SDI Group (SDI) H2 2026 earnings summary

Executive summary

• Achieved group revenue of £75 million for FY 2026, up 12.6% year-over-year, with growth across all divisions and over 70% of products exported internationally.

• Strategy focused on a buy-and-build model, combining organic growth and 21 earnings-enhancing acquisitions since 2014, including Severn Thermal Solutions and PRP Optoelectronics.

• Expanded management team and invested in operational excellence, digitisation, R&D, and talent development, driving product innovation and cross-group synergies.

Financial highlights

• Revenue increased to £75 million (FY25: £66.2 million), with 8% organic growth in H2 and inorganic growth of 7.1%.

• Adjusted EBITDA rose to £14.1 million; adjusted operating profit reached £11.6 million; adjusted PBT was £9.9 million; adjusted diluted EPS increased to 7.17p.

• Gross profit margin improved to 66% (materials only), up from 64.9%.

• Cash generated by operations exceeded £10 million; free cash flow was £3.2 million, impacted by higher working capital and acquisition outflows.

• Net debt at year-end was £24 million, up from £13.8 million, with leverage at 1.7x net debt to EBITDA.

Outlook and guidance

• Entering FY 2027 with strong momentum, robust order book, and a strong acquisition pipeline; performance expected to be in line with market expectations.

• Continued focus on operational excellence, R&D investment, and leveraging cross-selling synergies.

• Portfolio companies securing high-profile international contracts, supporting long-term value creation.