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10 Jul 25. SRT Marine Systems – This tech stock is at an all-time high – and there’s more to come.
Simon Thompson: A leader in maritime tracking technology returns to profit and could double earnings this year
- Full-year revenue up 423 per cent to £77.5m
- Adjusted pre-tax profit of £4.4m, from loss of £14.4m
- Forward PE ratio of 20
- Prospective free cash flow yield of 11 per cent
- Net cash set to build quickly
Aim-traded SRT Marine Systems (SRT:82p), a global leader in maritime tracking technology, has returned to profit in a major way. During the 12 months to 30 June 2025, the group’s systems business (turnkey integrated maritime surveillance and maritime domain awareness (MDA) management systems) generated revenue from five separate sovereign customers, each of which is building up its national MDA capacities with SRT. The largest contract commenced in October 2024 and is worth $213mn (£156mn) for the delivery of an integrated maritime surveillance system for the Kuwaiti government (‘A marine technology company building momentum’, IC, 7 October 2024). In total, SRT is actively implementing system contracts with an aggregate value of £320mn and has a validated pipeline of new system contracts with an estimated value of £1.4bn, from which the directors expect further closures in due course. In addition, the transceivers business (navigation safety and communication devices and solutions for commercial and leisure marine markets) continues to expand distribution and will shortly commence shipping first deliveries of SRT’s recently launched Nexus VHF communications transceiver. Digitisation of waterway navigation, national automatic identification system mandates and greater regulation are key drivers of demand. At the financial year-end, the group held unrestricted cash of £4.2mn and trade receivables of £48.4mn, the majority of which are expected to be received shortly. The bumper cash inflow helps explain why house broker Cavendish expects SRT to report annual free cash flow (FCF) of £23.3m (9.3p) in the 12 months to 30 June 2026 and move into a net cash position of £16mn (6.4p). Analysts also expect full-year pre-tax profit to more than double to £10.2m on 49 per cent higher revenue of £116m. On this basis, shares in the £205m market cap company trade on a forward price/earnings ratio of 20 and offer a bumper 11 per cent FCF yield. Moreover, net cash is expected to double to £32.9mn (13p) by 30 June 2027, buoyed by the delivery of the bumper order book. The progress has not been lost on investors as the share price hit an all-time high today (10 July), is up 40 per cent since the interim results (‘A maritime stock delivering on its momentum’, IC, 27 March 2025) and has risen by 115 per cent since I initiated coverage (Alpha Research: ‘Set sail for a profitable voyage’, 16 August 2019). However, the contract momentum is such that I can see potential for earnings upgrades on further contract awards to drive the share price to Cavendish’s 100p target price. Buy.
10 Jul 25. Leonardo Acquires Axiomatics of Sweden. A further step consolidating the company’s position of leadership in Trusted Cyber Security and contributing to Europe’s digital autonomy. Leonardo has taken another step in strengthening its position in the field of cybersecurity, enriching its portfolio of innovative proprietary products by taking over the Swedish company Axiomatics AB. The operation adds a key component in completing the company’s offering in the field of Zero Trust: a model of cybersecurity in which trust is never implicit, and every single system, network and data access must be constantly verified and protected. This approach, adopted by Leonardo’s Global Cybersecurity Platform (GCC Platform), permits a complete view of the entire digital environment (referred to as cyber observability), proactively anticipating increasingly evolved and pervasive threats. The acquisition completes the third industrial partnership and M&A operation in cybersecurity carried out by Leonardo in only a few months, in line with the Industrial Plan aimed at strengthening Leonardo’s international role. The Axiomatics operation is one of a series of strategic initiatives launched by Leonardo in the cybersecurity sector in the Nordic countries: a partnership agreement with the Danish company Arbit concerning security and fast data transfer solutions in multi-domain operations, the more recent signing of the agreement for the acquisition of a 24.55% share in the Finnish SSH Communications Security Corporation, and the purchase of a share in the Swedish start-up CanaryBit, specialising in confidential computing and AI security, consolidating Leonardo’s Zero Trust and Data Centric Security international portfolio. Founded in 2006 with