Shares of Goodwin PLC (LSE:GDWN) fell sharply, dropping 45.8% after the company revealed it had lost two major contracts worth more than £60 million in total within its Mechanical Engineering Division.
The engineering group said its subsidiary Easat was unsuccessful in a bid to supply 20 coastal radar antenna and transceiver systems for installations off Estonia, a project valued at roughly €18 million.
In addition, Goodwin International failed to secure a contract with Sellafield worth more than £45 million. The company said the outcome was unexpected, noting it had submitted what it described as a strong technical proposal and continues to deliver Self Shielded Boxes and 63 Element Racks in compliance with requirements.
At the end of February, Goodwin reported a firm fixed orderbook of £288 million. While overall trading performance remains broadly in line with the company’s October 2025 update, the loss of the contracts represents a setback for the Mechanical Engineering Division.
Within the Refractory Engineering Division, market conditions remain largely unchanged. The company said persistently high gold and silver prices are continuing to dampen sentiment in jewellery casting markets, while weaker consumer confidence is also affecting spending patterns.
Goodwin noted that none of its valve orders linked to LNG projects in the Middle East or the United States have been cancelled or paused in production. However, some large Middle East customers have asked for shipment delays due to the current geopolitical situation in the Gulf, which could shift the timing of related revenue.
The company is moving forward with plans to expand its foundry facility to accommodate a new automated moulding line, pending final planning approval.
Regarding its Duvelco high-technology products, Goodwin said no commercial sales have been recorded so far, although ongoing engagement with the market is expected to result in initial revenue contributions in the financial year ending 2027.
The Board is also reviewing a potential return to its previous dividend policy, which capped distributions at 38% of post-tax profit plus depreciation and amortisation, or lower, citing heightened geopolitical uncertainty worldwide.
Leave a Reply