UNDERSTANDING COATS
Coats Highlights
Understanding Coats
Coats Highlights
Coats is a world-leading Tier 2 manufacturer and trusted partner for the apparel and footwear industries, delivering the essential materials, components, and software solutions that help our customers grow, compete and win.
Countries
Permanent employees
Customers globally
Brand partners
Revenue by Production Region
FY25 Results
- Robust performance with Group revenue flat on an organic basis:
- Strong performance in Apparel with 1% revenue growth, significantly outperforming market declines
- Market share growth and further margin improvement in Footwear, amidst a more challenging backdrop than Apparel
- Performance Materials back to growth in H2, alongside strong operational and margin improvement; Q4 margin run rate of 11.8% close to divisional medium-term target range
- OrthoLite delivered full year profit in line with our expectations; good revenue growth above market and strong levels of cash generation
- Group operating margin increased 80bps to 19.8% (180bps including Americas Yarns in prior year comparator), reflecting pricing and cost discipline with all divisions improving margins
- Adjusted basic EPS 9.3 cents in line with expectations (2024: 9.7 cents); Increased EBIT offset by higher interest charges related to 2024 pension buy-in payment and timing of share placing in July 2025
- Record cash generation with free cash flow of $160m (2024: $2m) reflective of future potential
- Net debt at $815m with proforma leverage of 2.2x as expected, following OrthoLite acquisition. We continue to expect leverage to reduce to below 2x by end of 2026
- Proposed final dividend of 2.28 cents, bringing total dividend to 3.28 cents, up 5%, reflecting a good financial performance in a challenging market
- Continued gaining market share, outperforming core thread and footwear end markets
- Exit from non-core Americas Yarns business improved Group margin by +100bps
- Landmark acquisition of OrthoLite to accelerate our strategy, underpinning growth
- Target adjacencies contributed one percentage point to Group revenue growth, with good momentum
- Streamlined Group into two divisions: Apparel and Footwear
- Continued market leadership in 100% recycled threads, with CER revenue growing 43% to $554m
Close All
Kleidung
Market leader in premium industrial sewing threads.
Schuhe
Delivering innovative structural components, threads and insoles that power performance.
Footwear revenue increased to $440m (2024: $403m), primarily reflecting the acquisition of OrthoLite, with revenue 2% lower on an organic CER basis. The organic revenue performance reflects a period of good trading until the end of April with increased US tariffs resulting in customers taking a cautious approach to ordering and inventory management through the autumn. Towards the end of the year, we saw brands managing down inventory further in response to the uncertain 2026 outlook, consistent with trends in the wider market. As such we estimate our core footwear end markets were down c.4-5% vs 2024 for the full year.
David Gosnell
Chair
“I am happy to present our 2025 Annual Report, themed Built to Perform, Trusted to Deliver – a fitting message in another year marked by geopolitical instability, environmental challenges and tariff volatility.”