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Dialight
(LSE:DIA)
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Rating:67Neutral
Price Target:
621.00 p
â–²(15.43% Upside)
Action:Reiterated
Date:07/24/26
The score is driven primarily by improving financial performance—especially strong 2026 cash flow and a return to profitability—supported by a clear positive technical trend with constructive momentum. These positives are tempered by weaker valuation signals due to the negative P/E and the absence of dividend yield data, plus the recent revenue decline and the prior loss-making period.
Positive Factors
Strong Recent Cash Generation
The latest period shows strong conversion of business activity into cash, giving Dialight greater capacity to fund operations, manage obligations, and reinvest without relying as heavily on external financing. This materially strengthens financial resilience over the next several quarters.
Negative Factors
Recent Revenue Contraction
The latest revenue decline shows that demand and shipment patterns remain uneven despite the earlier rebound. A contracting top line can reduce operating leverage, limit the ability to grow earnings, and make the recent return to profitability harder to sustain over multiple periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Recent Cash Generation
The latest period shows strong conversion of business activity into cash, giving Dialight greater capacity to fund operations, manage obligations, and reinvest without relying as heavily on external financing. This materially strengthens financial resilience over the next several quarters.
Read all positive factors
Dialight (DIA) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£230.88M
Dividend Yield1.6%
Average Volume (3M)68.97K
Price to Earnings (P/E)―
Beta (1Y)1.03
Revenue Growth-13.43%
EPS GrowthN/A
CountryUK
Employees737
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.41
Shares Outstanding40,406,483
10 Day Avg. Volume67,608
30 Day Avg. Volume68,973
Financial Highlights & Ratios
PEG Ratio-2.72
Price to Book (P/B)2.41
Price to Sales (P/S)0.68
P/FCF Ratio3.91
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.19
Revenue Forecast (FY)£129.69M
Dialight Business Overview & Revenue Model
Company Description
Dialight plc, alongside its various subsidiaries, specializes in the development, production, and distribution of LED lighting solutions primarily designed for challenging industrial and hazardous settings. The company serves clients across North ...
How the Company Makes Money
Dialight makes money primarily by selling industrial LED lighting products and associated components into hazardous and harsh-environment end markets. Its core revenue stream is product sales (luminaires/fixtures and related industrial lighting ha...
Dialight Earnings Call Summary
Earnings Call Date:Nov 11, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a period of significant internal improvements and financial recovery for Dialight, with reductions in complexity, increased profitability, and successful cash generation. However, the external market conditions, including tariffs and revenue decline, continue to pose challenges.Positive Updates
Reduction in SKU Complexity
The company reduced the number of SKUs by 83% over the last 18 months, leading to improved efficiency in manufacturing and better demand planning.
Negative Updates
Revenue Decline
The company's revenue declined year-on-year due to tariff impacts and the global economic climate, with a 4% decrease in overall volumes.
Read all updates
Q2-2026 Updates
Positive
Negative
Reduction in SKU Complexity
The company reduced the number of SKUs by 83% over the last 18 months, leading to improved efficiency in manufacturing and better demand planning.
