Avon Technologies reported a sharp rise in full-year profit on Tuesday, 10 November 2026, as demand for military protective equipment lifted sales and margins at the Wiltshire-based defence supplier.

The company, which makes gas masks, respirators and helmets for military and police customers, said revenue rose 12.7% to $353.7 million in the year to 30 September 2026, up from $313.9 million a year earlier. Adjusted operating profit climbed 50.6% to $60.7 million, from $40.3 million, and the adjusted operating margin widened to 17.2% from 12.8%.

Avon said the improvement reflected higher production volumes, operational improvements across the business and continued demand for military protective equipment, as governments in Europe and beyond increase defence spending.

Profit rises across every measure

The gains were broad-based. Adjusted earnings before interest, tax, depreciation and amortisation rose 37.7% to $70.9 million, from $51.5 million, while adjusted profit before tax increased 58.7% to $55.4 million, from $34.9 million. Adjusted basic earnings per share rose 57.1% to 143.3 cents, from 91.2 cents.

On a statutory basis, the picture was stronger still. Operating profit increased to $47.8 million from $19.2 million, pre-tax profit rose to $42.0 million from $13.1 million, and profit after tax reached $31.8 million, against $10.3 million in the previous year.

The results were published at 7am UK time on Tuesday, and they cap a year in which Avon has benefited from rising orders for the protective equipment it supplies to armed forces and first responders. The company has been working through a transformation programme aimed at lifting production efficiency and widening margins, and the latest figures show that programme feeding through to the bottom line.

Shares fall despite stronger results

Investors did not celebrate the figures on the day. Avon shares traded lower in London on Tuesday, changing hands at 2,290p around midday, down from Monday's close of 2,400p. The fall came even as the wider FTSE 100 edged higher, with defence stocks among the day's risers.

The reaction underlines how much of Avon's improvement was already expected by the market after a strong run for the shares, which have risen by more than a fifth over the past year. It also reflects the wider mood in defence stocks, where valuations have climbed sharply as governments commit to higher military budgets and investors weigh how much of that spending is already priced in.

What to watch next

Avon is a relatively small company by London market standards, with a market value of around $920 million, but its order book and production capacity matter to the UK defence supply chain. The company supplies respiratory protection and helmets used by soldiers, police and emergency services, and demand has been supported by the rearmament programmes under way across Europe.

Attention will now turn to whether Avon can sustain the margin gains into the new financial year and convert its stronger profitability into cash. The full-year results show a business that has grown sales by more than a tenth while lifting profits by half, a combination that puts it among the stronger performers in the UK's mid-cap defence and engineering sector this reporting season.

Avon Technologies is listed on the London Stock Exchange under the ticker AVON. Its full-year results cover the twelve months to 30 September 2026.