REG - Chemring Group PLC - AGM Update

ChemringAnnouncement

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RNS Number : 7427T  Chemring Group PLC  20 February 2026

FOR IMMEDIATE
RELEASE
                               20 FEBRUARY 2026

 

CHEMRING GROUP PLC ("Chemring", the "Group" or the "Company")

AGM Update

Chemring, a key contributor to the defence industrial base, supplying
materials, subsystems, components, and technologies into growing areas of
defence, security, and space markets, issues the following update ahead of its
Annual General Meeting taking place later today.

Key points:

·     FY26 outlook in line with the Board's expectations.

·     Order book at 30 January 2026 of £1,364m (30 January 2025:
£1,351m).

·    Q1 order intake of £122m (Q1 FY25 £393m). Orders received across
both sectors as well as a £22.5m STORM Missile Defence Centre order for Roke
received post 30 January 2026.

·   Expected FY26 revenue 85% covered by Q1 revenues and current order book
(30 January 2025: 81%). Outer years cover continuing to build with strong
order pipeline.

 

Michael Ord, Group Chief Executive, commented:

"Chemring is well positioned to benefit from rising defence spending across
NATO and allied nations, evidenced by our record order book and a strong
pipeline of opportunities, and we will continue to invest in our business to
capture further growth. For FY26 our outlook is unchanged."

Current Trading and Outlook

The Group's outlook for FY26 remains in line with the Board's expectations
with a H2 weighting slightly heavier than the prior year.

We have had a slightly slower than anticipated start to the year, primarily
due to some operational disruption in countermeasures production, which is now
largely resolved. At our US countermeasures facility, Kilgore Flares ("KFL")
in Tennessee, the operational performance and efficiency of its fully
automated facility continues to steadily ramp. The decision has therefore been
taken to retire a number of KFL's legacy operations and to transfer
manufacturing to the automated facility, which is expected to lead to a
non-cash impairment charge.

Whilst there continues to be disruption in the UK market due to the delayed
publication of the UK's Defence Investment Plan, order intake has slightly
improved in recent months and the medium-term outlook for sustained defence
spending remains strong.

Significant investment in growing Energetics capacity continues at pace. This
investment, which is being funded through existing debt facilities, is
expected to result in net debt trending higher at H1 and the full year as we
invest in the business.

In June 2025 the Norwegian Government announced that the feasibility study
into the establishment of a second production facility to further increase the
production of military explosives had moved to the second phase. This concept
selection phase will determine the design and size of the facility, along with
regulatory and commercial arrangements.  The Norwegian Government will
provide up to £16m in funding towards the costs of this study, which is due
to conclude by the end of 2026.

The Group's order book at 30 January 2026 was £1,364m (30 January 2025:
£1,351m). Having started the financial year with order cover of 76%, the
Group's expected FY26 revenue is now 85% (30 January 2025: 81%) covered by
revenue generated in the period to date and the current order book.

Order intake since 31 October 2025 was £122m (30 January 2025: £393m)
against a very strong prior year comparator period in which several multi-year
contracts were won by both sectors.

The Countermeasures & Energetics ("C&E") sector's FY26 revenue is now
96% covered by revenue generated in the period to date and the current order
book, having started the year with 95% cover (30 January 2025: 98%).

Of note, Chemring Countermeasures UK won contracts from a range of NATO and
non-NATO customers totalling £55m for the delivery of airborne and naval
countermeasures, with deliveries scheduled during FY26-FY29, further improving
visibility.

In the Sensors & Information ("S&I") sector, Roke has continued to
make good progress on key strategic activities receiving c.£45m of orders in
the year to date, including the receipt of a £22.5m order relating to the
STORM Missile Defence Centre contract, which was received in the period since
30 January 2026.

Having started the year with 45% cover, the S&I sector's FY26 expected
revenue at 30 January 2026 was 52% covered by revenue generated in the period
to date and the current order book (30 January 2025: 54%). Order intake within
S&I has progressed as expected during the current financial year.

Board of Directors

As previously announced, Fiona MacAulay, Senior Independent Director, will not
be seeking re-election at today's Annual General Meeting. The process to
identify a suitable candidate to replace her is progressing well. In the
meantime, Stephen King, Non-Executive Director, has been appointed the Interim
Senior Independent Director. Stephen will fulfil this role in addition to his
role as Chair of the Audit Committee.

- ENDS -

 

For further information:

 

Rupert Pittman           Group Director of Corporate Affairs,
              01794 463401

Chemring Group PLC

 

James McFarlane        MHP
Group
07584 142665

Ollie Hoare
 
         07817 458804

 

 

 

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 FTSE-250 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 (http://www.chemring.com)

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