TT ELECTRONICS PLC
ANNUAL REPORT & ACCOUNTS 2025
We design custom technology solutions that facilitate smaller,
lighter, and more energy-efficient products used in performance
critical applications. Our global manufacturing capability provides
solutions for customers in highly regulated markets, from new
product introduction to full scale production of complex systems.
Read this Annual Report online
www.ttelectronics.com/investors/annual-report/
IN THIS ANNUAL REPORT
STRATEGIC REPORT
In this Annual Report IFC
Who we are 1
Our products and markets 2
Chair’s statement 4
Our business model 6
CEO review 7
CFO review 10
Our KPIs 17
Our people, communities and environment 19
Task Force on Climate-related Financial Disclosures 26
Stakeholder engagement and S172 Statement 35
Risk management 38
Principal risks and uncertainties 41
Viability statement and Going concern 44
GOVERNANCE AND DIRECTORS’ REPORT
Governance at a glance 45
Board of Directors 47
Chair’s introduction to governance 49
Leadership and Company purpose 53
Nominations Committee report 58
Audit Committee report 63
Remuneration Committee report 68
2025 Executive remuneration at a glance 72
Remuneration Policy report 76
Annual report on remuneration 85
Other statutory disclosures 95
Statement of Directors’ responsibilities 97
FINANCIAL STATEMENTS
Independent auditor’s report 99
Consolidated income statement 111
Consolidated statement of comprehensive income 111
Consolidated statement of financial position 112
Consolidated statement of changes in equity 113
Consolidated statement of cash flows 114
Notes to the Consolidated financial statements 115
Company statement of financial position 149
Company statement of changes in equity 149
Notes to the Company financial statements 150
Reconciliation of KPIs and non IFRS measures 155
Shareholder information 161
WELCOME
Chair’s statement
The Board is pleased with operational and strategic
progress in the year under our new CEO.
Read moreon page 4
CEO review of the year
2025 has been a year of transition for TT Electronics.
We took decisive actions to address operational
challenges, strengthen accountability and restore
control across the business, resulting in a materially
improved performance in the second half.
Read moreon page 7
Our people, communities
and environment
Our culture is strong and we have continued to make
progress on our environmental agenda during the
year.
Read more on page 19
Governance
During a year of executive leadership transition and
renewed external interest in the Group the Board has
continued to drive high standards of governance.
Read moreon page 45
EUROPE
Power and Components
Locations (UK)
Abercynon, Barnstaple, Bedlington,
Eastleigh, Fairford, Manchester,
Nottingham,Sheffield, Woking
INSIDE TT ELECTRONICS
CUSTOMERS
Our customers range from global multi-
nationals to innovative start-ups operating in
the healthcare, aerospace, defence, automation,
electrification, electronics and energy sectors.
We aim to work as part of the customer’s team,
driving solutions, and with our products and
services integral to customers’ designs and the
lifecycle of their products.
OUR PEOPLE AND CULTURE
TT truly is a people business. The passion,
expertise and values of our people drive our
success. Our culture gives us a competitive
advantage, making us a great company to work
for and with, enabling us to attract and retain
talented people, grow productivity, build strong
partnerships and deliver for our customers.
SUSTAINABILITY
We aim to positively impact the world by
enhancing sustainability through our products,
business practices, employee care, community
engagement, and environmental responsibility.
REVENUE
£481. 4m
2024: £521.1m
ORGANIC REVENUE
GROWTH
1
(3)%
2024: (5)%
ADJUSTED OPERATING
PROFIT MARGIN
1
7.7%
2024: 7.1%
STATUTORY OPERATING
PROFIT MARGIN
(5.9)%
2024: (4.5)%
CASH CONVERSION
1
150%
2024: 117%
RETURN ON INVESTED
CAPITAL
1
13.3%
2024: 10.0%
LEVERAGE
1.1x
2024: 1.8x
WHO WE ARE
NORTH AMERICA
Power, Electronic Manufacturing
Services (“EMS”) and Components
Locations
Boston, Cleveland, Denver,
Juarez, Kansas City, Mexicali,
Minneapolis
ASIA
Power and EMS
Locations
Kuantan (Malaysia), Singapore,
Suzhou (China)
OUR REGIONS
30%
Group revenue
36%
Group revenue
34%
Group revenue
1 Our KPIs include a number of Alternative Performance Measures
(“APMs”) which have been adopted by the Directors to provide further
information on underlying trends and the performance and position
of the Group. Details of these APMs and a reconciliation to statutory
measures can be found on pages 155 to 159.
STRATEGIC REPORT GOVERNANCE & DIRECTORS’ REPORT FINANCIAL STATEMENTS ADDITIONAL INFORMATION
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 2025 1
INSIDE TT ELECTRONICS CONTINUED
OUR
PRODUCTS
AND
MARKETS
CAPABILITIES
We deliver engineered electronics that
helpcustomers meet performance-critical
requirements. From custom components to
complex assemblies, we design, engineer and
manufacture vertically integrated solutions
tailored to highly regulated markets.
MARKETS
POWER MANAGEMENT AND CONVERSION
Power converters, power supplies, power control,
inverters, auto transformer rectifier units (“ATRUs”),
microelectronics, power supplies
PRINTED CIRCUIT BOARD ASSEMBLY (“PCBA”)
Complex printed circuit board assembly and test
COMPLEX ELECTRONIC ASSEMBLIES
Manufacture and integration of complete electronic
assemblies, power systems and control cabinets
ELECTROMAGNETICS
Custom electromagnetics components,
transformers and inductors
CABLE AND INTERCONNECT
Rugged cable harness and assembly. Interconnect
solutions
PASSIVE COMPONENTS
Resistors, potentiometers, encoders, trimmers
SENSORS
Optoelectronics, temperature, pressure
and flow sensor technologies for control and
signalconditioning
HEALTHCARE
We deliver high-reliability electronic products and manufacturing solutions that
enable healthcare innovation. From supporting the digital transformation of
medical and life sciences equipment to enabling precision surgical procedures
through advanced miniature sensing technologies, our solutions are designed
to perform in demanding clinical environments and align with the rigorous
standards of next-generation healthcare systems.
Applications
– Direct patient care and monitoring
– MRI machines
– CT scanners
– Defibrillators
– Surgical robotics
– Implantable devices
– Laboratory and life sciences
– Home healthcare
Market growth drivers
– Structural demographic trends including population growth, ageing societies,
and rising life expectancy, combined with advances in diagnostics and
therapeutic innovation, are driving long-term growth in healthcare demand
and technology adoption
– Digital and connected healthcare driving demand for high-reliability
electronics in patient monitoring, diagnostics, and home
healthcareequipment
– Shift to minimally invasive and precision procedures increasing adoption
ofminiaturised sensors and advanced electronic subsystems
– Rapid growth of surgical robotics and navigation expanding demand for
high-performance electronics, sensing and control systems
– Rising use of implantable and long-life medical devices requiring ultra-
reliable, low-power, miniaturised electronics
– AI-driven lab automation and predictive analytics (e.g., mass spectrometry,
chromatography, clinical analysers) are accelerating demand for scalable,
high-precision electronics that enable real-time data processing, intelligent
instrument control, and higher throughput
– Geopolitical uncertainty is increasing demand for regional manufacturing
capability and localised supply chains
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 20252
INSIDE TT ELECTRONICS CONTINUED
MARKETS CONTINUED
AEROSPACE & DEFENCE
We provide high-reliability solutions that enable the next generation of aerospace
and defence technologies across land, air, and sea platforms. As a trusted
partner to the sector, we deliver tailored, mission-critical solutions that support
evolving operational demands, from power and propulsion systems to advanced
control architectures and secure, high-performance communications.
Applications
– Avionics, flight controls and landing gear
– Engine controls and fuel systems
– Electric propulsion
– Aircraft interior signage and lighting
– Precision guidance, communication and navigation systems
– Communication, command and control
Market growth drivers
– Rising defence spend is driving sustained demand for advanced electronics
across global military platforms
– Modernisation programmes leveraging technology advancement
(AI, sensors, autonomous systems) increasing demand for compact,
resilient, mission-critical electronics
– Shift to network-centric operations accelerating adoption of secure, high-
performance communications and C2 (command and control) electronics
– Miniaturisation and digitalisation improving performance, reliability, and
lifecycle efficiency of electronic systems
– More-electric aircraft architectures requiring high-power, high-density
converters, inverters, and control systems, and greater focus on efficiency
and thermal management
AUTOMATION & ELECTRIFICATION
Our solutions for automation and electrification enhance performance, improve
efficiency and support dependable operation across a broad range of industrial
and infrastructure applications, from factory automation to EV charging and smart
energy systems. As systems become more sophisticated, digitally enabled and
power-intensive, the continued adoption of advanced technologies, supported by
government policy and evolving market demand, is driving productivity gains and
resilience across the industrial ecosystem.
Applications
– Semiconductor manufacturing
– Industrial robotics and automation
– Electric vehicle infrastructure
– Renewable energy generation
– Power and energy management
– Rail communication and signalling
– Data centre power
Market growth drivers
– Rapid expansion of data centres and cloud infrastructure driving demand
forhigh-reliability power distribution, energy management and thermal
control electronics
– Industrial automation and robotics growth increasing need for precision
control, sensing and motion electronics
– Digital transformation driving adoption of rugged industrial computing
and real-time machine control systems
– Energy efficiency and decarbonisation accelerating high-efficiency power
conversion and thermal management solutions
– Electrification of transport and infrastructure driving demand for high-power
electronics and energy management
– Industrial internet of things (“IIoT”) connectivity and cybersecurity expanding
demand for secure communication and networked industrial electronics
– Geopolitical pressures and policies, such as the CHIPS Act, are expanding
semiconductor manufacturing capacity while increasing equipment
complexity, boosting demand for advanced, high-reliability electronics
Read more about
innovation in our
markets in the CEO
review onpage9
STRATEGIC REPORT GOVERNANCE & DIRECTORS’ REPORT FINANCIAL STATEMENTS ADDITIONAL INFORMATION
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 2025 3
BUSINESS PERFORMANCE
Whilst conditions in some of our markets continue to be challenging in North America and Asia,
actions taken in the year are expected to support better performance as the environment stabilises.
Business was strong in Europe, driven by good momentum in Aerospace & Defence markets,
underpinning future growth and margin quality. Adjusted operating profit margin returned to
recentlevels at 7.7% with adjusted operating profit of £37.2 million (statutory operating loss of £28.2
million). Cash conversion was much improved at 150%, elevated predominantly byinventory
reduction, a key management focus.
We also made good progress with our strategic actions to close the Plano facility and undertake a
review of the Components business. We have assessed a number of options for this business,
including a potential disposal and it continues to be managed separately for enhanced focus and
oversight. The turnaround at our Cleveland site is underway. Productivity is improving and various
financial and operational initiatives have begun to support a return to profitability at the site in the
medium term.
Under the guidance of our new CEO, Eric Lakin, we have implemented additional strategic
workstreams to support the long-term ambitions of the Group that build on our core engineering
and manufacturing capabilities. These are aimed at improving our horizon scanning, evaluating
and planning for strategic risks, operational execution, strengthening margins, and delivering
sustainable cash generation.
APPOINTMENT OF CEO AND INTERIM CFO
Eric Lakin joined the Group at the beginning of 2025 as CFO Designate and was appointed acting
CEO on the departure of Peter France in April. After a robust process to assess other potential
CEO candidates, the Board appointed Eric as CEO in August. We are very pleased with the changes
made under his leadership.
Given the CEO change, the Board felt it important to make a prompt appointment to the CFO role
and duly appointed Richard Webb as Interim CFO in May. Richard was previously Group CFO at
Ultra Electronics and has a strong track record of driving organic growth, change initiatives and
cost efficiencies.
NEW NON-EXECUTIVE DIRECTOR
We were delighted to also welcome Karina Rigby to the Board in October. Karina brings additional
international experience as well as skills in manufacturing, operational excellence and business
transformation from her career at Eaton Corporation. Alison Wood stepped down as Non-executive
Director and Chair of the Remuneration Committee at the 2025 AGM after nine years of service.
OPERATIONAL
TURNAROUND
2025 KEY HIGHLIGHTS
– In a transitional year for the Group,
actions taken to address operational
challenges and strengthen
accountability supported improved
second-half performance.
– Strong cash generation and a
significantly strengthened balance
sheet, with improved organic
profitability reflecting:
• Strong performance in Europe
driven by momentum in
Aerospace & Defence.
• Actions taken to address
underperformance in North
America resulted in a significant
improvement in regional
performance in 2025.
• Asia impacted by softer Electronic
Manufacturing Services (“EMS”)
demand and customer transfer
activity, with the region better
positioned operationally
entering 2026.
– Significant operational progress,
including ceasing production
at the Plano site, continued
improvement at Cleveland
facility and completion of
the Components strategic review.
– Book to bill ratio has improved to
109% (2024: 102%), reflecting an
improvement in order intake
relativetorevenue compared to
theprevious year.
After a difficult period for TT, the
Board was pleased to see operational
turnaround in 2025 and financial
performance improving in the
second half of the year.”
Warren Tucker
Chair
CHAIR’S STATEMENT
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 20254
RECOMMENDED OFFER FOR THE COMPANY
In October 2025 the Board unanimously decided
to recommend to shareholders an Offer from Cicor
Technologies Ltd for the Company. This followed a
number of unsolicited proposals which were rejected.
The rationale for this decision was outlined in our
announcement of 30 October 2025, namely that
the combination of the businesses was in the best
interests of stakeholders and that the Offer would
deliver accelerated value for shareholders. The
recommendation followed extensive advice from
financial advisers and engagement with shareholders.
A revised and final Offer from Cicor was announced
on 18 November 2025.
