Chemring Group (CHG) Q4 2025 TU earnings summary

Executive summary

• FY25 adjusted operating profit expected in line with analyst consensus, with adjusted EPS benefiting from lower finance costs.

• Robust growth outlook maintained, supported by strong order intake and significant contract wins across all segments.

• Alloy Surfaces to be reported as a discontinued operation due to declining US DoD demand and expected to report a loss of £3m with several one-off costs.

• Landguard Group acquisition completed, enhancing growth opportunities for the Roke business.

Financial highlights

• Adjusted operating margin expected at approximately 14.7%, up from 14.2% in FY24, driven by strong Energetics performance.

• Net debt as of 31 October 2025 expected to be around £95m.

• Order intake for FY25 was approximately £781m, up from £648m in FY24.

• Order book at year-end reached £1.3bn, compared to £1.0bn the previous year.

Outlook and guidance

• Strong market conditions and increasing customer demand for technology-driven and traditional defence solutions expected to continue.

• Order cover for FY26 building, with Countermeasures & Energetics at 95% and Sensors & Information at 47% of expected revenue.

• Full year results for FY25 to be released on 9 December 2025.