headquarters in Stockholm, Axiomatics – also present in North America – is the only European player to offer a platform enabling Zero Trust architecture for authorisation management and data security with dynamic access control based on the ABAC (Attribute-Based Access Control) model. This solution allows to offer fine-grained and dynamic control when managing access to protected systems, in line with the requirements of mission-critical entities such as defence, government agencies and infrastructures. Leonardo’s acquisition of the company and integration with the company’s cybersecurity services and sales network will allow it to seize opportunities on this growing market, generating value for customers and partners around the world. Finalisation of the acquisition transaction of a 100% share in Axiomatics AB is subject to: (i) confirmation in accordance with several authorities, also including Swedish authorities, concerning direct investment by foreign entities in companies operating in the defence sector (FDI), as well as (ii) the other conditions typically applied to investments of this nature. Leonardo was assisted by PwC during the process. (Source: ASD Network)
09 Jul 25. Norwegian defence manufacturer Kongsberg Gruppen reported a higher order intake for the second quarter of 2025 on Wednesday, reflecting European nations’ rising military spending. Kongsberg, which has customers in defence, aerospace, maritime, energy and fishing industries, said its quarterly orders rose 5% from a year earlier to 18.18bn Norwegian crowns ($1.80bn). “There is a significant need to strengthen defence capabilities, and we continue to expand capacity in line with growing demand,” CEO Geir Håøy said in a statement. (Source: Reuters)
08 Jul 25. Dacke Industri expands in Europe through strategic UK acquisition of BTL-UK Ltd. Dacke Industri announced the successful acquisition of 80% of the shares in BTL-UK Ltd, a leading European manufacturer and global distributor of ball and roller bearings, mechanical power transmission components, and motion transfer linkages. The acquisition was completed on July 3rd, 2025. The current management will continue to hold the remaining shares. The acquisition of UK-based BTL-UK Ltd marks a strategic expansion that further strengthens our presence across Europe and underscores our commitment to meeting the evolving needs of our customers. This move supports our vision for growth in partnership with companies specializing in their own products, customized components, and systems. BTL-UK Ltd will join the Fluid Power Technology Division, where it will benefit from, and contribute to, the expertise and collaboration shared among our group’s innovative companies. BTL-UK Ltd is a leading European manufacturer and global distributor of high-quality ball and roller bearings, mechanical power transmission products, and motion transfer linkages, serving a wide range of industries including agriculture, construction, automotive, industrial, medical, and motorsport. The products are available both directly to original equipment manufacturers and through an extensive network of MRO and replacement parts distributors across the UK, Europe, and worldwide. The subsidiary BTL Precision-UK Ltd, is a precision engineering company specializing in bespoke solutions tailored to individual customer requirements. BTL-UK Ltd is proud to have a global licence agreement from Sumitomo Rubber Group for the prestigious DUNLOP brand. In addition to distributing these world-renowned products, the company also offers a comprehensive range of related products under its own established brands, such as MEDWAY, MEGACHAIN, TC OIL-SEALS, MSK MEDICAL—all of which are registered trademarks of the company. It is headquartered in Ashford Kent, United Kingdom, with additional facilities in Ashford Kent and Burgess Hill, United Kingdom. With about a total of 64 employees and an annual turnover of about £11 m.
“With European and global markets changing rapidly, BTL-UK Ltd had to find the right partner to take the company to new heights. We certainly found the ideal company in the Dacke Industri, who share our ambitions for long-term growth whilst at the same time preserving the company’s heritage and legacy,” says Raymond Mifsud, CEO and co-owner of BTL-UK Ltd.
“We are pleased to welcome BTL-UK Ltd to our group as we continue to grow our presence in Europe. The company’s strong reputation for quality products and reliable aftersales support aligns well with our focus on meeting the needs of OEM customers. With their expertise and established distributor network, we look forward to working together to strengthen further our offering and support for customers across the region”, says Mikael Lundgren, President Fluid Power Technology of Dacke Industri and Chairman of BTL-UK Ltd.
