Precision engineering group Senior (SNR) posted a positive Q1 update and said its FY results will be ‘comfortably’ above expectations. The update comes almost three months to the day since Senior revealed FY25 results would be ‘comfortably above’ forecasts.
Positive momentum
Senior, which makes high-tech components and systems for aerospace, defence and energy customers, said it had a ‘good start’ to FY26. Overall, Q1 group revenue increased 2.5% on Q1 2025 driven by the Aerospace business.
Aerospace, which represents 58% of revenue, sustained last year’s positive momentum with a 9.7% increase in Q1 revenue. As well as strong defence demand, the civil market saw good growth including large commercial, regional and business jets.
Flexonics, which supplies the land vehicle, power and energy markets and represents 42% of revenue, saw a 6.2% revenue drop. However, this was better than expected, given last year’s exceptional performance, thanks to higher demand for land vehicle products.
Therefore, despite the current geopolitical and economic uncertainty, the board expects FY26 trading to be well ahead of previous guidance.
While it’s tempting to lump Senior in with other defence stocks, its aerospace business encompasses civil customers too. In December 2025, the firm revealed it had won a multi-year manufacturing order from Airbus with ‘significant’ further potential for parts and repairs.
Winning big orders from leading airframers like Airbus demonstrates Senior’s expertise to the market. It also showcases the firm’s capabilities in highly engineered products to other customers looking to place orders.
Meanwhile, Senior is involved in an international project to design and build next-generation aircraft using hydrogen fuel cell technology. The spike in jet fuel prices due to the Iran conflict has demonstrated better than anything the need for sustainable alternatives.
Sadly for investors, private equity has beaten them to the punch with a 300p/share offer from a consortium including Blackstone. The offer has support from the board and major shareholders which means we can wave goodbye to another quality FTSE 250 growth company.
However, today’s update demonstrates the robustness of demand in the civil and well as the military aerospace market. Both have long development cycles and companies which are successful in providing products and services can enjoy multi-year benefits.
Read the press release here: https://www.seniorplc.com/investors.aspx
