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TT Electronics (GB:TTG)
LSE:TTG
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TT Electronics (TTG) AI Stock Analysis

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GB:TTG

TT Electronics

(LSE:TTG)

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Neutral 58 (OpenAI - 4o)
Rating:58Neutral
Price Target:
123.00p
▲(7.33% Upside)
TT Electronics' overall stock score reflects a combination of financial challenges and technical strength. The company's financial performance is hindered by declining revenues and profitability issues, but positive cash flow provides some stability. Technical analysis indicates strong bullish momentum, which is a significant positive factor. Valuation concerns due to a negative P/E ratio are offset by a high dividend yield, though the dividend suspension is a drawback. The earnings call highlights both regional challenges and strategic improvements, contributing to a mixed outlook.
Positive Factors
Cash Generation
The robust cash conversion rate indicates strong cash generation capabilities, providing financial flexibility and supporting long-term investments.
European Market Performance
Strong performance in Europe demonstrates effective market strategies and operational efficiency, contributing positively to the company's growth prospects.
Aerospace & Defense Growth
Growth in Aerospace & Defense indicates a strong market position and potential for sustained revenue increases in a high-demand sector.
Negative Factors
Revenue Decline
The decline in revenue and operating profit highlights challenges in maintaining growth, impacting long-term financial health and market competitiveness.
North American Challenges
Significant challenges in North America, including revenue declines, could hinder overall company performance and require strategic adjustments.
Dividend Suspension
The ongoing dividend suspension may deter income-focused investors and reflects financial pressures, affecting shareholder returns and confidence.

TT Electronics (TTG) vs. iShares MSCI United Kingdom ETF (EWC)

TT Electronics Business Overview & Revenue Model

Company DescriptionTT Electronics plc provides engineered electronics for performance critical applications in the automation and electrification, healthcare, and aerospace and defense markets worldwide. The company operates through three divisions: Power and Connectivity, Global Manufacturing Solutions, and Sensors and Specialist Components. The Power and Connectivity division designs and manufactures power application products and connectivity devices, which enable the capture and wireless transfer of data. This segment collaborates with customers for developing solutions to optimize their electronic systems. The Global Manufacturing Solutions division provides manufacturing services and engineering solutions for its product divisions and to customers that require a lower volume and higher mix of various products. This segment manufactures integrated product assemblies, as well as provides designing testing solutions and value-engineering services. The Sensors and Specialist Components division works with customers to develop standard and customized solutions, including sensors and power management devices. Its solutions enhance the precision, speed, and reliability of critical aspects of its customers' applications. The company offers its products and services under the AB Connectors, Aero Stanrew, BI Technologies, IRC, OPTEK Technology, Precision, Power Partners, PowerPax, Stontronics, Torotel, Semelab, Welwyn, and Roxspur Measurement & Control brands. The company was formerly known as TT Group plc and changed its name to TT Electronics plc in 2000. TT Electronics plc was incorporated in 1906 and is headquartered in Woking, the United Kingdom.
How the Company Makes MoneyTT Electronics generates revenue through multiple streams, primarily by selling its products and services to OEMs (Original Equipment Manufacturers) and end-users in its targeted industries. The company’s key revenue streams include the sale of electronic components, such as sensors and connectivity solutions, as well as custom-designed systems that cater to specific customer needs. Additionally, TTG benefits from long-term contracts and partnerships with major players in sectors like aerospace and defense, which provide a stable income base. The company's ability to innovate and adapt to technological advancements also contributes to its earnings, as it continues to develop new products that meet the evolving demands of its customers.

