Coats Group PLC

Latest Results (06.07.2026):

Coats Group PLC — Full Year 2025 results (year ended 31 December 2025): the group delivered a resilient, transformational full‑year performance with reported revenue of $1,465m (organic revenue flat), adjusted EBIT of $290m (EBIT margin 19.8%), adjusted basic EPS 9.3 cents, record free cash flow of $160m and year‑end net debt (ex‑leases) of $815m following the strategic OrthoLite acquisition completed in October 2025.

Financial headline

Revenue $1,465m (reported +2%; organic flat on a CER basis). Adjusted EBIT $290m (organic +3%); adjusted operating margin 19.8% (up 80bps). Reported EBIT $241m. Adjusted basic EPS 9.3c; reported EPS 6.8c.

Cash, debt and leverage

Record free cash flow $160m (2024: $2m). Net debt (excluding lease liabilities) $815m (2024: $449m); pro‑forma leverage 2.2x at year‑end with management targeting <2.0x by end‑2026. Cash conversion 114%.

M&A and portfolio changes

Completed OrthoLite acquisition (enterprise value ~$770m) in Oct 2025; OrthoLite contributed ~$11m operating profit in two months and is margin‑accretive with >90% operating cash conversion. Exit from non‑core Americas Yarns improved Group margin by ~100bps.

Divisional performance — Apparel, Footwear, Performance Materials

Apparel: revenue $769m, organic +1% with EBIT margin 20.2% (market share ~27%). Footwear: revenue $440m (organic -2%), margin 23.9%; division strengthened by OrthoLite and market share ~30%. Performance Materials: revenue $256m, organic flat, margin 11.3% with H2 recovery (Q4 run‑rate ~11.8%).

Pricing, margins and costs

Margin improvement driven by pricing discipline, mix (including premium/recycled thread), productivity and strategic project savings. Group operating margin benefit also reflects portfolio reshaping and footprint actions.

Sustainability and product trends

Strong sustainability momentum: sales of 100% recycled thread grew 43% to $554m. Several 2026 sustainability commitments already reached ahead of schedule (eg. Scope 1&2 emissions reduction, zero waste to landfill milestones reported).

Dividends and capital allocation

Proposed final dividend 2.28c (full year 3.28c, +5%). Management intends to keep a returns‑focused capital allocation: invest in organic growth, maintain a growing dividend, pursue disciplined M&A and consider buybacks as leverage falls.

Exceptional and financing items

Acquisition‑related charges ~$50m (including $27m amortisation of acquired intangibles and ~ $20m transaction costs). Net exceptional items small ($2m) for 2025. Interest costs higher (2025 net interest ~$38m adjusted) due to 2024 pension buy‑in and timing of the July 2025 equity raise.

Outlook and upgraded targets

GUIDANCE: expect organic growth in 2026 through share gains and adjacencies, modest further margin improvement and strong free cash flow. Upgraded medium‑term targets: >5% revenue CAGR through the cycle, EBIT margin 21–23%, cumulative free cash flow ~ $1bn over five years, and EPS CAGR >10% post M&A.