Goodwin (GDWN) H2 2025 earnings summary

Executive summary

• Achieved record pre-tax trading profit of £35.5m, up 47% year-over-year, on revenue of £220m, a 15% increase from last year.

• Proposed ordinary dividend of 280p per share, an increase of 111% from the prior year, reflecting strong cash generation and reduced gearing.

• Net debt reduced from £42.9m to £13.6m, with gearing falling from 35.1% to 9.9%.

• Mechanical Engineering Division drove growth, especially through defence and nuclear contracts; Refractory Engineering Division also delivered strong results.

Financial highlights

• Revenue: £219.7m (2024: £191.3m), up 15% year-over-year.

• Gross profit: £91.6m (2024: £77.9m), gross margin 41.7%.

• Operating profit: £37.1m (2024: £26.9m).

• Trading profit: £35.5m (2024: £24.1m).

• Profit after tax: £26.2m (2024: £17.7m).

• Basic and diluted EPS: 327.17p (2024: 224.53p).

• Cash generated from operations: £67.2m (2024: £33.3m).

• Net assets: £142.2m (2024: £126.7m).

Outlook and guidance

• Strong order book of £287m, with 57% related to defence, providing long-term visibility.

• Dividend policy increased to 58% of post-tax profits plus depreciation and amortisation.

• Capital expenditure expected to remain modest, with major projects anticipated to be customer-funded.

• Renewed a four-year committed bank facility post year-end, ensuring ample liquidity.