Avingtrans Posts Strong Interim Growth on Nuclear and Medical Imaging Momentum

Avingtrans H1 FY26: margins up, cash flow stronger, dividend lifted

Avingtrans has posted a tidy set of interim numbers for the six months to 30 November 2025. Revenue was flat, but profits and cash generation moved up a gear thanks to a richer aftermarket mix in the core engineering division and narrowing losses in medical imaging. The dividend is up again, and management says the order book already secures 95%+ of FY26 market expectations.

The big themes: nuclear and data-centre-driven energy demand are powering Advanced Engineering Systems (AES), while Adaptix’s US regulatory clearance starts to unlock sales in the Medical & Industrial Imaging (MII) division. There are still regulatory hurdles for Magnetica and some tariff noise in the US, but the direction of travel looks positive.

Key numbers from the interim results

Metric	H1 FY26	H1 FY25
Revenue	£78.1m	£79.0m
Gross margin	31.7%	30.0%
Adjusted EBITDA	£9.6m	£8.7m
Adjusted EBITDA margin	12.3%	11.0%
Adjusted profit before tax	£5.7m	£4.5m
Adjusted diluted EPS (continuing)	14.6p	12.0p
Cash inflow from operating activities	£7.6m	£4.9m
Net debt (ex-IFRS 16)	£12.3m	£12.3m (31 May 2025)
Interim dividend	2.0p	1.9p

Notes: “Aftermarket” (AM) refers to services and spares sold to the installed base – typically higher margin. Adjusted figures exclude amortisation of acquired intangibles and other non-underlying items.

Advanced Engineering Systems: nuclear and data centres doing the heavy lifting

AES delivered another solid half: revenue £75.2m (H1 FY25: £76.8m) and EBITDA flat at £11.0m. The mix skewed more towards aftermarket, which lifted group margins. Management also flagged a more typical second-half weighting this year, so the H2 book-to-bill should pull the top line through.

Hayward Tyler’s nuclear pipeline builds

• HT Inc won $16.0m of new nuclear contracts with KHNP of South Korea.
• The $10m TerraPower design and development contract is progressing as planned; management also highlighted TerraPower’s announcement of an agreement with Meta to construct 8 new nuclear power stations.
• Energy Steel in Michigan improved sharply, leveraging its position in the US nuclear fleet’s life-extension market.
• HT’s UK operations focused on aftermarket and paused the planned sale of the Luton site, recognising its strategic value amid “game changing” new nuclear transition.
• China and India continued to grow, supported by increased energy demand and data-centre expansion.

Why this matters: life-extension work and the emergent small modular and next-gen reactor wave can underpin multi-year order visibility. Avingtrans is positioning HT as a go-to specialist for pumps and motors in these regulated markets.

Infrastructure wins: Booth, Ormandy and Metalcraft

• Booth added £8.5m of HS2 and TfL work and continues to deliver against its original £36m HS2 cross-tunnel doors contract.
• Ormandy benefited from data-centre cooling demand in the UK and Europe.
• Metalcraft is ramping 3M3 box production for Sellafield; timing of the next follow-on contract, expected to exceed £900m in value, remains uncertain.
• Slack & Parr’s recovery continued but was clipped by US tariff volatility.

Aftermarket focus is lifting margins

AM activity continued to build across the division, helping push the group gross margin to 31.7% (from 30.0%). In plain English: more spares, servicing and upgrades on the installed base, including third-party kit, generally means steadier, higher-quality earnings.

Medical & Industrial Imaging: Adaptix cleared, Magnetica next

The MII division is inching towards commercial traction. Revenue rose 33.0% to £2.9m and the LBITDA loss narrowed to £0.8m (from £1.7m). Investment remained material at £4.2m in the half, but there were clear operational milestones.

• Adaptix received US FDA 510(k) clearance for its orthopaedic 3D X-ray system, enabling US sales to begin, and continued appointing distributors across the UK, Europe and the USA. Post period-end, the first US KOL site in Miami was agreed and two US resellers were appointed.
• Magnetica expects to submit its 510(k) for the compact 3T MSK extremity MRI system in H2 2026; feedback at RSNA on image quality and UI was encouraging.
• Scientific Magnetics saw increased orders for quantum-computing magnets and progressed a new concept for ViewRay’s MRI-guided radiation therapy systems.
• Tecmag was impacted by US tariff volatility and reduced US government spending but is expected to recover gradually in FY27.

What 510(k) means and why it matters

A 510(k) is a US FDA submission showing a device is safe and effective by proving it’s substantially equivalent to an existing product. For Adaptix, this is the green light to sell its orthopaedic system in the USA – the world’s largest imaging market. Early case studies and white papers in 2026 should be key catalysts for broader adoption into 2027 and beyond.

Order book visibility and FY26 outlook

Management says AES is already secured to achieve 95%+ of FY26 market expectations, giving strong H2 visibility. Tailwinds from AI and data-centre power demand are providing a “target rich” environment for HT and others in the Group. The Board remains confident about meeting FY26 market expectations.

On capital allocation, the dividend is up to 2.0p, cash inflow from operations improved to £7.6m, and net debt (ex-IFRS 16) was flat at £12.3m despite ongoing investment in medical imaging and new nuclear technology. That’s a sensible balance between growth investment and returns, in my view.

Positives and pressure points to watch

What’s going right

• Strong strategic positioning in nuclear life extension and next-gen reactors; KHNP win underlines credibility.
• Aftermarket momentum is widening margins and smoothing revenue.
• Adaptix has regulatory clearance; distributor build-out is underway, creating a pathway to sales ramp.
• Cash conversion improved and dividend increased, while net debt held steady.

Where the risks sit

• Regulatory timing: Magnetica’s FDA submission is now expected in H2 2026 – any further slippage would defer revenue.
• Project timing: the large Sellafield follow-on tender (>£900m) timing is uncertain.
• Tariffs and geopolitics: Slack & Parr saw tariff headwinds; these could persist or flare elsewhere.
• Execution: delivering HS2/TfL and new nuclear work at scale while maintaining margin discipline is key.

My take for retail investors

This is a quietly confident update. Revenue was flat, but the quality of earnings improved, cash generation stepped up, and the dividend edged higher. AES looks well set with nuclear and data-centre demand, and MII finally has a commercial beachhead via Adaptix’s 510(k) approval. Magnetica is the bigger, later prize, but patience is still required.

Net debt is contained, order cover is strong, and the Board remains on track with its established Pinpoint-Invest-Exit strategy – investing in growth, and ultimately seeking exits at attractive valuations. Near term, I’ll be watching: further nuclear wins at HT and Energy Steel, Adaptix’s early US sales and clinical evidence, Magnetica’s 510(k) submission in H2 2026, and how the H2 weighting translates into full-year delivery.

Overall sentiment: positive, with clear execution and regulatory milestones to monitor.