discoverIE Group (DSCV) H2 2025 earnings summary

Executive summary

• Operating profit rose 8% at constant exchange rates, reaching a record margin of 14.3%, with adjusted EPS up 5% and free cash flow up 9% to £40.4m at a 106% conversion rate.

• Margins reached 14.8% in H2, prompting an increase in the margin target to 17% by FY 2029/30.

• Two acquisitions (Hivolt and Burster) completed for £29m, with a strong pipeline of further opportunities and £80m funding headroom.

• Carbon emissions reduced by 59% since 2021, on track for net zero by 2030.

• Disposal proceeds of £13m received from Santon and Acal BFi sales; solar business unit sold.

Financial highlights

• Revenue declined 3% to £422.9m at CER, with organic sales down 7% due to industry-wide inventory correction.

• Adjusted operating profit rose 6% to £60.5m, with margin up 1.2 percentage points to 14.3%.

• EPS up 5% overall, 15% in H2; cash conversion rates above 100% for the year and over the last decade.

• Dividend per share increased 4% to 12.5p, continuing a 150% growth over 15 years.

• Seven acquisitions in 18 months contributed 7% to sales and £6.8m to profit.

Outlook and guidance

• Positive outlook for FY 2026, with Q1 trading in line with Board expectations and margin targets upgraded to 17% by FY30.

• Order trends and sales are improving, with most business units showing recovery.

• Margin improvement expected to come one-third organically and two-thirds from acquisitions.

• Volatile trading conditions and tariffs may limit growth but also create further opportunities.