Chemring Group (CHG) Trading update summary

Financial performance and order book

• FY26 outlook remains in line with board expectations, with a slightly heavier H2 weighting than the prior year.

• Order book at 30 January 2026 stands at £1,364m, up from £1,351m the previous year.

• Q1 order intake was £122m, compared to £393m in Q1 FY25, reflecting a strong prior year comparator.

• Expected FY26 revenue is 85% covered by Q1 revenues and the current order book, up from 81% the previous year.

• Countermeasures & Energetics sector's FY26 revenue is 96% covered, while Sensors & Information sector is 52% covered.

Operational and strategic developments

• Operational disruption in countermeasures production has been largely resolved, with US facility automation ramping up.

• Legacy operations at the US Kilgore Flares facility are being retired, leading to a non-cash impairment charge.

• Significant investment in Energetics capacity is ongoing, funded by existing debt facilities, with net debt expected to trend higher.

• Norwegian Government is funding up to £16m for a feasibility study on a new military explosives facility, with the study due to conclude by end of 2026.

Sector and contract highlights

• Chemring Countermeasures UK secured £55m in contracts from NATO and non-NATO customers for airborne and naval countermeasures, with deliveries scheduled through FY29.

• Roke received approximately £45m in orders year-to-date, including a £22.5m STORM Missile Defence Centre contract.

• Order intake in the Sensors & Information sector has progressed as expected during the current financial year.