Chemring Group (CHG) Trading Update summary

Trading performance and outlook

• Trading progressed as planned, with strong order intake and FY24 performance expected in line with analyst expectations despite FX headwinds.

• FY24 revenue is fully covered by orders, and order book at 30 September 2024 reached £1,108m, up from £869m a year earlier.

• Order intake for the year to date was £638m, compared to £604m in the prior year.

• Order cover for FY25 revenue is robust: 95% for Countermeasures & Energetics and 47% for Sensors & Information.

• Ambition to increase annual revenue to around £1bn by 2030 is supported by current order trends.

Countermeasures & Energetics segment

• Energetics businesses saw order intake rise 32% to £319m, reflecting strong demand and justifying capacity expansion.

• Chemring Nobel in Norway expects a record order book, with £19.5m received from a £90m EU grant for capacity expansion.

• Norwegian government and Chemring Nobel launched a feasibility study for a new explosives production facility, to conclude by year-end.

• US operations secured over $20m in orders, including contracts with United Launch Alliance and Boeing.

• UK Countermeasures business received significant orders, including £36m for Typhoon countermeasures and £8m from MBDA USA.

Sensors & Information segment

• Roke secured £10.5m in orders for its Resolve 3 electronic warfare system from Lithuania, Latvia, and UAE.

• Roke was selected for research funding in the AUKUS Innovation Challenge for electromagnetic spectrum technology.

• US Sensors completed deliveries under the JBTDS contract and is progressing on the EMBD program.

• Full Rate Production contract for JBTDS expected in FY2026.