Pennant International Group (AIM:PEN) told investors it has secured further Auxilium software contracts with a major US defence end user through its Siemens Digital Industries Software channel partnership.
The AIM-listed systems-support software and training solutions provider said the new contracts are expected to generate combined recurring revenue of more than $300,000 a year.
That pushes annual recurring revenue (ARR) to approximately £3.1m, above the £3m target Pennant set in its January trading update for the end of 2026.
Auxilium has become Pennant's main recurring-revenue growth engine this year. ARR from the software suite stood at £2.1m in June 2025, rose to £2.6m at the end of June 2026, and reached approximately £2.9m by late August following a separate US contract win and a new deal with a global shipbuilding group. The latest US awards mark a second wave of Siemens-driven sales, following the channel's first order earlier in the year.
"These wins increase Group ARR to approximately £3.1 million, taking us beyond the target we established for the end of 2026 and demonstrating continued momentum in the adoption of Auxilium," said chief executive Phil Walker.
Auxilium provides an integrated digital thread across engineering, logistics, maintenance, training and operational data, which Pennant says helps defence and other complex-asset operators improve readiness and cut lifecycle costs.