By Helena Smolak

Military equipment maker Avon Technologies raised its revenue and profit guidance for its fiscal year, citing increased demand as countries ramp up their spending on military equipment.

The British manufacturer of gas masks and helmets said Wednesday that it now expects its revenue to grow in excess of 10% for the year ending Sept. 30, having previously forecast growth in the mid-single-digit percentage range. It now expects an adjusted operating profit margin above 12%, up from prior estimates of 11.5%.

The company said its operating profit margin is expected to grow on higher revenue. However, costs associated with ramping up production and closing its Californian factory for protection helmets will impact its profit margin in the first half of the year, it said.

Order momentum continued through the second quarter of fiscal 2025, driven by sales growth at its Team Wendy business in the U.S., which focuses on ballistic and bump protection helmets. Sales at its Avon Protection business also grew on higher demand for its respirators and underwater rebreathers.

Recent wins such as two new orders for personal respirators for Ukraine's armed forces and the delivery of its rebreather for two European countries further strengthened Avon's order book, it said.

"Our growing order book, progress closing our California facility and the culture, capability change and pace we are seeing as we implement continuous improvement across the group all give us confidence for the medium term and beyond," chief executive officer of Avon Technologies, Jos Sclater, said.

Write to Helena Smolak at helena.smolak@wsj.com

(END) Dow Jones Newswires

March 26, 2025 03:46 ET (07:46 GMT)

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