Shares in discoverIE (DSCV) climbed 11% on Friday after the company highlighted a positive start to the 2026–27 financial year, supported by strong demand for its customised electronic components and double-digit growth in orders.
The FTSE 250-listed designer and manufacturer said organic orders increased 31% year-on-year at constant exchange rates during the first quarter, while group sales rose 6% organically. The company recorded a book-to-bill ratio of 1.15, indicating that incoming orders exceeded revenue generated during the period.
discoverIE said trading momentum from the final quarter of the previous financial year continued into the new period, with demand remaining strong across its industrial markets.
Including contributions from recent acquisitions Trival and Storm, sales increased 10% at constant exchange rates, with both businesses performing in line with expectations since joining the group.
The company also confirmed that regulatory approval work is progressing for its planned acquisition of 3Gmetalworx, as it continues its strategy of combining organic expansion with targeted acquisitions to broaden its technology offering.
“The positive outlook continues with full year adjusted earnings tracking ahead of the board’s expectations,” discoverIE said, adding that it remains well positioned for further growth due to a strong order book, a pipeline of design wins and additional acquisition opportunities.
Management said the company’s performance reflects continued customer demand across its core end markets, while its focus on customised electronic solutions continues to support long-term growth.
discoverIE has maintained a track record of generating positive free cash flow, although investors continue to monitor its level of leverage following recent acquisitions. The company’s valuation also remains a consideration, with shares trading on a relatively high earnings multiple and offering a modest dividend yield.
Market momentum has remained positive, with technical indicators showing a strong upward trend in the share price, although some measures suggest the stock could face short-term volatility if investors take profits following its recent gains.
The latest rise adds to a strong year for discoverIE investors, with the shares now up 31.6% since the start of 2026 as confidence improves around earnings growth and future expansion plans.