By Maitane Sardon

TT Electronics shares plunged after the company warned that profits would be lower than expected in 2025 because of escalating trade tariffs and said that its recently appointed CEO was stepping down.

In early European trading Thursday, shares were down nearly 12% at 73.30 pence.

The U.K. electrical-solutions manufacturer said it now sees full-year earnings before interest, taxes and amortization in the range of 32 million pounds to 40 million pounds ($41 million-$51.3 million), compared with its previous guidance of between 40 million pounds and 46 million pounds. It said increasing uncertainty related to trade tariffs could hurt demand for its products.

Analysts were expecting 43 million pounds in Ebita but the new mid-point of the forecast is 36 million pounds, RBC Capital Markets analyst Mark Fielding said in a note.

The company's full-year performance was in line with guidance, the analyst added. TT Electronics said revenue fell 5% organically, with growth from Europe and Asia offset by North America. Adjusted operating profit was down 17% at constant currency to 37.1 million pounds, TT electronics said.

The news is likely to disappoint investors, though the further expectations of a downgrade to full-year profit is understandable given recent tariff developments, the analyst said, noting that Mexico accounts for around 25% of TT Electronics' headcount.

The management change also adds uncertainty in the near term, though it seems the company's corporate strategy remains unchanged at this point, Fielding said.

Write to Maitane Sardon at maitane.sardon@wsj.com

(END) Dow Jones Newswires

April 10, 2025 06:36 ET (10:36 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.