Read all positive updates
Company Guidance
In the recent Dialight plc call, the company provided guidance on several key metrics and strategic initiatives. Stephen Blair, CEO, highlighted the transformation plan aimed at improving profitability and cash generation. The company has reduced SKU complexity by 83%, enhancing efficiency and demand planning. Despite a 4% decline in overall revenue due to tariff impacts and economic uncertainties, the Signals and Components segment grew by 10%, with a 20% increase in components linked to data centers and AI. Dialight's gross margin improved by 230 basis points to 35.3%, with a focus on higher-margin SKUs. Operating profit reached $5.5 million, up from $4.2 million the previous year, while net debt decreased to around $8.5 million. The company aims to eliminate bank debt by next year, targeting a 25%+ return on assets and a gross margin of 45%. The ongoing transformation is expected to yield full benefits by the 2027 financial year, positioning Dialight for future growth.Dialight Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
63
Positive
Cash Flow
74
Positive
| Breakdown | Mar 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 164.23M | 229.58M | 143.28M | 169.70M | 131.60M |
| Gross Profit | 61.79M | 83.20M | 42.86M | 50.20M | 43.50M |
| EBITDA | 18.50M | -3.75M | -9.49M | 14.10M | 13.30M |
| Net Income | 400.00K | -13.80M | -20.60M | 400.00K | 100.00K |
Balance Sheet | |||||
| Total Assets | 100.92M | 131.90M | 139.65M | 144.40M | 125.60M |
| Cash, Cash Equivalents and Short-Term Investments | 7.07M | 7.90M | 9.11M | 1.65M | 1.20M |
| Total Debt | 17.24M | 35.70M | 30.11M | 33.90M | 28.90M |
| Total Liabilities | 54.00M | 84.60M | 60.62M | 75.70M | 65.40M |
| Stockholders Equity | 46.43M | 46.90M | 50.48M | 68.50M | 59.60M |
Cash Flow | |||||
| Free Cash Flow | 28.63M | -100.00K | 3.30M | -3.20M | -1.60M |
| Operating Cash Flow | 30.80M | 7.90M | 4.18M | 4.00M | 4.00M |
| Investing Cash Flow | -4.23M | -2.80M | -5.41M | -7.30M | -5.60M |
| Financing Cash Flow | -26.76M | -8.70M | 7.40M | 2.20M | -2.20M |
Dialight Technical Analysis
Positive
538.00
Price Trends
543.92
Positive
468.71
Positive
388.63
Positive
Market Momentum
11.28
Positive
54.33
Neutral
44.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DIA, the sentiment is Positive. The current price of 538 is below the 20-day moving average (MA) of 566.60, below the 50-day MA of 543.92, and above the 200-day MA of 388.63, indicating a bullish trend. The MACD of 11.28 indicates Positive momentum. The RSI at 54.33 is Neutral, neither overbought nor oversold. The STOCH value of 44.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DIA.
Dialight Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | £293.60M | 10.90 | 14.19% | 2.69% | -1.30% | 10.28% | |
74 Outperform | £322.12M | 15.79 | 19.62% | 3.03% | 11.48% | 46.33% | |
71 Outperform | £1.24B | 25.57 | 15.29% | 0.71% | 8.85% | 29.67% | |
67 Neutral | £230.88M | -18.44 | 14.71% | 1.60% | -13.43% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | £571.44M | -63.97 | -4.89% | 0.04% | -1.21% | 46.27% | |
48 Neutral | £11.56M | 50.29 | 1.42% | 1.29% | 19.87% | ― |
* Industrials Sector Average
GB:DIA
Dialight
572.00
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136.36%
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Dialight Corporate Events
Business Operations and Strategy
Dialight Trust Boosts Stake to Support Employee Share Schemes
Positive
Oct 2, 2026
Dialight’s Employee Share Ownership Plan Trust has purchased 50,000 ordinary shares at 570 pence each, bringing its total holding to 573,703 shares, or 1.42% of the company’s voting rights. The shares will be used to settle awards unde...
Business Operations and Strategy
Dialight Trust Boosts Share Holdings to Support Employee Incentive Plans
Positive
Sep 25, 2026
Dialight plc has reported that its Employee Share Ownership Plan Trust has purchased 100,000 ordinary shares at 554 pence each, lifting the Trust’s holding to 523,703 shares, or 1.30% of the company’s voting rights. The shares are earm...
Business Operations and Strategy
Dialight Expands Employee Share Trust with Additional 100,000 Shares
Positive
Sep 18, 2026
Dialight has disclosed that its Employee’s Share Ownership Plan Trust has acquired 100,000 ordinary shares at 566 pence each, following a previously announced share purchase programme. The newly acquired shares are earmarked to satisfy futur...
Business Operations and Strategy
Dialight Trust Boosts Stake to Fund Employee Share Awards
Positive
Sep 11, 2026
Dialight plc has reported that its Employee Share Ownership Plan Trust has purchased 100,000 ordinary shares at 565 pence each, as part of a previously announced share acquisition programme. The transaction brings the Trust’s holding to 323,...
Business Operations and Strategy
Dialight Expands Employee Trust Stake to Support Share-Based Incentives
Positive
Sep 4, 2026
Dialight plc has expanded the holdings of its Employee’s Share Ownership Plan Trust with the purchase of 15,000 ordinary shares at 580 pence each, bringing the Trust’s position to 223,703 shares, equivalent to 0.55% of the company̵...