Given the value of the Offer, the Board submitted
the proposed acquisition to TT shareholders for
consideration. At a shareholder meeting on 7 January
2026, votes in favour of the Scheme did not meet
the required threshold and, as a result, the acquisition
did not proceed.
I would like to thank shareholders for their valuable
consultation input and support around the Offer.
CHAIR TRANSITION
Following the vote, it was clear to me that TT is at an
inflection point, and I advised the Board of my decision
to step down as Chair having served two three-year
terms. The Board asked that I remain as Chair until the
2026 AGM in May in order to identify a successor.
It has been enjoyable and quite an experience to serve
as Chair of TT for the last six years. It is a great
company with a bright future ahead. I thank all Board
members, past and present, that have served
alongside me over this period. Their wise counsel,
enthusiasm and commitment to the success of the
business have been most appreciated.
I would also like to thank the wonderful team of people
across the world that call TT home. They have
maintained focus on the needs of the business and our
customers throughout the Offer period and delivered
a significantly improved performance over the year.
DIVIDEND AND OUTLOOK
Dividends remain an important component of the
Group’s capital allocation framework, balanced with
debt reduction and strategic growth investment
to build a financially robust business capable of
supporting shareholder returns over time. No dividend
will be paid in respect of 2025; however, the Board
recognises the importance of dividends to
shareholders and will keep the position under review
as performance and leverage improve.
Entering 2026, the Board is confident that the Group
is better positioned to manage current market
conditions and make further progress on execution
and commercial effectiveness.
Warren Tucker
Chair
24 March 2026
CHAIR’S STATEMENT CONTINUED
It has been enjoyable and
quite an experience to
serve as Chair of TT for
the last six years. It is a
great company with a
bright future ahead.”
STRATEGIC REPORT GOVERNANCE & DIRECTORS’ REPORT FINANCIAL STATEMENTS ADDITIONAL INFORMATION
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 2025 5
KEY FEATURES OF OUR MARKETS
LIFECYCLE SUPPORT
Read more in Our products
and markets on page 2
Performance
critical
R&D
Size, Weight, Efficiency and Cost
Engineering
Collaboration
Manufacturing
Design
Testing
High complexity Significant market regulation Requiring customisation
for specific applications
OUR BUSINESS MODEL
SOLID PLATFORM
VALUE CREATION
Solid platform for value
creation for all stakeholders.
Customers and suppliers
– Innovation: R&D spend
3.8% of revenue
– Voice of Customer
integration
– Fair treatment of suppliers
Our people
– Strong culture
– Recordable Incident Rate in
line with industry average
– Equality, Diversity &
Inclusion (“ED&I”) work
Communities
– STEM partnerships
– Fundraising and
volunteering
Environmental
– Enabling smaller, lighter,
more efficient products
– Targeting Net Zero Scope 1
& 2 by 2030
Shareholders
– Improved performance in
2025 and strengthened
platform for growth
Our differentiated offer and long-term collaboration with our customers on
innovation, design and product delivery creates value for all our stakeholders.
Read about stakeholders
on page 35
ASSETS/EXPERTISE
EMBEDDED IN PRODUCT LIFECYCLES THROUGH
LONG-TERM COLLABORATION WITH CUSTOMERS
Engineering and
manufacturing capability
– Deep domain knowledge
– Years of embedded
experience and skills
– Strength in smaller, lighter,
energy-efficient solutions
– Low volume, high mix ability
Innovation/development
proficiency
– R&D, IP and specialist
product development skills
– Agility in products to market
– Experience in complex
regulatory approvals
Global footprint
– Locations in Europe,
NorthAmerica and Asia,
enabling customer
proximityworldwide
Customer relationships/
access
– Customer credibility and
long-term value creating
partnerships
– Business development
organisation to maximise
opportunities
People and culture
– Talented, passionate and
service-driven experts
Product development End of lifeProduct maturity
Aerospace & Defence 0-5 yrs
Healthcare 0-5 yrs
Automation & Electrification 0-2 yrs
30-50 yrs
15-30 yrs
5-10 yrs
3-30 yrs
3-15 yrs
1-5 yrs
Key
Engineering effort
Sales volume/revenue
Potential engineering opportunity
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 20256
INTRODUCTION
2025 was a transitional year for TT Electronics, during
which important strategic progress was made against
a backdrop of continued market uncertainty,
leadership transition and a period of increased
corporate activity. The approach by Cicor in the
second half of the year demonstrates the perceived
value of the business in our market. Throughout this
period, the business remained focused on meeting
customer needs, delivering on its objectives and
building a foundation for future growth.
As outlined at the half year, strong performance
in Europe, driven by Aerospace & Defence (“A&D”)
markets, was offset by challenges in parts of North
America and softer demand in certain Electronic
Manufacturing Services (“EMS”) end markets, as
anticipated. Actions taken in the first half contributed
to the improved performance in the second half,
putting the Group on much stronger footing as
we enter 2026.
OPERATIONAL PROGRESS
In North America, we made significant progress
in addressing the site-specific operational issues
highlighted earlier in the year. At our Cleveland facility,
the deployment of specialist operational support,
together with strengthened site leadership and tighter
operational controls, led to improvements in
productivity, yield, rework, customer service and cost
performance. Losses reduced materially through the
year, and performance improved in the second half,
positioning the site for a return to profitability in the
medium term.
At our Plano site production ceased at the end of the
year with final product testing and customer deliveries
currently being completed and production equipment
from the site now divested. The site made a positive
contribution to adjusted group profit of £1.2 million
in the year as a result of the last-time-buy profit
contribution of c.£3.5 million in H2. Across North
America overall, adjusted operating profit improved
to £1.2 million, compared with a loss of £2.7 million
in 2024.
YEAR OF
TRANSITION
2025 was a year of transition for
TTElectronics, and I am pleased to
report an improved financial position
of the Group in my first set of annual
results as Chief Executive Officer.
During the year, we addressed
operational challenges,
strengthened accountability and
restored control across the business,
resulting in a materially improved
performance in the second half.
We enter the new financial year
with a clearer strategic direction
and a stronger platform for growth,
underpinned by our four priorities of
divisional realignment, cost reduction,
sales transformation and portfolio
optimisation. Whilst we are mindful
of the current elevated geopolitical
uncertainty, we remain confident in
our ability to deliver further operational
and financial progress.”
Eric Lakin
CEO
CHIEF EXECUTIVE OFFICER’S REVIEW
In addition, we completed the transfer of some
production from our Suzhou site in China to our facility
in Kuantan, Malaysia, in response to a major customer
requirement to diversify its supply chain. This complex
transfer included both EMS and cable harness
programmes and required close collaboration with the
customer to ensure continuity of supply. The
successful execution of this project demonstrates our
ability to support customers as they adapt to changing
geopolitical and regulatory environments.
Kuantan is now positioned to support higher
production volumes for this customer and others as
supply chains continue to regionalise. Suzhou remains
an important part of our Asia footprint, focused on
supporting local and regional customers as well as
new programme opportunities, and continues to play
akey role in our Asia-for-Asia manufacturing strategy.
This customer transfer activity and softer EMS
demand meant Asia’s adjusted operating profit
reduced by 24% year-on-year, but enters 2026 on
stronger operational footing having completed the
production transfer.
Performance in Europe was particularly encouraging,
underpinned by sustained demand in A&D and strong
execution across the region. Adjusted operating profit
increased by 17% in Europe, delivering a Group-leading
margin of 15.3%, reflecting improved operational
leverage and programme mix. The region secured
several significant long-term programme awards
during the year, including new contracts supporting
European defence platforms and next-generation
aerospace applications, reinforcing our position
as a trusted supplier on mission-critical systems.
Performance in Europe
was particularly
encouraging, underpinned
by sustained demand
inA&D and strong
execution across
theregion.”
STRATEGIC REPORT GOVERNANCE & DIRECTORS’ REPORT FINANCIAL STATEMENTS ADDITIONAL INFORMATION
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 2025 7
STRATEGIC PRIORITIES
Renewed organisational focus
Over the year we strengthened the Group’s leadership
and governance arrangements. We established a
clearer Executive Committee structure, clarified
accountability at site and regional level and improved
operational oversight across the business, which has
been central to the progress made in 2025 and to
support ongoing execution going into 2026.
Throughout the period of corporate activity in the
second half of the year, management remained
focused on the business, our customers and
underlying performance. The Board also used this
period to review the Group’s organisational structure
and cost base, reinforcing the focus on operational
discipline and performance improvement and creating
renewed momentum behind the Group’s strategic and
operational priorities.
Strategic assessment of Components business
As announced at the half year, we undertook a
strategic assessment of our Components activities
across all four active sites. This work considered the
strategic positioning of the business within the Group’s
broader portfolio and its long-term role within
TTElectronics.
During 2025, the business was under separate
management oversight to ensure appropriate focus
and oversight while the assessment was completed.
This structure contributed to improved operational
performance in the second half.
Following completion of the assessment, the Board
is evaluating a range of strategic options for the
Components business, including a potential disposal,
with any decision to be guided by value and prevailing
market conditions.
CHIEF EXECUTIVE OFFICER’S REVIEW CONTINUED
Following actions taken during 2025, the Group
is aligned around a clear set of strategic priorities
focused on improving execution, strengthening
margins, and delivering sustainable free cash
flow. Our approach is centred on disciplined
implementation while building on the Group’s
core engineering and manufacturing capabilities.
Our four strategic priorities are set out below.
DIVISIONAL REALIGNMENT
We are reorganising the Group during 2026 to
better align our structure with our customers,
end markets, products and capabilities. This will
involve moving from the current regional
structure towards clearer alignment around
Power, EMS and Components. This approach
better reflects how the Group operates and will
improve collaboration across sites, support more
effective deployment of resources and align more
closely with how customers engage with the
Group.
SALES TRANSFORMATION
Strengthening business development and
commercial execution is a key priority as we
enter 2026.
During 2025, we began implementing a sales
transformation programme focused on people,
tools and processes, aimed at improving pipeline
visibility, order intake and pricing discipline. This
has been supported by investing in the business
development team, enhanced use of CRM, clearer
sales accountability and a renewed drive for new
customers and business opportunities. Initial
benefits are being seen with a significant
improvement in order intake in H2 compared to
H1, driven in part by strength in the A&D market.
The programme remains focused on
strengthening performance across the Group,
particularly within EMS in North America and Asia.
COST REDUCTION
In addition to ongoing continuous improvement
activity, we are implementing a targeted cost
reduction programme to simplify the Group’s cost
base and support a leaner operating model. This is
focused on reducing structural overheads,
devolving greater responsibility to operating sites
and improving efficiency, while maintaining the
engineering, manufacturing and customer service
capabilities required to support our core markets.
We expect the programme to deliver a benefit
of approximately £3.0 million in 2026, net of
contingencies and implementation costs. Over
the medium term, we expect the annualised
benefit to increase to double this level as the
programme is fully implemented.
PORTFOLIO OPTIMISATION
We continue to review the Group’s portfolio on
an ongoing basis to ensure it remains aligned
with our strategic priorities and areas of
competitive advantage. This includes maintaining
a disciplined, value-led approach to any potential
disposals, including the Components business,
as well as considering selective bolt-on
opportunities that enhance capability, technology
or market access in our core sectors. Disciplined
capital allocation will remain an important
element of the Group’s longer-term objective
of improving margin quality and strengthening
returns, including consideration of future
shareholder distributions as performance and
leverage allow.
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 20258
Investing in innovation
Engineering is key to our competitive advantage
and customer value proposition. We are committed
to investing in technology, products and capability,
especially in power electronics, value-added EMS and
specialist components. During the year, we launched
several products and reached key development
milestones including:
– AX-FORCE – a family of smarter, more efficient,
flexible power conversion and control solutions for
harsh environments in the A&D market. This is
addressing rapidly growing demand in electrification
of systems and platforms and positions TT with
world class, differentiated technology.
– Delivered bespoke power conditioning units
designed and developed by TT for an ultra-long
range business jet programme, now undergoing
flight qualification. This reinforces our position as
a trusted supplier for high-performance aviation
platforms.
– Expanded capability to manufacture high-power
transformers for classified military applications,
establishing significant new capability and creating
a foundation that can be applied to broader high-
growth sectors such as data centre and energy
infrastructure.
– Developed manufacturing process capability
for high power density Silicon Carbide (SiC) power
modules utilising silver sintering technology, with
delivery of first prototype modules to a major
aerospace customer.
– Leverage of our global engineering resources
to support a new customer’s nearshoring strategy,
establishing local manufacturing and NPI capability
with rapid execution.
– Expansion of our system integration offering to
include advanced precision-machined components,
supporting complex assembly and testing for
a global life sciences instrument OEM.
FINANCIAL PROGRESS
For the year ended 31 December 2025, Group revenue
was £481.4 million (2024: £521.1 million), a 7.6%
decline on a statutory basis and 2.7% decline on an
organic basis compared with the prior year. This
reflected continued strength in Europe, driven by A&D
markets, a contribution from last-time-buy revenue at
our Plano site, offset by softer demand in certain EMS
end markets in North America and Asia.
Adjusted operating profit increased by 2.2% on an
organic basis to £37.2 million (2024: £36.4 million),
with the adjusted operating margin improving by 30
basis points on an organic basis to 7.7% (2024: 7.4%).
This represented the benefits of operational actions
taken earlier in the year which led to stronger
execution in the second half, including improvements
in North America and the decision to close our site
at Plano. A strong demand in European Aerospace
& Defence was offset by softness in EMS markets.
Last-time buy activity in Plano in H2 contributed c.
£3.5 million to adjusted operating profit, which drove
a £1.2 million site contribution to Group profit for the
year. In what was a transitional year for the Group, it
was particularly pleasing to deliver results in line with
market expectations.
