Avon Technologies beats FY26 expectations on stronger orders, improved margins
By Iain Gilbert
Date: Wednesday 07 Oct 2026
(Sharecast News) - Respiratory protection equipment manufacturer Avon Technologies set out the next phase of its strategy on Wednesday as it posted a stronger‑than‑expected trading update for FY26, highlighting improving momentum across both Avon Protection and Team Wendy.
Avon Technologies said its refreshed plan aims to drive further operational gains, support investment in growth and build a broader protection‑technology platform over time. Avon has targeted annual revenue growth above 5%, adjusted operating margins of 16% to 18% and earnings per share growth of more than 10%, with improved inventory turns expected to help deliver over $175m of free cash flow across the next three years. Five‑year goals include revenue above $600m and continued EPS accretion while maintaining a more than 18% on return on invested capital.
In its FY26 update, Avon said trading had strengthened in recent months, with the group's order book rising sharply since the half‑year. Avon Protection continued to benefit from solid demand through the NSPA programme, securing several new European orders, while Team Wendy's order book grew materially, supported by the largest share of the recent NG IHPS award, strong ACH Gen II volumes, new US Air Force orders and the renewal of the Australian Defence Force programme.
Avon now expects FY26 results to come in ahead of market expectations, with revenue growth of around 12.5%, an adjusted operating margin comfortably above the 14% to 16% range, and ROIC significantly above guidance for a 17% improvement.
Year‑end net debt excluding leases was forecast at roughly $34m, reflecting cash conversion above 85% and leverage below 0.5x. Guidance for FY27 will be issued alongside full‑year results on 10 November.
As of 1015 BST, Avon shares had shot up 11.9% to 2,135p.
Reporting by Iain Gilbert at Sharecast.com
See latest RNS on Sharecast
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN