Coats Group plc (GB:COA)
LSE:COA
Earnings Data
Report Date
Aug 04, 2026TBA (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.04Last Year’s EPS
0.03Same Quarter Last Year
Strong Buy
Based on 3 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a predominantly positive outlook: the group delivered resilient top-line performance that outperformed weaker end markets, expanded margins (EBIT margin +80 bps to 19.8%), produced a record $160 million free cash flow, executed strategic M&A (OrthoLite) with identified synergies, and upgraded medium-term targets (higher margin and $1 billion 5-year free cash flow). Headwinds included temporary higher leverage (2.2x) from the OrthoLite acquisition, increased finance and acquisition-related costs, and end-market softness in footwear with late-year destocking and tariff/geopolitical uncertainty. Overall, the company emphasized strong cash generation, margin progress, sustainability leadership and clear plans to deleverage and realize synergies, with manageable near-term risks.Company Guidance
Record Free Cash Flow
Generated $160 million of free cash flow pre-dividends in 2025 — described as more than the free cash flow delivered in the prior 10 years combined — reflecting high margins, low capital intensity and timing benefits from the OrthoLite acquisition.
Revenue Resilience and Market Outperformance
Group revenue of $1.46 billion was flat on an organic constant exchange rate (CER) basis, outperforming core apparel and footwear end markets which the company estimates were down low- to mid-single digits for the full year.
Margin Expansion and Profitability
EBIT of $290 million, up 3% on an organic CER basis; group EBIT margin expanded by 80 basis points to 19.8%, driven by pricing discipline, favorable mix (premium and sustainable products), productivity and strategic project savings.
Divisional Outperformance — Apparel
Apparel revenue of $769 million, up 1% CER; EBIT increased 4% on a CER basis to $156 million and EBIT margin rose 60 basis points to 20.2%, supported by premium/recycled thread mix, pricing discipline and operational agility in China.
Divisional Resilience — Footwear
Footwear revenue $440 million, down 2% organic CER but outperformed a core footwear market estimated down ~4–5%; division grew estimated organic market share to ~30%, delivered EBIT of $105 million (flat organically) and improved margin by 40 basis points to 23.9%.
Performance Materials Improvements and Adjacency Growth
Performance Materials revenue $256 million flat on an organic CER basis with a H2 return to growth (+2%); target adjacencies performed strongly — Safety Fabrics +40% and composite tapes for energy +21% — with divisional EBIT up 10% to $29 million and margin to 11.3% (Q4 exit 11.8%).
Strategic M&A — OrthoLite Acquisition
Completed acquisition of OrthoLite (enterprise value $770 million) in October 2025; OrthoLite contributed ~$11 million operating profit in two months and delivered full-year profit in line with expectations. Identified $20 million of joint cost synergies by 2028 with $5 million expected in 2026 and material cross-selling/innovation opportunities.
Organic Adjacencies and Addressable Market Expansion
Target organic adjacencies added 1 percentage point to group growth in 2025; combined adjacency sales were $45 million in 2025. The addressable market for target adjacencies was increased from $1.3 billion to ~$2 billion, growing >5% p.a.
Sustainability Leadership
Sustainable thread portfolio grew 43% in 2025; EcoVerde recycled thread reached ~$550 million of sales (about 52% penetration of thread sales). Achieved a 30% reduction in Scope 1 and 2 emissions since 2022 (ahead of 2026 target of 22%), zero waste to landfill one year early, and 33% women in top 150 leadership roles (ahead of 30% target).
Upgraded Medium-Term Targets
Management upgraded targets: >5% revenue CAGR through the cycle, group EBIT margin target increased by 200 basis points to 21%–23%, 5-year cumulative free cash flow target raised from $750 million to $1 billion, and continued commitment to a strong double-digit EPS CAGR post M&A/share buybacks.
Dividend and Capital Discipline
Proposed final dividend of $0.0228, resulting in a full-year dividend of $0.0328, up 5% year-over-year. Capital expenditure disciplined at $32 million in 2025 with guidance to $40–45 million in 2026 as investment supports growth.
GB:COA Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
GB:COA Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Mar 05, 2026 | 87.40 p | 95.10 p | +8.81% |
Jul 16, 2025 | 82.33 p | 81.34 p | -1.20% |
Mar 06, 2025 | 83.94 p | 83.17 p | -0.92% |
Aug 01, 2024 | 86.02 p | 97.07 p | +12.85% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Coats Group plc (GB:COA) report earnings?
Coats Group plc (GB:COA) is schdueled to report earning on Aug 04, 2026, TBA (Confirmed).
What is Coats Group plc (GB:COA) earnings time?
Coats Group plc (GB:COA) earnings time is at Aug 04, 2026, TBA (Confirmed).
Where can I see when companies are reporting earnings?
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What is the P/E ratio of Coats Group plc stock?
The P/E ratio of Coats Group plc is N/A.
What is GB:COA EPS forecast?
GB:COA EPS forecast for the fiscal quarter 2026 (Q2) is 0.04.