SRT Marine Systems – signs $261m largest contract to date, record Order Book, shares 77p, brokers TP 122p

Mark Watson-Mitchell
8 minutes ago
3 min read

Mark Watson-Mitchell – 04.03.2026

This morning SRT Marine Systems (LON:SRT) has announced the signing of a new maritime surveillance contract with a sovereign customer valued at $261m, an increase from the previously anticipated $200m.

The commencement of this project is contingent on the completion of a UKEF-supported finance package.

The company also noted ongoing progress with existing projects in Asia and the Middle East, highlighting the increasing demand for independent maritime domain awareness capabilities.

Growing Order Book

Following this new contract, SRT has approximately £340m in active projects, the newly signed $261m contract pending commencement, and a pipeline of new contract prospects estimated at up to £1.8bn.

The group noted that given the current geo-political circumstances in the Middle East, it also took the opportunity to provide a brief update on its other existing projects and systems.

SRT has projects being successfully implemented and operated across Asia and the Middle East.

The current challenges in the Middle East have highlighted the critical importance of sovereigns having their own independent civil defence and surveillance systems, and the group continues to make good progress working alongside all of its sovereign partners and their Marine Domain Awareness programmes and operations.

The Business

The Bath-based SRT Marine Systems is a global provider of civil defence maritime intelligence and surveillance systems and navigation safety and efficiency solutions.

Its systems provide MDA intelligence that enables 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.

Its navigation safety systems enable vessel operators to navigate digitally more safely and efficiently. Our 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:

"We are delighted to welcome this new customer to our Sovereign Partnership Program and look forward to executing on this first $261m contract, while working with them over the long term to build up their surveillance capabilities.

Our SRT-MDA System will provide continuous maritime domain situational awareness by integrating multiple sensors, data and operational workflows to support intelligence-led operations, maritime safety and law enforcement.

As a modular system, it is designed to scale over time and thereby enable this customer to continue evolving their capabilities in the future.

Following today's new contract signing, SRT has approximately £340m of active projects under implementation, a further $261m contract now signed and pending commencement, and a new-contract prospects pipeline with an estimated value of up to £1.8bn.

This pipeline of active and pending contracts reflects growing demand for independent sovereign MDA capabilities, our national scale integrated MDA technologies and SRT's successful project delivery track record."

Broker’s View

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

They note that:

“SRT Marine Systems has reached an inflection point, demonstrating revenue, profit and cash recognition on multiple concurrent System projects worth c.£340m, with prospects of material upgrades that benefit from operational leverage as the £1.8bn validated sales pipeline converts and existing contracts expand to generate high margin long-term recurring revenue streams.

The defence technology business is the global leader and primary provider of maritime intelligence and surveillance systems, with a world-class sovereign customer base positioned to yield a series of contracts over many years as they build up capabilities over time.

Its proprietary system offers a modularised and sticky civil defence solution, and establishes a competitive moat against AI-based software threats.”

My View

These shares look far too cheap to ignore after the recent easing