Chemring Group (LSE:CHG) said profits for the year to 31 October 2025 should be in line with analyst expectations, supported by a stronger-than-expected performance in its Energetics segment.
The FTSE 250-listed company cited robust demand for its defence-related technologies, particularly in propellants, energetic materials, and high-integrity devices, which has offset slower order placement within its Sensors & Information segment due to UK government delays.
The order book increased to £1.3 billion, up from £1.0 billion a year earlier, following order intake of £781 million across the year.
Adjusted operating margin is forecast to improve to approximately 14.7% from 14.2% last year, with adjusted earnings per share also set to benefit from lower finance costs.
Highlighted deals included a five-year, $65 million framework agreement to produce and repair flight equipment tester systems for the US, while in the UK, Chemring Energetics won a £24 million follow-on contract for rocket motors used in the NLAW anti-tank weapon system.
In the Countermeasures division, there was a US$35 million contract with the Australian government, and a £15 million order from NATO.
In the Sensors & Information business, Roke received more than £40 million in National Security contract renewals and secured a £20 million contract from the British Army to deliver the next phase of Project ZODIAC.
The Landguard Group acquisition, which completed in August, will be integrated into the Roke business.
Chemring also confirmed it is conducting a strategic review of Alloy Surfaces, which will be reported as a discontinued operation.