Choose your language
Choisir votre langue
Sprache wählen
Investment Case
One of a limited number
of specialist global suppliers
TEK4 operates in a highly specialised segment of the precision-machining market, designing and manufacturing systems used to drill cooling holes in aerospace and industrial gas turbine blades, vanes and segments. These cooling holes are mission-critical to engine and turbine performance, helping components withstand the extreme temperatures generated during operation.
Competition is driven by technological capability, application expertise, machine performance and customer support. TEK4’s focus on application-specific cooling-hole drilling gives it a differentiated position within a niche but critical part of the manufacturing value chain.
Exposure to powerful structural growth markets
TEK4 benefits from a powerful long-term increase in global energy demand, driven by the electrification of economies, growth in AI and data centres, and the need for greater investment in reliable power generation. Alongside this, the Group has significant exposure to two other structurally attractive markets — civil aerospace and defence — providing three largely independent demand drivers:
-
Industrial gas turbines – electrification, AI and data-centre growth are increasing electricity demand and driving substantial investment in new power-generation capacity. Leading turbine manufacturers are reporting strong order backlogs and delivery positions extending into the early 2030s.
-
Civil aerospace – Airbus and Boeing each have order backlogs equivalent to approximately a decade of production at current build rates, supporting sustained demand throughout the aerospace supply chain.
-
Defence – NATO members have committed to spend at least 3.5% of GDP annually on core defence requirements by 2035, providing a strong long-term underpinning to military aerospace expenditure.
Strong financial performance with significant revenue visibility
Blue-chip customers and a
growing recurring-revenue base
TEK4 has developed long-standing relationships with leading aerospace and industrial gas turbine OEMs and tier-one suppliers, including major global engine manufacturers.
More than 200 machines are currently in active service, creating a substantial installed base from which TEK4 generates recurring aftermarket revenues through servicing, spares, consumables, training, upgrades and process development. Aftermarket revenues account for c.15% of Group revenue, providing a recurring revenue base which should grow as the installed fleet expands.
The installed base also embeds TEK4 within customers’ manufacturing processes, supporting repeat machine orders as customers add capacity, replace equipment or adopt new technologies. Furthermore, the addition of a second factory site of c.12,000 sq ft will enable up to a further £20m of sales, while the recent Innolas acquisition facilitates entry into the medical devices market.
Defensible technology and engineering moat
TEK4 has a broad technology portfolio spanning EDM, laser drilling, laser ablation and STEM/ECM, enabling it to address a wide range of cooling-hole and related precision-manufacturing applications.
Its competitive position is supported by proprietary technology, patent protection, specialist engineering know-how and accumulated application experience. In safety-critical aerospace and turbine manufacturing, replicating the machine technology alone is not sufficient: suppliers also require substantial process knowledge, qualification experience and established customer relationships.
TEK4 has delivered strong revenue and profit growth over the last three years. FY26 revenue increased to approximately £16 million while maintaining strong operating margins.
As at 30 September 2026, the Group had approximately £16.2 million of firm machine orders scheduled for delivery in FY27, approximately £24.1 million of committed orders extending beyond FY27 and approximately £17.5 million of qualified original-equipment sales opportunities.
TEK4 has combined rapid growth with a capital-efficient business model. Strong cash generation and its customer payment structure have enabled the Group to invest in new technology, expand internationally, reduce debt and pursue strategic development without relying heavily on external equity capital.
Rapid innovation and an
application-led engineering model
TEK4’s ability to innovate rapidly and respond to bespoke customer requirements is an important competitive advantage. Rather than relying solely on standardised machine platforms, its engineering-led model allows it to develop solutions around specific customer applications and manufacturing challenges.
This capability is particularly valuable as engine and turbine designs become more complex and customers demand higher drilling speeds, greater repeatability, improved machine uptime and tighter tolerances. Continued investment in new technologies and machine capability supports both new customer wins and repeat orders.