), with smart infrastructure now 17% of revenue, nearly double from 2024.

• Despite a 7.3% revenue decline to £207m, gross margin improved by 170bps to 30%, and underlying EBIT rose to £16.3m (7.8% margin).

• Strong cash generation reduced net debt to £16m, leverage to 0.75x, and supported a dividend increase to £0.019 per share.

• Transformation initiatives (Project Ignite) and operational efficiency drove margin gains and cost reductions.

Financial highlights

• Revenue fell 7.3% year-over-year to £207.1m, mainly due to weaker automotive/EV demand and deliberate exit from lower-margin business.

• Gross margin rose to 30% (+170bps), underlying EBIT reached £16.3m, and EBIT margin improved to 7.8% (+110bps).

• Net debt reduced to £16m; leverage at 0.75x, down from 0.97x; ROCE improved to 8.5%.

• Underlying diluted EPS increased by 2.15p to 6.46p.

• Dividend increased to £0.019 per share, cover typically 3–4x, with a progressive policy.

Outlook and guidance

• FY 2027 expected to continue momentum, with H1 similar to FY 2026 and H2 growth driven by a strong pipeline in smart infrastructure and medical equipment.

• Confident in achieving double-digit EBIT margin in the medium term, driven by structural improvements rather than cyclical recovery.

• Ongoing investment in digital enablement, sales capability, and geographic expansion, especially in India and North America.

• Continued investment in technology (Project Ignite) and targeted bolt-on acquisitions.