Hardide (LSE: HDD) has delivered one of the most extraordinary runs of any UK-listed stock over the past twelve months, rising more than 1,150%.
The surface coatings specialist has surged 455% in 2026 alone, dwarfing the FTSE 100 and FTSE 250, which are up just 7.9% and 6.5% year to date respectively.
Despite that blistering performance, the company still trades at 98p per share with a market capitalisation of just £80m, keeping it firmly in small-cap territory.
Hardide manufactures and applies patented tungsten carbide metal coatings using a specialised chemical vapour deposition process, serving industries where conventional coatings frequently fall short.
The company’s own website describes its technology in direct terms: its CVD coatings “outperform traditional technologies like HVOF, PVD and Hard Chrome plating in head-to-head industry standard trials across wear, erosion and corrosion resistance, often by a factor of 6x, 12x and even 24x.”
Put simply, Hardide is arguing that its coatings last significantly longer than many competing surface treatments, and recent financial results suggest the market is beginning to agree.
Earlier this week, the company announced its fiscal 2026 performance will be “materially ahead” of previous expectations, a phrase that tends to delight shareholders in small-cap companies.
Previous expectations for the 12 months to 30 September had targeted revenue of £13.4m and EBITDA of £4.3m, both of which now look set to be comfortably beaten.
Management has expressed confidence in doubling revenue over the next two to three years, building from 2026’s already upgraded base, a target that would represent a remarkable trajectory for a firm of this size.
A significant portion of that growth is being driven by a major energy sector customer in North America, though this also introduces a degree of customer concentration risk that investors should weigh carefully.
To address that dependency, Hardide is actively diversifying, with expansion plans targeting the semiconductor industry and the Middle East energy sector, two areas offering considerable long-term demand.
Supporting that ambition, the company is committing £4.5m to three new coating reactors and associated infrastructure, a tangible signal that management is backing its growth forecasts with capital.
On valuation, broker Cavendish has issued an upgraded forecast of earnings per share of 7.7p for the financial year beginning October 2026, placing the forward price-to-earnings ratio at just under 13.
For a business targeting revenue doubling by 2028/29 and operating in niche industrial markets, a forward P/E of under 13 does not appear obviously stretched.
There are genuine risks to consider, however, including the absence of a dividend, customer concentration, and the fact that Hardide has only locked in around 50% of its FY2027 gas needs, leaving it exposed to volatile commodity prices.
Taken together, Hardide presents a compelling growth case built on proprietary technology, strong contract momentum, and expanding end markets, though investors should size positions carefully given the inherent risks of small-cap stocks at this stage.