Current Trading and FY2026 Outlook
At the announcement of the Group’s interim results on June 18, 2026, Tekmar stated that the Company was on track to deliver stronger second half revenue and profit performance vs. FY25 despite the impact and continued uncertainty caused by the events in the Middle East. The Group is pleased to report that trading volumes in the second half of FY26 have continued to grow, resulting in the Company delivering higher revenues than in H1 2026 and in the equivalent period in 2025. This was reflected in the ramp up in UK based manufacturing, resulting in better utilization, as planned, with the order book pivoting to European offshore renewables projects in H2 2026. Accordingly, the Group expects to report revenue in FY26 being more than 20% up on FY25.
However, while trading momentum and the overall trajectory remains positive, the pace of growth in near-term volumes and revenues in H2 2026 has been slower than anticipated, with some trading volumes now expected to be realized after the FY26 year end. This change reflects the prolonged nature of the conflict in the Middle East and some supply chain constraints within the UK. In the Middle East, the conflict has resulted in some Q4 FY26 work scopes and awards being deferred, alongside added logistical challenges and costs. In the UK, some material planned deliveries were pushed into October, due to a power outage at a supplier’s facility, resulting in the associated revenue now being recognized in FY27.
As a result of these challenges, the Company anticipates adjusted EBITDA in the second half of the year to be broadly similar to the second half of 2025, with FY26 adjusted EBITDA up on FY25 and FY26 H2 Profit After Tax nearing breakeven. Despite these disruptions, the Company’s order book continues to strengthen, in-line with Project Aurora. Due to the €6 million contract extension being announced today, and other smaller contract wins, the Company expects to enter FY27 with an order book more than 50% higher than at the start of FY26, supporting higher future revenue targets and giving longer term visibility into 2028 and beyond.
Contract Extension
The Company is pleased to announce the award of a €6 million contract extension for a European offshore wind project. Under the contract, Tekmar will supply CPS and associated accessories, together with specialist engineering, analysis and design services delivered by its in-house team. Manufacturing will be undertaken at Tekmar’s facility in Newton Aycliffe. The contract, which is subject to the project’s Final Investment Decision (“FID”), currently expected in Q1 FY27, also includes an option for the project’s second phase, with a broadly similar scope and value. This option is additional to the announced Phase 1 award and is subject to exercise by the customer and Phase 2 FID.
This award is further evidence of the ongoing momentum across the business, the strength of Tekmar’s customer relationships and confidence in its integrated CPS offer and demonstrates the success of the Company’s focus in developing a sustainably larger and more diverse sales pipeline, in-line with driving volume and supporting higher returns from invested capacity across its UK operations. It also shows progress on key initiatives within Project Aurora to deepen customer relationships and increase the value delivered across the project lifecycle, by providing a more integrated engineering and asset protection offer. It is an approach that enables the Company to optimize designs and reduce risk for developers.
Working Capital Facility
In-line with ongoing momentum in the project pipeline and in support of project delivery, the Company has secured a further £4 m working capital facility, supplementing the existing UKEF backed trade loan with an invoice discounting facility. The working capital facility will provide greater flexibility to support sales growth in the European offshore wind market where individual project sizes have grown significantly, thus enabling efficient management of production schedules to maximize operational efficiency and utilization of the Group’s manufacturing assets.
The Group has continued to make progress in balance sheet development and funding to support its growth. This included replacing the £3 m CBILS loan with an amortising £2 m GGS loan in October 2025, the disposal of an investment property for £2.8 m in February 2026, an increase in the guarantee facility and the additional working capital facility in September 2026.
Richard Turner, CEO of Tekmar Group, commented: “We continue to build momentum and diversity with our orderbook, which will add to revenue visibility in FY27 and beyond. The ongoing conflict in the Middle East has caused disruption and logistical challenges, but despite its impact, Tekmar remains well positioned to provide full lifecycle support to global offshore energy and marine infrastructure projects. The overall direction of travel for the business remains positive, as reflected in the growing orderbook, in-line with our plans under Project Aurora.”