The statutory operating loss was £28.2 million
(2024:£23.5 million loss) driven by £65.4 million
of one-off charges (2024: £60.6 million), primarily
relating to restructuring and Goodwill impairment in
the North American business, the latter following a
re-assessment of future growth rates and timing for
certain North American businesses where end market
demand remains soft. The majority of one-off charges
are non-cash. The statutory operating loss margin was
5.9% (2024: operating loss margin 4.5%).
Cash generation was strong, supported by disciplined
working capital management, including significant
inventory reduction and improved receivables
performance. Net debt (excluding leases) reduced to
£50.3 million at 31 December 2025 (31 December
2024: £80.1 million), with improved leverage of 1.1x
(31December 2024: 1.8x), at the lower end of the
Group’s target range.
CHIEF EXECUTIVE OFFICER’S REVIEW CONTINUED
Further detail on the Group’s financial performance
and cash flow is set out in the Chief Financial
Officer’s review.
DIVIDEND
Looking ahead, the Board will balance strategic
investment in growth with the objective of building a
more financially robust business capable of supporting
shareholder returns. Dividends remain an important
component of the Group’s capital allocation
framework. No dividend will be paid in respect of 2025;
however, the Board recognises the importance of
dividends to shareholders and will keep the position
under review.
2026 OUTLOOK
Demand in A&D continues to be strong, providing good
visibility and supporting ongoing margin improvement,
particularly in Europe. Demand in EMS end markets
remains mixed, reflecting broader macroeconomic
uncertainty and customer caution. Nevertheless, the
actions taken during 2025 have strengthened the
Group’s operational discipline and financial position.
Entering 2026, the Board is confident that the Group is
better positioned to manage current market conditions
and to make further progress through continued focus
on execution and commercial effectiveness. Delivery of
the recently announced cost reduction programme is a
key priority and is expected to provide further support
during the year.
The Board expects 2026 revenue and adjusted
operating profit to be in line with Company compiled
consensus.
Looking ahead, the Board
will balance strategic
investment ingrowth with
the objective of building
amore financially
robustbusiness
capableofsupporting
shareholder returns.”
STRATEGIC REPORT GOVERNANCE & DIRECTORS’ REPORT FINANCIAL STATEMENTS ADDITIONAL INFORMATION
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 2025 9
REVENUE
CFO
REVIEW
CHIEF FINANCIAL OFFICER’S REVIEW
RETURN ON INVESTED
CAPITAL
13.3%
2024: 10.0%
Group revenue was £481.4 million (2024: £521.1million).
The year-on-year reduction primarily reflected currency
translation headwinds of £10.1million and the impact of
the divestment of our Cardiff, Hartlepool and Dongguan
sites in Q1 2024, which reduced revenue by
£16.2million.
Trading improved during the second half as
operational performance stabilised, repricing initiatives
took effect, and the Group progressed actions to
address underperformance in North America,
including the planned cessation of production at the
Plano site. This included a £3.5 million contribution
to adjusted operating profit from last-time buys in H2
which drove a £1.2 million site contribution to group
profit for the year.
On an organic basis, revenue declined by 2.7%, or £13.4
million, compared with the prior year of £494.8 million.
This reflected softer demand in several EMS end
markets, particularly in North America and Asia, partly
offset by continued strength in A&D markets in Europe.
A&D revenue increased to £152.8 million (2024:
£136.4million), reflecting continued strength in
demand across our European operations and
supporting improved margin quality. A&E revenue
declined to £140.1 million (2024: £161.1 million),
reflecting softer industrial demand and customer
caution, particularly in North America and Asia.
Healthcare revenues were £107.8 million (2024:
£112.6million), with performance affected by lower
demand in certain medical and life sciences
programmes. Distribution revenues were £80.7 million
(2024: £84.7 million), broadly reflecting the continued
RESULTS FOR THE YEAR ENDED 31 DECEMBER 2025
Adjusted
1
2025 2024 Change
Revenue (£m) (organic) 481.4 494.8 (2.7)%
Operating profit (£m) (organic) 37.2 36.4 2.2%
Operating profit margin
3
(%) (organic) 7.7% 7.4% 30bps
Net finance expense (£m) (8.5) (9.9) 14.1%
Profit before tax (£m) 28.7 27.2 5.5%
Tax (£m) (16.4) (7.7 ) (113)%
Tax rate (%) 57.1% 28.3% 28.8%pts
Profit after tax (£m) 12.3 19.5 (36.9)%
Weighted average number of shares (m) 17 7.8 m 176.9m 0.9m
Basic earnings per share (p) 6.9 11.0 (37.3)%
Cash conversion
3
(%) 150% 117% 33%pts
Return on invested capital
3
(%) 13.3% 10.0% 330bps
Statutory
3
Revenue (£m) 481.4 521.1 (7.6)%
Operating (loss) (£m) (28.2) (23.5) (20.0)%
Operating (loss) margin
3
(%) (5.9)% (4.5)% (140)bps
Net finance expense (£m) (8.5) (9.9) 14.1%
Loss before tax (£m) (36.7) (33.4) (9.9)%
Tax (£m) (13.9) (20.0) 30.5%
Tax rate (%) 37.9% 59.9% (36.7)%pts
Loss after tax (£m) (50.6) (53.4) 5.2%
Weighted average number of shares (m) 17 7.8 m 176.9m 0.9m
Basic (loss) per share (p) (28.5) (30.2) 5.7%
Net cash from operating activities (£m) 50.0 51.2 (2.3)%
Other KPIs
Free cash flow
3
(£m) 29.9 27.7 7.9%
Net debt (excl. lease liabilities)
3
(£m) (50.3) (80.1) (37.2)%
Leverage
3
1.1x 1.8x (37.8)%
1 Organic revenue and organic operating profit are revenue and adjusted operating profit on a constant currency basis
2
and excluding the impacts of
business disposals (e.g. Project Albert)
3
, see APM 1 and APM 2 on page 157. The Directors have adopted these measures to provide additional information
on the underlying trends, performance and position of the Group with further details set out in note 1c. The adjusted measures are set out in the
reconciliation of KPIs and non IFRS measures on pages 155 to 159.
2 Constant currency performance is calculated by translating prior period performance at the current period’s FX rates.
3 A reconciliation of KPIs and non-IFRS measures can be found on pages 155 to 159.
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 202510
normalisation of component demand following
elevated levels in prior years.
OPERATING PROFIT
The Group delivered adjusted operating profit of
£37.2million (2024: £36.4 million), which was an
organic increase of 2.2% reflecting operational actions
taken during the year which drove a stronger second-
half performance. This included a positive contribution
from last-time-buy activity at the Plano site in H2
ofc.£3.5 million, which drove a £1.2 million site
contribution to profit for the year.
After recognising £65.4 million of adjusting items (see
below), the Group reported a statutory operating loss
of £28.2 million (2024: £23.5 million).
OPERATING MARGIN
The Group generated an organic adjusted operating
margin of 7.7% (2024: 7.4%). The improvement
reflected stronger execution across the business
and the benefits of operational actions taken during
the year, partly offset by headwinds in Asia due to
reduced volumes.
On a statutory basis, the Group recorded an operating
loss margin of 5.9% (2024: operating loss margin 4.5%)
reflecting the impact of the adjusting items set out right.
CHIEF FINANCIAL OFFICER’S REVIEW CONTINUED
ADJUSTING ITEMS
The Group recognised £65.4 million of items excluded
from adjusted operating profit. These comprised of:
– Restructuring and other costs of £15.2 million
(2024: £0.1 million credit), including approximately
£7.0million relating to the closure of the Plano facility
in the US; £6.1 million of restructuring costs at the
Cleveland facility, including specialist operational
support and inventory write-downs; £1.6million
relating to group management changes reflecting
duplicate costs for senior management transition;
and £0.5million of other restructuring costs.
– Asset impairment charges of £41.4 million (2024:
£52.2million), comprising £37.2 million of goodwill
attributed to the North American business and
£4.2million of non-current assets across two sites
inNorth America.
– Acquisition and disposal-related costs of £4.3 million
(2024: £4.5 million), primarily relating to costs incurred
in connection with the Cicor approach.
– Pension restructuring costs of £1.9 million (2024:
£1.3 million), relating to preparation of the UK defined
benefit scheme for wind-up.
– Amortisation of acquisition-related intangible assets
of £2.6million (2024: £2.7 million).
Of the above adjusting items, £7.9 million are cash
impacting. These relate to £4.2 million of restructuring
costs, primarily associated with Cleveland and
management changes, and £3.7million of acquisition
and disposal-related costs, mainly relating to the
Cicorapproach.
NET FINANCE EXPENSE
The net finance cost reduced to £8.5 million (2024:
£9.9 million) due to lower interest rates and lower
debtlevels.
PROFITABILITY
Adjusted profit before tax was £28.7 million (2024:
£27.2million). On a statutory basis, the Group reported
a loss before tax of £36.7 million (2024: £33.4 million
loss), reflecting the adjusting items described above.
Adjusted basic earnings per share were 6.9pence
(2024: 11.0pence). The statutory basic loss per share
was 28.5 pence (2024: 30.2 pence loss).
TAXATION
The Group’s overall tax charge was £13.9 million
(2024:£20.0million).
The tax charge on adjusted profit before tax was
£16.4million (2024: £7.7 million), resulting in an
adjusted effective adjusted tax rate (ETR) of57.1%
(2024: 28.3%). The adjusted profit after tax was £12.3
million (2024: £19.5 million) and the statutory loss after
tax was £50.6 million (2024: £53.4 million).
Thishigher than usual tax rate is due to losses in the
US and the inability to currently recognise a deferred
tax asset in respect of those losses, following the
derecognition of the deferred tax asset of£16.0 million
in 2024, as well as £2.7 million in2025 due to the near
term outlook for the US businesses. There is
insufficient certainty regarding the timing and
quantum of future taxable profits to support deferred
tax asset recognition.
The adjusted earnings per share is 6.9p (2024: 11.0p).
In the current period, if a deferred tax asset had been
able to be recognised with respect to current year US
losses it is anticipated that this would have reduced
the adjusted effective tax rate to 25.4% and increased
the adjusted earnings per share by 5.1p to 12.0p. The
timing of when a deferred tax asset will be able to be
recognised in future years is uncertain and will be
based on the future forecast profitability of the US
businesses at the point of recognition.
£m 2025
2024
(organic
1
) 2024
Revenue 481.4 494.8 521.1
Aerospace & Defence (A&D) 152.8 136.4 142.1
Healthcare 107.8 112.6 118.1
Automation & Electrification
(A&E) 140.1 161.1 174.3
Distribution 80.7 84.7 86.6
END MARKET REVENUE BREAKDOWN
STRATEGIC REPORT GOVERNANCE & DIRECTORS’ REPORT FINANCIAL STATEMENTS ADDITIONAL INFORMATION
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 2025 11
CHIEF FINANCIAL OFFICER’S REVIEW CONTINUED
EUROPE
Revenue by market
Healthcare 1%
Automation & Electrification 15%
Aerospace & Defence 67%
Distribution sales channel 17%
£m Adjusted 2025 2024 Change
Revenue 144.4 146.3 (1.3)%
Operating profit 22.1 18.9 16.9%
Operating profit margin 15.3% 12.9% 240bps
£m Adjusted & Organic
Revenue
1
144.4 134.5 7.4%
Operating profit
1
22.1 19.4 13.9%
Operating margin
1
15.3% 14.4% 90bps
£m Statutory
Operating profit
22.1 18.9 16.9%
1 See note 1c on page 115 for an explanation of alternative performance measures, and APM2 on page 157
in relation to organic measures which present revenue and adjusted profit on a constant currency basis,
excluding the impacts of business disposals and adjusting items. Adjusting items are not allocated to
regions for reporting purposes. For further information on these items refer to note 6.
REVENUE BREAKDOWN
FINANCIAL HIGHLIGHTS – EUROPE
Revenue reduced by 1.3% compared to 2024, with
organic growth offset by the £11.8 million impact of
the Q1 2024 disposal of sites in Cardiff and Hartlepool.
Organic revenue increased by 7.4% to £144.4 million
(2024: £134.5 million) driven predominantly by
increased demand from our positioning on long-term
programmes in A&D, including several significant
customer wins.
Adjusted operating profit increased by 16.9% to
£22.1million (2024: £18.9 million) and increased by
13.9% on an organic basis to £22.1 million (2024:
£19.4 million). This improvement reflected decisive
actions to address underperforming contracts through
customer repricing agreements, together with
enhanced engineering capability and associated
revenue, improved operational execution and
continued cost discipline. As a result, the adjusted
operating margin increased to 15.3% (2024: 12.9%),
and by 90 basis points on an organic basis.
On a statutory basis, operating profit was £22.1 million
(2024: £18.9 million), up 16.9% on the prior year.
Overall order intake for the region was encouragingly
strong throughout the year, with strong organic growth
in our core A&D market and positioning ourselves well
with key customers to take advantage of a resurgence
in civil aviation. The book to bill ratio improved to 135%
for the region in 2025, compared to 125% in 2024.
The region is well-positioned for further growth in
2026, led by expanding A&D markets, continued
investment in our customer suite, automation and
digitalisation facilities, and advancement of our
technology roadmaps.
Notable contract awards and growth drivers during
the year included:
– A new five-year contract with an existing A&D
customer to supply human-machine interface
assemblies for a European combat vehicle
programme, strengthening TT’s role in mission-
critical defence systems.
– Multiple new business wins in the second half
across emerging markets including Electrical
Vertical Take-off and Landing (“eVTOL”), sixth-
generation fighter aircraft and uncrewed
platforms, demonstrating the broadening
application of TT’s technologies.
– Continuing our strong, long-standing partnership
with a large European A&D prime we have recently
announced a sizeable contract to supply military
grade cable harness assemblies for a critical
defence programme. This new contract award
leverages TT’s exceptional capabilities and proven
track record of supporting critical defence
applications worldwide.
