Avon lifts net income to $31.8 million in fiscal 2026
Key Facts
Avon Technologies posted net income of $31.8 million in fiscal 2026, compared with $10.3 million the previous year, according to data reported by RTTNews on the company’s results. Revenue was $353.7 million, up 12.7% from $313.9 million in fiscal 2025. Adjusted profit, excluding certain items, rose to $42 million, or $1.374 per share. On a reported basis, earnings per share were $1.04, compared with $0.336 a year earlier. The available figures do not establish that adjusted earnings exceeded analysts’ estimates.
The year-on-year comparison shows growth in revenue and earnings, while requiring a distinction between reported net income and adjusted profit. Net income rose from $10.3 million to $31.8 million, while reported earnings per share increased from $0.336 to $1.04. Revenue grew 12.7% year on year to $353.7 million from $313.9 million. Adjusted profit was $42 million, or $1.374 per share, a measure that excludes items from the results. The published information did not provide a verifiable comparison between that figure and market estimates.
In an October trading update, the company had forecast revenue growth of about 12.5% in fiscal 2026, following growth of 13.8% in fiscal 2025, according to RTTNews. The reported growth of 12.7% was slightly above that forecast, while remaining below the previous year’s rate. In the same update, Avon said its adjusted operating margin for fiscal 2026 would be above its previous guidance range of 14% to 16%, compared with a margin of 12.8% the previous year. These forecasts provide context for comparing the results, but do not by themselves establish a beat on analyst estimates. The revenue or profit increase was not attributed here to specific cost-cutting initiatives or to any particular operating factor.
On demand, Avon said in its update that Team Wendy’s order book grew significantly in the second half. This included the unit securing the largest share of orders for the IHPS advanced helmet system, alongside new orders from the U.S. Air Force and the renewal of a program with the Australian Defence Force. The company presented these developments as signs of an expanding order book in the unit, without linking them in the available excerpt to a specific amount of annual revenue or profit. The chief executive said Avon had “transformed its operational and financial performance over the past three years” and provided a platform for growth and cash generation. The statement places the fiscal-year results within the transformation path described by management, without specifying how much each factor contributed to the year’s figures.
The results come in a sector where Avon says governments are rebuilding military and civil readiness and replacing or upgrading aging equipment to address complex threats, according to Sharecast. The publication reported that adjusted pre-tax profit increased 58.7% to $55.4 million in fiscal 2026. Statutory pre-tax profit also rose 220.6% to $42 million. These measures differ from the net income and adjusted profit reported by RTTNews, as pre-tax profit measures earnings before tax rather than after tax. The figures provide additional insight into the year’s results, but on their own do not determine the effect of government spending or equipment renewal on Avon’s revenue.
Looking ahead to fiscal 2027, Sharecast said Avon entered the year with a record order book of about $1.3 billion, with demand continuing in key defense markets. The company expects revenue growth in the mid-single digits and an adjusted operating margin within a target range of 16% to 18%. It also expects free cash flow of about $50 million to $60 million during the year. For the medium term, the company reaffirmed its target of annual adjusted earnings-per-share growth of more than 10%. Avon had also set a goal of exceeding $175 million in free cash flow over three years as part of its new strategy.