Every so often, a penny stock emerges from the noise and delivers the kind of returns that make even seasoned investors do a double-take. And right now Hardide‘s (LSE:HDD) one of those rare occasions.
Since July 2025, the shares have rocketed 715%, turning a modest £1,000 investment into £8,150. But here’s the question that really matters: is this stock only getting started? Let’s find out.
What does Hardide actually do?
As a quick crash course, Hardide is a specialist surface coating company. Using a process called chemical vapour deposition (CVD), it applies ultra-hard tungsten carbide coatings to precision engineering components used in the energy, aerospace, and industrial sectors.
These coatings dramatically extend the life of parts operating in the harshest environments, saving customers significant time and money on replacements and downtime. And crucially, Hardide’s CVD technology is patented, meaning no rival can replicate its exact combination of hardness, corrosion resistance, and ability to coat complex internal geometries.
That’s a genuinely powerful competitive moat. And it’s a pretty rare one for a business this size.
What’s behind the surge?
The numbers behind the share price surge are hard to argue with. In the first half of 2026, revenue surged 71% to £4.8m, EBITDA jumped 321% to £1.6m, and operating profit hit £1.3m compared to break-even in the prior year period.
Then, just days after these results, Hardide announced yet another landmark £2.4m order from a major North American energy customer. And since the contract ended up being much larger than originally anticipated, leadership promptly raised its full-year guidance.
In other words, growth’s accelerating, but crucially so are earnings – something that most penny stocks struggle with. But the question now is, can the rally continue?
Why the rally has legs
A big challenge many fast-expanding young enterprises struggle with is capacity and infrastructure. Securing new contracts is relatively easy compared to ensuring those orders can be fulfilled on time without delay.
Luckily for Hardide, that doesn’t seem like it’s going to be a problem. The business currently has sufficient capacity to support up to £20m of annualised revenue before needing to expand its facilities. And with the company generating less than £10m today, there is still a significant growth runway available before any major capital expenditure is needed.
Moreover, beyond the energy sector, Hardide’s actively pursuing opportunities in aerospace and semiconductor applications. Both sectors demand extreme precision and durability, two qualities where its CVD technology excels. That opens the door to potentially transformative new revenue streams.
Having said that, the recent North American contract win has concentrated the revenue base significantly. Energy now accounts for a dominant share of total sales, meaning any deterioration in the relationship with this single key customer or a broader pullback in sector spending could meaningfully impact earnings.
What now?
Hardide’s no longer flying under the radar. The stock has been re-rated, and investors buying in today are paying a very different price to those who spotted it a year ago.
But with a patented technology, a major new customer relationship, expanding end markets, and room to grow revenue significantly without heavy reinvestment, this penny stock could still deliver some meaningful growth from here.
That’s why I’m now watching this business very closely.
Should you invest £5,000 in Hardide right now?
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Hardide made the list?
Zaven Boyrazian does not hold any positions in the companies mentioned.
