CHEMRING GROUP PLC
(“Chemring”, “the Group” or “the Company”)
RESULTS FOR THE YEAR ENDED 31 OCTOBER 2025
Resilient performance, delivering the plan, record order book and robust outlook
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As reported
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At 2024 exchange rates
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|
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2025
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Change
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2025
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Change
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2024
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Continuing operations
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|
|
|
|
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Revenue (£m)
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497.5
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+2%
|
502.2
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+3%
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488.3
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Underlying EBITDA (£m)
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98.6
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+8%
|
99.7
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+9%
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91.5
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Underlying operating profit (£m)
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73.5
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+6%
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74.3
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+7%
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69.6
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Underlying diluted earnings per share (pence)
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19.4
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+3%
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19.7
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+4%
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18.9
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Profit before tax (£m)
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67.7
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+31%
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51.8
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Dividend per share (pence)
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8.0
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+3%
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7.8
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Net debt at 31 October (£m)
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89.0
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88.7
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52.8
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Order intake (£m)
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781.4
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+21%
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792.0
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+22%
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649.0
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Order book at 31 October (£m)
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1,345.4
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+32%
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1,318.0
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+29%
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1,022.4
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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
Michael Ord, Group Chief Executive, commented:
“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 £1 billion by 2030.”
Notes:
* All profit and earnings per share figures in this news release relate to underlying business performance (as defined below) from continuing operations unless otherwise stated.
The principal alternative performance measures (“APMs”) presented are the underlying measures of earnings which exclude: exceptional items, gain or loss on the movement on the fair value of derivative financial instruments, the amortisation of acquired intangibles and the associated tax impact on these items. The directors believe that these APMs assist with the comparability of information between reporting periods as well as reflect the key performance indicators used within the business to measure performance. The term underlying is not defined under IFRS and may not be comparable with similarly titled measures used by other companies.
A reconciliation of underlying measures to statutory measures is provided below:
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Group – continuing operations:
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Underlying
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Non-underlying
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Statutory
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EBITDA (£m)
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98.6
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1.6
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100.2
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Operating profit (£m)
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73.5
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(0.1)
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73.4
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Profit before tax (£m)
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67.8
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(0.1)
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67.7
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Tax charge (£m)
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(14.2)
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(0.2)
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(14.4)
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Profit after tax (£m)
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53.6
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(0.3)
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53.3
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Basic earnings per share (pence)
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19.8
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(0.1)
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19.7
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Diluted earnings per share (pence)
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19.4
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(0.1)
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19.3
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Group – discontinued operations:
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Loss after tax (£m)
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(2.3)
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(2.8)
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(5.1)
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Segments – continuing operations:
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Sensors & Information EBITDA (£m)
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38.2
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(5.4)
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32.8
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Sensors & Information operating profit (£m)
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31.2
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(6.3)
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24.9
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Countermeasures & Energetics EBITDA (£m)
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79.7
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0.2
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79.9
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Countermeasures & Energetics operating profit (£m)
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61.6
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(0.6)
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61.0
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The adjustments comprise:
- amortisation of acquired intangibles of £1.7m (2024: £2.0m)
- costs relating to acquisitions, including deferred consideration treated as an expense under IFRS 2, remuneration for continued employment of former owners under IFRS 3 and professional fees incurred relating to acquisitions, of £3.0m (2024: £3.4m)
- costs relating to the defined benefit pension buy-in and buy-out transaction £0.4m (2023: £7.5m)
- costs relating to changes in senior management positions £nil (2024: £1.2m)
- business restructuring at Roke £2.5m (2024: £nil)
- release of legal and disposal provisions £0.2m (2024: £3.1m)
- gain on the movement in the fair value of derivative financial instruments of £7.3m (2024: £2.0m loss)
- tax impact of the adjustments above: £0.2m charge (2024: £1.7m credit)
- discontinued operations in relation to EHD business, Alloy Surfaces Company, Inc. and other discontinued operations: £5.1m (2024: £2.0m)
Further details are provided in note 3.
EBITDA is defined as profit before interest, tax, depreciation and amortisation. Reference to constant currency relates to the re-translation of 2025 financial information at the 2024 exchange rates to reflect the movement excluding the impact of foreign exchange. The exchange rates applied are disclosed in note 11.
For further information:
| Rupert Pittman |
Group Director of Corporate Affairs, Chemring Group PLC |
01794 463401 |
James McFarlane
|
MHP |
07584 142665 |
Cautionary statement
This announcement may contain forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could, is confident, or other words of similar meaning. Undue reliance should not be placed on any such statements because they speak only as at the date of this document and, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and Chemring's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. There are a number of factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are: increased competition, the loss of or damage to one or more key customer relationships, changes to customer ordering patterns, delays in obtaining customer approvals for engineering or price level changes, the failure of one or more key suppliers, the outcome of business or industry restructuring, the outcome of any litigation, changes in economic conditions, currency fluctuations, changes in interest and tax rates, changes in raw material or energy market prices, changes in laws, regulations or regulatory policies, developments in legal or public policy doctrines, technological developments, the failure to retain key management, or the key timing and success of future acquisition opportunities or major investment projects. Chemring undertakes no obligation to revise or update any forward-looking statement contained within this announcement, regardless of whether those statements are affected as a result of new information, future events or otherwise, save as required by law and regulations.
Notes to editors
- Chemring is a global business that specialises in the manufacture of high technology products and the provision of services to the aerospace, defence and security markets
- Employing approximately 2,700 people worldwide, and with production facilities in four countries, Chemring meets the needs of customers in more than fifty countries
- Chemring is organised under two strategic product segments: Sensors & Information and Countermeasures & Energetics
- Chemring has a diverse portfolio of products that deliver high reliability solutions to protect people, platforms, missions and information against constantly changing threats
- Operating in niche markets and with strong investment in research and development (“R&D”), Chemring has the agility to rapidly react to urgent customer needs
www.chemring.com
Analyst meeting
An analyst meeting will take place at 09.00 (UK time) on Tuesday 9 December 2025 at the offices of Investec Bank plc, 30 Gresham St, London EC2V 7QP. To confirm attendance please contact MHP: [email protected] / 07817 458804
Presentation
The presentation slides and a live audio webcast of the presentation to analysts will be available at the Chemring Group results centre www.chemring.com/investors/results-centre at 09.00 (UK time) on Tuesday 9 December 2025.
Photography
Original high resolution photography is available to the media by contacting MHP : [email protected] / 07817 458804
View the full press release in PDF format.