For the six months ended June 30, 2026, group revenue reached $837 million, representing a 1 per cent increase on an organic constant exchange rate (CER) basis compared to the prior year. Adjusted earnings before interest and tax (EBIT) margin was sustained at 19.8 per cent, supported by cost management and procurement initiatives.
Coats PLC reported group revenue of $837 million for the first half of 2026, reflecting 1 per cent organic growth despite challenging market conditions.
Apparel delivered 1 per cent organic growth, while footwear revenue remained flat, and the group maintained an adjusted EBIT margin of 19.8 per cent.
The company reaffirmed its full-year outlook, expecting continued market outperformance and
Adjusted basic earnings per share (EPS) stood at 4.4 cents, compared to 4.7 cents in H1 2025. Free cash flow was $30 million, down from $38 million a year earlier, while leverage remained on track to reach 2.0x or below by the end of 2026, the company said in a press release.
“We are pleased with our first-half outperformance relative to the market and confident in our second half outlook, despite the prolonged period of industry de-stocking. We continue to prove the resilience of our business model by maintaining margins and generating good free cash flow during periods of adverse market conditions,” said David Paja, group chief executive, Coats PLC.
Segment and regional performance
The apparel segment achieved 1 per cent organic growth, driven by portfolio-wide share gains and robust demand in China’s domestic and automotive thread markets. Footwear revenue was flat on an organic basis, although the division saw significant acceleration in the second quarter and strong growth from composite tapes for energy markets. OrthoLite revenue declined year-on-year, reflecting a strong prior-year comparator and temporary capacity challenges in Indonesia, which are being addressed.
Margin analysis and cash flow
Coats maintained its adjusted EBIT margin at 19.8 per cent, with OrthoLite contributing positively and ongoing cost and procurement discipline supporting continued investment in growth initiatives. Free cash flow for the period was $30 million, compared to $38 million in H1 2025, reflecting typical seasonal weighting towards the second half. The company’s leverage is expected to reach 2.0x or below by the end of 2026.
Outlook
Coats reaffirmed its full-year and medium-term outlook, maintaining expectations for continued market outperformance and growth through share gains, secured pricing, target adjacencies, and new product launches. The company anticipates modest market declines in the second half but expects incremental cost actions to deliver approximately $15 million in benefits, including OrthoLite cost synergies.
Strong free cash flow is forecast for the full year, aligned with the group’s $1 billion cumulative target over the next five years. Ongoing investments in innovation and capabilities are expected to drive accelerated growth in the medium term.
“We remain very excited by the enhanced capabilities and deeper customer relationships that OrthoLite has brought to the group and we see substantial incremental value creation potential from sales synergies. Against this backdrop, we reaffirm our confidence to deliver FY results in line with market expectations,” added Paja.
Fibre2Fashion News Desk
