Gooch & Housego (GHH) H2 2025 earnings summary

Executive summary

• Revenue increased by 10.7% to £150.5 million, driven by strong Aerospace & Defence (A&D) growth and strategic acquisitions.

• Adjusted profit before tax rose 46.8% to £11.9 million, with sustainable margin improvement and gross margin up to 31.0%.

• Record order book at £142.3 million, up 36.2%, with continued growth post year-end and significant A&D pipeline.

• Successfully integrated Phoenix Optical Technologies and Global Photonics, enhancing US defense and Germanium capabilities.

• Maintained operational resilience despite macroeconomic and supply chain challenges.

Financial highlights

• Adjusted operating profit increased 37.3% to £14.4 million; margin up 186bps to 9.6%.

• Adjusted profit before tax rose 46.8% to £11.9 million from £8.1 million year-over-year.

• Net bank debt at £29.9 million after £10.1 million in acquisitions and £7.5 million in strategic inventory investments.

• Final dividend declared at 8.3p, total dividend 13.2p.

• Adjusted basic EPS up 38.8% to 35.4p; reported profit before tax £5.3 million (up 26.6%).

Outlook and guidance

• Board expectations for FY2026 remain unchanged, with confidence in continued profitable growth.

• Order intake of £178.6 million in FY2025, book-to-bill above 1.2; order book covers 80% of FY2026 revenue.

• Strong A&D growth expected to continue; semiconductor market recovery subdued.

• Germanium supply remains variable and H2 weighted.

• Positive medium-term outlook for all segments, especially aerospace and defense.