Hardide plc (LSE:HDD) reported strong trading so far this year, indicating that first-half FY26 revenue is expected to reach around £4.5m, representing an increase of more than 50% compared with the same period last year. The company anticipates EBITDA of roughly £1.3m, with operating margins close to 20%, supported by a number of recent contract wins, including new production work for a major North American energy customer. Hardide has also begun coating cargo door components for freight aircraft under an aerospace contract and secured its first repeat turbine blade coating order within the power generation sector. In addition, the group is advancing development projects with a potential large energy customer in the Middle East and working under a framework agreement with a key North American client. These developments leave the board confident the company is on track to meet its recently upgraded full-year expectations.
The new business is helping diversify Hardide’s revenue streams across energy, aerospace and power generation markets, reducing reliance on any single geography while highlighting growing demand for its coating technology in high-performance industrial applications. The company also noted that operations have not been materially affected by recent tensions in the Middle East. Combined with relatively modest and partly fixed energy costs and the move toward longer-term supply agreements with major customers, these factors improve earnings visibility and reinforce Hardide’s position within its specialised industrial coatings niche.
The company’s outlook is supported by improving financial performance, including a shift to profitability and positive free cash flow during FY2025, alongside a strong upward trend in the share price. However, the investment case is tempered by a relatively expensive valuation, reflected in a very high price-to-earnings ratio, as well as thin operating margins and higher leverage levels that could increase downside risk if growth slows or operational execution weakens.
More about Hardide
Hardide plc is a UK-based developer and provider of advanced surface coating technologies. The company manufactures and applies patented tungsten carbide and tungsten metal matrix coatings designed for a wide range of engineering components. These coatings combine durability with resistance to abrasion, erosion and corrosion, and can be applied precisely to interior surfaces and complex geometries. Hardide’s technology is used to extend component life in demanding environments across industries including energy, valve and pump manufacturing, industrial gas turbines, precision engineering and aerospace.
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