SOLID STATE PLC - FY 2026 results & prospects

Solid State plc delivered a strong FY2026 investor update, reporting robust company performance driven primarily by organic growth, improved profitability, and a strengthening order book. Revenue increased by more than 25% on an organic basis, while gross margins expanded to 33.5%, driving a 60% increase in operating profit and a 77% rise in earnings per share. The group also generated strong operating cash flow, reduced net debt, strengthened its balance sheet, and maintained a progressive dividend policy. Growth was supported by strong demand across defence, AI infrastructure, industrial, and medical markets, with major contract wins, including NATO and UK defence programmes, alongside expanding opportunities in AI data centres and power management solutions. Management highlighted continued investment in manufacturing capacity, engineering capabilities, and operational efficiency across its Systems, Power, and Components divisions, positioning the business for sustained margin expansion and long-term revenue growth. The company’s order book increased to £106.6 million, providing strong revenue visibility over the next 18 months, while its growth strategy focuses on higher-margin proprietary products, longer-term customer partnerships, selective acquisitions, and cross-divisional collaboration. With clear operating margin targets across all business units, a disciplined capital allocation framework, and ambitions to double profitability over the medium term, Solid State plc remains well positioned to capitalize on favourable defence spending trends, increasing AI-driven demand, and expanding opportunities in mission-critical electronics, delivering sustainable growth and long-term shareholder value.