Avingtrans: How to play the data centre & nuclear power boom
The world is rapidly discovering that AI not only needs clever chips, but also enormous amounts of reliable power. In fact the IEA estimates global data-centre electricity consumption could nearly double from 485TWh in 2025 to 950TWh by 2030 - with nuclear to provide much of heavy-lifting as hyper-scalers scramble for dependable, low-carbon baseload generation. Plus, add in all things electrification (eg EVs), defence and energy security following the Ukraine/Iran shocks, then nuclear's multi-decade renaissance looks well underpinned.
Enter specialist engineer , one of the UKs niche “picks and shovels” plays in the sector. Here FY26 revenue, adjusted EBITDA and EPS all climbed to a record high of £163.3m (+4.4%), £20.7m (+24%) and 31.3p (+32%) respectively – slightly ahead of expectations.
The engine room remains Advanced Engineering Systems, driven by standout performances from Hayward Tyler's nuclear pumps division and Ormandy Rycroft Engineering's data-centre cooling unit. Indeed Hayward Tyler secured $16m of contracts with South Korea's KHNP and continues progressing its $10m TerraPower contract. Meanwhile Metalcraft is ramping up its Sellafield nuclear-waste boxes and Booth has added £8.5m of HS2/TfL orders.
Perhaps most interestingly though is what comes next. An oversubscribed £21m placing at 630p/share in July will accelerate Hayward Tyler's nuclear expansion and provide extra capacity to satisfy buoyant demand. Management says FY26 momentum has continued into FY27, backed by contract wins across both AES and Medical – providing approx. 90% and 50% revenue cover for this year and next.
Chairman Roger McDowell commenting: “With several of our businesses now benefitting from positive global trends in AI, data centres and, relatedly, new nuclear power, we have a strong order book moving into FY27 and, therefore, we anticipate further profitable growth this year”.
In terms of the numbers, consensus FY’27 forecasts are for £188m revenue, £24.6m adjusted EBITDA, £15.2m PBT and 36.6p EPS - equivalent to multiples of 20.1x earnings and 11.0x EV/EBITDA, based on May’26's net debt of £11.8m. My estimated SOTP valuation (see below) is 921p/share vs 755p today.
Finally, the company also announced a lovely $2.5m tuck-in acquisition of the Brand & associated IPR of Joseph Oat Corp - a US nuclear engineering specialist that ceased trading in Dec’25. The rationale being to leverage their respected name & proprietary library of engineered solutions to manufacture parts and service the significant installed base of JO kit already in the field (eg nuclear life extension).
Disclosure: Avingtrans is a Vox Markets client.
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