FW Thorpe (TFW) H2 2025 earnings summary

Executive summary

• Revenue remained stable at £175.2m, with operating profit up 4.7% to £32.1m year-over-year, driven by strong performances from Thorlux and Zemper, while Lightronics and SchahlLED underperformed due to challenging market conditions in the Netherlands and Germany.

• Net cash generated from operations was £33.2m, and cash reserves increased to £61.8m despite share buybacks and higher dividends.

• Dividend per share increased by 5% to 7.12p, marking 23 consecutive years of dividend growth.

• The group continued to invest in R&D (£4.5m), manufacturing upgrades, and sustainability initiatives, including solar and electric vehicle fleets.

Financial highlights

• Revenue: £175.2m (down 0.3% year-over-year).

• Operating profit: £32.1m (up 4.7% year-over-year).

• Basic EPS: 21.69p (up 4.6% year-over-year).

• Net assets: £189.8m (up from £176.8m).

• Net cash from operations: £33.2m (down from £41.4m prior year).

• Final dividend proposed: 5.36p per share.

Outlook and guidance

• The group starts FY2026 with a similar order book and revenue as the prior year, but management is focused on driving growth, especially in underperforming segments (Lightronics and SchahlLED).

• Continued selective acquisition strategy and investment in sales and product development.

• Cautious optimism for UK and European markets, with resilience from geographic and sector diversification.