Shearwater Group Shares Surge on Upgraded Forecast and £25 Million Contract Extension

Shares in Shearwater Group PLC (SWGS) surged as much as 17.6% to 54 pence in trading after the company announced it expects full-year results to exceed market expectations. The positive outlook is driven by a significant contract extension and strong underlying business performance.

Upgraded Financial Outlook

In a trading update, the AIM-listed cybersecurity and risk management firm said it anticipates revenue of approximately £42 million for the year ending June 30, 2026. This figure represents an annualized year-over-year growth of about 33% compared to the £39.5 million reported in the prior 15-month period.

Shearwater also stated that its adjusted EBITDA would come in ahead of current market forecasts. A key driver for the upgraded guidance was a major contract extension secured by the company, worth approximately £25 million.

A Pattern of Contract Wins

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The upbeat forecast follows a series of successful contract awards for Shearwater's Brookcourt subsidiary, which have steadily improved the company's revenue visibility. Recent key wins include:

• A £7.3 million, three-year extension with a major UK mobile operator in December 2025.
• A £9 million contract renewal and expansion in February 2026.
• A £1.8 million contract with a large UK telecommunications company in April 2026.

Market Impact

The positive company-specific news, combined with a broadly supportive market environment, fueled one of the sharpest single-day gains for Shearwater stock in recent months. The rally lifted the share price significantly from its 52-week low of 35.5p, pushing it toward the upper end of its annual trading range.