Chemring Group (CHG) H1 2025 earnings summary

Executive summary

• Record order intake of £488m and order book of £1,304m, up 42% and 25% year-over-year, providing strong trading visibility and medium-term revenue coverage.

• Revenue increased 5% to £234.3m and operating profit rose 8% to £27.1m, with margin improving to 11.6%.

• EPS up 3% to 6.8p; interim dividend per share up 4% to 2.7p.

• Board expectations for the full year remain unchanged, with 85% of FY2025 revenue already covered by orders.

• Strategic investments and strong cash conversion support long-term growth ambitions, targeting £1bn annual revenue by 2030.

Financial highlights

• Revenue up 5% year-over-year to £234.3m; operating profit up 8% to £27.1m; group operating margin improved to 11.6%.

• Order intake up 42% year-over-year; order book up 25% to a record £1,304m.

• Underlying EBITDA up 12% to £39.8m; underlying profit before tax up 6% to £24.1m.

• Cash conversion at 80%; net debt at £93.3m, with leverage at 0.95x EBITDA.

• Interim dividend declared at 2.7p, up 4%; £17m returned to shareholders.

Outlook and guidance

• FY2025 guidance unchanged; 85% of expected revenue already delivered or in the order book.

• Ambition to reach £1bn annual revenue by 2030 remains on track.

• Countermeasures & Energetics targeting low double-digit growth; Sensors & Information segment targeting flat performance.

• H2 2025 profit phasing expected to mirror 2024; tax rate at 22%, finance costs around £7m.

• Mid-teens margin targeted in the medium term, but unlikely to be achieved in 2025.