Solid State has landed a $26.2m (around £20m) follow-on defence order, a meaningful win for the specialist electronics group.
The AIM-listed company said its Steatite subsidiary secured the order under Project CAIN, a defence programme for a UK government end user, building on work already underway.
Steatite will supply ruggedised, secure communications and computing systems designed to withstand harsh operating conditions, including the MPU5 radio and Wave Relay mobile networking technology made by Persistent Systems.
Delivery is scheduled for the first half of 2027.
Underpinning Solid State’s investment case, the deal comes from the Ministry of Defence at a time when Western governments are boosting military spending.
Investors should keep in mind that much of Steatite’s defence work involves integrating and supplying third-party technology, such as the Persistent Systems radios, rather than selling its own proprietary products, which tends to carry thinner margins than owning the core intellectual property.
The company will recognise most of the revenue in the first half of next year.
John Macmichael, Chief Executive Officer of Solid State, said: “This order further underpins our existing guidance for FY26/27 and FY27/28 and gives us increased confidence as we look forward to 2027.
“As a Group we provide power solutions, sensors, digital connectivity and the edge processing systems to enable our customers to make quicker, better informed decisions under pressure.”