MS International (LSE:MSI) reported broadly stable annual revenue while strengthening its balance sheet and advancing its strategy of becoming a more defence-focused engineering group. Although profits declined amid delays to global defence procurement programmes, the company continued to generate strong cash, expanded its defence offering and outlined plans to reshape its portfolio through potential asset sales.
Defence delays weigh on profits despite resilient trading
Group revenue for the 2025/26 financial year remained broadly unchanged at £115.01 million. Profit before tax declined to £15.06 million, while earnings per share fell to 67.4p as slower-than-expected defence procurement programmes delayed the conversion of anticipated orders.
Despite the weaker earnings performance, MS International significantly strengthened its financial position, increasing its cash balance to £46.53 million. The order book eased slightly during the year, reflecting the slower timing of defence contract awards rather than a reduction in long-term demand.
Defence division continues to drive growth
The Defence and Security business remained the group’s strongest-performing division, delivering resilient sales and profitability.
Growth was supported by strong demand in the United States and increasing international interest in the company’s counter-drone technologies, including the Terrahawk VSHORAD system and a newly developed Multi Weapon Station for customers in the Middle East.
Outside defence, the Forgings division faced more challenging conditions as tariffs disrupted market activity, although the business secured new strategic customers during the year. Meanwhile, the recently combined Petrol Station Superstructures and Branding division continued to benefit from cross-selling opportunities, growing demand for electric vehicle infrastructure and expansion within European branding markets.
Portfolio reshaping and leadership transition
MS International is continuing to review its portfolio as it sharpens its strategic focus on defence.
The company confirmed that it is actively exploring the sale of its Petrol Station Superstructures and Branding division, with buyer interest already emerging. Management also indicated that strategic options for the Forgings business may be reconsidered once that process progresses.
The year also marks a significant leadership transition. Long-serving chairman and chief executive David Sleath is stepping down from the board after more than five decades with the company and will become Life President. Anthony Wreford will assume the role of independent non-executive chairman, overseeing the next phase of the group’s development.
Investment outlook
MS International continues to benefit from a strong balance sheet, resilient defence operations and growing demand for advanced military technologies. Delays in procurement have affected short-term earnings, but the underlying defence pipeline remains supportive, particularly following significant contract wins with the US Navy and increasing international demand for counter-drone systems.
Although technical indicators remain relatively weak and cash flow trends warrant continued monitoring, the company’s strategic refocusing and strengthened financial position provide a solid platform for future growth.
About MS International
MS International is a diversified engineering company operating across three core divisions: Defence and Security, Forgings, and Petrol Station Superstructures and Branding. The group supplies naval weapon systems, land-based defence equipment and counter-drone technologies to military customers worldwide, while also providing industrial forgings and infrastructure solutions for the fuel retail and corporate branding sectors. Its operations span the UK, the US, Brazil and several international markets.
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