Solid State (LSE:SOLI) reported a robust end to its 2025/26 financial year, with revenue now expected to reach at least £150 million and adjusted profit before tax set to exceed market forecasts. Growth was driven by contributions across all three of the company’s operating divisions. The Components division benefited from new design wins, the Power division saw improved performance following internal reorganisation alongside rising demand linked to drones and autonomous technologies, and the Systems division recorded strong communications-related orders as well as growing opportunities in antennas and integrated systems.
The company’s open order book increased to around £106.5 million, supported in part by approximately $20 million in new orders within the Power division. Most of the current backlog is expected to be delivered within the next 18 months, although management noted that component lead times are extending due to rising demand linked to artificial intelligence technologies and ongoing geopolitical tensions affecting supply chains.
Management also highlighted that increasing global defence and security spending is driving demand for the company’s UK- and US-based sovereign technology capabilities. Continued investment in production capacity and technical capabilities is expected to support stable growth over the medium term, even as macroeconomic pressures and supply chain challenges persist.
From an investment perspective, Solid State maintains a stable financial base, though profitability and cash flow trends present some challenges. Technical indicators currently suggest short-term bullish momentum in the share price. However, valuation metrics indicate the possibility of overvaluation, particularly given the company’s relatively high price-to-earnings ratio and some recent pressure on profitability. On the positive side, recent contract wins and strategic partnerships strengthen the group’s growth outlook.
More about Solid State
Solid State plc is a UK-based value-added electronics group that supplies industrial and defence markets with specialised components, assemblies and systems designed for critical applications in demanding environments. The company operates through three divisions—Systems, Power and Components—and focuses on areas such as industrial computing, battery technologies, antennas, secure communications, imaging and electronic components. Its products serve a range of industries including defence, aerospace, energy, robotics, medical technology and transportation.
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