Solid State plc (LSE:SOLI) delivered strong interim results for the first half of the 2025/26 financial year, reporting headline revenue growth of 38.6% to £85.7 million, supported primarily by a major communications contract. Although order intake was initially subdued, demand has strengthened into the second half, underpinning management’s confidence in achieving full-year expectations. The period also marked a significant leadership change following the passing of long-serving CEO Gary Marsh, with John Macmichael assuming the role of interim CEO. Alongside this transition, the company continues to invest in facility upgrades, capability expansion, and board reinforcement, while securing notable contracts that support its strategy for long-term growth despite ongoing industrial-sector headwinds.
Solid State’s outlook highlights meaningful financial and valuation challenges. Profitability has weakened, and an elevated P/E ratio raises concerns for value-seeking investors. Bearish technical signals further affect sentiment, though the company’s relatively solid balance sheet offers some stability. A sustained improvement in earnings and valuation metrics will be key to enhancing the stock’s appeal.
More about Solid State
Solid State plc is a value-added electronics specialist serving industrial and defence customers worldwide. The group provides rugged components, assemblies, and fully engineered systems designed for high-reliability applications, particularly in demanding and harsh operating environments.
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