TT Electronics Earnings Call Summary

Earnings Call Date:Sep 24, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Mar 11, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong performance in Europe and cash conversion success, but significant challenges in North America and Asia. The strategic restructuring of the Components business and ongoing improvements in operational efficiency offer positive long-term prospects, but current revenue declines and regional challenges weigh on the sentiment.
Q2-2025 Updates
Positive Updates
Strong European Performance
Europe saw a 5% revenue increase organically and a 34% organic increase in adjusted operating profit, with operating margins improving by 330 basis points to 15.6% due to favorable product mix and efficiency improvements.
Cash Conversion Success
Achieved a strong cash conversion rate of 135% in the first half, contributing to a GBP 36 million reduction in net debt since June last year.
Aerospace & Defense Growth
Continued strong momentum in Aerospace & Defense, with record order intake expected for the European business this year.
Components Business Restructuring
Strategic review of the Components business underway, with a new management team focusing on performance improvement and market positioning.
Negative Updates
North American Challenges
North America faced a difficult half with revenue down 10% organically and a GBP 5 million loss in the region, driven by challenges at Cleveland and the loss-making Plano site.
Revenue Decline
Overall revenue was down 6% organically, with a notable 29.7% decline in adjusted operating profit to GBP 13 million.
Asian Market Delays
Asia saw a 9% organic revenue decline due to order delays and geopolitical uncertainties, impacting operating profit by 14% organically.
Dividend Suspension
Decision to continue the pause on the dividend due to the focus on strengthening the balance sheet and higher effective tax rate.
Company Guidance
In the TT Electronics 2025 Half Year Results Presentation, Eric Lakin provided guidance on several key metrics reflecting the company's performance and strategic initiatives. The company reported a 6% organic revenue decline, with the North American region facing significant challenges, including a GBP 6 million loss from the closure of the Plano site. However, TT Electronics achieved an impressive cash conversion rate of 135% and a leverage of 1.9x, which is within the target range and slightly ahead of previous guidance. Adjusted operating profit was reported at GBP 13 million, a 29.7% organic decline, with a corresponding drop in adjusted operating margins by 180 basis points to 5.5%, and adjusted EPS at 1.9p. Despite these challenges, the company continues to expect its full-year adjusted operating profit to align with market expectations. The European region showed a 5% organic revenue increase and a 34% rise in adjusted operating profit, demonstrating strong operational leverage and efficiency improvements, while Asia faced a 9% organic revenue decline due to order delays. The strategic focus remains on completing the operational turnaround in North America, reducing inventory, and driving long-term growth in sectors such as Aerospace & Defense, where robust double-digit growth is anticipated.

TT Electronics Financial Statement Overview

Summary
TT Electronics faces challenges with declining revenues and profitability issues, as reflected in its income statement. The balance sheet shows moderate stability, but the decrease in equity and negative return on equity highlight risks. Cash flow performance is a stronger aspect, with positive cash generation providing some buffer. Overall, while there are operational efficiencies, the company needs to address revenue growth and profitability concerns to improve its financial standing.
Income Statement
45
Neutral
TT Electronics has shown volatility in its income statement, with fluctuating revenues and margins. The company experienced a significant drop in revenue from 2023 to 2024, decreasing by 15.1%. The gross profit margin for 2024 stands at 21.05%, which is a decline from previous years. Net profit margin is negative for 2024, indicating a net loss. However, the EBIT margin improved to 6.6% in 2024, showing some operational efficiency despite the challenges.
Balance Sheet
50
Neutral
The balance sheet reflects moderate financial stability with a debt-to-equity ratio of 0.85 in 2024, suggesting a manageable level of leverage. The equity ratio is 38.06%, indicating a fair proportion of equity financing. However, the decrease in stockholders' equity over the years is a concern. Return on equity is negative due to net losses, highlighting profitability challenges.
Cash Flow
60
Neutral
Cash flow analysis shows resilience, with positive operating and free cash flows in 2024. The operating cash flow to net income ratio is significantly positive, indicating strong cash generation relative to net income. Free cash flow to net income ratio is also strong, reflecting effective cash management despite net losses. However, free cash flow has decreased from 2023 to 2024, impacting the growth trajectory.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue521.10M613.90M617.00M476.20M431.80M
Gross Profit109.70M147.00M135.50M115.60M99.10M
EBITDA-5.50M31.40M20.90M41.50M28.30M
Net Income-53.40M-6.80M-13.20M12.80M1.30M
Balance Sheet
Total Assets512.30M655.10M707.20M671.40M572.80M
Cash, Cash Equivalents and Short-Term Investments69.20M74.10M65.00M68.30M70.20M
Total Debt166.60M201.30M203.40M170.80M154.10M
Total Liabilities317.40M384.60M410.20M341.40M274.80M
Stockholders Equity194.90M270.50M297.00M328.00M296.00M
Cash Flow
Free Cash Flow33.70M38.40M-1.60M-2.70M14.80M
Operating Cash Flow40.60M62.90M12.70M14.30M28.20M
Investing Cash Flow3.50M-27.60M-22.30M-8.20M-51.90M
Financing Cash Flow-51.80M-19.60M400.00K-8.90M33.40M

