Shares in TT Electronics increased by over 12% after the firm stated that its full-year adjusted operating profit is set to be ahead of current market expectations.

In the six months to 30 June, the electronics manufacturer said that it had seen materially improved profitability, margin expansion and strong commercial momentum, reflecting actions taken in 2025.

While its revenue dropped by 4.1% year-on-year in this period to £228.1m, its operating profit jumped from a loss of £3m to a profit of £9.7m, marking a 423.3% increase.

Furthermore, its adjusted profit before tax rose by almost 86% to £15.8m.

Across this period, the firm said it had successfully implemented its transition to a product-led organisational structure, aligned its Power, EMS and Components divisions.

It has also “substantially completed” a cost reduction programme during H1, with associated one-off costs recognised in its operating profit. TT has said that it expects net savings during 2026, with annualised run-rate savings expected to be more than double that amount.

In its outlook, the firm’s board expected its full-year adjusted operating profit to be ahead of current market expectations at £35m, with a range of £32.6m and £38.5m.

It also said its revenue is expected to return to organic growth in the second half, supported by a strong order book.

CEO at TT Electronics, Eric Lakin, stated: "The first half demonstrates that the actions we took in 2025 are starting to deliver tangible results. With the business now on a stronger operational footing, our focus has moved firmly to execution and delivery, and I am pleased to report a significant improvement in profitability and margin, with adjusted operating profit up 37% year-on-year.

"Order intake has been strong across all three divisions, and we have secured several material contract awards with blue-chip customers across multiple sectors including aerospace, defence, life sciences and the semiconductor supply chain. That gives us confidence in a return to revenue growth in the second half and, together with the benefits of our cost reduction programme, the board now expects adjusted operating profit for the year to be ahead of current market expectations.

"TT is a stronger and more resilient business than it was 12 months ago. We have a clear strategy, a refreshed leadership team and a solid platform from which to deliver sustainable growth and create long-term value for our shareholders."

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