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The latest update is out from Coats Group plc ( (GB:COA) ).
Coats Group reported 2025 revenue of $1.47 billion, flat on an organic basis but ahead of declining apparel and footwear markets, while raising its operating margin to 19.8% through pricing discipline, cost controls and portfolio changes. The company continued to expand in high-growth adjacencies and sustainable products, with 100% recycled thread revenue jumping 43% to $554 million.
Strategically, Coats exited its lower-margin Americas Yarns business, completed the acquisition of footwear insole specialist OrthoLite, and simplified its structure into Apparel and Footwear divisions to support growth and efficiency. Record free cash flow of $160 million, increased dividends and higher medium-term margin and cash targets underline stronger financial firepower, though leverage rose to 2.2 times following the OrthoLite deal and management flagged potential supply-chain risks from Middle East tensions.
The group expects further organic growth in 2026, driven by market share gains and OrthoLite’s outperformance of the broader footwear sector, alongside modest margin improvement and another year of strong cash generation. Upgraded medium-term goals include an operating margin range of 21–23% and roughly $1 billion in free cash flow over five years, reinforcing Coats’ positioning as a leading Tier 2 components supplier despite a still-uncertain macro environment.
The most recent analyst rating on (GB:COA) stock is a Buy with a £91.00 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.
Spark’s Take on GB:COA Stock
According to Spark, TipRanks’ AI Analyst, GB:COA is a Outperform.
Coats Group plc’s overall stock score is driven by solid financial performance and positive corporate events. While the company faces challenges with high leverage, its strategic acquisitions and leadership confidence provide a strong outlook. Technical indicators suggest a stable trend, and valuation metrics indicate fair pricing with a decent dividend yield.
To see Spark’s full report on GB:COA stock, click here.
More about Coats Group plc
Coats Group plc is a UK-headquartered, FTSE 250-listed Tier 2 manufacturer supplying critical threads, materials, components and software solutions to the global apparel and footwear industries. With around 19,000 employees and more than 250 years of industry experience, it focuses on innovation, sustainability, and digital technologies to enhance supply-chain efficiency and product performance worldwide.
Average Trading Volume: 2,806,587
Technical Sentiment Signal: Strong Buy
Current Market Cap: £1.66B
For a thorough assessment of COA stock, go to TipRanks’ Stock Analysis page.