Shipping services company Clarksons (LON:CKN) sailed to an all-time high after upgrading FY26 once again. Having enjoyed strong trading in August and September, the firm now expects underlying pre-tax profits for the year to December 2026 to be ‘not less than £135 million’.
Clarksons generated underlying pre-tax profits of £90.6 million in FY25. So the company’s updated guidance implies it is on course for year-on-year profit growth of 50%, possibly more given the positive momentum in the business.
Sailing to all-time high
In a surprise trading statement, Clarksons hailed ‘very strong’ trading in August and September.
The FTSE 250 company explained that ongoing geopolitical complexity, an obvious reference to the situation in the Strait of Hormuz, has created ‘further volatility across commodity and freight markets’.
Forecasts for Clarksons
| Year to December | FY25A | FY26E | FY27E |
| Revenue (£m) | 631 | 773 | 795 |
| EPS (p) | 223 | 274 | 295 |
| DPS (p) | 112 | 117 | 123 |
Source: Stockopedia
Accordingly, in some areas the company has seen ‘record freight rates and this has also then passed through to asset prices’. Steered by CEO Andi Case, Clarksons said its broking division has delivered revenues ‘significantly ahead’ of previous expectations and the company also flagged a growing forward order book.
Alongside this, the Financial division has executed a number of transactions, resulting in performance also being ‘significantly up’ on expectations.
Teams, tools and technology
Investors also welcomed a confident outlook from Clarksons. The company believes its strategy of long-standing investment in its ‘teams, tools for trade and technology this year and over the past two decades positions it well to capitalise on market conditions when and where they arise’.
Clarksons’ latest profit upgrade is a win for fund manager Nick Train, who holds the stock in his Finsbury Growth & Income Trust (LON:FGT). As we’ve previously noted, Clarksons is a great example of a high-quality mid cap company with global reach just going about its business.
It seldom hogs the headlines, but it’s a consistent performer and has delivered 23 years of consecutive dividend growth. The highly cash-generative nature of the business has enabled Clarksons to invest to position the business to capitalise on opportunities in its markets.
Clarksons is almost a hedge on rising geopolitical uncertainty. When tensions rise, so does demand for its broking services. Unfortunately, the firm is no longer as cheap as it was and we’re not tempted to chase the stock at all-time highs. That said, investors should add the stock to watchlists in the event of a general market sell-off.
