Cohort (CHRT) H2 2026 earnings summary

Executive summary

• Achieved record revenue of £306.4 million and adjusted operating profit up 32% to £36.3 million, both ahead of expectations for the year ended 30 April 2026.

• Order intake reached £314.2 million, exceeding revenue, with a year-end order book of nearly £620 million, providing strong visibility through 2037.

• Dividend increased by 10% to 17.9p, marking the 20th consecutive year of annual increases.

• Strong demand across both Communications and Intelligence and Sensors and Effectors divisions, with robust international growth and trading performance surpassing consensus expectations.

Financial highlights

• Communications and Intelligence division revenue rose 27% to £158.9 million, with adjusted operating profit up over 50% to £32.4 million and margin at 20.4%.

• Sensors and Effectors revenue was flat at £147.5 million; profitability declined due to the disposal of a high-margin, non-core transport business.

• Net funds position improved from net debt of £32.5 million at half-year to positive £2.2 million at year-end, reflecting timing of working capital.

• Adjusted EPS increased 14% to 61.9p.

• Operating cash flow was £11.1 million, down from £51.2 million in 2025.

Outlook and guidance

• Order book underpins 88% of expected revenue for 2026/2027, supporting high revenue visibility.

• Targeting mid-teen net margins and double-digit annual earnings growth through 2029 via organic growth and operational leverage.

• Net margin aim remains mid-teen % by 2030; leverage to be maintained below 1x.

• Expecting to generate £140 million cash from operations over three years, with £60 million reinvested and £30 million returned as dividends.

• Remaining £50 million plus new bank facility available for strategic acquisitions.