Coats Group PLC

Latest Results (03.03.2026):

Coats Group PLC — Full Year 2024 (results for the year ended 31 December 2024): Coats reported strong full‑year 2024 results with revenue of $1,501m (up 8% reported; 9% CER), adjusted EBIT of $270m (18.0% margin), adjusted EPS of 9.5 cents (up 18%), and adjusted free cash flow of $153m (101% cash conversion). Reported EBIT was $200m after $70m of exceptional and acquisition‑related items; net debt (ex‑leases) was $449m (leverage 1.5x). Management set refreshed medium‑term targets and proposed a final dividend of 2.19 cents per share (up 10%).

Key financials

Revenue $1,501m (+8% reported, +9% CER); adjusted EBIT $270m; adjusted EBIT margin 18.0%; adjusted EPS 9.5c; reported EBIT $200m after $70m exceptional items; reported EPS 5.0c.

Cash, debt and liquidity

Adjusted free cash flow $153m (101% cash conversion). Net debt excluding lease liabilities $449m ($533m including leases); leverage 1.5x net debt:EBITDA and committed facilities of $1,020m with ~ $420m headroom at year‑end.

Dividend & capital allocation

Proposed final dividend 2.19c (+10%), full‑year dividend 3.12c (+11%). Board signals active capital allocation: maintain 1–2x leverage, managed investment for growth, progressive dividend, M&A to accelerate earnings, and potential additional returns if leverage falls below 1x for a sustained period.

Operational & strategic progress

Market share gains in Apparel (+100bps to ~26%) and Footwear (+200bps to ~29%). 2022 strategic projects largely complete, delivering cumulative savings of $67m in 2024 with a further $8m to come in 2025 (total targeted $75m savings, $50m cash cost). Texon/Rhenoflex synergies delivered $22m annualised.

Sustainability & product innovation

Leadership in recycled products: revenue from 100% recycled thread products grew 144% to $405m. Preferred materials now 46% of production (target 60% by 2026). SBTi‑validated 2030 targets and net‑zero by 2050 aspiration highlighted.

Division performance

Apparel: revenue $770m (+13% CER), adjusted EBIT $151m (margin ~19.6%). Footwear: revenue $403m (+10%), adjusted EBIT $95m (margin ~23.5%). Performance Materials: revenue $328m (‑1% CER), adjusted EBIT $24m (margin ~7.4%), impacted by structural softness in North American Yarns and telecoms; Toluca site closure executed to right‑size footprint.

Pensions & one‑offs

UK pension de‑risking: c.£1.3bn buy‑in completed September 2024; ~£100m cash contribution made in 2024 and no further cash contributions required. Exceptional and acquisition‑related items were $70m in 2024 (includes strategic project, Toluca closure and acquisition amortisation); expected to decline materially going forward.

Medium‑term targets & 2025 outlook

Updated medium‑term targets: >5% average organic revenue growth, Group EBIT margin 19–21%, >$750m adjusted free cash flow over next five years (after interest & tax, before dividends), EPS CAGR >10% from a 2025 baseline (post M&A/share buybacks). Outlook for 2025: continued organic growth in Apparel and Footwear, modest recovery in Performance Materials, margin improvement from strategic actions, and continued strong free cash generation.