Avon Technologies plc
AVON · Main Market · Industrial Goods and Services · mcap £730m · 2375.0p 2 open situations →
Open · 2
Team Wendy DoW helmet ramp-up
Part of STAR strategy and margin target – New phase: Improve. Grow. Compound.
Team Wendy's DoW helmet ramp-up has been tracked since Nov 2025, when its order book had shrunk. Orders followed: over $40M NG-IHPS on 26 Jun 2026, $20.1M ACH GEN II on 29 Jul and $20.3M on 2 Sep, which took the option year to its maximum volume. The 7 Oct 2026 update says production has stabilised at target levels, the order book grew materially in H2 and H2 margin improved significantly.
- Customer
- Defense Logistics Agency (DLA) 29 Jul 2026 ↗
- Earlier orders
- $20.1M DLA ACH GEN II order 29 Jul 2026; over $40M NG-IHPS orders 26 Jun 2026 2 Sep 2026 ↗
- Option year
- Order fulfils the maximum volume authorized for the current option year 2 Sep 2026 ↗
- Production
- Stabilised at target levels (update of 7 Oct 2026) 7 Oct 2026 ↗
- Order book
- Grown materially in H2, including largest share of the NG IHPS order and strong ACH Gen II volumes 7 Oct 2026 ↗
- New orders
- New US Air Force orders; Australian Defence Force programme renewed with initial annual order 7 Oct 2026 ↗
Next: FY27 guidance at the full year results · 10 Nov 2026
- 7 Oct 2026 Production stabilised; order book grown materially
- 2 Sep 2026 ACH GEN II option year at maximum volume
- 29 Jul 2026 Further DLA order received on ACH GEN II
- 26 Jun 2026 New NG-IHPS delivery orders received
STAR strategy and margin target
Includes Team Wendy DoW helmet ramp-up – Production stabilised; order book grown materially
The earlier STAR targets were met early and the strategy shifted to growth. On 7 Oct 2026 Avon set out its next phase, Improve. Grow. Compound., with organic targets of over 5% revenue CAGR, 16-18% adjusted operating margins and over 10% annual EPS growth. It also set over $175m of free cash flow over three years and a five-year revenue target of over $600m, with selective acquisitions to add to EPS.
- Organic targets
- Revenue CAGR above 5%; adjusted operating margin 16-18%; EPS growth above 10% a year 7 Oct 2026 ↗
- Free cash flow
- Over $175m over the next three years, with inventory turns above 5x 7 Oct 2026 ↗
- Five-year targets
- Revenue over $600m; further EPS accretion through capital deployment; ROIC over 18% 7 Oct 2026 ↗
- M&A
- Selectively acquire, improve and grow protection technology businesses 7 Oct 2026 ↗
- Next milestone
- FY27 guidance with full year results on 10 November 7 Oct 2026 ↗
Next: FY27 guidance at the full year results · 10 Nov 2026
- 7 Oct 2026 New phase: Improve. Grow. Compound.
- 13 May 2026 Targets met early; shifting to growth
- 30 Jan 2026 Moving to growth stage; Cleveland efficiency still to improve
- 12 Nov 2025 Phase one nearly complete; Irvine closed
Closed · 1
Company filings. Not investment advice.