Defence supplier Goodwin doubles profits as global military spending surges
A UK-listed defence engineering firm has reported a dramatic surge in profits, more than doubling its earnings as military spending accelerates globally and in Britain.
Goodwin, a Stoke-on-Trent manufacturer founded in 1883, posted trading profits of £77.5 million for the year ending 30 April, representing a 118% increase from the previous year. Revenues climbed 27% to £280 million, driven by strong demand from UK and US naval programmes.
Royal Navy contracts fuel growth
The company supplies critical components for the Royal Navy's Astute-class nuclear-powered submarine fleet, which currently has five vessels in active service. A sixth submarine, HMS Agamemnon, was commissioned in September 2025, whilst HMS Achilles remains under construction as the seventh and final vessel in the class.
Goodwin also manufactures parts for the next-generation Dreadnought-class submarines, four vessels being built by BAE Systems at Barrow-in-Furness in Cumbria. Named HMS Dreadnought, HMS Valiant, HMS Warspite and HMS King George VI, these submarines will carry Britain's Trident nuclear deterrent and are expected to enter service from the early 2030s. The total programme cost is estimated at £31 billion, with each submarine designed for a service life of at least 30 years.
Defence operations, which manufacture surveillance system components and critical parts for ships and submarines, now account for approximately 57% of Goodwin's forward order book.
Division sale progressing
Despite the strong performance, Goodwin confirmed this month that its mechanical engineering division remains on the market. The firm stated the disposal process is "progressing well" with discussions underway with several potentially interested parties.
The disposal process is being actively pursued in accordance with the board's approved plan, which targets completion within the next 12 months.
Goodwin is majority-owned and managed by the Goodwin family, whilst its shares trade on the London Stock Exchange. The company achieved a significant milestone in 1984 when it became the first steel foundry worldwide to receive BS5750 accreditation (now ISO9001) for casting production.
Rising defence budgets worldwide
The company's results reflect broader trends in military expenditure. According to the Stockholm International Peace Research Institute, world military spending reached $2,887 billion in 2025, up 2.9% in real terms from 2024, marking the 11th consecutive year of growth.
Europe saw particularly sharp increases, with military spending rising 14% in 2025, making it the main contributor to global growth. The surge has been driven by Russia's war in Ukraine and heightened security concerns across the continent.
In the UK, NATO estimates suggest defence spending will reach 2.6% of GDP in 2026, up from 2.3% in 2025. The government committed in February 2025 to increase defence expenditure to 2.5% of GDP by 2027 and 3% in the next Parliament.
The UK Defence Investment Plan, announced in June 2026, outlined £298 billion in total planned spending over four years from 2026/27 to 2029/30, including an additional £15 billion beyond what was allocated at the 2025 Spending Review.
This sustained increase in defence budgets is expected to benefit suppliers like Goodwin for years to come, particularly those involved in long-term naval programmes requiring sophisticated engineering and quality assurance.
