Goodwin Reports Record £77.5 Million Profit, Shares Jump 13%

Goodwin PLC (LSE:GDWN) shares jumped 13.2% to 20,600p in early trading on Friday. This rise followed the engineering group's report of record annual profits. Trading profit more than doubled to £77.5 million for the year ending April 30, 2026. This is an increase of 118% from £35.5 million a year earlier. Revenue rose 27% to £280 million during the same period.

Strong Defence Demand

The company credited its growth to strong demand in its Mechanical Engineering division. This demand was particularly for precision-machined castings used in defence and nuclear applications. Goodwin has key roles in several UK and US Navy frigate and submarine programs. Additionally, the Refractory division saw a 15% rise in trading profit. This growth was driven by demand for lower-cost jewellery casting products and expansion from Hoben International's Soluform concrete bagwork business.

Goodwin also announced a proposed ordinary dividend of 330p per share. This is an 18% increase from 280p and reflects the company's improved performance. The company is currently selling a significant part of its Mechanical Engineering division. Discussions are ongoing with several interested parties, including Goodwin Steel Castings and Goodwin International. The company aims to complete the sale within the next 12 months. It plans to return a large portion of any proceeds to shareholders.

Financial Position

At the end of April, Goodwin reported net debt of £29 million. This followed a £40 million special interim dividend paid during the year.

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Based on reporting by: proactiveinvestors.co.uk