Solid State (AIM:SOLI) (LSE:SOLI) issued a trading update saying the electronics group closed the year ended 31 March 2026 with stronger-than-expected momentum and now expects full-year revenue to be ahead of consensus market expectations and "not less than £150m", with adjusted profit before tax likewise ahead of consensus.
All three divisions contributed to the upgrade. The Components division benefited from new design wins in the UK and US and improved market conditions; Power saw a "significant improvement" following a management re-organisation and investment in capabilities, with strong demand from drone and other autonomous applications and "significant new and emerging defence opportunities"; and Systems benefited from continuing demand for communications products while building opportunities in antenna and integrated systems that are only partially reflected in current-period revenue, the company said.
The open orderbook stood at c.£106.5m as at 31 March 2026 (30 Nov 2025: £97.0m), the company added, rising mainly because of strong Power division order intake since the December update — amounting to approximately $20m. The orderbook includes an initial order from a new Communications customer announced in Q3, with shipments scheduled for Q1 26/27. The majority of the open orderbook is expected to be delivered over the next 18 months, subject to supply chain availability.
Solid State warned lead times have recently started to extend significantly for certain components "due to the demand arising from the adoption of AI and the impact of geopolitical instability" and said it is proactively working with customers to manage potential disruption. The group also reiterated it is investing in capabilities and capacity to support mid-term growth.
"It is very pleasing to be upgrading expectations for the year ended 31 March 2026 and reporting positive momentum in the open orderbook.
Against a backdrop of heightened global tensions, governments are prioritising defence and security. While the context is challenging, it is leading to increased demand for our technology and capabilities from both new and existing customers. We are approaching this with a strong sense of responsibility, focused on supporting our customers effectively while maintaining strict oversight on risk, governance, and compliance.
We are also mindful of the macroeconomic effect of regional conflicts, and the resulting uncertainties on supply side constraints which are as yet unclear.
Despite these uncertainties, Solid State is very well placed to fulfil the demand for sovereign technology and capability both in the UK and the US, and benefits from the resilience that is derived from our exposure to other structural growth markets." — Nigel Rogers, Chairman of the Board, said.