07 Jul 25. Moog Inc. (NYSE: MOG.A and MOG.B), a worldwide designer, manufacturer and systems integrator of high-performance precision motion and fluid controls and control systems, today announced the acquisition of COTSWORKS Inc., an aerospace and defense fiber optics transceiver component manufacturer, for a purchase price of $63 m. The transaction is subject to customary purchase price adjustments and was paid using a combination of cash and shares of the Company’s Class A common stock. COTSWORKS specializes in designing and manufacturing ruggedized fiber optic transceivers and assemblies used in major aerospace and defense programs across both U.S. and international markets. These mission-critical components deliver high-bandwidth speeds with compact signal density, enabling enhanced digitalization solutions across space, air, land and sea domains. Moog will expand its existing Space and Defense component portfolio through the integration of COTSWORKS technologies. This acquisition also facilitates the development of next-generation, fully integrated electronics, sensors and data network management solutions. These future products further Moog’s customer focus by offering innovative solutions addressing the emerging needs of handling high-bandwidth digital data processing within increasingly compact platforms.
“The acquisition of COTSWORKS strengthens Moog’s ability to deliver differentiated, edge-ready electronic systems that meet the evolving demands of our aerospace and defense customers,” said Joe Alfieri, President of Moog’s Space and Defense Segment. “The addition of their technology broadens our presence across major platforms while accelerating innovation in ruggedized, high-speed communication components and systems.”
“We are proud to bring nearly two decades of innovation and industry-leading platforms to Moog,” said Ken Applebaum, CEO and founder of COTSWORKS. “Moog’s specialized capabilities and leading positions in key aerospace and defense programs will enable us to continue growing our opto-electronic, interconnect, subassembly and test elemental platforms.”
Founded in 2006 and headquartered in Ohio, COTSWORKS employs over 120 people and is a leading provider of high-performance fiber optic solutions for aerospace and defense customers. The company’s strong record of innovation and operational excellence has established it as a trusted partner in developing next-generation systems for the industry’s most challenging environments. The acquisition supports Moog’s strategic focus on high-performance connectivity and next-generation defense and space technologies and lays a foundation for future innovation and customer collaboration. The transaction is not expected to materially impact Moog’s financial results for 2025. (Source: BUSINESS WIRE)
07 Jul 25. Travers Smith LLP has advised long-standing client Marshall Group on the sale of Slingsby Advanced Composites to Mangohojden AB, a privately held Swedish company seeking to develop a group of specialist aerospace and defence businesses. Acquired by the Marshall Group in 2010, Slingsby Advanced Composites is one of the UK’s premier complex composite structures and assembly service providers operating across land, air and sea defence platforms. Established in 1909, Marshall Group is an independent British aerospace and defence company providing mission-critical support to a global customer base of governments and prime contractors. The cross-practice Travers Smith team on this transaction was led by Corporate Director Neal Watson, supported by Associates Fergus Macleod, Natalia Ivanova and Gloria Cuccu, and Trainee Ashanti Brazier-Olatunde. Specialist advice on this carve-out transaction was provided by Technology & Commercial Transactions Senior Counsel Michael Ross and Senior Associate Nick Brady, Head of Tax Russell Warren and Senior Associate Callum Burgess, Competition Partner Nigel Seay and Senior Associate Theodora Zagoriti, Employment Partner Ailie Murray and Senior Associate Marianne Parkinson, Pensions Partner Chris Widdison and Associate Savannah Adeniyan, Real Estate Senior Associate Claire Parker and Operational Risk & Environment Associate Fergus Crutchley. This follows the firm’s earlier work advising Marshall on the carve-out sale of Marshall Fleet Solutions, the UK’s largest Thermo King and Frigoblock dealer, to Trane Technologies, a global leader in sustainable transport temperature control solutions, which was announced in April 2025. Marshall Fleet Solutions offers a full suite of refrigeration services including installation, maintenance and repairs, in addition to tail lift services and comprehensive fleet management. With the sale, Marshall Fleet Solutions joins Trane Technologies’ Thermo King business in EMEA, where it will continue to serve the UK market, now as a company-owned dealer. The acquisition included Marshall Fleet Solutions’ nearly 400 employees and its existing operations and depots across the UK.
08 Jul 25. American Rheinmetall Systems (ARS) will now operate under the unified name American Rheinmetall, aligning with the company’s broader strategy to streamline operations, enhance collaboration, and deliver greater value to its customers across the defense industry. This move strengthens American Rheinmetall’s position as a leading U.S. defense partner by integrating the exceptional capabilities of the Biddeford, Maine team into the broader American Rheinmetall enterprise. The change does not impact current contracts, programs, or services secured by American Rheinmetall Systems. Existing customers will continue to receive the same world-class support as part of a more connected, large scale, and capable organization.
