Avon Rubber p.l.c. Earnings Recaps
Q2 2026
May 14, 2026
Shares declined 5.4% following the report, primarily driven by weaker-than-expected order intake, production delays in Team Wendy, and a cautious midyear outlook despite robust margin expansion and profit growth.
Key takeaways
- Order intake declined, with Team Wendy particularly impacted by delayed production ramp-up and soft commercial orders affected by grant funding delays.
- Revenue grew 6.8% overall, led by Avon Protection's 23% increase driven by military and commercial demand as well as Ukraine-related orders.
- Adjusted operating profit rose 39%, with margins expanding over 300 basis points to 15.2%, helped by product mix and operational gearing mainly in Avon Protection.
- Cash conversion was weak at 38%, primarily due to working capital increases and timing of cash receipts, though adjusted for early April receipts conversion would have been near 100%.
- While the outlook notes modest sequential growth in H2, visibility remains limited with signs of recovery offset by slower production and spending timing, contributing to investor caution.