Webcast

On 9 December 2025 we announced our full year results.

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Press Release

Full year results for the six months to 31 October 2025

Results Presentation

Results for the year ended 31 October 2025

Annual Report

Annual Report and Accounts 2025

Full Year Results 2025

Highlights

  • Resilient revenue growth of 2% with continued strong momentum in Countermeasures & Energetics, offset by softness in Sensors & Information due to short-term delays in UK Government spending
  • Underlying operating profit margin of 14.8% (2024: 14.3%) reflecting a focus on operational excellence, and Energetics expansion programmes delivering ahead of schedule 
  • Improved cash conversion of 114% (2024: 103%) with continued focus on working capital 
  • Net debt was £89.0m (2024: £52.8m), driven by capital investment. Net debt to underlying EBITDA of 0.90x (2024: 0.58x)
  • Another record order book of £1,345m, providing excellent medium-term revenue visibility 
  • Good progress made on capital projects to date with completed programmes delivering ahead of expectations
  • Acquisition of Landguard systems to further enhance and accelerate growth in Roke 
  • The Board’s expectations for the Group’s 2026 operating performance remains unchanged. Higher capex and finance charges now expected as a result of increased investment in Norway 
  • Approximately 76% (2024: 77%) of expected 2026 revenue is already covered by the order book

Group Chief Executive statement

“2025 has been another year of progress, delivering improved shareholder returns supported by strong margins and robust cash conversion. This performance reflects our commitment to building a resilient, high-quality Group.

Momentum in Countermeasures & Energetics continued during the year, partially offset by short-term softness in Sensors & Information due to delays in UK Government spending. Looking ahead, our record order book demonstrates that customer priorities remain aligned with Chemring’s market-leading products and services. 

The outlook for sustained defence spending remains strong. Growing geopolitical uncertainty is driving increased expenditure across our target markets, particularly within NATO, and Chemring is well positioned to capitalise on this demand, which we expect to persist well into the next decade.

We have created a strong, sustainable platform for growth and remain committed to our ambition of doubling annual revenue to approximately £1billion by 2030.”

Current trading and outlook

The Group order book as at 31 October 2025 was £1,345m, of which £431m is currently expected to be recognised as revenue in 2026, giving 76% order cover, which provides excellent visibility for the full year. This leaves £914m of the order book to be delivered in 2027 and beyond. Trading since the start of the current financial year is in line with our plans and the Board’s expectations for the Group’s 2026 operating performance remains unchanged. In 2026 gross capex is now expected to be higher at £100-110m (offset by grants of c.£15m), mainly resulting from higher costs in Norway, with an increased finance expense as a result. Cash conversion is expected to be in the range of 80-85%. A similar H2 weighting to the Group’s results as in 2025 is expected in 2026.

With market-leading technologies and services that are critical to our customers, our niche market positions and our strong balance sheet, the Board remains confident that we will continue to grow in the future, delivering both robust organic and inorganic growth whilst balancing near-term performance with longer-term growth and value creation.