“American Rheinmetall Systems has long been a cornerstone of Rheinmetall’s U.S. operations proudly operating in Maine where we are committed to remaining and growing,” said Matt Warnick, CEO of American Rheinmetall. “ARS has a deep legacy of innovation and expertise that will continue to thrive while new opportunities for synergy and growth will arise for the Biddeford facility as part of the larger American Rheinmetall enterprise.”
With decades of experience in electronic mission systems and components, the Biddeford team supports next-generation modernization priorities for the U.S. Armed Forces. As a leader in the development and production of crew-served and vehicle-based EO/IR systems, remote weapon station components, airburst ammunition programing units, and counter-UAS solutions, among other technologies, the company adds tremendous value to American Rheinmetall’s growing portfolio.
“Bringing ARS into the core of American Rheinmetall reinforces our commitment to delivering solutions for combat readiness as a prime OEM and Tier 1 supplier focused on Army modernization and American Manufacturing,” added Jason Atkinson, President of American Rheinmetall.
This natural transition marks an exciting step forward in American Rheinmetall’s continued growth, adding scale, capabilities, and synergy that drives new opportunities across the enterprise.
About Rheinmetall in the U.S.
The Rheinmetall family of U.S. companies includes American Rheinmetall in Biddeford, ME, Lansing, MI, Lapeer, MI, Plymouth, MI, Sterling Heights, MI(HQ), St. Marys, OH, and Troy, MI, American Rheinmetall Munitions in Camden, AR, Vienna, VA (HQ), Windham, ME, and U.S. corporate parent American Rheinmetall Defense in Vienna, VA. www.rheinmetall-us.com
09 Jul 25. Solid State – Add this small-cap defence stock to your watchlist.
Simon Thompson: Profits could rebuild after a major order, and more wins in the pipeline will boost earnings and sentiment
- Full-year revenue falls 23 per cent to £125m
- Adjusted pre-tax profit down two-thirds to £5m
- Annual dividend per share cut from 4.3p to 2.5p
- Order book up 14 per cent to £101m
Redditch, Worcestershire-based value-added electronics group Solid State (SOLI:190p) reported materially lower revenue and earnings last year, as expected, after a defence order was put on hold following the change in the UK government and pending the outcome of the Strategic Defence Review (SDR) in spring 2025 (‘A solid play on the defence spending boom’, IC, 11 March 2025). The group’s systems business was already up against a tough comparable from the previous financial year when defence orders had been pulled forward, so the delay in landing the $25mn (£18.4mn) order accentuated both the decline in divisional revenue (down a third to £70m) and operating profit (fell 70 per cent to £5.8m). The contract has since been awarded and contributed to a 14 per cent higher group closing order book of £101mn, of which 95 per cent is for delivery in the current financial year. Analysts at brokerage Zeus Capital point out that defence spend is a major opportunity for Solid State given the group’s long-standing relationships with tier 1 defence suppliers. The SDR specifically identified areas within which Solid State has strong expertise, including battlefield communications, embedded computing for hybrid naval warfare, and power supplies and components for digitisation priorities. While the timing and quantum of spending is yet to be determined, analysts believe that defence orders within the UK and overseas will be a major tailwind for the group. Although a normalisation of procurement lead times in the industrial and transport segments meant Solid State’s components division reported 7 per cent lower revenue of £55m, the unit moved from break-even to operating profit of £2.2m due to an improvement in gross margin and the quality of earnings. After the year-end, the business won a follow-on order from a US customer for an IoT technology product, first supplied in May 2024, which improves order coverage further. Changes in US trade policy are creating volatility in trading conditions, but management is confident that the changing tariff regime can be recouped through price increases. Transferring business out of China is de-risking the supply chain, too. For the year ahead, analysts at both Zeus Capital and Cavendish forecast a strong recovery in pre-tax profit to £7.2mn on revenue of £145mn, implying the shares trade on a forward price/earnings ratio of 19. However, there is scope for upgrades as Cavendish views “guidance as conservative, with scope for potential [earnings] upside from additional contract awards and bolt-on acquisitions.” Hold. (Source: Investors Chronicle)
09 Jul 25. Patria Group’s Interim Report for 1 January – 30 June 2025.
Patria’s net sales and operating profit grew in the first half year, the demand in vehicle programmes remains strong
The first half year 2025
Patria’s net sales in the first half of 2025 were EUR 421.0 m, representing a 12.0% increase compared to the same period in 2024. Net sales grew across all of Patria’s business areas during the first half of the year. The Group’s operating profit (EBIT) also developed positively, rising to EUR 29.3m.
