Solid State’s FY26 results were ahead of upgraded consensus, while positive momentum looks set to continue into FY27 and beyond. The group’s order book increased from £97.0m at H126 to c £106.6m at the year end, supported by exposure to growth domains within defence and security, Internet of Things (IoT) and AI data centres, as well as the benefits of investment in organisational restructuring and engineering capability.

Solid State’s trading update signalled that trading remained strong in Q426 and, as a result, FY26 revenues will be at least £150m (vs £145m consensus). PBT is also expected to be ahead of the £7.2m consensus figure, with outperformance driven across all three divisions. Fundamentally, the company’s outlook is also positive, supported by its exposure to defence and secure communications, together with the cover from a £106.5m open order book at end-March (30 November 2025: £97.0m), although lengthening component lead times, linked to AI-driven demand and geopolitical disruption, introduce some risk to delivery timing.

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.