Solid State plc Company Analysis & Research
Solid State is a UK-based value-added electronics group supplying industrial and defense markets with durable components, assemblies and systems for critical applications, with core focus on ruggedized computing, battery power solutions, antennas, secure radio systems, imaging technologies, and electronic components. The company's defense revenues have risen 57% over the past three years, significantly outpacing the UK's 25% defense spending increase.
The company's acquisition strategy aligns with the board's goal to grow the underlying core business and deliver EPS of 20p by 2030. Recent wins include orders across unmanned aerial vehicles, maritime technologies, portable medical devices, industrial applications and energy sectors, positioning Solid State to capitalize on structural defense spending increases across UK and NATO.
Company Overview
Founded: 1963. Headquarters: Redditch, UK. Revenue: ~£170m. Market Cap: £93.6m. Ticker: SOLI (LSE).
Industry
Electronic Components & Defense Electronics
Cyborg Score: 7/10 — Strong
Defense-leveraged electronics supplier positioned for significant growth through structural defense spending increases and strategic acquisitions.
With UK and NATO defense spending forecast to grow 8-9% through 2035, Solid State benefits from significant tailwinds. Recent analyst upgrades to Buy with 240-253p price targets, combined with a strong order pipeline and acquisition strategy targeting EPS doubling by 2030, support positive momentum.
Key Strategic Insights for Solid State plc
- Defense revenues grew 57% over three years, dramatically outpacing broader UK defense spending growth of 25%
- Custom Power (power division) won $7.4m in orders for UAVs, maritime, medical, and autonomous vehicle applications with repeat US defense demand
- Steatite subsidiary provides ruggedized mission-critical electronics and secure military-grade communication systems to UK MoD
- Board targets EPS of 20p by 2030 with analyst consensus price target of 253p implying modest 24x forward PE ratio
Recent Developments
- (2026 Q1) Berenberg initiated coverage with Buy rating and 240p price target citing defense tailwinds
- (2026 Q1) Custom Power secured $7.4m in orders across UAVs, maritime, and autonomous vehicle sectors
- (2026 Q1) Steatite MoD contract for mission-critical systems with delivery scheduled H1 2026
Competitors & Competitive Landscape
- TE Connectivity / Amphenol — Large diversified connectors and electronics suppliers
- Leonardo / Thales — Large integrated defense systems suppliers
- Vicor / Texas Instruments — Specialized power conversion and battery management
Solid State operates across industrial computing, battery systems, communications, and component distribution, serving defense, industrial, medical, energy and autonomous systems markets. Primary competitors include larger diversified defense/electronics suppliers but Solid State's specialization in ruggedized systems and battery solutions provides differentiation.
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