Tekmar secures €6 million offshore wind

Tekmar Group has secured a €6 million contract extension for the supply of cable protection systems and engineering services for an undisclosed offshore wind project in Europe. The company announced the deal in a trading update on 29 September, with manufacturing to be undertaken at its Newton Aycliffe facility in the UK.

The contract covers specialist engineering, analysis, and design services delivered by Tekmar's in-house team, along with the supply of cable protection systems and associated accessories. Tekmar did not disclose the name of the project or the customer involved.

Project timeline and conditionality

The contract award is conditional. Tekmar said: "The award is subject to the project’s final investment decision (FID), which is currently expected in the first quarter of 2027." The agreement also includes an option for a second phase with a broadly similar scope and value. Exercise of this option is subject to customer approval and a separate final investment decision for Phase 2.

Financial and strategic context

This extension builds on a series of recent contract wins for Tekmar. In February, the company secured a deal worth over £4 million to supply its 10th-generation cable protection systems for another European offshore wind project, with delivery expected in 2027. March saw two contracts for a Japanese offshore wind project, with a combined value of approximately €2.3 million. A separate €1 million contract for concrete protection solutions on a major European offshore wind project was also awarded, though the client remained unnamed.

These wins support Tekmar's strategic goal. The company expects to enter its 2027 financial year with an order book more than 50% higher than at the start of FY26, a target bolstered by the new €6 million extension and other smaller awards.

Funding and market positioning

To support this growth, Tekmar has arranged additional financing. The company reported securing a further £4 million working capital facility on 29 September. Tekmar said: "The company said the additional facility will provide greater flexibility to support sales growth in the European offshore wind market." This facility supplements its existing UK Export Finance-backed trade loan.

Tekmar noted that individual project sizes are increasing in the European offshore wind sector. The new funding is intended to help manage production schedules and manufacturing asset utilisation. This forms part of the continued development of the company's balance sheet and supports initiatives under its internal 'Project Aurora' strategy, which aims to deepen customer relationships and provide a more integrated engineering and asset protection offering.

Broader business outlook

Despite a positive order book, Tekmar faces near-term headwinds. Volume and revenue growth in the second half of FY26 has been slower than anticipated. The company cites the prolonged conflict in the Middle East, which has deferred some work scopes and awards, and UK supply chain constraints. Some planned UK material deliveries were pushed into October following a power outage at a supplier’s facility.

Nevertheless, Tekmar expects FY26 revenue to be more than 20% higher than FY25, based on continued trading volume growth in the second half. It also anticipates that adjusted EBITDA for the year will be up on the prior year, with Profit After Tax in H2 FY26 nearing breakeven.

Chief Executive Richard Turner stated that the company continues to build momentum and diversity with its orderbook, adding to revenue visibility for FY27 and beyond. He acknowledged the disruption caused by the Middle East conflict but said Tekmar remains well positioned to support global offshore energy projects. Tekmar expects to enter FY27 with an order book more than 50% higher than at the start of FY26, supported by this contract extension and other recent wins.