Business Operations and StrategyStock BuybackShareholder Meetings
Dialight Investors Back All AGM Resolutions Amid Dissent on Political Donations and Share Issuance
Neutral
Sep 1, 2026
Dialight shareholders approved all resolutions at the company’s 2026 annual general meeting in London, including the receipt of the report and accounts, reappointment of Grant Thornton as auditor, and the re-election of the entire board. Inv...
Business Operations and StrategyFinancial DisclosuresShareholder Meetings
Dialight lifts profit outlook as strong industrial LED demand boosts margins
Positive
Sep 1, 2026
Dialight plc, a UK-headquartered manufacturer of sustainable LED lighting for heavy industrial markets and opto-electronic components, supplies energy-efficient, durable solutions aimed at improving workplace safety and lowering maintenance costs....
Business Operations and Strategy
Dialight Trust Increases Stake to Support Employee Share Plans
Positive
Aug 21, 2026
Dialight’s Employee Share Ownership Plan Trust has purchased 15,000 ordinary shares at 536 pence each, bringing its total holding to 208,703 shares, or about 0.52% of the company’s voting rights. The shares will be used to settle award...
Business Operations and Strategy
Dialight Boosts Employee Trust Stake With Targeted Share Purchase
Positive
Aug 14, 2026
Dialight plc has expanded the holdings of its Employee’s Share Ownership Plan Trust with the purchase of 15,000 ordinary shares at 520 pence each, bringing the Trust’s stake to 193,703 shares, or 0.48% of current voting rights. The sha...
Business Operations and Strategy
Dialight boosts employee trust holding with new share purchase
Positive
Aug 7, 2026
Dialight has disclosed that its Employee Share Ownership Plan Trust has acquired 15,000 ordinary shares at 478 pence each, following a previously announced share purchase programme. The move increases the Trust’s holding to 178,703 shares, e...
Business Operations and Strategy
Dialight Trust Boosts Stake to Fund Employee Share Awards
Positive
Jul 31, 2026
Dialight plc has disclosed that its Employee’s Share Ownership Plan Trust has purchased 15,000 ordinary shares at 500 pence each, lifting the Trust’s holding to 163,703 shares, or 0.41% of the company’s voting rights. The shares ...
Business Operations and StrategyRegulatory Filings and Compliance
Dialight Corrects EBT Stake as Share Trust Begins Planned Purchases
Neutral
Jul 28, 2026
Dialight plc has corrected a previous disclosure, clarifying that its Employee Benefit Trust holds 148,703 ordinary shares, representing 0.37% of the company’s current voting rights rather than the 0.42% previously stated. The trust, adminis...
Business Operations and Strategy
Dialight Expands Employee Share Trust to Support Incentive Plans
Positive
Jul 27, 2026
Dialight plc has announced that Equiniti Trust (Jersey) Limited, as trustee of the company’s Employee Share Ownership Plan Trust, will begin a planned programme to purchase ordinary shares in the business. The acquired shares are intended to...
Business Operations and StrategyRegulatory Filings and Compliance
Dialight CEO Boosts Stake in Industrial LED Specialist
Positive
Jul 22, 2026
Dialight plc has disclosed that its chief executive, Steve Blair, has increased his personal holding in the company by purchasing 6,750 ordinary shares at 440 pence each on the London Stock Exchange. Following this transaction, Blair now owns 118,...
Business Operations and StrategyFinancial Disclosures
Dialight Lifts Profit Outlook After Strong First‑Quarter Trading
Positive
Jul 22, 2026
Dialight has issued a corrected first‑quarter trading update, clarifying a typographical error in its earlier release while confirming that operational figures remain unchanged. The company reported that first‑quarter sales growth exce...
Business Operations and StrategyFinancial Disclosures
Dialight Beats Q1 Targets, Lifts Profit Outlook as Margins and Cash Improve
Positive
Jul 22, 2026
Dialight reported a strong start to its 2026/27 financial year, delivering first-quarter sales growth that comfortably exceeded its prior guidance of 3–5% plus. The performance was underpinned by a robust and growing backlog, building on mom...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Dialight Publishes 2026 Annual Report and Sets AGM Date
Neutral
Jul 13, 2026
Dialight has released its 2026 Annual Report and Accounts alongside the formal notice and voting materials for its upcoming Annual General Meeting, following its preliminary full-year results in June. The documents are available online and via the...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.