Chemring Group plc (LON:CHG) has announced its interim results for the six months to 30 April 2026.
H1 in-line and FY26 expectations unchanged; record order book underpins medium-term growth
| As reported | At H1 2025 exchange rates | ||||
| H1 2026 | Change | H1 2026 | Change | H1 2025 | |
| Continuing operations | |||||
| Order book (£m) | 1,399.4 | +8% | 1,355.1 | +5% | 1,296.0 |
| Revenue (£m) | 237.3 | +7% | 237.4 | +7% | 222.8 |
| Underlying EBITDA*(£m) | 38.2 | -2% | 37.0 | -5% | 38.8 |
| Underlying operating profit* (£m) | 24.5 | -8% | 23.2 | -12% | 26.5 |
| Underlying diluted earnings per share* (pence) | 6.1 | -8% | 5.7 | -14% | 6.6 |
| Statutory operating profit (£m) | 21.7 | -25% | 19.9 | -31% | 28.9 |
| Interim dividend per share (pence) | 2.8p | +4% | 2.7 | ||
| Net debt at 30 April (£m) | 144.5 | 144.6 | 93.3 | ||
Key highlights
| · Record closing order book of £1.4bn, the highest in the Group’s history, providing strong medium-term revenue visibility |
| · H1 2026 performance was in-line with the Board’s expectations, with revenue up 6.5% and an operating margin of 10.3%· Energetics expansion projects continue at pace, with £44m of capex invested in the period |
| · Net debt was £144.5m, as expected given continued investment in Energetics capacity; net debt to underlying EBITDA on a rolling 12-month basis of 1.47 times (H1 2025: 0.98 times)· Interim dividend per share of 2.8p, up 4% (H1 2025: 2.7p) |
| · The Board’s expectations for 2026 are unchanged, with 91% of the Board’s expected 2026 revenue either delivered or in the order book at 30 April 2026· The Group’s longer-term growth prospects remain strong, underpinned by sustained demand, high barriers to entry and a strong pipeline of opportunities |
Michael Ord, Chemring Group Chief Executive, commented:
“These results reflect strong demand across our core markets, with our order book reaching a new record level. First half performance was in line with our expectations, despite near-term disruption in the UK market, and our full year outlook remains unchanged.
Our energetics expansion programme is progressing at pace, with Chicago complete and ramping production, Scotland progressing through commissioning, and Norway advancing through its next phase. Meanwhile Roke has continued to make further progress as it grows its products business, securing early domestic and international sales of its new counter-drone system.
Against a backdrop of geopolitical instability, a shift towards high‑intensity deterrence and higher defence and national security spending, we continue to invest in the capabilities and capacity our customers need most. Demand in Countermeasures & Energetics remains particularly strong, supported by operational usage, stockpile replenishment and new programmes, and Chemring is well positioned to deliver further growth and long-term value.”
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.
H1 2025 comparative information throughout the RNS has been re-presented to reclassify an operation which was discontinued in the year to 31 October 2025. See note 13 for further details.
The principal Alternative Performance Measures (APMs) presented are the underlying measures of earnings which exclude the amortisation of acquired intangibles, gain or loss on the movement on the fair value of derivative financial instruments, exceptional items and the associated tax impact of these. 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:
| Group – continuing operations: | Underlying | Non-underlying | Statutory |
| EBITDA (£m) | 38.2 | (1.5) | 36.7 |
| Operating profit/(loss) (£m) | 24.5 | (2.8) | 21.7 |
| Profit/(loss) before tax (£m) | 21.6 | (2.8) | 18.8 |
| Tax (charge)/credit on profit (£m) | (4.7) | 0.1 | (4.6) |
| Profit/(loss) after tax (£m) | 16.9 | (2.7) | 14.2 |
| Basic earnings/(loss) per share (pence) | 6.2 | (1.0) | 5.2 |
| Diluted earnings/(loss) per share (pence) | 6.1 | (1.0) | 5.1 |
| Group – discontinued operations: | |||
| Loss after tax (£m) | – | (8.1) | (8.1) |
| Segments – continuing operations: | |||
| Sensors & Information EBITDA (£m) | 13.4 | (2.1) | 11.3 |
| Sensors & Information operating profit/(loss) (£m) | 9.6 | (3.0) | 6.6 |
| Countermeasures & Energetics EBITDA (£m) | 36.0 | (6.7) | 29.3 |
| Countermeasures & Energetics operating profit/(loss) (£m) | 26.1 | (7.1) | 19.0 |
The adjustments comprise:
| · amortisation of acquired intangibles of £1.3m (H1 2025: £0.7m, 2025: £1.7m) |
| · gain on the movement in the fair value of derivative financial instruments of £7.3m (H1 2025: £5.5m, 2025: £7.3m)· exceptional items of £8.8m (H1 2025: £2.4m, 2025: £5.7m), comprising: |
| o acquisition expenses of £1.8m (H1 2025: £0.8m, 2025: £3.0m), relating to deferred consideration accounted for as a post-acquisition expense under IFRS 2 and IFRS 3 and professional fees incurred in relation to the Group’s mergers and acquisition activity in the periodo credit of £0.1m (H1 2025: £0.1m charge, 2025: £0.4m charge) in relation to the ongoing defined benefit pension buy-in process which will eventually conclude with a buy-out of the schemeo business restructuring of £0.4m (H1 2025: £1.5m, 2025: £2.5m)o impairment charges relating to the retirement of legacy Countermeasure operations in Tennessee £6.7m (H1 2025: £nil, 2025: £nil)· tax impact of adjustments of £0.1m credit (H1 2025: £0.5m charge, 2025: £0.2m charge)· non-underlying items in relation to discontinued operations, net of tax, of £8.1m loss (H1 2025: £0.2m profit, 2025: £2.8m loss). |
Further details are provided in note 3.
EBITDA is defined as operating profit before interest, tax, depreciation and amortisation. Reference to constant currency relates to the re-translation of H1 2026 financial information at the H1 2025 exchange rates to reflect the movement excluding the impact of foreign exchange. The exchange rates applied are disclosed in note 12.
