Shearwater secures £25m telecoms contract extension through Brookcourt Solutions (SWG)

Five-year agreement strengthens long-standing customer relationship

Cybersecurity specialist Shearwater (LSE:SWG) has announced that its subsidiary, Brookcourt Solutions, has won a five-year contract expansion valued at approximately £25 million with a leading UK-based global telecommunications provider.

The agreement extends an established partnership and covers the continued supply of packet monitoring, forensic analysis and service assurance technologies across the customer’s network infrastructure and key strategic accounts. The award further reinforces Brookcourt’s position as a provider of network visibility and assurance solutions for the telecommunications sector.

Contract boosts revenue visibility for FY26

The contract is expected to generate around £25 million in revenue over the five-year term, with approximately £12.5 million anticipated to be recognised during FY26 through the delivery of initial software and support licences.

The board said the award leaves the company confident of meeting market expectations for both revenue and EBITDA in FY26. Although the first cash payment is expected to be received in early FY27, resulting in period-end cash of roughly £5.6 million—around 20% below market forecasts—management believes the improved revenue visibility strengthens Shearwater’s long-term growth outlook within the telecoms cybersecurity and network intelligence market.

Financial challenges remain despite operational momentum

Shearwater’s investment outlook continues to be influenced by weak financial quality, with the company remaining loss-making and reporting declining free cash flow despite delivering strong revenue growth.

Short-term technical indicators provide some support, with the shares trading above their 20-day and 50-day moving averages alongside a positive MACD signal. However, valuation remains constrained by negative earnings and the absence of a dividend yield.

More about Shearwater

Shearwater Group plc is a UK-based cybersecurity company providing managed security services and specialist consulting to organisations worldwide. Its portfolio includes identity and access management, data protection, managed cybersecurity services, governance, risk and compliance, and wider cyber advisory solutions. The group continues to pursue a buy-and-build strategy to expand its presence across the cybersecurity and managed services markets, with its shares listed on AIM under the ticker SWG.