Image source: © 2025 Krish Capital Pty. Ltd.

Highlights:

  • CHRT delivered record revenue of GBP 270.0 million and adjusted operating profit of GBP 27.5 million in FY25.
  • Cohort’s order book grew to GBP 616.4 million, supporting 79% of FY26 revenue expectations.
  • Cohort completed the EM Solutions acquisition, contributing positively within the first quarter post-close.

Cohort plc (AIM:CHRT), a UK-based defence technology group, has announced results for the financial year ended 30 April 2025 (FY25), delivering its highest-ever revenue, adjusted operating profit, and closing order book. The group also exceeded market expectations on adjusted earnings per share (EPS) and year-end net funds. Adjusted operating profit for the year rose to GBP 27.5 million, a 30% increase from GBP 21.1 million in FY24. This was achieved on a 33% increase in revenue to GBP 270.0 million, supported by recent contract wins and acquisitions. The company’s underlying order intake (excluding a GBP 135 million long-term Royal Navy contract secured in FY24) grew by 11%. This contributed to a closing order book of GBP 616.4 million, the highest in the company’s history, with scheduled deliveries extending into the mid-2030s. As of the FY25 close, the order book underpins approximately 79% of current consensus revenue estimates for FY26.

Cohort’s adjusted EPS performance surpassed initial forecasts, with the Board now expecting the FY26 figure to be ahead of prior expectations. The full-year dividend grew 10%, continuing an uninterrupted streak of annual increases since the company’s IPO in 2006. The acquisition of EM Solutions, an Australian provider of advanced communications systems, was completed on 31 January 2025 for an enterprise value of GBP 75 million. In its first three months under Cohort’s ownership, EM Solutions has contributed positively to the Group’s Communications and Intelligence division, further supporting revenue growth and diversification. As of 30 April 2025, the Group reported a healthy net funds position, enabling continued investment in research and development, select bolt-on acquisitions, and organic initiatives. Operating cash generation was described as stable and aligned with reported profitability.

The outlook for FY26 remains positive, underpinned by the substantial closing order book and a healthy pipeline of bidding opportunities. The UK Strategic Defence Review is expected to generate additional demand across the domestic defence sector, particularly for mid-tier suppliers. Cohort is observing increased demand for advanced defence technologies and services globally, as geopolitical uncertainty and evolving security requirements shape procurement trends.

The company expects this environment to continue to drive activity within its areas of specialisation. In addition to demand-led growth, the Group reiterated its aim to improve net margins to a low- to mid-teens percentage range over the medium term. The progress made in FY25 combined with the integration of EM Solutions and continued investment in operational capabilities has laid a foundation for this margin trajectory. The Group also confirmed it is assessing additional third-party technology opportunities that could further expand its product portfolio, either through internal development or external collaboration.

Nick Prest CBE, Chairman of Cohort plc, noted that the company’s performance reflects both recent operational initiatives and its ongoing role in meeting the needs of defence clients in the UK and allied nations. He highlighted the significance of the record order book, investment-led growth approach, and market relevance of Cohort’s offerings in a changing global security landscape. 

CHRT trading at 8.96% higher at GBX 1,678.00 per share as on 16 July 2025.