Cohort (CHRT) H2 2026 Pre recorded earnings summary

Executive summary

• Marked 20th anniversary as a listed company, achieving record revenue of GBP 306.4 million and record adjusted operating profit of GBP 36.3 million, both ahead of expectations, driven by strong Communications and Intelligence performance.

• Robust order intake of GBP 314.2 million resulted in a record order book of GBP 618.8 million, providing visibility of future revenues out to 2037 and underpinning 88% of next year's revenue.

• 20th consecutive year of dividend increase, with a full-year dividend recommended at GBP 0.179 per share, up 10% year-over-year.

Financial highlights

• Revenue increased to GBP 306.4 million, up 13% year-over-year, with adjusted operating profit up 32% to GBP 36.3 million.

• Adjusted EPS increased 14% to 61.9p; gross margin improved to 34.1% and operating margin to 11.8%.

• Operating cash flow was GBP 11.1 million, down 78% from the previous year, and net funds at year-end were GBP 2.2 million.

• Dividend per share increased by 10% to 17.9p.

Outlook and guidance

• Strong demand outlook driven by deteriorating global security and increased defense spending, with the order book underpinning 88% of next year's revenue and GBP 263.7 million scheduled for delivery.

• Targeting double-digit earnings growth for the next three years and mid-teen net margin by 2030.

• Maintaining a strong balance sheet with leverage below 1x.