Coats Group PLC

Latest Results (04.12.2025):

Coats Group PLC — Full Year 2024 (year ended 31 December 2024): the Group reported revenue of $1,501m (up 8% reported / 9% at constant exchange rates), adjusted EBIT of $270m (18.0% margin), adjusted EPS of 9.5c (+18% CER) and strong adjusted free cash flow of $153m (101% cash conversion). Reported EBIT was $200m after $70m of exceptional and acquisition-related items, and reported basic EPS was 5.0c. The Board proposed a final dividend of 2.19c (+10%), taking the full-year dividend to 3.12c (+11%).

Revenue and margins

Group revenue $1,501m (+8% reported / +9% CER). Adjusted EBIT margin 18.0%, ahead of the prior 2024 target of 17%. Apparel and Footwear led growth (Apparel +13% CER, Footwear +10% CER); Performance Materials was modestly down.

Profitability and EPS

Adjusted EBIT $270m (+18% CER). Adjusted basic EPS 9.5c (+18%). Reported EBIT $200m after $70m of exceptional/acquisition-related charges; reported basic EPS 5.0c.

Cash flow and balance sheet

Adjusted free cash flow $153m (101% conversion). Net debt excluding lease liabilities $449m (leverage 1.5x net debt:EBITDA), within the 1–2x target range. Committed facilities of $1,020m and c.$420m committed headroom at year-end.

Dividends & capital allocation

Final dividend proposed 2.19c (+10%), full-year 3.12c (+11%). Medium-term capital allocation: maintain 1–2x leverage, progressive dividend, disciplined M&A and potential additional returns if leverage falls below 1x sustainably.

Strategic progress and sustainability

Major strategic actions largely complete with $75m total expected savings (cash cost $50m); $67m delivered to date and a further $8m of EBIT to come in 2025. Coats extended leadership in recycled thread (revenue +144% to $405m) and increased preferred-materials share to 46% (target 60% by 2026).

Division highlights

Apparel: Revenue $770m, adjusted EBIT $151m, margin ~19.6% (market share ~26%). Footwear: Revenue $403m, adjusted EBIT $95m, margin ~23.5% (market share ~29%). Performance Materials: Revenue $328m, adjusted EBIT $24m, margin 7.4%; actions taken including closure of Toluca to right‑size North American Yarns footprint.

Pensions

UK pension fully de-risked in 2024 with a c.£1.3bn buy‑in; the Group made a £100m cash contribution in H2 2024 and deficit repair payments have ceased, reducing future pension cash outflows.

Medium-term targets & outlook

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