discoverIE Group PLC (LSE:DSCV) saw its shares rise 1.4% on Tuesday after reporting interim earnings that met the Board’s adjusted forecasts, supported by steady revenue growth and strong cash generation.
For the six months ended September 30, 2025, group sales increased 3% at constant exchange rates (CER) and 2% on a reported basis. Organic growth came in at 0.5% for the half-year, strengthening to 1% in the second quarter, reflecting improving trading momentum.
Order intake also outperformed, climbing 5% year-on-year at CER and 0.5% organically. In Q2, orders surged 13% at CER and 8% organically, exceeding sales growth and building a solid backlog for the remainder of the year.
Three of the company’s four divisions — Sensing, Connectivity, and Magnetics — achieved healthy organic growth, while the Controls segment experienced softer demand from some major customers.
“The Group delivered strong operational and cash performance through the period with improving growth trends,” the company stated in its trading update. “We are well positioned to continue our through-cycle growth both organically and inorganically as market conditions further stabilise.”
The company highlighted resilient gross margins and disciplined working capital management. Strong operating cash flow allowed it to lower gearing to 1.3x as of September 30, 2025 — below its target range of 1.5x to 2.0x — creating additional headroom for future acquisitions.
M&A activity contributed 2.5% to overall growth during the period, complementing steady organic expansion and supporting top-line performance.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Some portions of this content may have been generated or assisted by artificial intelligence (AI) tools and been reviewed for accuracy and quality by our editorial team.
Leave a Reply