Goodwin Shares Surge on Defence Deal and Strong Trading Momentum

Goodwin PLC (LON: GDWN) jumped 12.2% to 12,500p on Wednesday after the engineering group unveiled a strategic collaboration with U.S. defence contractor Northrop Grumman and reported a sharp rise in order backlog.

The company said its workload reached £357 million at the end of August, a 24% increase since April, supported by broad-based growth across its divisions.

The Refractory Engineering unit is trading significantly ahead of last year, driven by market share gains in investment casting powders and strong sales of Soluform concrete bagwork, which are up 80% year to date.

In Mechanical Engineering, specialist submersible pump businesses supplying the mining sector are set to deliver 30% growth in activity by the half-year, with Goodwin Pumps India ramping up production for global demand.

Goodwin International also secured a follow-on order from Sellafield for 20 nuclear fuel storage racks, adding to a contracted total of 100 units.

The group highlighted increased profitability at Goodwin Steel Castings, supported by new inspection facilities, and a £5 million radar contract win at Easat Radar Systems.

Goodwin Steel Castings signed a Memorandum of Understanding with Northrop Grumman International Trading Inc. covering four defence programmes, with an initial $16 million order and potential to exceed $200 million.

Under an exclusivity agreement, Goodwin will serve as the sole supplier for a critical submarine component, leveraging its patented technology.

The board stated that the partnership would reinforce Goodwin’s role as a trusted defense supplier and generate long-term opportunities.