Chemring Group (LSE:CHG) has announced two munitions contracts worth £278 million for the German and US military.
Norwegian subsidiary, Chemring Nobel, has signed a twelve-year framework agreement with Diehl Defence for the supply of MCX energetic material.
Under this framework agreement Chemring Nobel also signed an initial purchase order valued at €231 mllion; deliveries under this contract will be over five years commencing in late 2026.
Diehl Defence and Nammo last year created an industrial working group to supply 155mm munitions for the German Armed Forces.
Chemring Nobel is the only qualified supplier of MCX material for Nammo.
US subsidiary, Chemring Energetic Devices has received an order valued at US$106 million (£82 million) for an undisclosed US missile programme.
Deliveries under this contract will be over a five-year period commencing in 2026.
Chemring also reiterated that operating profit in the year to 31 October 2024 is expected to be in line with consensus expectations of £70.9 million.
Michael Ord, Chemring’s chief executive, commented: "These significant contract wins illustrate the deep long-term relationships that we have built with our customers.
“It is further evidence of the sustained and growing demand for our products and supports our investment decisions to increase the capacity of our three energetics businesses, and reinforces Chemring's position as a key supplier to NATO."
Shares in Chemring rose by 1.4% to 361p.