Chemring confirms FY26 guidance, with order coverage increasing to 85%

2026-02-20 10:52:20

Investing.com – Chemring Group PLC (LSE:CHG) confirmed its FY26 guidance on Friday, with order coverage increasing from 76% in October 2025 to 85%.

As of January 30, 2026, the company reported an order book of £1.364 billion, up 1% from £1.345 billion on October 30, 2025. First-quarter order intake reached £122 million, down 69% year-over-year, compared to £393 million in the first quarter of 2025, when the company secured large multi-year contracts.

The FY26 group order coverage of 85% exceeds the 81% level in the first quarter of 2025. The countermeasures and high-energy materials divisions achieved 96% FY26 order coverage, up from 95% in October 2025, and slightly below the record 98% in the first quarter of 2025.

The sensors and information division reported FY26 order coverage of 52%, up from 45% in October 2025, compared to 54% in the first quarter of 2025. During this period, the division secured national intelligence orders, with STORM contract orders obtained after the period-end.

Chemring addressed operational challenges in production caused by countermeasure measures. The high-energy materials division nearly fully covered its FY26 order target, reaching 96%.

The company’s feasibility study in Norway has advanced to the second phase, expected to conclude by the end of 2026.

The FY26 outlook remains in line with the board’s expectations, with market consensus forecasting revenue of £544 million, adjusted EBIT of £80.7 million, and adjusted earnings per share of 20.4 pence.

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