LPA Group - shares surge 12% on FY2026 earnings upgrade
Shares in electronic components manufacturer LPA Group (AIM:LPA) have surged by 12% to 86.5p on the back of a short but upbeat trading update covering the year to end September 2026. The headline news is that adjusted earnings for FY2026 are now expected to be ahead of current market expectations after strong trading resulted in increased revenues.
In addition, reported pre-tax profits will benefit from exceptional income arising from an accelerated payment on a contract, caused due to a change in customer requirements. Guidance for FY2027 remains unchanged.
On the outlook, CEO Philo Daniel‑Tran said: “Looking ahead to the next financial year we have a healthy pipeline of opportunities, and our continued move to a ‘One LPA’ remains on track. While we remain mindful of ongoing inflationary pressures and the uncertain macroeconomic environment, the strength of our balance sheet gives us confidence that the Group is well positioned for the future."
LPA Group 5- year share price chart
A busy period for new deals
Founded in the 1800s, LPA has origins in the first light installed in 'Electric Avenue', Brixton, so-called because it was the first market street to be lit by electricity. As of today the firm refers to itself as an innovation‑led engineering company that designs and manufactures electronic and electro‑mechanical components and systems. Focused on transport (rail and aviation), defence, infrastructure and industrial markets, and supplying into hostile and challenging environments, LPA is known for engineering solutions that improve product reliability, thus reducing maintenance and life cycle costs.
Today’s news is a further positive development from the firm, which at the end of July announced a £1.4 million contract for the supply of inter-car jumper systems for a global train builder. A number of other positive announcements were made in the month. On 10th July LPA announced that in the previous five weeks it had been awarded a series of contracts with a combined value of approximately £989,000, with customer deliveries scheduled to commence in October 2026. Key deals included: a £550,000 contract with a major train operating company to supply rail components as part of a fleet refurbishment programme, and a £349,000 contract to manufacture a range of inter-car jumpers for an overhaul programme for a multinational train manufacturer.
Subsequent to that, on 23rd July LPA revealed a new distribution agreement with Boeing Distribution to distribute LPA Red Box Aviation's product portfolio across the global general aviation market. Red Box, a UK manufacturer of aviation ground power equipment, was acquired by LPA in January 2024. The rationale was to support the company’s long-term growth strategy and reduce dependence on rail projects. Under the agreement, an initial stocking order of approximately £0.5 million is expected in the second half of this calendar year.
These recent developments add to a decent first half of trading (to March 2026), which saw revenues up by 45% to £13.8 million and an adjusted EBITDA profit of £1 million against a loss of £0.52 million in H1 2025. The company has a five-year plan in place, with a target of achieving organic revenue growth of 50% from 2024 to 2028. With the shares currently trading at 86.5p, LPA is capitalised at £11.4 million.
Sign up here to receive our full investment research notes on small cap growth companies as soon as they are published.
Disclosures
LPA Group is not a research client of Optimo Research.
Disclaimers
This article, and all articles on the Optimo Research blog, are for information purposes only. Our blog articles do not constitute an investment recommendation or personal advice. Nothing in our blog articles should be construed as an offer or the solicitation of an offer to buy or sell securities by us and, as we have no knowledge of your individual situation and circumstances, you should not make any investment decision without consulting a fully qualified financial adviser. Your capital is at risk by investing in the financial instruments issued by the companies discussed. For full disclosures, disclaimers and risk warnings click here.