UK's Chemring H1 revenue rises 7% on record order book
UK's Chemring H1 revenue rises 7% on record order book
Overview
UK defence technology supplier's H1 revenue rose 7% yr/yr, driven by record order book
Underlying diluted EPS fell 8% yr/yr due to lower Sensors & Information margins
Company maintained FY26 outlook with 91% of expected revenue covered by order book
Outlook
Chemring maintains full-year 2026 expectations, with 91% of revenue covered by deliveries or orders
Company expects operating profit to be weighted about 70% to H2, reflecting programme delivery timing
Chemring says market backdrop remains supportive, with strong demand in core defence and security markets
Result Drivers
COUNTERMEASURES & ENERGETICS DEMAND - Revenue growth driven by strong performance in Countermeasures & Energetics, supported by robust demand and a record order book
SENSORS & INFORMATION MARGIN PRESSURE - Lower underlying operating profit and EPS due to reduced margins in Sensors & Information, reflecting business mix and lower utilisation rates
CAPACITY INVESTMENT - Increased net debt and lower cash conversion resulted from continued investment in Energetics capacity and inventory build ahead of H2 deliveries
Company press release: ID:nRSB5430Ga
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 237.30 mln |
|
H1 Adjusted EBITDA |
| GBP 38.20 mln |
|
H1 Adjusted EBIT |
| GBP 24.50 mln |
|
H1 Adjusted Pretax Profit |
| GBP 21.60 mln |
|
H1 EBIT |
| GBP 21.70 mln |
|
H1 Net Debt |
| GBP 144.50 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy."
Wall Street's median 12-month price target for Chemring Group PLC is GBp650.00, about 27.3% above its June 1 closing price of GBp510.50
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 25 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)