Avingtrans - broker ups Target Price to 878p (770p) after today's excellent Finals

Mark Watson-Mitchell - 30.09.2026

Avingtrans (LON:AVG) has this morning reported record revenue of £163.3m for the year to end-May, a 4.4% increase from the previous year, with gross margin improving to 32.8%.

Its Adjusted EBITDA from continuing operations reached £20.7m, exceeding market expectations, driven by strong performance in the Energy (AES) division which saw an 11.7% uplift in adjusted EBITDA to £24.0m.

Adjusted profit before tax was £12.5m, and adjusted diluted earnings per share rose to 31.3p.

The company also improved its net debt position to £11.8m (excluding IFRS16) and proposed a final dividend of 3.1p per share, bringing the total to 5.1p.

The company raised £20m post-period to accelerate expansion plans for Hayward Tyler.

Management Comment

Chairman Roger McDowell stated that:

Roger McDowell, Chairman, said:

“We are very pleased to present investors with another enhanced set of results. In challenging markets, Avingtrans has again performed robustly as a group and exceeded market expectations.

We have made good use of our resources to continue with the Investment phase of our PIE strategy at Slack and Parr, Adaptix and Magnetica.

This activity was, once again, supported by a record set of results in the AES division.

With several of our businesses now benefitting from positive global trends in AI, data centres and, relatedly, new nuclear power, we have a strong order book moving into FY27 and, therefore, we anticipate further profitable growth as a Group this year.”

Interesting US Acquisition

Today the group also announced that it has acquired the intellectual property, trading history, and brand of US-based nuclear engineering specialist Joseph Oat Corporation for US$2.5m in cash.

This strategic acquisition complements Avingtrans' existing N-stamp-certified US nuclear businesses, Hayward Tyler and Energy Steel, and is expected to enhance its reach into legacy installed equipment across US power plants and other process industries.

The company highlighted strong performance in its nuclear division during the first quarter, securing contracts for emerging nuclear technologies and defence sectors, and sees significant growth potential in the US nuclear market driven by increasing energy demand and federal support for small modular reactors.

Austen Adams, Chief Operating Officer of Avingtrans, stated that:

“The nuclear market offers strong growth potential across the US, driven by an unprecedented convergence of Big Tech energy demand, aggressive US federal de-risking, and a shift towards economies-of-scale production for small modular reactors.

Avingtrans already has a strong US presence in nuclear markets through our N-stamp-certified Hayward Tyler and Energy Steel businesses.

The acquisition of the Joseph Oat IP fits well with these capabilities and provides a valuable opportunity to scale to meet growing demand across the sector.

The Joseph Oat IP is highly complementary to the Group's existing US nuclear businesses, and extends the Group's reach into legacy installed equipment across US power plants and other process industries, where ownership of the original designs removes the need to reverse-engineer components and ensures replacement parts fit first-time, avoiding costly downtime.

The Acquisition also broadens the Group's engineered product portfolio without the associated design cost, widens access to qualified AP1000 components, and brings valuable brand equity through the Joseph Oat name.”

Broker's View

Analyst David Buxton, at Cavendish Capital Markets, has issued a Buy note with a new Target Price of 878p (770p).

He has stated that:

"FY26 results demonstrated strong growth and margin improvement, with adjusted PBT and cash both £0.2m ahead of our expectations.

AES is positioned for a step-change in growth as the group expands its US capacity to address rising power demand from AI and data centres, while benefiting from its exposure to new nuclear technologies.

Imaging remains at an early stage of commercialisation and continues to incur scale-up losses, but successful delivery of its differentiated MRI and 3D X-ray products could drive a material medium-term valuation uplift.

We leave our trading forecasts unchanged but, reflecting increased confidence in AES’s prospects, raise our target price from 770p to 878p and reiterate our Buy recommendation."

My View

Last week I declared that despite this year's share price rise, I still believe that Avingtrans shares offer a useful upside for patient growth investors.

The shares, now at 725p, have strong appeal.

(Profile 04.11.20 @ 260p set a Target Price of 325p*)

(Profile 29.02.24 @ 350p set a Target Price of 437p*)

(Profile 23.02.26 @ 570p set a Target Price of 680p*)

(Profile 22.09.26 @ 725p set a Target Price of 770p)