The world has entered a new super-cycle: nuclear power. Surging AI adoption, electricity hungry data centres, geopolitical instability (Ukraine/Iran wars), energy security and the global push for decarbonisation are all converging to create a structural step-change in demand. Crucially, renewables alone can’t fill that gap — which is why governments and Big Tech alike are backing nuclear, particularly next-gen technologies like Small Modular Reactors (SMRs), with billions of dollars of funding and long-term offtake agreements.
Step forward Avingtrans , a specialist picks & shovels engineer supplying (>20% turnover) mission critical components to this buoyant sector. Here, it already supplies high tech pumps for ‘New Nuclear’ (eg Terrapower), fusion & life extensions, alongside high integrity waste storage boxes for decommissioning at Sellafield.
What’s more since January, its Advanced Engineering Systems (AES) division has seen a material uptick in demand. Securing >£10m of nuclear orders, including a £3m Reactor Water Cleanup Pump contract with Iberdrola in Spain and prototype work for next-gen SMRs. Further underpinning market expectations (>95% FY26 revenue cover) and entrenching its technologies within the industry’s core DNA.
Elsewhere in last year’s Spending Review, the UK government committed to its £4bn decommissioning programme - of which 75% has been allocated to Sellafield, one of AES’ largest clients. A further £40bn is also being invested in the new Sizewell C reactor, with President Trump doing the same in the US.
COO Austen Adams commenting: “Avingtrans’ businesses enjoy a distinctive position… from legacy infrastructure to new build and novel technologies… we expect this to be just the start of a significant increase in market activity.”
Wrt the May FY’26 numbers, analysts are forecasting £175m of revenue, £20.5m EBITDA and EPS of 30.4p – rising to £193.3m (+10.5% LFL), £24.5m (19.8%) and 37.4p (+23%) 12 months later. Implying strong double-digit driven by secular tailwinds, operational leverage, improving mix and narrowing losses in the medical division. Thus at 580p, putting the shares on 15.5x May FY’27 PE and 8.5x EV/EBITDA multiples.
Lastly over the next few years, shareholders could also enjoy some hefty capital returns, thanks to possible disposals of Hayward Tyler & Ormandy, coupled with the potential IPO of Medical division.