First Half Trading Update

First half earnings in line with Board expectations; order growth driving momentum

discoverIE Group plc (LSE: DSCV, "discoverIE" or "the Group"), a leading international designer and manufacturer of customised electronics to industry, today issues a trading update for the first six months of the financial year ending 31 March 2026 ("the Period" or "H1").

The Group delivered strong operational and cash performance through the Period with improving growth trends, in line with the Board's adjusted earnings expectations for this financial year.

Group sales for the Period were 3% ahead of last year at CER(1) (2% higher on a reported basis). Organically(2), sales increased by 0.5% in the Period and by 1% in the second quarter, with performance trends strengthening over the prior year and sequentially. Acquisitions contributed a further 2.5% growth.

Three of our four operating units(3) (Sensing, Connectivity and Magnetics) each delivered good levels of organic sales growth. This was offset by the Controls operating unit, where, as previously reported, demand from certain large customers was subdued during the Period.

Group orders for the Period were 5% ahead of last year at CER, increasing by 0.5% organically and in line with sales. In the second quarter orders increased by 13% CER and by 8% organically and were ahead of sales. There continues to be a strong order book for delivery through the remainder of the financial year.

Gross margins have remained robust and working capital tightly managed.

With continuing strong operating cash flow, gearing(4) at 30 September 2025 is expected to be 1.3x, below our target gearing range of 1.5x to 2.0x. The Group has significant capacity to support the growing acquisition pipeline.

The Group is well positioned to continue its through-cycle growth both organically and inorganically as market conditions further stabilise.

The interim results will be released on 2 December 2025.

• Growth rates at constant exchange rates ("CER"). In calculating CER for the Period, the average Sterling rate of exchange strengthened 5% against the US Dollar, but weakened 1% against the Euro and weakened 2% on average against the three Nordic currencies. Growth rates refer to the comparable prior year period unless stated.
• Organic growth for the Group compared with last year is calculated at CER and is shown excluding the first 12 months of acquisitions post completion (Hivolt was acquired in August 2024 and Burster in January 2025).
• Each division comprises two operating units: S&C comprises the Sensing operating unit and the Connectivity operating unit; M&C comprises the Magnetics operating unit and the Controls operating unit.
• Gearing is defined as net debt divided by underlying EBITDA (excluding IFRS 16, annualised for acquisitions).