|
Chemring Group PLC on Monday said it is on track to meet market expectations as it reported second-half contract wins. The Romsey, Hampshire-based Chemring is a manufacturing and technology firm involved in the security and aerospace sectors. Chemring said its order book stood at £1.3 billion at its October 31 financial year end, a rise of 30% from £1.0 billion a year prior. The company said this followed ‘significant’ orders wins in the second half of financial 2025. In Chemring’s Energetics division, deals included a $65 million contract by its US subsidiary for the production and repair of SCOT and JCAST aircrew flight equipment tester systems. In Countermeasures, Chemring Australia won a $35 million contract from Australia for the manufacture of airborne countermeasures, while its UK subsidiary won a £15 million order from the Nato Support & Procurement Agency. Chemring noted that the British government’s short-term order placement ‘continues to be slower than usual.’ The company said its adjusted operating profit is in line with analyst expectations, which it says are currently in the range of £73.3 million to £77.4 million, with a consensus of £75.8 million. Chemring achieved an underlying operating profit of £71.1 million for the year ended October 31, 2024. Chemring said it expects to maintain its ‘strong outlook’, as it noted a continuation of ‘robust’ market conditions resulting from increased demand. Due to a ‘significant decrease’ in US Department of Defense demand for airborne decoys manufactured by Alloy Surfaces Co, Chemring said it has been ‘unable to secure sufficient orders’ to continue Alloy Surfaces’ operations. Chemring said Alloy Surfaces will be presented as a discontinued operation in its full-year report, with options including a sale of the business or assets. Shares in Chemring fell 0.7% to 539.00 pence a share on Monday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
