Chemring Group PLC (CHG), the FTSE-250 defence, security and aerospace manufacturer, has released a post-close trading update for the year ended 31 October 2026, revealing a record order book of £1.4 billion and several significant contract wins across its Energetics, Countermeasures, and Sensors & Information divisions. Subject to audit, the Board expects FY26 underlying operating profit of approximately £79 million, broadly in line with analyst consensus. Alongside the trading update, Chemring has initiated a sale process for its US Sensors business, CSES, and flagged potential non-cash impairment charges of approximately £50 million related to restructuring at its US Countermeasures unit, Kilgore Flares. Full year results are scheduled for 8 December 2026.

Key Points

  • Chemring Group PLC (CHG) — FTSE-250 global defence, security and aerospace manufacturer
  • Record order book of £1.4 billion at 31 October 2026, up from £1.3 billion a year earlier
  • FY26 underlying operating profit expected at approximately £79 million (subject to audit); net debt approximately £145 million; FY27 material earnings growth outlook maintained
  • Investors should watch the 8 December 2026 full year results, the US Sensors sale process, and progress on the Norwegian explosives facility feasibility study

Chemring's £1.4bn Record Order Book and FY26 Underlying Operating Profit Guidance of c.£79 Million

Chemring's order book grew to a record £1.4 billion by 31 October 2026, up from £1.3 billion twelve months earlier, reflecting strong demand across its core defence markets. The Board expects FY26 underlying operating profit of approximately £79 million, with the second half alone delivering in excess of £50 million. Net debt stood at approximately £145 million, an improvement on expectations that the company attributes largely to the timing of capital expenditure. The Board confirmed that its expectations of material earnings growth in FY27 remain unchanged, supported by an order book weighted toward scheduled deliveries and a more balanced first-half and second-half contribution anticipated for the coming year.

CEUK Seven-Year MOD Framework, CCM UK £120 Million Agreement, and Roke's US$170 Million Radar Altimeter Deal

Three significant contract wins were disclosed across Chemring's business segments. Chemring Energetics UK secured a seven-year sole-source framework with the UK Ministry of Defence worth up to £100 million for demolition stores and explosives, alongside an initial £23 million three-year production contract and a separate £10 million contract with Kongsberg for Naval Strike Missile components, both delivered from Ardeer, Scotland. Chemring Countermeasures UK secured a sole-source UK MOD framework worth up to £120 million running to March 2031. Roke signed a five-year agreement with a major US prime contractor for its Miniature Radar Altimeter, expected to be worth at least US$170 million, with deliveries commencing October 2026.

Sale Process Initiated for CSES, the Sole-Source US Biological Warfare Agent Detector Supplier

Following a strategic review, Chemring's Board has decided to initiate a sale process for Chemring Sensors and Electronic Systems, its US Sensors business and the sole-source supplier of biological warfare agent detectors to the US Department of Defense. The Board concluded that CSES would be better positioned within a broader CBRNE detection portfolio, which Chemring does not intend to build. CSES will be reclassified as a held-for-sale asset and reported as a discontinued operation. The announcement notes there may be non-underlying and non-cash provisions arising from the reclassification, with further detail to follow at the full year results on 8 December 2026.

Kilgore Flares Restructuring Nears Completion as Norwegian Explosives Facility Advances Towards 2027 Decision

Restructuring at Kilgore Flares, Chemring's US Countermeasures business, has progressed with all legacy facilities now closed and operations consolidated into a fully automated facility. The process may result in a non-cash impairment charge of approximately £50 million and exceptional cash costs of approximately £3.5 million. Separately, the feasibility study for a new military explosives facility in Norway is advancing, with the Norwegian Government's proposed 2027 State Budget including an additional NOK 186 million (£15 million) of support, which would bring total funding to NOK 390 million (£31 million). A potential investment decision is targeted during 2027, with existing capacity expansion projects in Scotland and Norway expected to enter production in 2027 and 2028 respectively.