Avon Technologies PLC: Protection drives profit beat; FY margin at the upper end of guidance

研报英文原文证据摘录

Avon Technologies PLC: Protection drives profit beat; FY margin at the upper end of guidance

Equity Research

European Aerospace & Defence

13 May 2026

Avon Technologies PLC

Protection drives profit beat; FY

margin at the upper end of

AVON.L/AVON LN EQUAL WEIGHTguidance

Unchanged

Another strong print from AVON with Protection driving a European Aerospace & NEUTRAL Defence

Unchanged+14% op. profit beat. FY26 guidance unchanged, but margin

seen at the upper end of range. Minor changes to estimates Price Target GBp 1990 Unchanged

(-1% for FY26 on higher tax rate). Results in Nov'26 will also Price (11-May-26) GBp 1652

Potential Upside/Downside +20.5%come with fresh MT targets and detail on M&A pipeline.

Source: Bloomberg, Barclays Research

1H26 in review: revenue in line; op. profit ~14% ahead. AVON delivered an encouraging start

Market Cap (GBP mn) 499

to the year, with strong performance in Avon Protection offsetting the well-flagged transitory

Shares Outstanding (mn) 30.26

headwinds within Team Wendy. Revenue came in broadly in line with consensus at $161m (vs

Free Float (%) 99.60

cons: 162m; Barc: $160m), representing a +7% organic growth (2H25: +11%; 1H25: +17%). Within

52 Wk Avg Daily Volume (mn) 0.1

this, Avon Protection did $93m, +23% y/y and ~10% ahead of our estimate (strong UK and

Dividend Yield (%) 1.13

International growth on Ukraine orders). Team Wendy declined -7% to $68m, a function of the

Return on Equity TTM (%) 6.18

previously communicated slowdown in DoW revenues (-10% y/y) following the US government

Current BVPS (GBp) 550

shutdown earlier in the period. Operating profit was ~14% ahead of consensus ($24.4m vs cons: Source: Bloomberg

$21.4m; margin +200bps ahead) on strong operating leverage and disciplined execution in Avon

Protection. Elsewhere, adj.