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 202512
£m Adjusted 2025 2024 Change
Revenue 173.1 184.4 (6.1)%
Operating profit / (loss) 1.2 (2.7) 144.4%
Operating profit margin / (loss) 0.7% (1.5%) 220bps
£m Adjusted & Organic
Revenue
1
173.1 179.7 (3.7)%
Operating profit / (loss)
1
1.2 (2.7) 144.4%
Operating margin / (loss)
1
0.7% (1.5%) 220bps
£m Statutory
Operating (loss) (16.1) (18.1) 11.0%
1 See note 1c on page 115 for an explanation of alternative performance measures, and APM2 on page 157
in relation to organic measures which present revenue and adjusted profit on a constant currency basis,
excluding the impacts of business disposals and adjusting items. Adjusting items are not allocated to
regions for reporting purposes. For further information on these items refer to note 6.
CHIEF FINANCIAL OFFICER’S REVIEW CONTINUED
NORTH AMERICA
Revenue was 6.1% lower than prior year at £173.1million
(2024: £184.4 million) as weaker USD negatively
impacted North American performance. Excluding the
impact of FX, organic adjusted revenue declined by
3.7% to £173.1 million (2024: £179.7million), reflecting
reduced sales at the Cleveland site and volume
headwinds in the Components business. This decrease
was partially offset by new business opportunities in
A&D and Healthcare sectors which drove higher
revenues at the Minneapolis and Kansas City sites.
Despite weaker year-on-year revenue performance,
operational changes implemented in North America
resulted in improved regional performance, with
adjusted operating profit increasing to £1.2 million
(2024: £2.7 million loss). The adjusted operating profit
margin was 0.7% (2024: operating loss margin 1.5%)
reflecting the improved performance in Minneapolis
and Kansas City, offset by Cleveland, and c.3.5 million
of Plano last-time-buy activity in H2 which drove a
£1.2 million site contribution to Group profit for the year.
On a statutory basis, North America posted an
operating loss of £16.1 million (2024: £18.1 million loss),
which was a 11.0% improvement on the prior year.
Following historic challenges at the site, Cleveland
began to benefit from operational improvement
initiatives introduced in the first half, delivering its
highest production efficiency levels in three years
alongside further reductions in scrap and rework.
Thesite is now in a significantly stronger operational
position entering 2026. Further improvement in site
profitability will be reliant on revenue growth, which
is a priority for the site.
The Group recognised adjusting items in the period
related to the region, being restructuring costs of
£13.1million (2024: £0.1 million credit) relating to
Plano and Cleveland, as well as impairment charges
of £4.2million (2024: £15.5 million relating to a separate
site in the region), comprising non-current assets across
two North American sites. In addition, goodwill of
£37.2million attributed to the region has been impaired
and recognised within Central adjusting items.
Kansas’ improvement trajectory accelerated in the
second half, with productivity gains and customer
repricing contributing to improved financial and
operational performance. Major repricing activities have
now been completed, and the site enters 2026 with
a strong order book.
Production at the Plano site ceased at the end
of the year as planned with final product testing and
customer deliveries currently being completed, and
production equipment from the site divested. The site
made a positive contribution in the second half as a
result of last-time-buy activity associated with the
closure, and the action removes a structurally loss-
making facility from the Group’s footprint.
Following changes to the business development
organisation to increase capacity, win new contracts,
and encourage cross selling, there was a significant
improvement to order intake in H2 and continued growth
across all sites. Notable wins in the period include:
– Cleveland secured three new customers and six
new product wins in the second half – its first new
customer wins in three years – reducing reliance on
legacy programmes and supporting future growth.
– Kansas secured several new product awards, including
a new multi-year power supply contract with a
long-standing customer.
– A customer in the commercial satellite sector selected
the Juarez facility to supply high-reliability
optoelectronics for use in a low earth orbit satellite
programme, reflecting the strength of distributor-led
customer relationships and early-stage design
engagement.
The book to bill ratio for the region in 2025 improved to
104%, compared to 98% in 2024.
Revenue by market
Healthcare 16%
Automation & Electrification 23%
Aerospace & Defence 32%
Distribution sales channel 29%
REVENUE BREAKDOWN
FINANCIAL HIGHLIGHTS – NORTH AMERICA
STRATEGIC REPORT GOVERNANCE & DIRECTORS’ REPORT FINANCIAL STATEMENTS ADDITIONAL INFORMATION
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 2025 13
Revenue by market
Healthcare 48%
Automation & Electrification 47%
Aerospace & Defence 2%
Distribution sales channel 3%
CHIEF FINANCIAL OFFICER’S REVIEW CONTINUED
ASIA
Revenue performance reduced by 13.9% to £163.9
million (2024: £190.4 million) reflecting foreign
exchange headwinds of £5.4 million, the £4.4 million
impact of the Q1 2024 disposal of the Dongguan
facility in China and a decline in organic revenue
generation of 9.2% to £163.9 million (2024: £180.6
million). This organic revenue decline reflects reduced
demand from certain EMS customers in the
Healthcare and A&E sectors, which were impacted by
continued geopolitical and other related uncertainties.
Adjusted operating profit was £21.6 million (2024:
£28.5 million) representing a decline of 24.2%. This
reflects lower volumes, costs associated with
redundancy and the customer transfer programme,
foreign exchange headwinds of £1.1 million, and the
impact of the Q1 2024 Dongguan disposal. On an
organic basis the decline was 20.3%. The adjusted
operating margin was 13.2% (2024: 15.0%).
On a statutory basis, Asia posted an operating profit
of £21.6 million (2024: £28.5 million), which was down
24.2% on the prior year.
The project to transfer key customer programmes
from Suzhou to the Kuantan facility was successfully
completed during the year, positioning the site to
commence mass production volumes in 2026.
Kuantan continues to invest in capability, supply chain
resilience and production capacity to support future
regional growth.
Order intake in the Asia region was down compared
to the prior year, reflecting softer end-market demand
and the unwinding of safety stock built ahead of the
customer transfer from Suzhou to Malaysia. The
region has strengthened local business development
capability in response to the regionalisation of
customer supply chains, where TT is well placed to
support Asia-for-Asia demand. Growing revenues in
the region remains a key focus, with several significant
customer wins secured during the year. The book to
bill ratio for the region in 2025 was up marginally
at 91%, compared to 88% in 2024.
Operationally, Kuantan made further progress in
preparation for higher volumes, including
strengthening the supplier base, expanding warehouse
capacity, and recruiting and training teams to support
future mass production. Capability was also extended
to support intercompany cable assembly growth,
alongside the upgrade of warehouse facilities to
support EMS growth.
This year marked 25 years and 50 years of operations
at Suzhou and Kuantan sites, respectively, as well as
the celebration of 25 years as part of TT Electronics.
Notable wins in the period include:
– Suzhou secured a multi-year, new business award
from a long-standing A&E customer to supply eight
assemblies in total, with production expected to
ramp up in the second half of 2026.
– Our Kuantan facility was awarded three new
contracts for PCBA requirements from a long-
standing customer in the life science sector. TT
already provides manufacturing for this customer
at locations in Suzhou, Cleveland, and most recently,
Mexicali. The customer’s selection of this location
and entrusting TT is a testament to the partnership
and proven performance of TT teams globally.
– Suzhou has been awarded a new three-year
contract by a leading medical imaging equipment
provider. The award will see Suzhou provide multiple
PCBAs supporting a new product design,
demonstrating our success in developing valuable
customer relationships – enabling us to secure
positions on new, medical equipment innovations.
– A longtime customer in the industrial label and
printing sector has awarded Suzhou a three-year
contract for PCBA and sub-assemblies supporting
the textile industry. This order reflects our ability
to support this strategic account globally with
prototype and NPI capabilities, while leveraging
the Group’s best-cost geographies.
FINANCIAL HIGHLIGHTS – ASIA
£m Adjusted 2025 2024 Change
Revenue 163.9 190.4 (13.9)%
Operating profit 21.6 28.5 (24.2)%
Operating profit margin 13.2% 15.0% (180)bps
£m Adjusted & Organic
Revenue
1
163.9 180.6 (9.2)%
Operating profit
1
21.6 27.1 (20.3)%
Operating margin
1
13.2% 15.0% (180)bps
£m Statutory
Operating profit 21.6 28.5 (24.2)%
1 See note 1c on page 115 for an explanation of alternative performance measures, and APM2 on page 157
in relation to organic measures which present revenue and adjusted profit on a constant currency basis,
excluding the impacts of business disposals and adjusting items. Adjusting items are not allocated to
regions for reporting purposes. For further information on these items refer to note 6.
REVENUE BREAKDOWN
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 202514
CHIEF FINANCIAL OFFICER’S REVIEW CONTINUED
CASH FLOW
£m 2025 2024
Adjusted operating profit 37.2 37.1
Depreciation and amortisation 12.1 13.8
Impairment of intangibles 1.0 –
Working capital movement 12.7 (1.2)
Net capex (7.5) (6.9)
Capitalised development expenditure (1.1) (1.8)
Other 1.4 2.4
Adjusted operating cash flow post-capex 55.8 43.4
Cash conversion % 150% 117%
Restructuring and acquisition costs (7.9) (0.6)
Net interest and tax (15.3) (20.3)
Lease payments (3.8) (4.2)
Reimbursement from pension schemes net of funding payments 1.1 9.4
Free cash flow 29.9 27.7
Dividends – (12.2)
Lease payments 3.8 4.2
Equity issued 0.6 0.8
Disposals – 12.2
Other – (2.1)
Net debt impacting cashflow 34.3 30.6
Opening net debt (97.4) (126.2)
Leases disposed – 2.6
Other non-cash (new leases and lease reassessments) (3.0) (3.2)
FX 1.4 (1.2)
Closing net debt (64.7) (97.4)
The table below sets out Group cash flows and net debt movement:
Adjusted operating cash flow post capital expenditure was £55.8 million (2024:
£43.4 million). This was supported by a £12.7 million working capital inflow (2024:
£1.2 million outflow), reflecting improved inventory management and tighter working
capital control across the Group. A particular focus on inventory reduction delivered
underlying inventory reductions of £14.8 million during the year.
On a statutory basis, net cash from operating activities remained strong at £50.0
million (2024: £51.2 million), reflecting robust underlying profitability and disciplined
working capital management.
After net interest and tax payments of £15.3 million,
lease payments of £3.8 million, restructuring and
acquisition-related cash costs of £7.9 million, and a
£1.1million inflow relating to the US pension scheme
buy-out, the Group generated free cash flow of
£29.9million (2024: £27.7 million).
NET DEBT, FUNDING AND LIQUIDITY
Net debt reduced by £32.7 million during the year,
supported by strong free cash flow. After taking into
account foreign exchange movements and non-cash
lease adjustments, closing net debt was £64.7 million
(2024: £97.4 million) including £14.4 million of lease
liabilities (31 December 2024: £17.3 million). Excluding
lease liabilities, net debt was £50.3 million (31 December
2024: £80.1 million).
The Group funds its operations through retained
earnings, equity and borrowings, typically raised at
theGroup level and lent to subsidiaries. Sufficient
committed borrowings are maintained to cover
forecasted funding requirements. In line with the
Group’s borrowing agreements, which exclude the
impact of IFRS 16 leases, the leverage ratio was 1.1x at
31 December 2025 (31 December 2024: 1.8x) and net
interest cover was 5.6x (31 December 2024: 4.4x).
The Group’s debt facilities include financial covenants
requiring leverage to remain below 3.0x and interest
cover to remain above 4.0x. A temporary amendment
to the interest cover covenant was agreed with lenders
in late 2024 for the periods to 30 June 2025 and
31December 2025, reducing the minimum requirement
to 3.0x and 3.25x respectively, providing additional
headroom during the year. The interest cover reverts
to 4.0x from 30 June 2026 onwards.
The Group remained compliant with its covenant
requirements throughout the period. Our current
forecasts indicate sufficient headroom against the
Group’s primary covenants in both base case and
downside scenarios.
The Group’s borrowings comprise a multi-currency
Revolving Credit Facility (“RCF”) maturing in June
2027 and private placement (“PP”) fixed-rate loan
notes with maturities of seven and ten years. These
facilities maintain covenants aligned with the Group’s
bank agreements. The Group successfully amended
and extended its Revolving Credit Facility to June 2028
post year end. It was not necessary to seek further
amendments to the interest cover covenant under the
amended and extended facility, which has reverted to
the prior requirement to remain above 4.0x. The expiry
date has been extended by 12 months to June 2028
and facility size reduced to £105.0 million.
Leverage ratio
As of 31 December 2025, the Group’s leverage ratio
of 1.1x remains within the 1–2x target range. The net
debt/adjusted EBITDA calculation excludes IFRS 16
lease liabilities and incorporates adjustments for
specified items. The Group maintains a capital
allocation policy targeting net debt/EBITDA within
this range under prevailing market conditions. Further
details on borrowings and maturities are provided in
note 19.
GOING CONCERN
See page 44 for the going concern statement.
DIVIDEND POLICY AND DIVIDEND
Looking ahead, the Board will balance strategic
investment in growth with the objective of building a
more financially robust business capable of supporting
shareholder returns. Dividends remain an important
component of the Group’s capital allocation
framework. No dividend will be paid in respect of 2025;
however, the Board recognises the importance of
dividends to shareholders and will keep the position
under review as performance continues to improve.
SIGNIFICANT ACCOUNTING MATTERS
Impairment
The impairment of goodwill and tangible assets in the
current period relates to goodwill (£37.2 million) and
property, plant and equipment (£4.2 million) in the
North American region reflecting recent trading
performance. For further details see notes 12 and 13.
