Cohort (CHRT) H2 2025 earnings summary

Executive summary

• Achieved record revenue of £270.0m, up 33% year-over-year, and record adjusted operating profit of £27.5m, up 30%, with adjusted EPS rising 27% to 54.44p, all ahead of expectations.

• Order book reached a record £616.4m, providing strong visibility out to 2037 and covering 79% of expected revenue for the coming year.

• Robust operating cash flow of £51.2m and net funds of £5.3m at year-end, despite acquisitions and CapEx.

• Board declared a final dividend of £0.1105, bringing the total dividend to £0.163 (16.30p), a 10% increase year-over-year and the fifth consecutive annual increase.

• Achieved record operating profit, revenue, and closing order book, reflecting strong business momentum and successful execution of strategy.

Financial highlights

• Revenue grew 33% to £270.0m, adjusted operating profit increased 30% to £27.5m, and adjusted EPS rose 27% to 54.44p.

• Operating cash flow more than doubled to £51.2m, supporting a positive net cash position.

• Net margin slightly declined from 10.4% to 10.2% due to revenue mix, but is expected to rebound above 11% next year.

• Sensors and Effectors division revenue up over 20% to £145.1m, with SEA achieving record performance and ELAC improving revenue and margins.

• Communications and Intelligence division revenue grew 50% to £124.9m, with a 65% increase in adjusted operating profit, driven by MCL and EM Solutions.

Outlook and guidance

• Strong order book underpins revenue for 2025/26, with over 90% cover in Sensors and Effectors.

• Net margin for Sensors and Effectors expected to recover to 11% as SEA's mix improves and Chess recovers.

• Full-year contribution from EM Solutions anticipated to drive higher revenue and margins in Communications and Intelligence.

• Adjusted EPS for 2025 and 2026 now expected to be ahead of previous guidance.

• Strong demand outlook driven by increased global defense spending and robust pipelines across divisions, especially in NATO and Asia-Pacific markets.