Tekmar Group's FY25 Results Show Turnaround Momentum with Record £40.7m Order Book

Tekmar Group FY25 results: better margins, H2 swing, and a record £40.7m order book

Tekmar’s full-year numbers for the 12 months to 30 September 2025 show a business stabilising and building momentum under Project Aurora. Revenue dipped year-on-year, but profitability improved sharply in the second half and the order book has hit a record level post year end. For investors, the story here is enhanced visibility and de-risking of legacy issues, set against the reality that Tekmar is still loss-making and cash remains tight.

Key FY25 numbers investors should know

Revenue	£28.7m (FY24: £32.8m)
Adjusted EBITDA	£0.1m (FY24: £1.7m)
H1/H2 Adjusted EBITDA	H1: £(0.7)m; H2: £0.8m
Gross margin	34% (FY24: 32%); H2: 38% (H1: 29%)
Order intake	£31.6m (FY24: £32.4m)
Loss before tax	£4.2m (FY24: £4.5m)
Loss for the year / EPS	£3.9m; (2.83p) per share
Cash at 30 Sep 2025	£3.4m
Net debt (gross cash less bank facilities)	£2.9m
Warranty provisions (current)	£2.1m (FY24: £5.2m current; £0.7m non-current)

Jargon buster: Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation, adjusted for one-off and significant items. Gross margin is gross profit as a percentage of revenue. Order book/backlog is contracted work not yet delivered.

Project Aurora is biting: sharper focus and a leaner cost base

Management reorganised the Group into two verticals – Asset Protection Technology and Offshore Energy Services – and tightened commercial discipline. That is showing up where it matters: margins and utilisation. Despite lower full-year sales, the gross margin rose to 34% and H2 Adjusted EBITDA swung to a £0.8m profit as volumes improved.

Offshore Energy Services is moving the right way, with revenue up 46% to £2.2m and Adjusted EBITDA at £0.3m (FY24: £(0.3)m). Asset Protection Technology remains the engine at £26.5m revenue and £1.8m Adjusted EBITDA, although depreciation, amortisation and central costs still pulled the Group to a statutory loss.

Order book at £40.7m: visibility is the headline

Since 1 July 2025, Tekmar has booked £43m of new orders, taking the current order book to a record £40.7m. Crucially, £26m is already scheduled for delivery in FY26, with a further £15m for subsequent years. That is a material step-up in visibility versus recent years and underpins guidance that FY26 should be a “significant year-on-year improvement” and in line with market forecasts.

Balanced demand across end markets and geographies

• Offshore wind: three significant wins since December 2025 in Europe, with cumulative orders in that period in excess of £20m. Scope includes FEED (front-end engineering and design) and next-gen cable protection systems (CPS).
• Oil & Gas: c.£22m of awards since July 2025, including a US$10m CPS contract in the UAE and a €3.5m award in November 2025, plus a £2m+ subsea structures job in the Middle East.
• Marine infrastructure: a US$1.5m port contract in October 2025 and a further similar-sized port award in the Middle East for engineered scour protection.

Framework agreements with Jan De Nul (TenneT’s 2GW programme in Germany) and Nexans add further multi-year engagement with blue-chip customers.

Legacy issues de-risked: settlements largely behind, cash-neutral

Most of the legacy defect notifications relating to abrasion of older-generation CPS have been commercially settled with no admission of liability and no conclusion of defect with Tekmar’s products. Importantly, the settlements have been covered by previously received insurance monies, resulting in nil net cash impact. Warranty provisions have reduced to £2.1m at year end from £5.9m, with two projects still being finalised and one separate coating issue estimated at c.£0.2m. This clean-up matters: it removes uncertainty that has overshadowed the equity story.

Balance sheet and cash: progress, but still a watchpoint

Year-end cash was £3.4m, with net debt of £2.9m. After period end, the £3.0m CBILS loan was repaid and replaced with a new £2.0m Growth Guarantee Scheme loan. The £4.0m UKEF-backed trade loan remains in place and had £2.8m drawn at year end. In February 2026, Tekmar sold Innovation House for £2.84m net, materially improving headroom to support growth under Project Aurora.

Operating cash flow was a £1.3m outflow in FY25, reflecting low H1 trading and one-offs (restructuring, China receivables provision). The move to SAGE Intacct and tighter cost control should help as volumes rise, but near-term cash management remains key while the business scales.

China receivables and FX

Trade receivables in China remain an area to monitor. The Group has an expected credit loss provision of £0.8m, with the China-specific provision increased to £0.7m; £1.1m was recovered during FY25 and £0.4m post year end on older balances. FX risk is actively hedged with forwards; the FY25 net FX impact was minimal.

Where growth could come from in FY26

• Operational gearing: management says capacity can more than treble without significant capex, so higher utilisation should feed margins.
• Offshore Energy Services: targeted to grow toward 25% of Group revenue over Project Aurora’s time horizon, with recurring IMR (inspection, maintenance and repair) work a valuable addition.
• Technology roadmap: incremental upgrades to protection systems, digital condition monitoring, and more sustainable materials provide product differentiation and pricing power.

The good, the not-so-good, and my take

Positives

• Record £40.7m order book with £26m already slated for FY26 delivery – strong visibility.
• H2 profitability and margin uplift to 38% gross margin – proof that the reorg is working.
• Legacy warranty settlements largely concluded, cash-neutral and de-risking.
• Diverse wins across offshore wind, oil & gas and marine infrastructure, plus strategic frameworks.
• Balance sheet strengthened post year end by the £2.84m property sale and CBILS refinance.

Challenges

• FY25 revenue fell to £28.7m and the Group remained loss-making with a £4.2m pre-tax loss.
• Cash generation was negative in FY25; careful working capital management still required.
• Warranty provision remains £2.1m and one coating issue is still under discussion.
• China receivables risk persists, despite progress on recoveries.

Overall, this is the clearest sign yet that Tekmar’s turnaround is taking hold. The H2 swing and record order book support the Board’s guidance for a better FY26. Execution, cash discipline, and completing the tidy-up of legacy items will determine how quickly that order book converts into sustained profits.

What to watch next

• Delivery against the £26m FY26 secured revenue and any further order wins.
• Gross margin trend – can H2’s 38% be sustained as volumes ramp?
• Cash conversion, working capital swings, and utilisation of the trade loan.
• Closure of the remaining legacy matters and progress on China receivables.
• Updates on M&A or capacity investments under Project Aurora.

Conclusion: credible momentum, with the hard yards ahead

Tekmar exits FY25 with better margins, cleaner risk, and a record backlog – all delivered by a management team executing a clear plan. The share case now turns on converting that visibility into cash and profit through FY26. If Tekmar maintains commercial discipline and operational execution, the ingredients for a proper earnings recovery are finally in place.