Shearwater Group PLC FY26 Outlook and Share Reaction
Shearwater Group PLC (LON:SWGS) saw its shares jump 13.2% after the cybersecurity and managed security services firm announced that it expects full‑year revenue of approximately £42 million for the year ending 30 June 2026. This represents an annualised year‑on‑year increase of about 33% from the £39.5 million recorded in the prior 15‑month period and exceeds the current market consensus of £35.5 million.
The company also forecast adjusted EBITDA of £2.5 million for FY26, an annualised rise of 41% from the £2.2 million reported in FY25, thereby surpassing analysts’ expectations of £2.4 million.
At the end of the reporting period, Shearwater held net cash of £5.6 million, up from £5.1 million in FY25. The board intends to seek shareholder approval for a proposed reallocation of capital between reserves on the balance sheet, which would give the company flexibility to either repurchase shares or declare a dividend.
"We are delighted to have delivered a second consecutive year of strong trading performance, achieving further growth in both revenue and EBITDA and building on the momentum established in FY25," said Phil Higgins, Chief Executive Officer.
The FY25 results, on an annualised basis, showed a 29% increase in revenue and a 91% surge in adjusted EBITDA, underpinning the positive outlook for FY27, which the company expects to enter with continued demand for its cybersecurity services and a robust pipeline of opportunities.