Chemring Group (LSE:CHG), a provider of high-tech products and services for the defence, security and aerospace markets, reported a record closing order book of £1,399m at 30 April.
Tuesday's interim results, for the six months to 30 April, were described as in line with Board expectations. Revenue rose 6.5% year-on-year to £237.3m (H1 2025: £222.8m) while underlying operating profit fell 7.5% to £24.5m, leaving an underlying operating margin of 10.3% (H1 2025: 11.9%).
"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," Michael Ord, Chemring Group Chief Executive, said.
Countermeasures & Energetics was the main driver of H1 performance, Sensors & Information returned to growth but had a relatively weaker first half due to mix and lower utilisation as Roke maintains capability, and the Group invested £44m in energetics expansion projects including sites in Chicago, Scotland and Norway.
Net debt rose to £144.5m at 30 April (H1 2025: £93.3m) and net debt to underlying EBITDA on a rolling 12‑month basis was 1.47x (H1 2025: 0.98x), underlying operating cash inflow was £15.9m or 42% of underlying EBITDA reflecting inventory build ahead of H2, and the Group expects full‑year cash conversion of 80-85%.
The Board declared an interim dividend of 2.8p, up 4% (H1 2025: 2.7p), and said its expectations for full‑year 2026 are unchanged with 91% of the Board's expected 2026 revenue either delivered or in the order book at 30 April.
