SRT Marine Systems (SRT) H1 2026 earnings summary

Executive summary

• Revenue grew 95% year-over-year to £51.1m for the six months ended 31 December 2025, with profit before tax up 48% to £3.1m and strong operating cash flow of £35.3m.

• Five active sovereign customers contributed to a £350m order book, with a new £195m contract signed post-period end, pending activation.

• The first unmanned surface surveillance vessel program became fully operational, and the NEXUS VHF/AIS marine communications system launched and began shipping post-period.

Financial highlights

• Gross profit margin was 27%, down from the prior period due to the mix of system deliverables; systems business margin was 26%, transceivers business 42%.

• Net cash at 31 December 2025 was £41.6m, including £27.4m restricted cash; net cash from operating activities was £35.3m.

• Basic EPS rose to 1.16p from 0.93p year-over-year; diluted EPS was 1.10p versus 0.85p.

• Operating expenses increased to £10.2m from £8.5m, reflecting scaling of delivery and sales functions.

Outlook and guidance

• Revenue growth expected to continue in the second half, with the Board confident in meeting market expectations.

• Large pipeline of £1.8bn in validated new system contract prospects supports long-term growth visibility.

• Cash generation expected to remain strong for the full year, despite planned project-related purchases.