Goodwin PLC Shares Surge 10% on Record Profits and Confirmed Mechanical Engineering Sale

Shares in Stoke-on-Trent engineer Goodwin PLC (LON: GDWN) jumped over 10% to around £200.88 on Friday after the group reported record annual results and confirmed plans to sell the bulk of its Mechanical Engineering division.

For the year to 30 April 2026, Goodwin posted trading profit of £77.5 million, up 118% on the £35.5 million reported a year earlier, on revenue of £280 million, up 27%. The board lifted the ordinary dividend by 18% to 330p per share.

The standout performer was the Mechanical Engineering division, where surging demand for precision-machined, high-integrity castings for UK and US Navy frigate and submarine programmes drove strong volume growth and margin expansion. Radar specialist Easat Group swung from breakeven to £4.5 million profit, while German valve maker Noreva also delivered strong results on LNG-sector demand.

Confirming news first flagged on 7 August, the board said it has appointed Rothschild & Co to run an active sale process for a substantial part of the Mechanical Engineering division, comprising Goodwin Steel Castings, Goodwin International, Noreva, Easat Group and its Pumps business. These units generated £211 million of the group’s revenue and £68.7 million of operating profit in the year, and are now classified as discontinued operations, targeting completion within twelve months.

Management said a “substantial part” of any disposal proceeds is expected to be returned to shareholders, with the group intending to run on a zero net debt basis post-sale. The remaining Refractory and Technological divisions—including growth bets Duvelco and AVD Fire—posted £10 million of operating profit on £118 million of gross assets, positioning Goodwin as a leaner, higher-margin specialist manufacturer.

Net debt stood at £29 million, with gearing at 22.4%.