At the end of the first half of 2025, Patria’s order stock stood at EUR 2.4bn. The timing of major orders is different in 2025 compared to 2024. The comparison period included an order for 321 vehicles for Sweden under Common Armoured Vehicle System (CAVS) programme, valued at approximately EUR 470m whereas in the first half of 2025 no new significant vehicle orders were recorded.
Interest in Patria’s products and services has further increased as defence budgets have grown. The company has increased investments to respond to growing demand and to develop its offerings for enhanced customer value and competitiveness.
A significant portion of operational efforts have been directed toward increasing production capacity to meet the growing demand for armoured vehicles and improving the productivity of operations. Patria’s new operating model, based on three key business areas, came into effect on 1 June, 2025.
Patria hosted the opening ceremony of the F-35 production building on 13 June, 2025 at Patria’s Halli facility in Jämsä, Finland. The new production facility, which will be completed during the autumn of 2025, is part of the industrial cooperation of Finland’s F-35 fighter programme.
Millog had a positive impact on the Group’s net sales and operating profit, while Nammo had a clearly positive impact on operating profit during the first half of 2025.
Key events during the second quarter
- Denmark joined the CAVS programme by signing the Technical Arrangement on 1 April, 2025. Denmark joins the programme now as the fifth nation after Finland, Latvia, Sweden and Germany.
- In May, it was announced that an industry consortium for the new joint Artificial Intelligence Warfare Adaptive Swarm Platform (AI-WASP) programme, which will develop a new generation, scalable and cognitive (AI-controlled) multifunctional software defined converged aperture and transceiver (AIMA). The programme received EUR 45 m in support from the European Commission.
- On 31 May, Patria announced the launch of a strategic partnership with the Spanish company GDELS-Santa Bárbara Sistemas (GDELS) concerning the assembly and maintenance of ASCOD Infantry Fighting Vehicles (IFVs). Patria’s Valmiera production facility in Latvia will be responsible for the assembly and maintenance, with production of the first vehicles expected to begin in June 2026.
- On 30 June, Patria signed an agreement to sell its 60% stake in Milworks OU, an Estonian provider of lifecycle management services, to Mootor Grupp. The divestment is in line with Patria’s strategy to focus its MRO (Maintenance, Repair and Overhaul) operations in the Baltic region to its growing Valmiera site in Latvia. Milworks employs 15 people in total, and the transaction is expected to be completed on 31 July, 2025.
Outlook
Demand for Patria’s products and services continues to grow. Growth is further boosted by the increase in defence budgets in European NATO countries in accordance with the decisions at the NATO Summit 2025 in the Hague.
Strong net sales growth is expected in 2025, supported by an increased order stock. Most of the growth is expected to be generated by the armoured vehicle business. The outlook for the other business areas is also positive.
The ramp-up of the armoured vehicle production has been more time-consuming than anticipated. The operations will have full focus on securing customer deliveries and speeding-up capacity increase to meet the accelerating growth in demand.
The impact of the geopolitical situation and general economic uncertainty on long-term development in the operating environment is difficult to evaluate. These factors could potentially have significant direct and indirect impacts on the demand and Patria’s operations.
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SPX CommTech, part of SPX Technologies Inc, innovates specialised technologies within the Radio Frequency (RF) spectrum to ensure a smarter, more secure future for all. Formed by TCI and ECS, SPX CommTech’s Battlespace portfolio enables defence and security teams to detect, defeat and exploit RF signals to enhance communications intelligence (COMINT) and counter unmanned aerial systems (Counter-UAS). Additionally, its Tactical Data Link portfolio allows intelligence gathering agencies, special forces, emergency response, and security teams to securely and reliably transfer video and data between enabled-aircraft and ground teams over long distances for airborne Intelligence, Surveillance, Reconnaissance (ISR). For more information visit www.tcibr.com and www.enterprisecontrol.co.uk
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