Hardide (LSE:HDD) reported record first-half results for the six months ended 31 March 2026, with revenue rising 71% to £4.8 million as demand from the energy sector continued to strengthen. Gross margins improved to 65%, while operating profit reached £1.3 million, resulting in positive earnings per share for the period.
The company said growth was driven largely by increased business from a major new North American energy customer, alongside operational efficiency improvements that helped lift operating margins to 26.8%. Cash balances also increased to £1.5 million despite higher working capital requirements linked to expanding activity levels.
Management expects momentum to continue into the second half of the financial year, supported by an additional £1.8 million order from the energy sector. The group also anticipates revenue contributions from the transition of an aerospace cargo door coating contract into production, as well as its first industrial turbine blade order since 2022.
Hardide is continuing to invest in infrastructure and process improvements at its Martinsville facility in the United States. The company said these upgrades are expected to increase annual production capacity toward approximately £20 million of revenue without requiring significant additional capital expenditure.
The group added that current trading momentum positions it to exceed its objective of doubling FY24 revenue ahead of schedule while improving long-term returns on capital.
The company’s broader outlook continues to be supported by improving profitability, positive free cash flow generation and a stronger financial trajectory. However, these positives are tempered by relatively thin margins and higher leverage levels. Technical indicators remain supportive through a longer-term upward trend, while valuation metrics are viewed favourably due to the shares’ relatively low price-to-earnings ratio.
More about Hardide
Hardide plc is a UK-based engineering technology company specialising in advanced tungsten carbide and tungsten metal matrix coating solutions for components operating in demanding industrial environments. Its patented coating technologies are designed to improve resistance to abrasion, erosion and corrosion while maintaining toughness and precision application across complex engineering parts. Hardide serves industries including energy, aerospace, industrial gas turbines, valve and pump manufacturing, and precision engineering.
Leave a Reply