SDI Group (SDI) H1 2026 earnings summary

Executive summary

• Achieved 10.1% revenue growth in H1 FY26 to £34.0m, with 3.2% organic and 6.9% acquisition-driven growth.

• Expanded management team with two divisional directors to enhance operational focus and support growth.

• Completed the acquisition of Severn Thermal Solutions, enhancing capabilities and expanding the customer base.

• Maintained a diversified portfolio across 17 businesses and 19 global locations, focusing on high-growth scientific niche markets.

• Business model remains resilient amid global uncertainties, balancing organic expansion with earnings-enhancing acquisitions.

Financial highlights

• Revenue rose 10.1% year-over-year to £34.0m for H1 FY26; FY26 guidance around £75.2m.

• Adjusted operating profit increased 17.7% to £4.6m; adjusted profit before tax up 21.7% to £3.8m.

• Gross profit margin improved to 66.3% (materials only); adjusted operating margin rose to 13.5%.

• Net debt increased to £18.0m, mainly due to the Severn Thermal acquisition; net debt:EBITDA at ~1.3x.

• Cash generated from operations was £4.2m, down from £4.7m, due to inventory build-up.

Outlook and guidance

• FY26 expected to be in line with market expectations, with a second-half profit weighting due to contract timings.

• Strategy remains focused on organic growth, synergies, operational excellence, and high-quality acquisitions.

• Long-term organic growth target remains 5%-8%.

• Robust pipeline of acquisition opportunities and capacity to execute further deals.