STRATEGIC REPORT GOVERNANCE & DIRECTORS’ REPORT FINANCIAL STATEMENTS ADDITIONAL INFORMATION
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 2025 15
CHIEF FINANCIAL OFFICER’S REVIEW CONTINUED
SUMMARY OF ADJUSTED RESULTS
To assist with the understanding of earnings trends, the Group has included within its
non-GAAP alternative performance measures including adjusted operating profit and
adjusted profit. Further information is contained in the ‘Reconciliation of KPIs and non
IFRS measures’ on pages 155 to 159. A summary of the Group’s adjusted results, and
a reconciliation of statutory to adjusted profit numbers are set out below:
£m 2025 2024
Operating loss (28.2) (23.5)
Adjusted to exclude:
Restructuring and other items
Pension restructuring costs
1
(1.9) (1.3)
Restructuring
2
(15.2) 0.1
(17.1) (1.2)
Asset impairments and measurement losses
Asset impairments
3
(41.4) (52.2)
(41.4) (52.2)
Amortisation of intangible assets arising on business combinations
Amortisation of intangible assets arising on business combinations (2.6) (2.7)
(2.6) (2.7)
Acquisition and disposal related costs
Costs associated with scheme of arrangement with Cicor (4.2) –
Ferranti Power and Control acquisition and integration costs – (0.2)
Disposal costs (Project Albert) – (4.4)
Property sale – 0.7
Other (0.1) (0.6)
(4.3) (4.5)
Total items excluded from adjusted measure (65.4) (60.6)
Adjusted operating profit 37.2 37.1
Loss before tax (36.7) (33.4)
Total operating reconciling items (as above) 65.4 60.6
Adjusted profit before tax 28.7 27.2
Taxation charge on adjusted profit (16.4) (7.7 )
Adjusted profit after taxation 12.3 19.5
1 Pension restructuring costs of £1.9 million (2024: £1.3 million) relate to costs incurred preparing the scheme for buy-out.
2 Restructuring costs of £15.2 million comprise £7.0 million relating to closure costs of the Plano manufacturing site, of
which £4.8 million relates to inventory, £6.1 million relating to costs associated with operational restructuring at the
Cleveland manufacturing site, which is predominantly related to inventory, and £1.6 million relating to costs associated
with the changes in executive leadership.
3 Asset impairment charges of £41.4 million (2024: £52.2 million), comprising £37.2 million of goodwill attributed to the
North American business and £4.2 million of non-current assets in North America.
PENSIONS
The Group operates one significant defined benefit
scheme in the UK alongside one smaller scheme in the
US. All these schemes are closed to new members
and future accrual.
In December 2025 an amount of £1.2 million was paid
to the Group by the TT Group Scheme relating to an
adjustment to the withheld tax on the prior years’
refunds from scheme surplus. In the prior year a
£15.0million refund of the surplus was paid to the
Group out of scheme assets by the Trustee
(£11.2million net of tax due, which was paid by the
Scheme) following a previous refund of £5.0 million
before tax (£3.2 million net) in 2023.
As of 31 December 2025, the total net accounting
surplus under the Group’s defined benefit pension
schemes stood at £6.1 million (2024: £5.6 million).
Following the buy-in of the TT Group scheme in
November 2022, the primary financial risk associated
with the scheme is insurer credit risk, which remains low.
£m 2025 2024
Fair value of assets 312.4 317.1
Liabilities 305.1 311.5
UK scheme (surplus) 8.6 7.1
Overseas schemes (deficit) (1.3) (1.5)
Total Group surplus 7.3 5.6
Effect of asset ceiling (1.2) –
Total Group surplus recognised 6.1 5.6
The April 2022 triennial valuation of the TT Group
scheme reported a net surplus of £45.4 million against
the Trustee’s funding objective, a significant improvement
from the £0.3 million surplus in April 2019. As the scheme
has now triggered wind-up, there is no longer a statutory
requirement for the Trustee to conduct full triennial
valuations. This exemption is subject to the Trustee
receiving annual solvency estimates.
Further details on the Group’s defined benefit schemes
can be found in note 21.
FINANCIAL RISK MANAGEMENT AND
TREASURY POLICIES
The Group’s Treasury function, reporting to the Chief
Financial Officer, manages treasury activities centrally.
Treasury operations adhere to Board-approved policies
and delegation levels.
The Group’s primary financial risks include funding
and liquidity, interest rate fluctuations, and currency
exposure. Financial instruments are used solely
tomanage these risks, with no speculative
transactions undertaken.
The Group hedges at least 75% of expected net cash
flow exposure for the next 12 months and 50% for the
following 12–24 months. Further details on Treasury
operations are available in note 20.
Interest rate management
The Group seeks to stabilise borrowing costs,
maintaining 25%–75% of debt at fixed interest rates.
The exchange rates impacting the Group’s financial
statements are:
£m 2025 2024
Income Statement Average rate
$/£ 1.32 1.28
RMB/£ 9.47 9.20
Balance Sheet Closing rate
$/£ 1.35 1.25
RMB/£ 9.41 9.14
The Group manages foreign exchange translation
exposure, primarily arising from US and China-based
earnings.
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 202516
HOW WE ARE PERFORMING
OUR KPIs
FINANCIAL
KPI DESCRIPTION AND WHY ITISIMPORTANT MEDIUM-TERM TARGET FIVE-YEAR PERFORMANCE CHART 2025 PROGRESS
Organic revenue growth (%)
The percentage change in revenue from continuing operations in the current year compared
to the prior year, excluding the effects of currency movements, divestments and acquisitions.
This measures the like-for-like growth or decline of the business. Sustainable organic revenue
growth is an indicator of value creation. It reflects a combination of conditions in our markets
and our success in gaining market share from serving our customers better.
4–6% organic revenue
growth annually over the
medium term
(3)%
2024: (5)%
10%
20%
1%
(3)%
(5)%
2025
2024
2023
2022
2021
Organic revenue was down 3%
reflecting softer demand in certain
EMS end markets in North America
and Asia, particularly in the first
half.
Adjusted operating profit margin (%)
Adjusted operating profit as a percentage of revenue. Adjusted operating profit margin is an
indicator of our ability over the longer term to extract fair value from our products and services,
driven by a mixture of increasing revenue and an optimised cost base.
Double-digit margin
7.7%
2024: 7.1%
7.6%
7.3 %
7.1%
7.7%
7.7%
2025
2024
2023
2022
2021
Positive adjusted operating profit
margin improvement, reflecting
the benefit of operational actions.
Adjusted earnings per share (pence)
The profit for the year attributable to shareholders excluding items not included within adjusted
operating profit divided by the weighted average number of shares in issue during the year.
Adjusted EPS summarises the overall financial performance of the Group, including revenue
growth, operating margin, the cost of debt finance and the rate of underlying taxation.
Double-digit adjusted EPS
growth annually at constant
currency over the medium
term
6.9p
2024: 11.0p
18.2p
14.5p
11.0p
16.7p
6.9p
2025
2024
2023
2022
2021
Adjusted EPS reduced to 6.9p
reflecting the derecognition of
deferred tax assets (“DTA”) in respect
of US tax losses. Excluding DTA
derecognition adjusted EPS would
have been 12.0p.
Cash conversion (%)
Adjusted operating cash flow including capital expenditure, divided by adjusted operating profit.
Cash conversion measures how effectively profit is converted into cash and, within this, reflects
the management of working capital and capital expenditure. A high level of cash conversion aids
investment in the business, enables the Group to deliver increased returns for shareholders and
supports a strong balance sheet.
90%+ cash conversion
annually over the medium
term
150%
2024: 117%
65%
33%
117%
104%
150%
2025
2024
2023
2022
2021
Strong cash conversion of 150%
reflecting disciplined working capital
management with a particular focus
on inventory reduction.
Our KPIs include a number of APMs which have been adopted by the Directors to provide further information on underlying trends and the
performance and position of the Group. Details of these APMs and a reconciliation to statutory measures can be found on pages 155 to 159.
STRATEGIC REPORT GOVERNANCE & DIRECTORS’ REPORT FINANCIAL STATEMENTS ADDITIONAL INFORMATION
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 2025 17
FINANCIAL CONTINUED
KPI DESCRIPTION AND WHY ITISIMPORTANT MEDIUM-TERM TARGET FIVE-YEAR PERFORMANCE CHART 2025 PROGRESS
Return on invested capital
Adjusted operating profit for the year divided by average invested capital for the year. Average
invested capital excludes pensions, provisions, tax balances, derivative financial assets and
liabilities, cash and borrowings. It is calculated at average rates taking into account monthly
balances. Return on invested capital is a measure of how efficiently the Group is utilising its
assets, relative to profitability, in generating shareholder returns.
Exceed the cost of holding
assets with year-on-year
increases
13.3%
2024: 10.0%
9.1%
10.5%
10.9%
10.0%
13.3%
2025
2024
2023
2022
2021
Return on invested capital
up to 13.3%.
NON-FINANCIAL
KPI DESCRIPTION AND WHY ITISIMPORTANT MEDIUM-TERM TARGET FIVE-YEAR PERFORMANCE CHART 2025 PROGRESS
R&D investment as a % of revenue
R&D cash investment as a percentage of revenue. This metric excludes manufacturing services
revenue which has no R&D. A consistent and sustainable level of R&D investment enables us
to introduce new products that increase our revenue and deliver on our Purpose.
Target R&D investment
at around 5% of revenue
annually over the medium
term
3.8%
2024: 4.2%
4.5%
3.7%
4.2%
3.4%
3.8%
2025
2024
2023
2022
2021
R&D investment at 3.8% of
product revenue was in line with
our target, as we continue to
invest in new product
development.
Safety performance (recordable incident rate)
The number of recordable workplace health and safety incidents per 200,000 work hours.
Measures how well we are executing on our commitment to raise safety standards globally
and protect our people on our journey to zero harm.
Year-on-year reduction in
incident rate, ultimately
leading to zero harm
0.25
2024: 0.31
0.31
0.38
0.25
2025
2024
2023
RIR fell again in the year to 0.25
in line with the industry average,
reflecting our strong commitment
to safety awareness and building
a proactive safety culture.
Employee engagement score
Having engaged employees is crucial to attracting and maintaining the talent we need to execute
our strategy. We use pulse surveys to measure engagement.
Good levels of engagement
over the medium term
Pulse engagement surveys in both 2025 and
2024 demonstrated good levels of engagement
Scope 1 & 2 emissions
Total amount of carbon dioxide equivalent tonnes (tCO
2
e) of Scope 1 & 2 emissions from
operations. Details of the calculation method are set out on page 24. Reducing our Scope 1 & 2
emissions is a critical part of reducing our environmental footprint.
Annual reductions vs our
2019 baseline. Net Zero
by 2030
78%
2024: 73%
12,782
15,74 0
7,506
10,533
6,009
2025
2024
2023
2022
2021
We delivered further good
progress on our path to Net Zero
by 2030, achieving a 20%
reduction vs 2024. A strong
contribution came from our solar
installations in Mexicali and
Suzhou.
HOW WE ARE PERFORMING CONTINUED
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 202518
Read more about
Governance on
page 45
POSITIVE
IMPACT
We aim to positively impact the world by
creating value and enhancing sustainability
through our products, business practices,
employee care, community engagement,
andenvironmental responsibility.
OUR PURPOSE
To engineer and manufacture electronic
solutions that enable a safer, healthier
and more sustainable world.
SUSTAINABILITY
– Sustainability is integrated into all aspects of our
strategy to reduce risk and maximise opportunities.
– We build vertically integrated solutions that drive
performance and reliability, including improving fuel
efficiency, enhancing productivity, and advancing
precise medical technologies.
– We help customers develop efficient, durable and
eco-friendly solutions to combat climate change and
resource scarcity.
PEOPLE AND COMMUNITIES
– We regularly survey our employees to provide insight
and nurture our culture.
– Group standards and policies guide us on
engagement, wellbeing, community and ED&I
matters.
– We are committed to enhancing safety awareness
and fostering a proactive safety culture across the
organisation.
– We unlock potential by upskilling leaders and giving
line managers the right tools.
– TT pays fairly and equally for like-for-like roles within
each of our labour markets.
– We play an active role in communities through
STEM promotion, volunteering and fundraising.
ENVIRONMENTAL COMMITMENTS
– We are targeting Net Zero Scope 1 & 2 emissions by
2030, having already reduced emissions by 78%
since 2019.
– Implementation of our Group-wide Energy Strategy
and the deployment of energy reduction plans at
site-level is continuing to deliver meaningful
emission reductions.
– A continuous improvement approach to enhance
the quality, coverage and robustness of our Scope 3
reporting and reduction activities over time.
– Focusing on minimising water usage, eliminating
single-use plastics, and eliminating waste to landfill.
ETHICS AND INTEGRITY
– We maintain a single global ethical standard based
on fairness, honesty and compliance with the law.
– Our Business Ethics Code addresses behaviour,
conflicts of interest, bribery and fair competition.
– Issues can be reported anonymously via a multi-
lingual whistle-blower hotline.
– Oversight is managed by our Governance & Risk
Committee.
SUPPLY CHAIN AND MODERN SLAVERY
– Our Procurement Code ensures suppliers align with
our ethical and sustainability standards.
– Policies include zero tolerance for modern slavery
and specific measures to uphold workers’ rights.
– Suppliers undergo regular assessments, and
violations result in termination of partnerships.
ALIGNMENT WITH GLOBAL GOALS
– Our efforts support seven of the UN’s Sustainable
Development Goals.
KEY METRICS
– Employee engagement: Continued good
engagement demonstrated in pulse surveys.
– Group safety record: As measured by recordable
incident rate. Improved by 19% in 2025.
– Net Zero target: 2030 for Scope 1 & 2 emissions.
– Emission reductions: 78% vs 2019 baseline.
– Renewables contribution: Increase in renewable
electricity usage to 67%.
– Waste reduction: Eliminating single-use plastics and
waste to landfill by 2035.
