Cohort (CHRT) H1 2026 earnings summary

Executive summary

• Revenue increased 9% year-over-year to a record £128.8m for the first half, with profits in line with expectations and a robust order book covering up to 96% of full-year revenue forecasts.

• Adjusted operating profit declined to £9.7m from £10.1m, mainly due to margin mix in Sensors and Effectors, but full-year expectations remain unchanged.

• EM Solutions made a significant maiden contribution, offsetting declines at MCL and becoming the largest profit contributor.

• Interim dividend increased by 10% to 5.80p per share, reflecting board confidence in growth prospects.

• Net debt at period end was £32.5m, due to planned capex and working capital build ahead of record H2 deliveries.

Financial highlights

• Adjusted earnings per share for the six months decreased to 16.16p from 20.00p; effective tax rate was 15.5%–16.8%.

• Operating cash outflow of £27.9m due to working capital build and capital expenditure.

• Capital expenditure included £7m on ELAC's new facility, with total project spend of £21m over three years.

• Order intake was £122.3m, maintaining a robust order book of £604.5m.

• Interim dividend increased by 10% to 5.80p.

Outlook and guidance

• Full-year expectations for revenue and profit remain unchanged, with a much stronger second half anticipated.

• Order book covers 96% of consensus forecast revenue for the full year.

• Net funds at year-end expected to be £10m–£15m, in line with previous guidance.

• Full-year net margin expected around 12%.

• Medium-term organic growth outlook is positive, underpinned by strong demand in core defence markets.