Coats Group PLC

Latest Results (17.01.2026):

Coats Group PLC — Full Year 2024 (year ended 31 December 2024): Coats’ audited FY2024 results show continued recovery and margin expansion led by Apparel and Footwear, with Group revenue of $1,501m (+8% reported; +9% CER), adjusted EBIT $270m (18.0% margin) and adjusted EPS 9.5 cents (+18%). Free cash flow was strong at $153m (101% cash conversion), net debt (ex-lease liabilities) was $449m (leverage 1.5x) and the Board is proposing a final dividend of 2.19 cents per share. Management set upgraded medium-term targets alongside completion of major pension de‑risking and strategic efficiency programmes.

Headline results

Revenue $1,501m; adjusted EBIT $270m (18.0% margin); reported EBIT $200m after $70m of exceptional/acquisition items; adjusted EPS 9.5c (up 18%); reported EPS 5.0c. Adjusted free cash flow $153m; cash conversion 101%.

Division performance

Apparel: $770m (+13% CER), adjusted EBIT margin ~19.6%. Footwear: $403m (+10% CER), margin ~23.5%. Performance Materials: $328m (-1% CER) with margins pressured (7.4%) and actions taken (Toluca closure).

Cash, balance sheet and leverage

Adjusted FCF $153m; net debt (ex leases) $449m ($533m including leases); net debt/EBITDA 1.5x (within 1–2x target). Committed facilities ~$1.02bn with c.$420m available headroom at year‑end.

Capital allocation & dividend

Proposed final dividend 2.19c (+10%); full year dividend 3.12c (+11%). Medium-term policy: maintain 1–2x leverage, progressive dividend, targeted M&A and potential additional returns if leverage sustainably falls below 1x.

Medium-term financial targets

Updated targets: >5% average organic revenue CAGR; group EBIT margin 19–21%; >$750m adjusted FCF over next five years (after interest & tax, before dividends); EPS CAGR >10% from 2025 baseline (post M&A/share buybacks).

Strategic & sustainability highlights

Market share gains in Apparel (+100bps) and Footwear (+200bps). 100% recycled thread revenue up 144% to $405m; preferred materials now 46% of production. Digital adoption strong (ShopCoats >80% Apparel orders).

Pensions and one‑offs

UK pension fully de‑risked: c.£1.3bn buy‑in completed (Sep 2024) with a £100m cash payment—no further deficit contributions required. Exceptional and acquisition-related items ~ $70m in FY2024 (includes strategic project and Toluca closure costs).

Cost, margin drivers and outlook

2024 margin expansion driven by volume recovery, productivity, strategic savings and acquisition synergies; strategic project savings to date ~$67m with further $8m benefit in 2025 (total target $75m). 2025 outlook: continued organic growth in Apparel & Footwear, modest Performance Materials recovery, strong free cash generation expected; capex guidance $30–40m.

Notable operational actions

Right‑sizing of Performance Materials Americas (Toluca site closure) to match structural demand; completed Texon/Rhenoflex integration delivering $22m annualised synergies (ahead of plan).