Chemring Group (LSE:CHG), the defence, security and aerospace technology company, announced that chief executive Michael Ord has told the board of his decision to retire.
Tom Newman, currently chief executive of Babcock International's Land and UK Aviation sector, will join the company on 5 October, taking over as group chief executive and join the board on 1 January 2027, at which point Ord will retire and step down from the board.
Newman spent 17 years at Babcock, most recently running a defence and engineering services business generating annual revenue of approximately £1 billion, where he led a period of strategic transformation and operational improvement. He previously held roles including Managing Director of Babcock's Strategic Partnering Programme and Emergency Services and Training divisions, and Managing Director of Airport Services, joining Babcock after its 2010 acquisition of VT Group.
Chairman Tony Wood said Ord had led Chemring "through a period of significant transformation to build a stronger, more successful and growing business, while embedding an industry-leading safety culture."
Wood said Newman "brings all the necessary skills and experience to deliver strong growth and attractive returns in the future."
Ord, who has held the role for eight years, said Chemring had "strengthened its position as a trusted partner to customers around the world."
News Intelligence what this means for the company
Chemring Group has appointed Tom Newman, currently leading Babcock International's £1 billion Land and UK Aviation sector, as Group Chief Executive Designate, effective 5 October 2026, with full transition to CEO and board membership on 1 January 2027. Michael Ord, who has led Chemring for eight years, will retire at that point. The appointment signals continuity of strategy rather than a pivot: the chairman credited Ord with transformation and stronger positioning, and described Newman as equipped to 'deliver strong growth and attractive returns' — language consistent with the company's current trajectory of record order books (£1,399m at 30 April 2026) and operational improvement.
Leadership succession at a defence contractor with a £1.4bn order book and 10.3% underlying operating margin is a meaningful governance event. Newman's 17-year track record in defence and engineering services at Babcock, including operational transformation, suggests the board expects execution of existing strategy rather than repositioning. Investors may monitor the transition period (October 2026–January 2027) for any strategic commentary that signals change in capital allocation, M&A appetite, or margin targets.
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