Petards Group Reports 2025 Revenue Growth of 24% and Strengthened Order Book

Divisional colour: Rail and Defence up, QRO hit by order delays

The narrative by division is mixed, but mostly positive:

• Petards Rail – Higher revenue and profitability versus 2024, supported by better order intake.
• Petards Defence – The standout, with strong order intake and wins from prime defence contractors and the MOD.
• Affini – Delivered its first full-year profitable contribution, which is a helpful addition to Group earnings quality.
• QRO – Secured important framework contracts but faced delays in order placement in H2, resulting in lower revenue than 2024.

Looking ahead, management expects QRO’s revenue momentum to recover as framework contracts convert, interest builds in the newly launched Harrier Mini, and overseas opportunities are progressed. That’s a credible setup, but the conversion timing is the watch-out.

Cash flow and net debt: moving in the right direction

Operating cash generation improved to £1.4 million (2024: £0.2 million). After investing and financing flows, total net debt reduced to £1.3 million at 31 December 2025 (31 December 2024: £1.5 million). On a business of this size, cash discipline matters. The swing in operating cash is a clear positive, and the modest reduction in net debt helps de-risk the balance sheet.

There’s no disclosure of cash at bank, gross debt, or interest costs in this update. Likewise, profit before tax and statutory profit figures are not disclosed. Those will be worth checking when the full results land.

My take: momentum is improving, but execution and timing still matter

There’s plenty to like here. Revenue growth of 24%, adjusted EBITDA stepping up to around £1.0 million, and operating cash of £1.4 million signal that 2025 was a year of rebuilding and better discipline. The order book at £9.2 million – with heavy 2026 delivery – underpins near-term visibility, especially with defence wins from household names.

The caution flags are familiar for project-led engineering businesses: extended tendering cycles, order timing (as seen at QRO), and the need to convert frameworks into purchase orders at pace. Net debt is modest but still present, so continued cash generation is important.

Net-net, the direction of travel is positive. If Petards converts its late-2025 wins, accelerates QRO’s frameworks and Harrier Mini interest, and keeps margins improving, 2026 could show further gains. But this is a “show me” year for execution.

Why this update matters for investors

• Growth across core divisions – Rail and Defence are both contributing, reducing single-division risk.
• Defence momentum – £3.5 million of late-year awards from MOD, RBSL and BAE Systems adds credibility and pipeline depth.
• Cash turning – £1.4 million operating cash indicates better working capital control and earnings quality.
• Order book visibility – £9.2 million order book with around 85% scheduled for 2026 gives coverage into the new year.
• QRO recovery to watch – Frameworks and Harrier Mini interest are promising, but conversion timing will drive revenue.

Key numbers at a glance (unaudited)

Metric	2025	2024	Context
Revenue	Circa £14.9 million	£12.0 million	Up 24% year-on-year
Adjusted EBITDA	Circa £1.0 million	£0.4 million	In line with market expectations
Operating cash flow	£1.4 million	£0.2 million	Stronger cash generation
Total net debt (year-end)	£1.3 million	£1.5 million	Improved versus prior year
Order book (year-end)	£9.2 million	£7.1 million	~85% scheduled for 2026
Late-2025 awards	£3.5 million	Not disclosed	From MOD, RBSL and BAE Systems

Jargon buster

• Adjusted EBITDA – earnings before depreciation, amortisation, exceptional items, acquisition costs and share-based payments.
• Total net debt – cash and cash equivalents less interest-bearing loans and borrowings.
• Order book – the value of contracted work yet to be delivered.
• Framework contract – an agreement setting terms for future orders; revenue only arrives when specific orders are placed.

What to watch next

• Full-year results – statutory profit figures, gross margin detail, cash and debt breakdown.
• QRO conversion – timing of purchase orders under frameworks and uptake of the Harrier Mini.
• Delivery cadence – execution of the £9.2 million order book, most of which is scheduled for 2026.
• Further defence wins – follow-on orders from MOD, RBSL and BAE Systems would reinforce momentum.

Bottom line

Petards ends 2025 stronger: bigger top line, improved profitability, better cash generation and a fatter order book. The set-up for 2026 is constructive, albeit with the usual execution and timing risks. If management keeps converting and delivering, investors could see another year of progress.