Goodwin, a key supplier of naval parts for various UK and US Navy programs including the Astute, Virginia, Columbia, and Dreadnought submarines, and Type 26 and DDG frigates, is considering selling its defense division. This move comes despite the defense business showing strong growth, with its workload standing at $357 million as of August 31, and generating significant profits. The company recently reported a record pre-tax profit of $35.5 million for the financial year ending April 30, 2025, a 47% increase from the previous year, on revenues of $220 million.
The Mechanical Division, which includes the defense business, has been the primary driver of Goodwin's improved financial performance, benefiting from increased global defense spending. The company expects trading profit before tax for the financial year ending April 30, 2026, to exceed $71 million, representing a 100% increase year-over-year. This strong outlook is supported by long-term contracts, including pre-manufacturing activities for the AUKUS partnership's next-generation nuclear-powered submarines.
Goodwin Steel Castings, part of the defense division, recently signed a memorandum of understanding with Northrop Grumman International Trading Inc. for an initial $16 million order, with potential for future orders exceeding $200 million for USA submarine programs. The company has also secured an exclusivity agreement to be the sole supplier for a critical program component, eligible for UK patent box relief. The exploration of a sale could attract buyout firms looking to capitalize on the robust defense sector.
