Chemring FY26 adjusted EBIT edges below forecasts; starts sale of US Sensors unit

what happened

UK defence technology group Chemring reported adjusted EBIT of GBP 79 mln for the 2026 financial year. That is slightly below the average estimate of seven analysts, which was GBP 79.64 mln. Net debt at period end stood at GBP 145 mln, according to Reuters.

The order book reached a record GBP 1.4 bln at year-end. The Countermeasures & Energetics segment performed strongly, and Roke posted record order intake, but its results fell short of expectations because of delays in defence contract awards from the UK MOD and international customers. The company has also launched a sale process for its US Sensors business following a strategic review.

For FY27, Chemring expects strong year-on-year earnings growth, supported by its order book. Capacity expansion in Energetics is expected to drive growth in 2027 and 2028.

why it matters

For investors, the key issue is the slow pace of defence contract awards, which pushes back revenue. The record order book and expected earnings growth support interest in the shares, while the US Sensors exit could reshape the group.

market impact

Chemring shares: contract delays weigh, while the record order book and growth outlook support them

• ↔Chemring shares mixed — small profit miss and contract delays offset by record order book and growth outlook

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