GOVERNANCE AND RISK MANAGEMENT
Environment and people matters including culture,
strategy, compliance, risk and internal controls are
governed as part of our overall governance and risk
management frameworks, ultimately overseen by the
Board. Read more about Governance on page 45.
Non-financial and Sustainability Information
Statement
In accordance with Sections 414CA and 414CB
of the Companies Act 2006, our non-financial
and sustainability information can be found on
the following pages of this 2025 Annual Report:
business model page 6; environment matters
pages 23 to 25; climate-related financial
disclosures pages 26 to 34; social matters page
21; employees pages 20 to 21; human rights
page 22; anti-corruption and anti-bribery page
22; and principal risks pages 41 to 43.
STRATEGIC REPORT GOVERNANCE & DIRECTORS’ REPORT FINANCIAL STATEMENTS ADDITIONAL INFORMATION
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 2025 19
OUR PEOPLE, COMMUNITIES AND ENVIRONMENT
OUR PEOPLE, COMMUNITIES AND ENVIRONMENT CONTINUED
PEOPLE AND CULTURE
Our deep and sustainable TT culture,
overseen and supported by the Board,
makesus a great company to work for
andwith. While some aspects, such as
ethics and safety, are aligned and reinforced
by policy, others are governed by frameworks
originated at the centre which empower
oursites to work appropriately in
theirjurisdictions and according to local
needs and norms.
Our TT Way values connect us all and guide how
we work with each other and our stakeholders every
day. They are supported by our focus on leadership,
knowledge and performance to drive progress,
innovation and service as well as build respectful,
happy and supportive work environments.
2025 engagement survey
During 2025 we continued to check in on the
sentiment of our employees using pulse surveys.
Results from these pulse surveys continue to inform
HR and local planning. In 2026 we will start the
transition towards a new employee survey
methodology to provide a greater level of insight and
focus on the actions of managers at all levels and how
this affects work culture and the employee experience.
Giving managers the tools and skills to engage, inspire
and develop employees will deepen and strengthen
our ability to unlock business performance through
our people.
Employee communication
We communicate frequently and openly with
employees using a range of methods.
At Group level, our intranet, ConnecTT, enables
employees to communicate with each other and
easily find and share resources and news in their local
language. We regularly publish news items celebrating
business and personal successes as well as reporting
on events across the Group. ConnecTT also hosts
employee communities for skill specialisms, E,D&I
progress, and personal interests.
Regular communication is critical to the success of
our sites. Activities include regular all-hands meetings,
daily stand-ups to drive productivity, and team
meetings. In addition, our CEO, Eric Lakin, makes it a
priority to ensure all employees are informed of news
and updates that impact TT Electronics through a
range of different mechanisms.
Social and fundraising events are also a big part
of our culture, helping to create strong personal and
social bonds both within our sites and with our local
communities. Members of the senior leadership team
regularly visit, giving Town Halls, walking the floor, and
recognising outstanding performance and improvement.
Employee voice at the Board
It is important that the employee voice is heard at the
highest levels of the organisation. The results of our
pulse surveys are reviewed by the Board. Members of
our Board also take the time to visit sites, sometimes
as individuals, and also as a Board group. Board
members visited Bedlington and Cleveland in 2025
and conducted engagement sessions to ensure they
heard directly from a cross section of our employees
independently of management. These visits are a
great opportunity for our employees to talk about
topics important to them and to ask questions of the
Board and hear from them directly. This is an activity
we started in 2024 and it has proved to be hugely
valued, by both the Board and by employees.
For the purposes of the UK Corporate Governance Code,
all Board members participate in these sessions on a
rolling basis and regular updates on progress in employee
engagement and other topics are shared with the Board
through regular reports and physical meetings.
Reward and recognition
Being fairly rewarded and recognised for your
contributions is an important part of our culture.
We ensure we pay fairly and equally for like-for-like
roles within each labour market. Over recent years,
we have worked to improve pay and earnings potential
We do the
right thing
We bring out the
best in each
other
We achieve
more together
We champion
expertise
We get the job
done… well
Read more about
Board oversight of
culture
on page 54
OUR TT WAY VALUES
for our direct labour employees through significant
investment in hourly rates and via frameworks and
training which allow employees to earn more as they
grow their skills.
Over and above salary, all employees are able to
participate in site-specific pay-for-performance plans,
be it our site incentive plans, or annual incentive plans,
and we operate attractive all-employee share plans
for UK and US employees.
Our BE Inspired recognition scheme is extremely
popular with employees as an opportunity to
recognise teams and individuals who demonstrate
our TT Way values and have a positive impact on the
business. Winners receive a sum of money and are
celebrated at their site.
ED&I
The need for equality and fairness at work is a given.
All employees and potential employees must be
treated fairly and have equal access to opportunities
in a workplace that is tolerant, respectful and ensures
dignity for all. As set out in our employment policies,
no employee, applicant, contractor or temporary
worker should be treated less favourably or victimised
or harassed on the grounds of disability, sex, marital
or civil partnership status, race, nationality, colour,
ethnicity, religion or similar philosophical belief, sexual
orientation, gender identity, age or any distinction
other than merit.
20 TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 202520
OUR PEOPLE, COMMUNITIES AND ENVIRONMENT CONTINUED
Our ED&I policy explains our approach including such
matters as harassment, victimisation and bullying,
recruitment and promotion, religious
accommodations, gender confirmation andworkplace
adjustments; the expected standards for employees
and their responsibilities; and how we will deal with
infringements of the policy.
We are pleased to have three (>40%) female Board
members. Inaddition, we have two female site general
managers (both promoted internally). In total, we have
more female employees than male. Our UK Gender
Pay Gap report is published annually on the TT
website. Our gender diversity disclosure, as required
by UK listing rules is provided below.
GENDER DIVERSITY AT 31 DECEMBER 2025
Employees – full-time equivalents Men Women
Non-executive Directors 2 3
Executive Committee (“ExCo”) 8 1
ExCo and direct reports 38 15
Senior managers (ex-ExCo)
1
45 18
All employees:
Europe 590 319
North America 621 522
Asia 428 925
Head Office 68 43
Total 1,707 1,809
1 Senior managers (ex-ExCo) includes TT’s regional and functional
senior leaders and Directors of subsidiary companies.
SAFETY, HEALTH AND WELLBEING
Our Health, Safety and Environment (“HSE”)
framework and tools are designed not only to
ensure compliance but also to encourage the
identification and adoption of best practices.
Our Global Director ofHSE drives progressive
HSE programmes and provides business-
wide support, ensuring a consistent and
proactive approach to HSE management
across the organisation.
Safety performance remains a key Group KPI. Over
the past year, we have focused on strengthening the
maturity of our HSEstandards across all sites and
encouraging the sharing andadoption of best
practices. As a result, we have seen a reduction
in injuries, alongside increased proactive reporting
andstronger adherence to both internal policies
and external regulatory requirements.
2025 2024
Total recordable incident rate (“RIR”) 0.25 0.31
First aid incident rate 1.95 2.76
Proactive observations 12,657 12,226
Near misses 140 268
These positive developments reflect our ongoing
commitment to strengthening safety awareness and
building a proactive safety culture throughout the
organisation. We have enhanced our reporting, made
progress against our 2025 targets, and perform in line
with the industry average.
Supporting our employees to maintain their health is
also vital. It is not only the right thing to do but essential
to ensuring that our teams are fit, well, and able to
perform at their best. We recognise the strong
connection between physical, mental and financial
wellbeing, and we take every opportunity to raise
awareness, normalise conversations on these topics,
and provide access to the resources our people need,
such as medical assessments and wellbeing initiatives.
In addition, an Employee Assistance Programme
(“EAP”) is available to all employees, offering
confidential third party support whenever it is needed.
COMMUNITIES
We encourage our teams to take an active
role in theirlocal communities, whether
fundraising and volunteering for chosen
charities or committing timeand resources
to promoting STEM education andcareers.
Our teams of engineering, technology and
manufacturing experts are passionate advocates for
the development of STEM skills and engaging with the
next generation of potentialtalent. We are particularly
keen to encourage more women and under-
represented groups to take up STEM subjects and
careers.
Many of our employees give up their time to develop
local STEM partnerships to promote careers in
electronics and related fields, undertaking talks,
demonstrations and attending careers fairs to interest
and educate young people about the sector. Across
the world we also aid school curriculums directly by
supporting science projects and engineering
competitions to highlight the importance of STEM
subjects ineveryday life.
TT has a big fundraising and volunteering culture –
our efforts bring our employee teams together as well
as benefiting our communities. Each site chooses
a local charity to support through the year and our
“hours for giving” programme enables employees
to take one day of paid leave per year to support local
causes. In 2025 1,250 hours were taken under the
programme. Our teams support many other local
and national causes and are able to request matched
funding from TT through the “giving the TT Way”
programme.
PEOPLE AND CULTURE CONTINUED
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TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 2025 21
OUR PEOPLE, COMMUNITIES AND ENVIRONMENT CONTINUED
ETHICS
We are an ethical company, acting worldwide
with integrity and within the law.
The fundamental principles of fairness,
honesty and common sense are at the heart
of our philosophy and corporate standards.
We have one ethical standard worldwide to
create an environment where TT businesses
can flourish within an appropriate compliance
and risk management framework in line with
our TTWay values.
Our Statement of Values and Business Ethics Code
sets out these standards and covers a comprehensive
range of ethical matters including the working
environment, standards of behaviour, avoiding
conflicts of interest, hospitality and entertainment,
bribery, intellectual property protection and fair
competition. We do not tolerate fraud, corrupt
practices or behaviour not in line with our standards
and have in place systems and processes to effectively
detect and deal with any contraventions of our code.
Any concerns relating to matters covered by the code
and behaviour more generally can be reported, either
to management, or by using our anonymous whistle-
blower hotline by telephone or through our ethics and
integrity portal. Reports are investigated thoroughly,
and any significant concerns are reported to the Audit
Committee. Our Whistle-blowing Policy describes
how employees should raise matters of concern, our
approach to dealing with concerns, and examples of the
types of issue employees should bring to our attention.
Day-to-day oversight of ethical matters is the
responsibility of our Governance & Risk Committee.
An Ethics Committee of our senior leaders can also
be convened on an as-needed basis. Mandatory ethics
training covering TT’s code of ethics, anti-bribery and
corruption practices and policies, cybersecurity and
data protection is provided for relevant employees on
an annual basis.
Regulatory requirements are different around the
world, so we have a core structure which Group
businesses comply with, beyond which they are
empowered to tailor their approach to local needs.
The nature of our business and the markets we work
in means that legal and regulatory compliance is
on our Group risk matrix.
Human rights
Upholding human rights is the responsibility of
everyone at TT and, as part of our ethics framework,
human rights are treated as an equal priority to other
business issues. We are committed to upholding the
human rights of workers (at all points in our supply
chains) and to treating them with dignity and respect.
Supply chain
We procure from a wide network of suppliers and
distributors through global supply chains. It is
important to us that our suppliers share our values
and our approach, and we seek out those that do.
Our Corporate and Social Responsibilities – Supplier
Requirements Policy sets out our required standards
with regard to supplier social and environmental
practices. The Policy is provided to all suppliers with
purchase orders. We carry out regular assessments
of our suppliers to ensure compliance with our
requirements, and we will not do business with
suppliers that violate them.
Our Procurement Code of Conduct outlines the
standards expected for the purchase of goods and
services across the Group. This code focuses on the
approval process required for the appointment of new
suppliers, together with our ongoing supplier monitoring
process which includes the application of a digital
supplier risk rating tool.
Our regional sourcing and procurement teams meet
on a monthly basis and comprise a senior group of
executives with responsibility for global sourcing and
procurement activities across TT. The group consider
ethical matters including modern slavery, sustainability
and risk in the supply chain as part of its remit.
Modern slavery
We have a zero-tolerance approach to modern
slavery – whether in the form of servitude; forced,
bonded or indentured labour; slavery; child labour;
human trafficking or any other activity that amounts
to an unreasonable restriction on the free movement
of workers.
We recognise that the rights of individual workers
can, potentially, be violated within our supply chain
and other partnerships. We have had a Modern Slavery
Policy since 2016 which applies to all persons working
for TT and its subsidiaries, or acting on its behalf in
any capacity. The policy is reviewed each year.
Our approach to addressing the challenge of modern
slavery is to ensure that there is transparency in our
own business and throughout our supply chains.
We expect the same high standards from all our
contractors, suppliers, distributors and other business
partners, consistent with our obligations under the
Modern Slavery Act 2015. We include specific
prohibitions in our contracting processes against
the use of forced, compulsory or trafficked labour,
or any other activity that amounts to an unreasonable
restriction on the free movement of workers, and we
expect that our suppliers will hold their own suppliers
to the same high standards.
Our Modern Slavery Statement and our Modern
Slavery Policy are published on our website.
HUMAN RIGHTS
Upholding human rights
is the responsibility
of everyone at TT and
human rights are treated
as an equal priority to
other business issues.
22 TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 202522
Sustainability
This year, TT has continued to make strong progress
against its sustainability strategy, delivering tangible
results as we transition towards Net Zero.
Our purpose is to engineer and manufacture electronic
solutions that enable a safer, healthier and more
sustainable world. In doing so, we remain conscious
ofthe need to manage and reduce the environmental
impact of our own operations.
A central focus of our day-to-day activities is the
reduction of TT’s Scope 1 & 2 emissions. In 2025,
we delivered further meaningful reductions through
the continued implementation of our Group-wide
Energy Strategy and the deployment of energy
reduction plans by our local site teams.
These actions have reduced overall energy
consumption, increased the proportion of electricity
sourced from renewables, and expanded on-site
renewable electricity generation. Total energy use
was down 3% in the year and down 34% from our
2019 baseline.
Each site is actively delivering its own energy-saving
initiatives, including the installation of energy-efficient
lighting and controls, optimisation of equipment
utilisation, improved management of operating hours,
and targeted upgrades to facilities and infrastructure.
