Gooch & Housego Signals Continued Growth Amidst Macroeconomic Headwinds

Gooch & Housego PLC (G&H) has released a trading update for the financial year ended September 30, 2025, signaling sustained momentum despite global economic challenges.

The specialist manufacturer of photonic components and systems anticipates full-year revenues and adjusted profit before tax to be broadly in line with expectations, albeit before moderately higher non-underlying costs related to recent acquisitions and restructuring.

The company's shares are down around 1.7% so far on Tuesday.

Industrial revenues experienced growth in fibre optic couplers and modules, driven by demand in subsea data networks.

This offset relatively flat sales from industrial laser customers. Although there are early indicators of recovery in the semiconductor market, G&H remains cautious due to macroeconomic and geopolitical uncertainties.

The company notes that medium-term demand drivers for its industrial products remain positive, with increased customer activity towards the end of the financial year.

Life Sciences revenues benefited from customer phasing of medical diagnostic device programs manufactured in Ashford, Kent. A ‘last time buy' notice for Pockels Cells intended for medical lasers has generated positive responses, with deliveries slated for the upcoming financial year.

Aerospace & Defence continued its growth trajectory, fueled by strong demand for precision optics and advanced sighting and imaging systems in military platforms.

Demand for ring laser gyro components in commercial aerospace is also said to remain robust, further boosted by operational improvements and capacity expansions implemented over the past two years.

G&H's net bank debt, excluding IFRS 16, stood at £30.0 million as of September 30, 2025.

The Group's order book continues to expand, reaching £142.3 million as of September 30, 2025. Over 80% of this order book is slated for delivery in FY26, supporting increased trading activity in the new financial year, including the full impact of recent acquisitions. This is partially offset by an anticipated increase in overheads.