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Science ( (GB:SAG) ) has provided an update.
Science Group expects a resilient 2026 performance in line with Board expectations despite geopolitical headwinds and delays in UK defence contracting, with revenue projected to be lower than last year due to the deliberate reduction of low-margin defence work and a corresponding improvement in margins. The company maintains a strong financial position, with substantial cash, net funds and an undrawn revolving credit facility, supporting its focus on adjusted operating profit, operating margin and cash flow.
Sagentia Services remains broadly well positioned, although UK defence has been pressured by deferred contracting, while CMS2’s core submarine-related systems have been more insulated and could secure contracts that provide growth visibility into the 2030s. Frontier’s DAB+/SmartRadio business is stable and has begun shipping its new Auria connected audio solution, but management remains cautious about consumer electronics demand amid potential price inflation and a weak macro environment.
Over the past year Science Group has returned over £24 million to shareholders through buybacks and dividends and reduced its voting share capital, evidencing that its growth and strong balance sheet have been funded organically. The Board plans to continue and potentially expand the share buyback programme, and is actively weighing capital allocation options, including increased capital returns if suitable M&A or investment opportunities do not materialise, while noting that its relatively low London valuation constrains corporate ambitions.
The most recent analyst rating on (GB:SAG) stock is a Buy with a £758.00 price target. To see the full list of analyst forecasts on Science stock, see the GB:SAG Stock Forecast page.
Spark’s Take on SAG Stock
According to Spark, TipRanks’ AI Analyst, SAG is a Outperform.
The score is driven mainly by solid financial performance (strong profitability and conservative balance sheet) and attractive valuation (low P/E). These positives are partly offset by weak technicals (price below key moving averages with negative MACD), while recent buyback-related corporate events provide a modest additional tailwind.
To see Spark’s full report on SAG stock, click here.
More about Science
Science Group plc is an international services and systems company that delivers innovation through applied science, technology and engineering. Its operations span multiple sectors via its Sagentia Services Division, including MedTech, consumer products, food and beverage, defence and industrial markets, while other units such as CMS2 and Frontier focus on defence systems and connected audio technologies respectively.
Average Trading Volume: 93,405
Technical Sentiment Signal: Buy
Current Market Cap: £242.5M
See more insights into SAG stock on TipRanks’ Stock Analysis page.