Hardide Expands Capacity with £4.5m Investment as Revenues Exceed Expectations Ahead of FY2026 Close

Financial Results Surpass Previous Year Projections

For the quarter ending 30 June 2026, Hardide reported revenues of £4.1 million, with cumulative revenues reaching £8.9 million for the first nine months. Previously, the board forecasted full-year revenues of £13.4 million and EBITDA of £4.3 million for the fiscal year ending 30 September 2026. The company now expects to significantly exceed these figures, although revised specific numbers were not disclosed. This strong performance is attributed to new contract wins and operational improvements that have increased factory utilisation and output.

Operating profit margins have also outperformed expectations, reflecting effective management of input cost inflation and ongoing operational efficiency initiatives. Additionally, the investment needed to support growth has been less than initially anticipated. These factors collectively indicate improved profitability and position Hardide favorably against earlier internal plans.

Revenue Doubling Target Accelerated Within Current Fiscal Year

The board now expects to achieve its goal of doubling revenues within the current financial year, ahead of the original timeline. This acceleration underscores the strength of trading momentum and the impact of new contracts. Building on this, Hardide aims to more than double its annual revenues again over the next two to three years, signaling confidence in sustained growth beyond FY2026. This multi-year revenue expansion marks a significant strategic milestone.

Growth is planned through diversifying the customer base, expanding key accounts, and advancing supply agreements with the major North American energy sector customer. The company also sees potential for substantial revenue in the Middle East from similar applications. Furthermore, Hardide is actively pursuing new business opportunities in sectors such as semiconductors, broadening its geographic and market reach to reduce reliance on any single customer or segment.

£4.5 Million Investment in Coating Reactors to Boost Capacity by 2027

To support its growth, Hardide’s board approved a £4.5 million capital expenditure on three new coating reactors and related infrastructure. These reactors are scheduled to be operational in late 2027, expanding manufacturing capacity at existing sites. Funding will come from internal cash and borrowings, ensuring financial flexibility without straining the balance sheet.

This investment aligns with the company’s revenue doubling ambitions over the next two to three years and matches customer pipeline development timelines. It reflects board confidence in sustained demand and growth prospects. Investors will monitor capital expenditure progress, cost control, and capacity utilisation as the reactors come online.

Diversified Tungsten Gas Supply Reduces Commodity Price Risks

While tungsten gas costs, a critical input for Hardide’s coating process, have stabilized at higher levels than in early 2026, management has mitigated these through prior announced actions. The company has diversified its tungsten gas supply sources and secured approximately 50% of its 2027 requirements, enhancing cost stability and pricing visibility.

This secured supply enables Hardide to maintain higher inventory levels over the fiscal year-end, cushioning against commodity price fluctuations. This proactive inventory strategy supports operational continuity and customer commitments, backed by adequate liquidity and working capital.

Leadership Restructuring to Enhance Operational Management

Effective 1 October 2026, Hardide will implement a new Leadership Team to drive strategic goals and manage expanding operations. This includes appointing operational leaders for the Bicester, UK, and Martinsville, Virginia, US facilities, both reporting to CEO Matt Hamblin. This formalised management structure supports multi-site growth and operational complexity.

Dr Yuri Zhuk, currently Technical Director, will become Group Chief Technology Officer and join the Leadership Team, focusing on product development, intellectual property, and coating capacity enhancement. To dedicate himself fully to this role, Dr Zhuk will step down as a director on 30 September 2026, transitioning from board duties to senior operational management.

Bicester and Martinsville Facilities Central to Dual-Continent Strategy

Hardide’s advanced coating plants in Bicester, UK, and Martinsville, Virginia, US, underpin its dual-continent manufacturing approach servicing European and North American markets. The appointment of dedicated operational leaders for each site highlights their strategic importance. The UK facility caters to European and global customers, while Martinsville supports North American clients, including the major energy sector customer.

This decentralised operational management enables responsive customer service and site-specific optimisation, maintaining strategic alignment under CEO oversight. Investors may anticipate future disclosures on facility performance and capacity utilisation as the new leadership structure matures.

Advanced Coating Technology Drives Market Leadership

Hardide utilises proprietary tungsten carbide and tungsten metal matrix coatings that combine toughness with resistance to abrasion, erosion, and corrosion, including the ability to coat complex internal geometries. This technology significantly extends component life in harsh environments, reducing downtime, lowering costs, and decreasing carbon footprints.

The company serves leading customers in energy, valve and pump manufacturing, industrial gas turbines, precision engineering, and aerospace. The inclusion of semiconductors as a new target sector and expansion into the Middle East energy market diversify Hardide’s application and geographic reach, mitigating concentration risks and capturing emerging demand.

Energy Sector Customer Base and North American Growth Opportunities

Hardide’s major North American energy sector customer represents a significant revenue source, with ongoing supply arrangements forming a key growth pillar. The company is advancing multi-year contracts and supply chain integration with this client, reflecting its strength in oil and gas, power generation, and related sectors where component protection is critical.

Potential revenue growth in the Middle East mirrors this North American model, targeting energy infrastructure markets. This geographic diversification supports the company’s revenue doubling goals, with new business pipelines in semiconductors and other sectors critical to achieving these targets.

CEO Highlights Growth Momentum and Team Efforts

Matt Hamblin, CEO, expressed satisfaction with the company’s growth trajectory and thanked the team for their contributions. He reaffirmed confidence in sustaining momentum and achieving revenue doubling targets, emphasizing diversification and strategic priorities.

Hamblin noted the new Leadership Team will enhance the company’s ability to realise growth potential. He also acknowledged Dr Yuri Zhuk’s valuable board service since Hardide’s inception and looks forward to leveraging his expertise in coatings technology as the company evolves. This leadership transition balances operational scaling with retention of critical technical skills.