Goodwin stock sinks 46% after contract losses, Iran war delays Middle East orders

Investing.com -- Goodwin PLC (LON:GDWN) shares plunged 45.8% after the company disclosed it lost two significant tenders valued at over £60 million combined in its Mechanical Engineering Division.

The engineering group said its Easat subsidiary lost a tender for 20 coastal radar antenna and transceivers worth approximately €18 million for installations off Estonia’s coast.

Additionally, Goodwin International unexpectedly lost a tender with Sellafield valued in excess of £45 million, despite what the company described as a strong technical proposal and ongoing compliant delivery of Self Shielded Boxes and 63 Element Racks.

The company’s firm fixed orderbook stood at £288 million at the end of February. While overall trading performance remains in line with expectations from its October 2025 update, the contract losses represent a setback for the Mechanical Engineering Division.

In its Refractory Engineering Division, trading conditions remain broadly unchanged, with persistently elevated gold and silver prices continuing to weigh on confidence in jewellery casting markets. The company noted that general public spending habits are being affected by lack of confidence.

Goodwin said none of its valves on order for LNG facilities in the Middle East or USA have been cancelled or placed on manufacturing hold. However, certain large Middle East contracts have requested delayed dispatch of valves due to the current geopolitical environment in the Gulf, which may affect revenue timing.

The company is proceeding with a foundry facility extension to support an automated moulding line, pending final planning approval. For its Duvelco high technology products, no commercial sales have been made to date, though market engagement is expected to lead to initial contributions in the financial year ending 2027.

The Board is considering reverting to its previous dividend policy limiting distributions to 38% of post-tax profit plus depreciation and amortisation, or lower, given increased global geopolitical uncertainty.