Avingtrans (AVG) H1 2026 earnings summary

Executive summary

• H1 FY26 results are on target to deliver full-year expectations, with strong performance in Hayward Tyler and Ormandy divisions and improved profitability driven by margin gains and reduced losses in Medical and Industrial Imaging (MII).

• Resilience supported by regional supply chains, strong order book, and visibility for H2, especially in nuclear and infrastructure sectors.

• PIE (Pinpoint-Invest-Exit) strategy and buy-and-build approach continue to drive organic growth and value through M&A.

• Investments in Adaptix and Magnetica expected to yield increasing sales in FY27, with Adaptix FDA approval and Magnetica regulatory submission expected H2 2026.

• Continued investment in both divisions, especially in new nuclear and medical imaging technologies.

Financial highlights

• Group revenue for H1 FY26 was £78.1m, slightly down from £79.0m in H1 FY25, with gross profit margin improved to 31.7% from 30.0% year-over-year.

• Adjusted EBITDA rose to £9.6m (H1 FY25: £8.7m), with adjusted EBITDA margin at 12.3%.

• Adjusted diluted EPS increased to 14.6p (H1 FY25: 12.0p); adjusted profit before tax up 27.1% to £5.7m.

• Interim dividend proposed at 2.0p per share, up from 1.9p.

• Net debt (excluding IFRS 16) stable at £12.3m; cash inflow from operations £7.6m.

Outlook and guidance

• Board remains confident in strategy and prospects, with strong order cover and expanding opportunities in nuclear and medical markets.

• Order book in AES secures over 95% of FY26 market expectations.

• MII division entering key commercialisation phase, with Adaptix FDA approval and Magnetica regulatory submission expected H2 2026.

• Expectation for Adaptix and Magnetica sales to build steadily during FY27.

• Strategy remains focused on selective M&A and future exits to maximise shareholder value.