SRT Marine Systems - another $20m contract will boost shares now 83p, brokers TP 122p

Mark Watson-Mitchell - 27.02.2026

This morning, SRT Marine Systems (LON:SRT), the global provider of intelligent maritime surveillance systems for sovereigns and maritime navigation safety systems, has announced that it has signed a new contract worth $20.5m with an existing sovereign customer.

The new contract is a follow-on contract to expand the scope of the system.

The Business

The group is a global provider of civil defence maritime intelligence and surveillance systems and navigation safety and efficiency solutions.

Its systems provide Marine Domain Awareness intelligence that enable sovereign agencies, such as Coast Guards and Fishery Authorities, to adopt a new nationwide intelligence-led operations doctrine which is highly effective and efficient for maritime safety and security.

SRT's navigation safety systems enable vessel operators to navigate digitally more safely and efficiently.

The group's customers range from government agencies such as Coast Guards, Fishery Authorities and Ports & Waterway authorities to commercial and leisure vessel owners.

Management Comment

CEO Simon Tucker stated that:

"Under the banner of our sovereign partnership program we expect our customers' requirements to evolve and grow over time.

SRT's role in the partnership is to be a steadfast and reliable surveillance system expert partner to our customer and meet that need promptly and efficiently.

This is a great example of an ambitious customer who wishes to rapidly grow their MDA capabilities, resulting in follow-on business for SRT."

Broker's View

Analysts Kimberley Carstens and Michael Hill, at Cavendish Capital Markets, have a Buy rating on the group's shares, with a 122p Target Price.

They note that:

"Following January’s trading update confirming active contracts worth £300m, SRT has announced a new $20.5m contract expansion with an existing sovereign customer.

The additional scope expands the remit of the system to include extra functionality including newly developed additional technology.

The contract comprises multiple delivery elements, for which timing remains unclear, therefore we leave forecasts unchanged in anticipation of increased certainty on timing as the contract roll-out progresses.

In the meantime, expectations are further underpinned by the additional contract value to de-risk forecasts."

Their estimates show FY26E (June year-end) revenue of £115.8m and adj PBT of £10.2m, growing to FY27E revenue of £123.4m and adj PBT of £11.1m.

The analysts continue to expect a fully deleveraged balance sheet in FY27, supported by cash receipts from ongoing Systems implementations.

My View

As the analysts remark in their SRT note, the market-leading nature of its highly sophisticated platform, combined with first-mover advantage, is reflected in “good visibility” across £500m worth of contracts within its impressive validated $1.8bn sales pipeline.

The shares at 83p are ideal for investors prepared to sit back and watch as this still 'early-stage' developer capitalises upon its market leadership

MDA market leadership with possible $1.8bn sales pipeline

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