It’s rare for companies to benefit from more than one secular tailwind. So to have 6 is pretty unique. Nonetheless that this the fortunate position that specialist engineer Avingtrans finds itself. A niche ‘picks & shovels’ firm selling and servicing (c.36% aftermarket) mission-critical components to the new nuclear, existing nuclear (life extension & decommissioning), defence, datacentre/AI, healthcare and quantum computing (SciMag) sectors.
What’s more today’s robust Nov H1’26 results were in line with expectations, characterised by a greater proportion (36.6% vs 33.2% LY) of advanced engineering (AES) sales derived from higher margin aftermarket work (eg spares, maintenance, repairs, etc). Sure total turnover was flat at £78.1m (Est 45% H1 & 55% H2) - but adjusted EBITDA and EPS rose 10% and 21% to £9.6m & 14.6p respectively, as EBITDA margins strengthened to 12.3% (11.0% LY) thanks to the richer service mix. Similarly cash generation improved to £7.6m (£4.9m) and net debt (ex IFRS16) remained stable at £12.3m, despite continued investment in medical imaging and a progressive dividend.
Elsewhere, the AES orderbook provides >95% sales cover for FY’26 and 60% in FY’27, providing strong visibility for this year and beyond. Here, Hayward Tyler continues to benefit from the resurgence in nuclear (20% group) - securing a $16m contract with KHNP in South Korea and a $10m deal with TerraPower. Similarly Ormandy Rycroft Engineering is supplying cooling solutions into datacentres, while Booth & Metalcraft are exposed to HS2, defence & Sellafield decommissioning. Plus there are other exciting opportunities in this ‘bonanza’ of new nuclear (eg TerraPower, GE, Westinghouse and Oklo), given the hyper-scalers (eg Meta) are funding enormous data centre build out programs. Indeed AES might even have to expand capacity in Michigan to satisfy this unprecedented US demand.
Let’s not forget either that the Medical & Industrial Imaging (MII) arm has an estimated $7bn+ TAM. Here Adaptix Ltd received FDA approval for its Ortho350 3D scanner in Nov’25, opening the US orthopaedic market. Magnetica Limited’s compact helium-free MRI is progressing toward FDA submission in 2026. While SciMag is enjoying increased orders for its proprietary magnet and cryogenic systems used in quantum computing.
CEO Steve McQuillan commenting that momentum continues with the Board confident in meeting full-year expectations.
Looking ahead, analyst forecasts for FY’26 point to £175m revenue, £20.5m EBITDA and EPS of 30.4p - placing the shares on 19x earnings and 10x EV/EBITDA. Hence the stock offers investors strong visibility, structural tailwinds and embedded upside optionality in medical imaging & quantum computing. Lastly over the next few years, shareholders could also enjoy some significant capital returns, thanks to possible disposals of Hayward Tyler & Ormandy, alongside a potential IPO of MII.
Disclosure: Avingtrans is a Vox Markets client.