Hardide’s FY25 trading update: revenue up 25%+, EBITDA swings to £1m, EPS turns positive
Hardide PLC has delivered a punchy pre-close update for the year ended 30 September 2025. Revenue rose by over 25% to £6.0m, up from £4.7m in FY24. That £1.3m uplift is flowing through strongly to profit quality too: the Board expects EBITDA of approximately £1.0m at a margin of over 16%, compared with break-even in FY24.
Perhaps the standout line is this: positive earnings per share (EPS) for the first time in many years. For a business of Hardide’s size, that crossing of the profitability line matters – it changes the conversation from “if” to “how much”.
These numbers are unaudited and come ahead of full results due in late January 2026. Even so, the direction of travel is clear and, in my view, materially encouraging.
Where the growth came from: aerospace wins and energy sector traction
Management credits two engines of growth. First, new recurring work in aerospace that started early in the year. Second, newly-won development work in the energy sector, including initial projects with customers in North America and the Middle East.
Recurring work means repeat orders – the lifeblood of utilisation and margins. Development work is earlier-stage and needs to convert to production volumes, but it expands the pipeline and validates the tech with new customers and geographies.
Hardide FY25 pre-close: headline numbers at a glance
| Metric | FY25 (unaudited) | FY24 | Comment |
|---|---|---|---|
| Revenue | £6.0m | £4.7m | Up over 25% year-on-year |
| EBITDA | ~£1.0m | Break-even* | Margin over 16% |
| EPS | Positive | Not disclosed | First positive EPS in many years |
| Net debt (including leases) at 30 Sept | £1.6m | £2.1m | Improved by £0.5m |
| Cash at 30 Sept | £0.8m | £0.7m | Up despite working capital absorption in Q4 |
*FY24 EBITDA was break-even prior to one-off restructuring costs of £0.4m.
Why this update matters for shareholders
Two reasons: operating leverage and credibility. Revenue growth of this scale on a relatively small cost base is now dropping through to EBITDA at an attractive margin. Over 16% EBITDA margin signals better utilisation of Hardide’s installed capacity and more disciplined cost control.
On credibility, the first positive EPS in years is a milestone. It strengthens the investment case with institutions, improves optionality on financing, and – crucially – shows that recent commercial wins are translating into earnings, not just press releases.
Cash and net debt: reading the signals
Net debt (including leases) reduced to £1.6m from £2.1m. Cash at year-end was £0.8m, slightly ahead of last year’s £0.7m. Management flags working capital absorption in Q4 due to strong trading – not unusual when volumes accelerate, as receivables and inventory step up ahead of cash collection.
This suggests the balance sheet is tighter but manageable. Positive EPS and over 16% EBITDA margin should help underpin cash generation, provided development projects shift into recurring orders and debtor days stay sensible. The cash position is not lavish, so continued discipline will be important.
The £10m revenue ambition: realistic or reach?
The Board is “highly focused” on doubling revenue from FY24 levels to at least £10m over the next few years. That would mean growing from £4.7m to £10.0m – a further step-up from FY25’s £6.0m base.
The strategic lever here is spare capacity. If utilisation rises without proportionate cost increases, operating margin and EPS can scale faster than revenue. The unknowns are timing and mix: aerospace recurring work is a positive foundation, while energy sector development work needs to convert. The target feels ambitious but achievable if current momentum holds and customer adoption continues to broaden.
What to watch in the January results
- Exact EPS and profit bridge – we know EPS is positive, but not by how much. The granularity will show how sustainable this is.
- EBITDA detail – confirmation of the margin, any one-offs, and the operating cost base moving into FY26.
- Cash flow – working capital movements, capex needs, and direction of net debt including leases.
- Order book and sector mix – the split between aerospace recurring and energy development work, and how fast development projects are converting.
- Capacity utilisation – with spare capacity available, utilisation is the key driver of margin expansion.
Balanced view: the positives and the risks
Reasons to be upbeat
- Revenue up over 25% to £6.0m with clear sector drivers.
- EBITDA of approximately £1.0m and margin over 16% – firm evidence of operating leverage.
- Positive EPS for the first time in many years – a genuine milestone.
- Net debt down to £1.6m and cash slightly higher despite a working capital drag in Q4.
- Expanding geographic footprint with new customers in North America and the Middle East.
Key risks to keep in mind
- Figures are unaudited and pre-close – fine-tuning may follow in January.
- Cash remains modest at £0.8m – continued discipline is essential.
- Development work must convert to recurring revenue to sustain growth.
- Exposure to macro uncertainty across aerospace and energy cycles.
Quick primer: what Hardide actually does
Hardide develops and applies advanced tungsten carbide/tungsten metal matrix coatings to engineering components. The patented process combines toughness with resistance to abrasion, erosion and corrosion, and can coat interior surfaces and complex geometries with precision.
In practice, that means longer component life in harsh environments, lower downtime, and potentially a reduced carbon footprint thanks to fewer replacements. The company serves energy, valve and pump manufacturing, industrial gas turbines, precision engineering and aerospace.
Josh’s take
This is a strong update from a small-cap industrial with a specialised niche. The shift to positive EPS is the headline, but the underpinning – recurring aerospace work and a fuller pipeline in energy – is what gives it legs.
If Hardide can keep utilisation rising and convert those development projects, the spare capacity could do a lot of heavy lifting on margins. I’ll be looking for confirmation of cash conversion and the precise EPS number in January. For now, momentum looks real and the medium-term £10m revenue ambition is moving from slideware towards something tangible.