These build on work undertaken in 2024 on lighting,
furnace use optimisation and reducing out of hours
energy use. These locally driven projects, supported
by a consistent Group framework, continue to deliver
measurable benefits while reinforcing a strong culture
of energy efficiency across TT.
As a result of these collective efforts, TT delivered
another year of strong performance. Scope 1 & 2
emissions fell by 20% year-on-year and by 78%
compared with our 2019 baseline, reflecting the
sustained impact of our energy efficiency initiatives
and transition to lower carbon energy sources.
We recognise that our environmental impact extends
beyond our direct operations, particularly through
indirect carbon emissions generated across our value
chain. While the collection of robust data for indirect
emissions assigned as Scope 3 remains challenging,
we acknowledge the opportunity to further enhance
the quality and scope of our reporting on emissions
from external sources. Despite these challenges, 2025
marked continued progress in our ability to more
accurately quantify and analyse TT’s material Scope 3
emissions. Our analysis indicates that Scope 3
emissions decreased by 9% during the year, primarily
driven by lower spend on purchased goods and
services, together with reduced emissions from the
transportation and distribution of our products.
In addition to our focus on reducing carbon emissions,
we are committed to minimising the broader
environmental impact arising from our use of natural
resources, including water consumption, single-use
plastics and the waste generated across our
operations. We continue to strengthen the quality and
coverage of data captured in these areas and remain
committed to eliminating, so far as practicable, both
single-use plastics and waste sent to landfill by 2035.
We are very proud of the pivotal role that TT’s product
portfolio plays in driving energy efficiency and
supporting decarbonisation in our markets. Through
high-efficiency power conversion, sensing, and control
technologies, TT solutions enable customers to reduce
energy losses, optimise system performance, and
transition to cleaner, more electrified architectures.
Innovations such as compact, thermally efficient
resistors, high-reliability sensors and robust power
supply modules help customers design equipment
that consumes less energy, operates more intelligently,
and integrates renewable or low-carbon power sources.
We are closely monitoring the development of
sustainability-related regulation, including the
proposed UK Sustainability Reporting Standards
(“UK SRS”) and evolving FCA sustainability disclosure
requirements. Building on our existing sustainability
reporting framework, we are preparing for anticipated
changes to our future reporting obligations. In this
context, and noting the guidance on transition
planning set out within the proposed regulatory
framework, we intend to align our approach and
publish a climate transition plan in the future.
Meanwhile, we continue to report in line with ten of
theeleven Task Force on Climate-related Financial
Disclosures (“TCFD”) recommendations. See page 26
for our TCFD disclosure.
In 2024, we expressed our commitment to developing
science-based targets, which has been acknowledged
by the Science-Based Targets initiative (“SBTi”). While
we continue to work towards establishing robust,
science-aligned targets, we have not yet submitted
targets for formal validation. This reflects the current
challenges in capturing and accurately measuring
Scope 3 emissions across our value chain. We
recognise that further improvements in data quality
and methodology are required to support progress
towards validated science-based targets and intend
tomake a submission once we are confident in the
completeness and reliability of our emissions data.
SCOPE 1 & 2 REDUCTION VS
2019 BASELINE
78%
Our Group Energy Strategy is the
cornerstone of our journey to Net
Zero. Driven by the commitment
and ingenuity of our site teams,
we continue to reduce energy
consumption, increase the proportion
of electricity sourced from
renewables, and realise growing
benefits from our own renewable
generation. Together, these actions
are delivering measurable progress
today while building the resilient,
low-carbon energy system we need
for the future.”
Eric Lakin
CEO
ENVIRONMENT
RENEWABLE ELECTRICITY
AS A % OF TOTAL
ELECTRICITY CONSUMED
67%
OUR PEOPLE, COMMUNITIES AND ENVIRONMENT CONTINUED
STRATEGIC REPORT GOVERNANCE & DIRECTORS’ REPORT FINANCIAL STATEMENTS ADDITIONAL INFORMATION
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 2025 23
OUR PEOPLE, COMMUNITIES AND ENVIRONMENT CONTINUED
SCOPE 3 CATEGORIES
DATA PROCESSES
Category 1: Purchased goods and services
Our process follows an environmental input-output
(“EIO”) methodology supported by Watershed’s CEDA
spend-based emissions database.
Category 4: Upstream transportation
anddistribution
We have partnered with our key logistics providers
to gain access to emissions data.
Category 5: Waste generated in operations
We have in place a system to measure and report
waste streams at our facilities.
Category 6: Business travel
We have partnered with our centralised travel
providers to gain access to emissions data.
Category 7: Employee commuting
We have calculated these emissions centrally,
taking into consideration employee data supplied
by all locations.
Category 9: Downstream transportation
anddistribution
Downstream transportation (services paid for by
ourselves) is included in Category 4. The remaining
data for Downstream transportation and distribution
(not paid for by ourselves) cannot currently be
measured and we are assessing the viability to
measure this in the future.
Data
Our environmental data is calculated centrally from
data collected locally. For 2025 we have applied a
consistent methodology with the prior year to enable
us to better understand movements. We use the
market-based method for emissions calculations and,
in line with GHG Protocol guidelines, we use the
following information in this order of priority: energy
attribute certificates; contracts; supplier emission
Alongside these challenges, we have made great
strides in our Net Zero journey, demonstrating TT’s
sustained commitment to a successful transition to a
low-carbon economy.
Scope 1 & 2 emissions
We made further progress in 2025, achieving a 20%
reduction in emissions compared with 2024 and
reaching a total reduction of 78% against our 2019
baseline. A significant contributor to this improvement
was the purchase of renewable electricity through a
green tariff at our Kuantan, Malaysia site for the full
year. Combined with on-site solar photovoltaic
generation, 100% of Kuantan’s 2025 electricity
consumption was sourced from renewable energy.
During the year, we also realised the full-year benefit
of renewable electricity generated by two major solar
photovoltaic installations that became operational in
2024 at our Mexicali, Mexico and Suzhou, China sites.
In addition, a phase 2 solar photovoltaic installation was
commissioned in Suzhou towards the end of 2025. This
new installation is expected to generate approximately
600 MWh of renewable electricity per annum.
Our target is to achieve Net Zero (combined Scope 1
& 2) emissions across our operations by 2030.
Key drivers for achieving this target include:
– Continued transition to green electricity tariffs.
– Procurement of high-quality Energy Attribute
Certificates (“EACs”) where required.
– Increased use of self-generated renewable electricity
through solar installations at suitable locations.
– Transition of fleet vehicles to electric and hybrid
alternatives.
– Adoption of green heat solutions by replacing fossil
fuel energy sources with electric options or
alternative fuels.
– Relocating production to modern, energy-efficient
facilities where appropriate.
– Further improvements in energy efficiency across
our sites.
ENVIRONMENT CONTINUED
Scope 3 emissions
Our Scope 3 data and reporting are less mature,
reflecting the inherent uncertainties associated with
the calculation of Scope 3 emissions. As a result, we
have adopted a continuous improvement approach to
enhance the quality, coverage and robustness of our
reporting over time.
In 2025, our focus was on improving data collection
and calculation methods following an assessment and
preliminary measurement of our most material Scope
3 emissions categories. Category 1 – Purchased
goods and services, our most significant Scope 3
category, was prioritised. We established a critical path
centred on supplier engagement and enhanced
emissions reporting supported by high-quality industry
average emission factors.
During the year, we continued to deliver supplier
training sessions covering topics such as climate
change impacts and carbon emissions calculation
methodologies, alongside surveying our major
suppliers to obtain emissions data. However, the
availability of high-quality, supplier-specific emissions
data remains limited. As a result, our methodology
for Category 1 primarily applied a spend-based
approach, utilising Watershed’s CEDA spend-based
emissions database.
Overall, Scope 3 emissions decreased by 9% during
the year. This reduction was primarily driven by lower
expenditure on purchased goods and services,
together with reduced emissions associated with the
transportation and distribution of our products.
Reported emissions are calculated using primary data
where available, with data gaps addressed through the
use of proxy data, extrapolation and sampling
methodologies, as appropriate.
We remain committed to reporting, managing and,
where possible, eliminating all material emissions
across our value chain, while maintaining our
immediate priority of eliminating emissions from
our own operations.
We remain committed
toreporting, managing
and, where possible,
eliminating all
materialemissions across
our value chain, while
maintaining our immediate
priority ofeliminating
emissionsfrom our
ownoperations.”
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 202524
OUR PEOPLE, COMMUNITIES AND ENVIRONMENT CONTINUED
ENVIRONMENT CONTINUED
EMISSIONS, WATER AND WASTE DATA
Change vs
previous year
Change vs
2019
baseline 2025 2024 2019
GHG emissions Scope 1 & 2 (tCO
2
e)
Scope 1 (32)% (55)% 671 991 1,479
Scope 2 (location-based) (3)% (42)% 15,128 15,582 26,066
Scope 2 (market-based) (19)% (80)% 5,338 6,587 26,066
Scope 1 & 2 (location-based) (6)% (43)% 15,800 16,772 27,545
United Kingdom only (8)% (53)% 2,286 2,484 4,862
Scope 1 & 2 (market-based) (20)% (78)% 6,009 7,506 27,545
United Kingdom only (25)% (93)% 343 456 4,862
Intensity ratio Group (market-based tCO
2
e/£m revenue) (17)% (79)% 12 15 58
GHG emissions Scope 3 (tCO
2
e)
1
Category 1 – Purchased goods and services (9)% – 171,365 187,394 –
Category 4 – Upstream transportation and distribution (23)% – 3,337 4,310 –
Category 5 – Waste (17)% – 231 277 –
Category 6 – Business travel (3)% – 1,230 1,264 –
Category 7 – Employee commuting (6)% – 3,280 3,478 –
Category 9 – Downstream transportation and distribution
2
Included in Category 4
Scope 3 Total (9)% – 179,444 196,723 –
Intensity ratio Group (tCO
2
e/£m revenue) (6)% – 366 388 –
Energy consumption (MWhs)
Electricity (non-renewable) (15)% (77)% 13,366 15,729 59,261
Electricity (renewable) 5% – 27,253 25,883 –
Natural gas 3% (27)% 3,047 2,971 4,185
Vehicle fuel (73)% (95)% 132 493 2,890
Total energy (3)% (34)% 43,798 45,076 66,336
United Kingdom only (5)% (45)% 11,181 11,782 20,509
Intensity ratio Group (Total energy/£m revenue) 1% (36)% 89 89 139
Water, Waste, and single-use plastics
Total waste (tonnes) (13)% – 1,201 1,381 –
Waste to landfill (tonnes)
3
(25)% – 402 539 –
Single-use plastics (tonnes)
4
(3)% – 62 63 –
Intensity ratio Group (Total waste/£m revenue) (10)% – 2 3 –
Water use (m
3
) (9)% – 115,850 126,785 –
Intensity ratio Group (Water use/£m revenue) (6)% – 236 250 –
1 Categories 3, 8, 10, 11, 12, 13, 14
and 15 are not included as they
are not relevant to the Group
business model. Category 2
(Capital Goods) is included in
Category 1 (Purchased Goods
&Services).
2 Downstream transportation
(services paid for by ourselves)
is included in Category 4
(Upstream Transportation &
Distribution) per GHG Protocol
guidance. The remaining
Downstream Transportation
& Distribution (not paid for by
ourselves) cannot currently be
measured and we are assessing
the viability of measuring this in
the future.
3 Excluding diverted from landfill
(typically incineration).
4 Single-use plastics utilised for
packaging. TT does not have
any widespread or significant
single-use plastics
consumption, other than
for packaging.
rates; residual mix or grid average emission factors.
We are using an operational control boundary for
direct GHG emissions. We have adopted a cross-
sector calculation method in line with the GHG
Protocol Corporate Standard. For Scope 1 emissions,
we include our total owned and leased vehicle direct
emission impact. Emissions factors, for conversion of
activity or energy consumption into emitted CO
2
e, are
taken from widely used sources, often governmental.
The emissions factors used in this report are the most
recently available at time of publication.
STRATEGIC REPORT GOVERNANCE & DIRECTORS’ REPORT FINANCIAL STATEMENTS ADDITIONAL INFORMATION
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 2025 25
TT Electronics solves technology challenges
to power a sustainable future. Our innovative
solutions enable our customers to create
products that are cleaner, smarter, and
healthier – delivering measurable benefits for
people and the planet today, while shaping a
better world for generations to come.
As a global electronics manufacturer, we recognise the
urgent need to address climate risks and protect the
environment for future generations. In 2023, we
conducted a comprehensive analysis of climate-
related risks and opportunities across multiple
scenarios and timeframes.
We support the transition to a low-carbon economy
through our products and operations and are
committed to achieving Net Zero Scope 1 & 2
emissions by 2030.
The Board acknowledges mandatory disclosure
requirements under the Companies (Strategic Report)
(Climate-related Financial Disclosure) Regulations
2022 and FCA Listing Rule 6.6.6R(8). Our disclosures
align with ten of the eleven TCFD recommendations,
guided by the 2017 and 2021 TCFD frameworks.
We are not yet fully aligned with Strategy (b), as our
analysis of physical and transition risks remains
qualitative. These disclosures comply with the
Companies Act 2006 as amended.
In 2025 we performed an internal review of the Group’s
climate-related risks and opportunities, building upon
the work performed in previous years, which is detailed
in the Strategy section of this TCFD disclosure (see
page 28). Our view remains that significant financial
planning or budgetary change as a result of climate
change is not likely to be required and the transition
to Net Zero is taken into account in the Group’s
strategic planning.
Detail on the 11 recommended disclosures can
be found on the pages highlighted below.
