Shares of Linlithgow-based Calnex Solutions plc, a provider of test and measurement solutions for telecoms and cloud markets, rose as much as 9% vafter it published a positive update on trading for the year to March 31, 2025 and and outlook for FY26.

Calnex said it is monitoring the effects of proposed US tariffs and will work with its customers and partners to “navigate the new landscape” effectively.

Calnex’s customers include BT, China Mobile, NTT, Ericsson, Nokia, Intel, Qualcomm, IBM, Nvidia and Meta. Founded in 2006, Calnex is headquartered in Linlithgow with additional locations in Belfast, Stevenage and California, supported by sales teams in China and India. 

“Calnex has returned to growth in FY25, in line with market expectations, despite the ongoing challenging telecoms market,” said the firm.

“Financial performance steadily improved throughout the year, achieving 12% growth in revenues to approximately £18.3m (FY24: £16.3m) and an improved gross margin, reflecting the increased revenue volumes and product mix in the year.

“Cost control measures taken through the year have also contributed to the group’s return to profit. The group’s balance sheet remains robust, with cash as at 31 March 2025 of £10.9m, £2.3m ahead of the cash position at the half year, reflecting strong H2 cash generation.

“Growth has been driven by successful execution of the product expansion strategy, having adjusted engineering programmes to focus on areas of the telecoms, cloud computing and defence markets showing the most near-term growth potential.

“The major launch in early H2 of the new Paragon-neo product, focused on the area of 800Gb/s synchronisation testing, has stimulated revenue growth, pointing to early signs of recovery in the telecommunications sector.

“Orders for Calnex’s Network and Applications Assurance products have increased on the prior year, driven by demand from the cloud computing, defence and government, satellite and enterprise sectors, which continue to offer significant opportunities for Calnex and are expected to be a driver of growth in FY26.

“In line with the implementation of its sales channel strategy, Calnex has successfully onboarded new partners covering North America, Europe, India, and Asia-Pacific. Broadening our partner base has given us the opportunity to expand the sales coverage previously enjoyed with Spirent Communications.

“The board is monitoring the effects of proposed US tariff arrangements and will work with our customers and partners to navigate the new landscape effectively.

“The company is confident in continued growth in FY26 driven by further demand for Calnex’s recently launched products.”

Calnex CEO Tommy Cook said: “We are pleased to report a return to growth in FY25, driven by execution of our product expansion strategy and progress into new markets.

“The successful launch of Paragon-neo and increasing demand across the cloud computing and defence markets highlight the strength of our product portfolio and market positioning.

“With a newly established partner network that is working well, a healthy balance sheet and order momentum building, we are well-placed to capitalise on our near-term growth opportunities.”