discoverIE Sees Order Growth Surge and Steps Up Capacity Investment

discoverIE Group (LSE:DSCV) reported a strong finish to the year, with momentum building in the fourth quarter as demand strengthened across all divisions. Orders increased by 16% at constant exchange rates and 15% organically, significantly outpacing sales growth of 6%.

The Magnetics & Controls division experienced a notable rebound, particularly from industrial and medical customers, while Sensing & Connectivity recorded improved performance driven by increased demand from industrial, security, and wireless markets.

For the full year ended 31 March 2026, orders rose 9% at constant exchange rates and 5% organically, contributing to a higher closing order book. Sales grew 5% overall and 2% on an organic basis, with acquisitions accounting for an additional 3%. Strong gross margins, operational efficiencies, and reduced financing costs helped keep the group on track to deliver adjusted EPS growth in line with expectations.

The company continued to invest in future capacity and growth, expanding manufacturing operations in Thailand and progressing construction of a larger facility in India, expected to be completed in the first half of the new financial year. It also strengthened its engineering and sales teams across the U.S. and Europe. In addition, discoverIE completed the acquisition of Trival Antene, while maintaining gearing within its target range and building a pipeline of further acquisition opportunities and design wins.

While the group demonstrates solid financial health and supportive technical indicators, revenue growth remains moderate and valuation metrics, including a relatively high P/E ratio, suggest some caution. Nevertheless, its combination of organic expansion and targeted acquisitions positions it for continued long-term growth.

More about discoverIE Group plc

discoverIE Group plc is a FTSE 250-listed international designer and manufacturer of customised electronic components for industrial applications. Operating through its Magnetics & Controls and Sensing & Connectivity divisions, the company supplies application-specific components to original equipment manufacturers across sectors such as medical, transport electrification, renewable energy, security, and industrial automation. Its business model is underpinned by long-term customer relationships and recurring revenue streams.