Solid State’s interim results were always going to show a substantial uplift, given the contribution from the previously delayed defence communications order during the period. Looking through this, the company’s foundations for sustaining growth in the medium to long term also look more solid. The company’s order book, at £87.3m, is healthy and has subsequently been strengthened by recent contract awards. Growth investments and consolidation in Systems and Power should support growth and improve resilience. The company looks well-placed to at least meet FY26 estimates and deliver robust performance thereafter.

Solid State has announced an encouraging first half assisted by its exposure to defence, while also benefiting from delayed sales from the previous financial year. With expected first half profit equivalent to 66% of full year consensus, along with recent contract awards announced, the group is well positioned to deliver on FY26 market expectations and further growth to meet management’s longer-term targets.

Solid State’s FY25 was affected by contract timings. However, FY26 has started positively with a strong order book (+13.9% y-o-y). This suggests the company is back on track, offering a return to the value-creating business model of positive cash generation funding investment in specialist electronics to generate growth.