Q4 and full year trading update

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 its fourth quarter and financial year ended 31 March 2026 ahead of the announcement of its preliminary results on 3 June 2026.

Fourth quarter

Group trading accelerated in the fourth quarter with all operating units experiencing a strong sequential increase in demand, reflected in both orders and sales.

In particular, the Magnetics & Controls division experienced a strong pick-up in demand from major industrial and medical customers, and orders in Controls grew strongly organically for the third consecutive quarter. The Sensing & Connectivity division also made encouraging progress, led by improvement in orders especially from the industrial, security and wireless segments.

Group orders in the fourth quarter increased by 16% CER(1) and by 15% organically(2) and were ahead of sales for the third consecutive quarter, with customers increasing both their short-term demand and extending order periods.

Group sales in the fourth quarter increased by 6% CER and by 5% organically. Acquisitions contributed 1%.

Full year

Full year Group orders increased by 9% CER and by 5% organically and were ahead of sales with the Group order book increasing by 6% over the first half.

Full year Group sales increased by 5% (both reported and CER) and by 2% organically, with a 3% contribution from acquisitions. Organic sales for both divisions increased by 2%. Gross margins remain robust, reflecting the strength of our differentiated value proposition.

The continued focus on generating efficiencies from our international footprint, together with reducing interest costs, has supported earnings momentum, with the Group on-track to deliver another year of growth in adjusted earnings per share in-line with consensus market expectations(3). With the acceleration in demand, we made additional investments this year in operating capacity, with further production in Thailand and a new enlarged facility in India, due to complete in the first half of the new financial year, along with additional engineering and sales capacity in the US and Europe to drive further growth.

Regulatory approval for the acquisition of Trival Antene d,o,o ("Trival"), announced on 4 December 2025, has been received and completion occurred earlier this month. Trival is a Slovenian-based designer and manufacturer of communication antennae and masts for the defence and industrial markets.

With continuing strong operating cash flow, year-end gearing(4) is expected to have reduced to c.1.2x, with proforma gearing including Trival, expected to be c.1.7x, comfortably within our target range.

The Group has a number of acquisition opportunities in development and along with our pipeline of organic opportunities and design wins, it is very well placed for further resilient growth.

• Growth rates refer to the comparable prior year period unless stated. In calculating CER for the year, the average Sterling rate of exchange strengthened 5% against the US Dollar compared to the average rate for last year, while weakening 3% against the Euro and 5% on average against the three Nordic currencies. In calculating CER for the fourth quarter, the average Sterling rate of exchange strengthened 7% against the US Dollar compared to the average rate for last year, while weakening 4% against the Euro and 7% on average against the three Nordic currencies.
• 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.
• Company compiled consensus for adjusted earnings per share is 40.1p. Company compiled consensus can be found on www.discoverIEplc.com
• Gearing is defined as net debt divided by underlying EBITDA (excluding IFRS 16, annualised for acquisitions). Proforma gearing includes the acquisition of Trival (acquired April 2026) as if it had been acquired at 31 March 2026.