Shares of Newton Aycliffe-based Tekmar Group plc fell as much as 6% after it published an update on current trading for the year ended September 30, 2026, together with details of a €6 million contract extension and £4m working capital facility.
Tekmar is a provider of asset protection technology and offshore energy services.
Tekmar said that while trading momentum and its overall trajectory remains positive, the pace of growth in near-term volumes and revenues in the second half of 2026 has been slower than anticipated, with some trading volumes now expected to be realised after the FY26 year end.
The company said: “At the announcement of the group’s interim results on 18 June 2026, Tekmar stated that the company was on track to deliver stronger second half revenue and profit performance vs. FY25 despite the impact and continued uncertainty caused by the events in the Middle East.
“The group is pleased to report that trading volumes in the second half of FY26 have continued to grow, resulting in the company delivering higher revenues than in H1 2026 and in the equivalent period in 2025.
“This was reflected in the ramp up in UK based manufacturing, resulting in better utilisation, as planned, with the order book pivoting to European offshore renewables projects in H2 2026. Accordingly, the group expects to report revenue in FY26 being more than 20% up on FY25.
“However, while trading momentum and the overall trajectory remains positive, the pace of growth in near-term volumes and revenues in H2 2026 has been slower than anticipated, with some trading volumes now expected to be realised after the FY26 year end.
“This change reflects the prolonged nature of the conflict in the Middle East and some supply chain constraints within the UK. In the Middle East, the conflict has resulted in some Q4 FY26 work scopes and awards being deferred, alongside added logistical challenges and costs. In the UK, some material planned deliveries were pushed into October, due to a power outage at a supplier’s facility, resulting in the associated revenue now being recognised in FY27.
“As a result of these challenges, the company anticipates adjusted EBITDA in the second half of the year to be broadly similar to the second half of 2025, with FY26 adjusted EBITDA up on FY25 and FY26 H2 Profit After Tax nearing breakeven.
“Despite these disruptions, the company’s order book continues to strengthen, in-line with Project Aurora. Due to the €6 million contract extension being announced today, and other smaller contract wins, the company expects to enter FY27 with an order book more than 50% higher than at the start of FY26, supporting higher future revenue targets and giving longer term visibility into 2028 and beyond.”
Tekmar announced the award of a €6 million contract extension for a European offshore wind project. Under the contract, Tekmar will supply CPS (Cable Protection Systems) and associated accessories, together with specialist engineering, analysis and design services delivered by its in-house team. Manufacturing will be undertaken at Tekmar’s facility in Newton Aycliffe.
Tekmar Group CEO Richard Turner said: “We continue to build momentum and diversity with our orderbook, which will add to revenue visibility in FY27 and beyond.
“The ongoing conflict in the Middle East has caused disruption and logistical challenges, but despite its impact, Tekmar remains well positioned to provide full lifecycle support to global offshore energy and marine infrastructure projects.
“The overall direction of travel for the business remains positive, as reflected in the growing orderbook, in-line with our plans under Project Aurora.”