Petards Reports Revenue Surge and Expanding Order Book on Defence and Rail Demand

Petards (LSE:PEG) delivered a strong trading update for 2025, reporting unaudited group revenue of approximately £14.9 million, representing a 24% increase compared with the previous year. Adjusted EBITDA rose to around £1.0 million, broadly in line with market forecasts, supported by improved performances across key operating divisions.

Growth was led by stronger revenue and profitability from both the Petards Rail and Petards Defence units, alongside the first full-year earnings contribution from Affini. This progress was partially offset by softer trading in the second half at QRO, where order placement delays impacted performance. Despite this, operating cash generation improved to £1.4 million, allowing the company to reduce total net debt to £1.3 million by the end of the year.

The group’s order book strengthened significantly, reaching £9.2 million after securing approximately £3.5 million of new contracts during the final months of 2025. These awards included agreements with the UK Ministry of Defence, Rheinmetall BAE Systems Land (RBSL) and BAE Systems. With roughly 85% of the order book scheduled for delivery during 2026, Petards enters the new financial year with strong revenue visibility and expects further operational progress, although it noted that challenging market conditions and prolonged tendering timelines remain ongoing factors.

Looking ahead, the company’s outlook is supported by recent contract wins and strategic expansion initiatives, combined with strong technical trading momentum in its shares. However, profitability and cash flow pressures continue to weigh on overall financial performance, while valuation metrics remain less compelling, creating some constraints on investor sentiment.

More about Petards

Petards Group plc is an AIM-listed technology company specialising in advanced security, surveillance and communication systems. The group serves rail and defence markets alongside niche technology businesses, including QRO and Affini. Its products support critical infrastructure and defence customers, with clients including the UK Ministry of Defence and major defence contractors, positioning the company within high-security technology and safety-focused sectors.