TT Electronics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price114.60
Price Trends
50DMA
100.62
Positive
100DMA
99.59
Positive
200DMA
93.64
Positive
Market Momentum
MACD
3.95
Negative
RSI
60.42
Neutral
STOCH
77.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TTG, the sentiment is Positive. The current price of 114.6 is above the 20-day moving average (MA) of 104.49, above the 50-day MA of 100.62, and above the 200-day MA of 93.64, indicating a bullish trend. The MACD of 3.95 indicates Negative momentum. The RSI at 60.42 is Neutral, neither overbought nor oversold. The STOCH value of 77.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:TTG.

TT Electronics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
98.80M24.678.03%0.50%-6.16%
66
Neutral
216.05M
62
Neutral
422.87M38.4111.97%1.67%5.46%-26.44%
61
Neutral
151.84M27.89-5.88%2.31%1.74%359.50%
58
Neutral
£209.49M-31.42%5.85%-16.33%-448.12%
55
Neutral
96.33M188.890.83%1.52%-23.42%-94.25%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:TTG
TT Electronics
114.60
20.80
22.17%
GB:GHH
Gooch & Housego
571.00
175.65
44.43%
GB:JDG
Judges Scientific
6,280.00
-3,101.53
-33.06%
GB:SDI
SDI Group
94.00
41.00
77.36%
GB:SOLI
Solid State
165.00
-64.27
-28.03%
GB:SRT
SRT Marine Systems
89.00
63.20
244.96%

TT Electronics Corporate Events

Regulatory Filings and Compliance
TT Electronics Announces Total Voting Rights Update
Neutral
Sep 3, 2025

TT Electronics, a company with a focus on electronics, has announced that as of August 31, 2025, it has a total of 178,119,248 ordinary shares in issue, each carrying voting rights. The company has no shares held in treasury, meaning the total number of voting rights is also 178,119,248. This information is crucial for shareholders and others with notification obligations to determine if they need to notify their interest or changes in their interest in the company.

The most recent analyst rating on (GB:TTG) stock is a Hold with a £100.00 price target. To see the full list of analyst forecasts on TT Electronics stock, see the GB:TTG Stock Forecast page.

Executive/Board Changes
TT Electronics Appoints Eric Lakin as CEO
Neutral
Aug 12, 2025

TT Electronics has appointed Eric Lakin as its Chief Executive Officer, following an extensive search process. Lakin, who has been acting CEO since April 2025, is recognized for his leadership and sector experience, and is expected to focus on stabilizing and turning around the company to meet stakeholder expectations.

The most recent analyst rating on (GB:TTG) stock is a Hold with a £85.00 price target. To see the full list of analyst forecasts on TT Electronics stock, see the GB:TTG Stock Forecast page.

Business Operations and Strategy
TT Electronics Appoints New Corporate Broker
Positive
Aug 8, 2025

TT Electronics has appointed Joh. Berenberg, Gossler & Co KG, London Branch, as its sole corporate broker, effective immediately. This strategic move is expected to enhance TT Electronics’ market positioning and streamline its investor relations, potentially benefiting stakeholders by fostering stronger financial partnerships.

The most recent analyst rating on (GB:TTG) stock is a Hold with a £85.00 price target. To see the full list of analyst forecasts on TT Electronics stock, see the GB:TTG Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
TT Electronics Reports Revenue Decline and Strategic Business Adjustments
Negative
Jun 30, 2025

TT Electronics reported a 5.5% decline in group revenue for the first five months of 2025, with strong performance in Europe offset by challenges in Asia and North America. The company is progressing with a strategic review of its Components business, which includes closing its Plano, Texas operations due to previous losses. The Aerospace and Defence sector remains robust, and the company expects adjusted operating profit to align with previous guidance, despite potential leverage exceeding 2x by June 2025. TT Electronics is focused on operational improvements and efficiency to maximize shareholder value.

The most recent analyst rating on (GB:TTG) stock is a Hold with a £85.00 price target. To see the full list of analyst forecasts on TT Electronics stock, see the GB:TTG Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 25, 2025