Highlights

  • Chemring expects FY25 adjusted operating profit to be in line with analyst expectations.
  • The Group’s order book rose to GBP 1.3bn at 31 October 2025, supported by new contract wins.
  • Significant awards were secured across Energetics, Countermeasures, and Sensors & Information divisions.

Chemring Group PLC (LSE:CHG) has announced its financial and operational update for the year ended 31 October 2025. The company confirmed that adjusted operating profit is expected to be in line with analyst expectations, with adjusted earnings per share benefiting from slightly lower finance costs.

The Group reported an adjusted operating margin of approximately 14.7% (FY24: 14.2%), driven by increased demand in its Energetics division. Net debt at year-end is expected to be around GBP 95 million.

Chemring also confirmed that Alloy Surfaces Company, one of its US countermeasures businesses, will be treated as a discontinued operation as the Group assesses strategic options for its future.

Order Book Growth and Market Outlook

The Group’s order intake for FY25 reached approximately GBP 781 million, compared with GBP 648 million a year earlier. The order book stood at GBP 1.3 billion as of 31 October 2025, up from GBP 1.0 billion in FY24, reflecting strong customer demand.

Chemring stated that order cover for FY26 remains robust, with the Countermeasures & Energetics division having about 95% order cover and the Sensors & Information division around 47%.

The company said it continues to operate in a resilient market environment, supported by growing global demand for its defence and security technologies.

Major Contract Wins Across Divisions

Energetics

Chemring Energetic Devices in the US secured a USD 65 million framework contract and USD 38 million in base-year delivery orders for SCOT and JCAST flight equipment tester systems. The work will be performed in Illinois and is expected to continue until 2030.

In the UK, Chemring Energetics UK won a GBP 24 million contract to deliver rocket motors and components for the Next Generation Light Anti-Tank Weapon (NLAW) system. Deliveries will begin in 2027 and continue into 2028.

Additionally, Chemring Nobel in Norway received a GBP 23 million order from Nammo for HMX energetic materials, with deliveries planned from 2027 to 2037.

Countermeasures

Chemring Australia secured a USD 35 million contract from the Commonwealth of Australia for the manufacture of airborne countermeasures, to be completed by October 2027.
In the UK, Chemring Countermeasures UK won a GBP 15 million order from the NATO Support and Procurement Agency to supply airborne countermeasures, with deliveries scheduled for FY28 and FY29.

Sensors & Information

Roke, Chemring’s Sensors & Information business, continued to expand its order pipeline. The division secured over GBP 40 million in National Security contract renewals and a GBP 20 million contract for the next phase of Project ZODIAC for the British Army. Deliveries began in late FY25 and will continue through FY26, with an extension expected to FY27.

Strategic and Corporate Developments

Chemring completed its acquisition of Landguard Group in August 2025, adding software-defined radio and security system capabilities to the Roke business. The integration is expected to create further operational synergies.

The Group also announced that Fiona MacAulay, Senior Independent Director, will step down at the 2026 Annual General Meeting. A search for her successor is underway.

Chemring will publish its full-year results on 9 December 2025.