Gooch & Housego (LSE:GHH) reported first-half 2026 revenue of £81.9 million, representing a 9.1% increase on an organic, constant-currency basis. Growth was driven primarily by rising demand from the aerospace and defence sector, alongside improving conditions in the industrial laser and semiconductor markets. The company’s order book also expanded, reaching £167.3 million, supported by strong enquiry levels—particularly from defence customers.
The group also pointed to the successful integration of recent acquisitions Global Photonics and Phoenix Optical, both of which are increasing production capacity to meet growing demand. Management noted that supply chain risks linked to key raw materials remain a factor, partly due to retaliatory measures tied to U.S. tariff policies. However, these challenges have so far been managed without affecting operations.
Financially, Gooch & Housego maintains a solid balance sheet, with net debt standing at £37.0 million and additional financing facilities available to support further investment and growth. The company continues to expect trading for the full year 2026 to remain in line with guidance. It has also strengthened its leadership team with the appointment of James Corte as chief financial officer.
The company’s outlook is supported by improving profitability and a positive technical trend, with the share price trading above key moving averages and momentum indicators such as MACD remaining positive. However, these positives are partly offset by weaker cash generation, including a sharp drop in free cash flow and lower cash conversion. Valuation also appears relatively elevated, with a price-to-earnings ratio of 25.56 and only a moderate dividend yield.
More about Gooch & Housego
Gooch & Housego is a specialist manufacturer of photonic components and systems used in industrial laser, semiconductor, aerospace, and defence applications. The company develops complex optical and photonic solutions and has expanded its capabilities through acquisitions across the United States and Europe. These investments aim to strengthen its position in high-tech industries and meet increasing demand from defence and advanced manufacturing markets.
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