TASK FORCE ON CLIMATE-RELATED
FINANCIAL DISCLOSURES (“TCFD”)
TCFD RECOMMENDATION RECOMMENDED DISCLOSURE
ANNUAL REPORT
REFERENCE
GOVERNANCE
Disclose the organisation’s governance around
climate-related risks and opportunities.
a. Describe the Board’s oversight of climate-related risks and opportunities. Page 27
b. Describe management’s role in assessing and managing climate-related risks and opportunities. Page 27
STRATEGY
Disclose the actual and potential impacts of
climate-related risks and opportunities on the
organisation’s businesses, strategy and financial
planning where such information is material.
a. Describe the climate-related risks and opportunities the organisation has identified over the short, medium
and long term.
Page 32
b. Describe the impact of climate-related risks and opportunities on the organisation’s businesses, strategy and financialplanning. Page 28
c. Describe the resilience of the organisation’s strategy, taking into consideration different climate-related scenarios,
includinga2°C or lower scenario.
Page 29
RISK MANAGEMENT
Disclose how the organisation identifies,
assesses and manages climate-related risks.
a. Describe the organisation’s processes for identifying and assessing climate-related risks. Page 28
b. Describe the organisation’s processes for managing climate-related risks. Page 28
c. Describe how processes for identifying, assessing and managing climate-related risks are integrated into the organisation’s
overall risk management.
Page 28
METRICS AND TARGETS
Disclose the metrics and targets used to assess
and manage relevant climate-related risks and
opportunities where such information is material.
a. Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk
management process.
Page 34
b. Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (“GHG”) emissions, and the related risks. Page 25
c. Describe the targets used by the organisation to manage climate-related risks and opportunities and performance
against targets.
Page 23
TCFD
We recognise the critical
need to analyse both
current and future impacts
of climate change on our
operations, while taking
urgent action to safeguard
the environment for future
generations given the
severity of the climate
crisis. At the same time,
we understand that
building business
resilience to climate-
related shocks is essential
to ensure continuity,
protect value, and enable
long-term sustainable
growth.”
Eric Lakin
CEO
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 202526
TCFD CONTINUED
Board oversight of climate-related risks
andopportunities
At TT, the Board of Directors oversees all ESG matters,
including climate-related issues, across Group culture,
strategy, compliance, risk and internal controls as part
of our overall governance, budgetary approval and risk
management frameworks and receives updates on the
status of Group environmental issues (including
sustainability and climate-related risks and
opportunities). The Board also received updates on
the progress made against targets and ongoing action
items in the form of periodic presentations from the
Sustainability Director and supplementary updates.
An overview of risks and opportunities is provided
to the Board as part of ongoing operational and risk
reporting. In addition, an update on the progress of
current projects related to strengthening the reporting
infrastructure for climate-related risks and
opportunities was provided by the Sustainability Director.
A review by the Board of the Group’s Net Zero planning
and Sustainability Strategy is undertaken at least
annually.
The Board’s oversight and support for the Group’s Net
Zero targets has resulted in further investment in
renewables enabling the 2025 expansion of the
Suzhou solar panel installation.
GOVERNANCE
Audit and Governance & Risk Committees
The Board is also responsible for risk management,
supported by the Audit Committee and informed by
the executive Governance & Risk Committee, under
which there is a periodically scheduled risk meeting
which covers climate risks. The Board defines risk
appetite and monitors the management of significant
risks. Climate-related risks are included in the Group
risk register.
Management’s role in assessing and managing
climate-related risks and opportunities
At the direction of the Board, management are
assigned the responsibility to assess, monitor and
manage climate-related risks and opportunities, with
day-to-day management assigned to the Sustainability
Director. We used our existing risk management
structure to manage these processes. Management
received emissions data aggregated from site data
and the details of any actions, strategic or financial
planning required to address climate-related issues.
Responsibility for local risk management, planning
and performance lies with our site managers who
work with our site environmental champions to
formulate and deliver projects and engage employees
with our local and global agendas. The Sustainability
Director advised our sites as appropriate and receives
updates on progress.
CLIMATE-RELATED GOVERNANCE FRAMEWORK
Board of
Directors
Chair: Warren Tucker
Number of meetings in 2025: 8
Overall responsibility for climate-related policy, plans
and budget as well as mitigation of key climate-
related risks and leveraging opportunities.
Chair: Anne Thorburn. Senior
Independent Director
Number of meetings
in 2025: 6
Supports the Board on risk
management. Oversees risk
management and internal
control processes.
Audit Committee
Chair: Eric Lakin, CEO
Number of meetings
in 2025: 4
Supports the Board and the
Audit Committee in monitoring
the exposure to risks, reviewing
risk management processes
and controls. Provides the
framework for managing Group
risks and regularly reviews
principal risks.
Governance &
Risk Committee
Number of meetings
in 2025: Scheduled weekly
Responsible for implementation
of the Group’s ESG strategy,
including climate change risks
and opportunities.
TT Executive
Committee
Management
Help achieve goals, feedback areas for improvement, and update business continuity plans. Responsible
for data collection, reporting, risk assessment and mitigation at site level. Also, the integration of climate
strategy into local business plans.
Group Sustainability
The Sustainability Director updated the Board and the TT Executive Committee on risks and
opportunities, the outcome of climate-related scenario analysis exercises, action plans and/or amends
business processes.
STRATEGIC REPORT GOVERNANCE & DIRECTORS’ REPORT FINANCIAL STATEMENTS ADDITIONAL INFORMATION
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 2025 27
TCFD CONTINUED
Our processes to identify, assess andmonitor
climate-related risks
Climate-related risks are fully integrated into and
considered as part of our overall Group risk
management processes. Our climate-related risk
assessment considers existing and emerging risks
and all risk categories outlined in the TCFD
recommendations in relation to all TT’s global
operations, selected key suppliers and selected key
customer locations. Not all risk categories are
applicable or material to the business.
Climate-related risk identification is performed
both bottom-up, through a detailed assessment at
operational site level, as well as top-down, through
an assessment of strategic and market risks.
Site-level environmental risks are identified as part
of our operational risk assessments. The work
undertaken in 2023 enhanced our site-level
assessment of physical climate-related risks using a
natural hazards risk analysis software tool (Munich Re
Location Risk Intelligence Tool), which provided greater
depth to our analysis of all our global operations.
We also extended this analysis to some of our key
suppliers and customers. Site-level risk assessments
are monitored and consolidated at regional and then
Group level. Alongside risk identification and
assessment, regions provide action plans to
incorporate a consideration for mitigation in the
analysis. This assessment of physical climate-related
risks was initially performed as a “one-off” and will be
repeated at suitable regular intervals, at least every
three to four years, and updated when material
changes occur.
Climate-related transition risks are discussed in
periodic Risk Meetings. We have a “sustainability,
climate change and the environment” risk on our
Group risk register but it is not considered to be a
principal risk. The Group risk register is reviewed by
the Governance & Risk Committee and the Board.
See page 41 for principal risks and uncertainties.
Ongoing data and information relevant to climate-
related risks is supplied through regular Board reports
in the form of dashboards and written submissions.
As part of the risk management processes, the Board
regularly considers its risk appetite in terms of the
tolerance it is willing to accept in relation to each
principal risk based on key risk indicators to ensure
it continues to be aligned with the Group’s goals and
strategy. Each risk is considered as to whether it
currently falls within the Group’s appetite for that risk
and a decision is made on whether to mitigate, control
or accept that risk. As a result, the relative materiality
and the prioritisation of climate-related risks is
considered alongside other Group risks within the
existing Group risk management framework.
STRATEGY
Climate-related risks andopportunities
Outlined in detail from page 31 are the climate-related
physical risks, three climate-related transition risk
categories, and three climate-related opportunity
categories identified during scenario analysis as being
relevant to our business. The Group’s strategic
planning for Net Zero and our emissions reduction
initiatives form the basis of our mitigation strategies
for our risks and our business and product positioning
to benefit from the opportunities.
For the purposes of this disclosure, TT defines time
horizons of where our climate-related risks and
opportunities first occur as follows:
Impact of climate-related risks and opportunities
on the organisation’s businesses, strategy and
financial planning
The qualitative analysis of our climate-related risks
indicates that the climate risk exposure of the Group in
the short term is mostly Very Low, rising to mostly Low
in the medium term. Long term, some climate-related
risks rise to Medium and High levels but, in that time
horizon, it is expected that growth in the business will
facilitate mitigation measures if required.
The Group’s climate-related opportunities are also
expected to be mostly Low in the short term. In the
medium- and long-term horizons the analysis
indicates that climate-related opportunities are
potentially transformational for the Group. The margin
of error in long-term forecasting is high and thus there
is a high level of uncertainty in our long-term impact
estimations for both our risks and opportunities.
Identifying these risks has enabled us to integrate
targeted risk management and mitigation measures
into our plans. While the Group’s existing business
strategy, disclosures, and Net Zero ambition already
provide a degree of financial resilience and strategic
strength against climate change, we are aiming to
refine our product and service strategy to capitalise
on the opportunities identified.
RISK MANAGEMENT
The relative materiality
and the prioritisation of
climate-related risks is
considered alongside
other Group risks within
the existing Group risk
management framework.
ASSESSMENT TIMESCALE
SHORT TERM 2025–2029
In line with specific business plan forecasting
MEDIUM TERM 2030–2035
Encompassing the Group’s ambition to achieve and sustain Net Zero Scope 1 & 2
LONG TERM 2036–2100
Encompassing long-term industry and policy trends, such as UK Net Zero 2050,
the useful life of our facilities and equipment (often >10 years and up to 50 years)
and the manifestation of long-term climate-related risks
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 202528
TCFD CONTINUED
Resilience of the organisation’s strategy, taking into
consideration different climate-related scenarios,
including a 2°C or lower scenario
The transition to Net Zero is already incorporated
into the Group’s strategic planning and is considered
“business as usual” with respect to operational and
capital costs. There are no effects of climate-related
matters reflected in judgements and estimates applied
in the financial statements as a result. We will continue
to develop our analysis as new data becomes available,
both internally and externally, and we will continue to
monitor our climate exposures and action plans through
the Group’s risk management framework.
Our approach to climate scenario analysis
We undertook a substantial qualitative and quantitative
analysis of the resilience of our business model and
strategy in 2023. To compare potential climate
outcomes, we used widely referenced public climate
scenarios selected for their relevance to our business
and operating environment. The analysis confirmed
that our strategy is resilient and does not require
significant changes to financial planning or budgeting
within the Group’s strategic framework. This
assessment continues to be considered valid as
of 2025.
Physical risks were analysed using three scenarios
from the Intergovernmental Panel on Climate Change
(“IPCC”) embedded in the software tool used to
analyse physical risks of climate change:
– RCP 2.6: a “very stringent” pathway, likely to keep
global temperature rise below 2°C by 2100.
– RCP 4.5: an intermediate more likely than not to
result in global temperature rise between 2°C and
3°C, by 2100.
– RCP 8.5: a bad-case scenario where global
temperatures rise between 4.1–4.8°C by 2100.
To understand their potential future impact, our
transition risks and opportunities are modelled out to
2050 against two International Energy Agency’s (“IEA”)
scenarios. These were selected as they are
accompanied by supportive datasets, forecasts and
industry projections which are useful for modelling
climate positive outcomes:
– Net Zero Emissions by 2050 Scenario (“NZE”): a narrow
but achievable pathway for the global energy sector
to achieve Net Zero CO
2
emissions by 2050. This
scenario meets the requirement for a “below 2°C”
scenario. NZE also informs the decarbonisation
pathways used by the SBTi.
– Stated Policies Scenario (“STEPS”): representing
projections based on the current policy landscape.
Global temperatures rise by around 2.5°C by 2100
from pre-industrial levels, with a 50% probability.
CLIMATE-RELATED PHYSICAL RISKS
With locations (including both offices and
manufacturing sites) across the world, TT maintains
alarge and diverse geographical footprint. Work
completed in 2023 enhanced our physical risk
assessment, using geospatial risk modelling software
to analyse the Group’s exposure to natural hazards
andhow these risks may change in the future under
various scenarios for global temperature rise by 2030,
2050 and 2100.
Physical climate-related risks incorporate changes to
the environment from the impact of climate change.
The assessment considers acute risks, defined by the
TCFD as the change in frequency and/or intensity of
extreme events, such as river flooding; and chronic
risks, defined as longer-term shifts in climate such as
rising mean temperatures, rising sea levels, changes
in precipitation and weather extremes. The primary
physical climate-related risks for TT are flood, storm
and fire weather stress.
All Group sites were assessed. Five of our sites
(Suzhou, Kuantan, Plano, Mexicali and Juarez) were
deemed to be the most susceptible to climate-related
risk and the potential future risk for these sites, within
the timescales presented here, was classified as
serious. In 2023 Cardiff was included in this list, but
this site was divested during 2024 as part of Project
Albert and production has now ceased at Plano.
Ourdefinition of “serious” in this case is a 100-year
return period meaning that there is a 1 per cent chance
(or 1 in 100 chance) of a significant weather event in a
given year. The nature of the potential climate-related
risk is detailed further in this section. Any other sites
with heightened risk exposure were deemed to be of
low impact to the Group’s ongoing business resilience.
The primary potential financial impact of climate-
related physical risks is business or production
disruption and/or asset damage leading to loss of
revenue, increased insurance premiums, reduced
asset value and reduced labour productivity. In
addition, climate-related physical risks may result
indisruption to local or regional infrastructure or
transportation, and thereby cause disruptions to
our upstream and downstream supply chains.
STRATEGY CONTINUED
Five of our sites (Suzhou,
Kuantan, Plano, Mexicali
and Juarez) were
deemed to be the most
susceptible to climate-
related risk.
STRATEGIC REPORT GOVERNANCE & DIRECTORS’ REPORT FINANCIAL STATEMENTS ADDITIONAL INFORMATION
TT ELECTRONICS PLC | ANNUAL REPORT AND ACCOUNTS 2025 29