Pennant resets after tough 2025 as software and order book strengthen

Pennant International ( (GB:PEN) ) has provided an announcement.

Pennant International reported a sharp fall in 2025 revenues to £9.7m from £13.8m after defence contract delays and a major restructure of its Training Systems arm, resulting in an adjusted pre‑tax loss of £1.9m but improved net debt of £0.5m. Despite the weaker in‑year performance, the group’s contracted three‑year order book climbed to £23.3m, with £9.7m scheduled for 2026, and 60% of revenue now classed as recurring.

The company underscored progress in its software‑led strategy, lifting Auxilium annual recurring revenue 26% to a record £2.4m, signing a global OEM partnership with Siemens and expanding into new geographies and adjacent sectors, including a new nuclear training systems contract post year‑end. Management targets break‑even adjusted profit before tax in 2026 and has set three‑year goals to grow software ARR beyond £4m, rebuild technical services and lift margins, signalling confidence in a return to profitable, scalable 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‑based, technology‑driven provider of systems support software, technical services and training solutions for complex assets. It focuses on highly regulated, safety‑critical markets including aerospace, defence, rail, shipping, nuclear and space, delivering Integrated Product and Logistics Support tools, consultancy and bespoke training systems to global blue‑chip customers.

The group is shifting its model toward higher‑margin, recurring software and services revenue, led by its Auxilium suite, while maintaining project‑based training systems work. Operating from hubs in the UK, North America and Asia‑Pacific, Pennant benefits from high barriers to entry and rising demand driven by growing defence budgets and the increasing technological complexity of military, aviation and rail platforms.

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.