Positive momentum for FY27

discoverIE’s FY26 results confirmed a return to organic revenue growth, and the company reported financial performance in line with expectations. Investments in engineering, sales and manufacturing capacity slightly weighed on the operating margin but should support the company to meet the accelerating demand across its target markets. Recent acquisitions are margin accretive, helping the company towards its medium-term 17% operating margin target and strengthening its position in the defence market. We maintain our FY27 forecasts and introduce FY28 forecasts, conservatively factoring in 4% EPS growth. Our forecasts do not yet include the 3Gmetalworx acquisition.