Pennant Resets After Tough 2025 as Order Book and Software Revenues Climb

An announcement from Pennant International ( (GB:PEN) ) is now available.

Pennant International reported a difficult 2025 as revenues fell to £9.7m from £13.8m, reflecting delayed defence contract awards and restructuring of its Training Systems arm, resulting in an adjusted loss before tax of £1.9m. Despite this, the group maintained strong gross margins, generated positive operating cash flow, cut net debt to £0.5m and lifted recurring revenues to 60% of the total.

The company’s contracted three‑year order book rose sharply to £23.3m, including up to £9.5m of new Training Systems wins and a post‑year‑end nuclear training contract, positioning it for improved performance in 2026. Software ARR from its Auxilium suite grew 26% to a record £2.4m, supported by new customers across Europe, a global OEM partnership with Siemens and expanded representation in key Asian markets, underpinning management’s plan to return to break‑even in 2026 and target higher profitability by 2028.

Pennant’s three‑year strategy centres on growing software ARR beyond £4m, rebuilding Technical Services revenues above £7m and maintaining a robust Training Systems order book while driving EBITDA and PBT margins to 20% and 10% respectively. Management says restructuring savings, rising software and services mix and favourable long‑term demand in defence and other regulated sectors should support a transition to scalable, profitable growth.

The most recent analyst rating on (GB:PEN) stock is a Hold with a £22.00 price target. To see the full list of analyst forecasts on Pennant International stock, see the GB:PEN Stock Forecast page.

Spark’s Take on PEN Stock

According to Spark, TipRanks’ AI Analyst, PEN is a Neutral.

The overall stock score is driven by weak financial performance and technical indicators, offset by positive corporate events. The company’s ongoing financial challenges and negative valuation metrics weigh heavily on the score, while recent strategic moves provide some optimism for future stability.

To see Spark’s full report on PEN stock, click here.

More about Pennant International

Pennant International Group is a UK‑headquartered, technology‑driven provider of systems support software, technical services and training solutions for complex, safety‑critical assets. It focuses on aerospace, defence, rail and adjacent regulated markets such as shipping, nuclear and space, with its Auxilium software, technical services and training systems underpinning a strategic shift toward higher‑margin, recurring revenues.

Average Trading Volume: 37,435

Technical Sentiment Signal: Sell

Current Market Cap: £10.22M

See more data about PEN stock on TipRanks’ Stock Analysis page.