Coats Group PLC

COA

Equity

ISIN GB00B4YZN328 / Valor 13030532

LSE London Stock Exchange, SETS (2026-04-28)

GBP 0.83-0.54%

Coats Group PLC
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About company

Coats Group PLC is a global company that connects talent, textiles, and technology to provide innovative and sustainable solutions for a variety of industries, including apparel, footwear, automotive, telecoms, personal protection, and outdoor goods. With a focus on innovation and sustainability, Coats collaborates with partners to create materials and products of the future through its dedicated Innovation and Sustainability Hubs. The company offers a range of value-adding products such as threads, fabrics, yarns, and software applications, which are essential in creating products that ensure safety and protection for people, data, and the environment. Headquartered in the UK, Coats has a proud heritage dating back more than 250 years and operates in around 50 countries with a workforce of over 15,000 employees, generating revenues of $1.4bn in 2023.

Summarized from source with an LLMView SourceSector: Finance

Revenue and profit

Group revenue $1,465m (+2% reported; 0% organic CER). Adjusted EBIT $290m (+7% reported; +3% organic CER) with an operating margin of 19.8% (up 80bps). Reported EBIT $241m. Adjusted basic EPS 9.3c (reported EPS 6.8c).

Cash generation & balance sheet

Record free cash flow $160m (2024: $2m). Group net debt (excluding lease liabilities) $815m (31 Dec 2025); proforma leverage 2.2x with expectation to reduce below 2x by end-2026. Committed facilities $1,470m and strong covenant headroom.

Major M&A and portfolio moves

Acquired OrthoLite for enterprise value $770m (completed Oct 2025); contributed ~$11m operating profit in final two months and is expected to be margin- and cash-accretive. Exited non-core Americas Yarns in 2025, improving Group margin by ~100bps.

Divisional performance

Apparel: revenue $769m, +1% CER, EBIT margin 20.2% (market outperformance, share gains). Footwear: revenue $440m (incl. OrthoLite), organic -2% CER, margin 23.9% with market share ~30%; OrthoLite strengthens footwear components portfolio. Performance Materials returned to H2 growth; Q4 run-rate margin ~11.8%.

Sustainability & product trends

100% recycled thread sales grew 43% CER to $554m. Achieved several 2026 sustainability targets early (Scope 1&2 emissions, zero waste to landfill, leadership gender target). OrthoLite ESG impact under review post-acquisition.

Capital allocation & guidance

Capex $32m in 2025; guidance for 2026 capex c.$40–50m. Updated medium-term targets: >5% revenue growth through the cycle (200+bps outperformance), EBIT margin 21–23%, cumulative free cash flow c.$1bn over next five years, and EPS CAGR >10% post M&A.

Dividend & shareholder returns

Proposed final dividend 2.28c (total 3.28c, +5% year-on-year). Board signals priority to reduce leverage, maintain growing dividend and pursue disciplined, accretive M&A and potential buybacks when appropriate.

Summarized from source with an LLMView Source

Key figures

12.5%1Y

6.59%3Y

39.6%5Y

Performance

29.8%1Y

30.6%3Y

32.0%5Y

Volatility