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discoverIE Group (DSCV) investor relations material

discoverIE Group H1 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H1 2026 earnings summary2 Dec, 2025

Executive summary

  • Record profitability and cash flow achieved in H1 FY26, with adjusted operating profit up 5% CER to £30.2m and adjusted EPS up 6% to 19.5p, driven by strong organic sales and order growth, especially in Sensing & Connectivity.

  • Three out of four operating units returned to growth, with Sensing & Connectivity and Magnetics leading, while Controls remains weak but is expected to stabilize in H2.

  • Free cash flow conversion exceeded 100%, reaching 104%, reflecting a capital-light business model and supporting a robust acquisition pipeline.

  • On track to deliver full-year adjusted earnings in line with Board expectations, with strong visibility from a £157m order book.

  • Acquisition of KeyMat for £5.5m announced, expanding the Magnetics & Controls division, with further M&A opportunities in the pipeline.

Financial highlights

  • Revenue rose to £216.4m, up 3.5% CER and 2.5% reported, with Q2 sales up 1% and Q2 orders up 8%.

  • Adjusted operating margin improved to 14.0% (up 0.3ppt CER), with a target of 17% by FY 2029/30.

  • Adjusted profit before tax up 7% to £25.5m; reported profit before tax up 11% to £17.6m; adjusted EPS up 6% to 19.5p; reported diluted EPS up 11% to 13.5p.

  • Free cash flow for the period was £16.2m, with operating and free cash flow conversion both over 100%.

  • Interim dividend per share increased 4% to 4.05p, maintaining a progressive policy.

Outlook and guidance

  • On track for a strong second half and to meet full-year guidance, with improving order and sales trends and a strong pipeline of design wins and acquisition opportunities.

  • Tariff situation stabilizing, though some uncertainty remains due to pending US Supreme Court hearing.

  • Controls unit expected to stabilize in H2, with further updates in Q3 and Q4.

  • Growth drivers remain strong, with benefits expected from recovering cyclical demand and lower interest rates.

  • Order book of £157m (c.4.3 months of sales) provides strong visibility for H2 and beyond.

Controls unit recovery: margin impact?
Design win backlog conversion timeline?
M&A multiples: impact on 17% margin target?
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Frequently asked questions

discoverIE Group plc designs, manufactures and supplies components worldwide. It operates in two segments: Magnetics & Controls, and Sensing & Connectivity. The company offer magnetic and power components, embedded computing and interface controls, and sensing and connectivity components for industrial applications. The company was formerly known as Acal plc and changed its name to discoverIE Group plc in November 2017. discoverIE Group plc was incorporated in 1986 and is headquartered in Guildford, the United Kingdom

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