Chemring Group (LON:CHG) Announces Quarterly Earnings Results

Chemring Group (LON:CHG) released its earnings results on Tuesday. The company reported GBX 6.20 earnings per share (EPS) for the quarter, Digital Look Earnings reports. The business had revenue of £237.30 million for the quarter. Chemring Group had a net margin of 9.69% and a return on equity of 13.12%.

Here are the key takeaways from Chemring Group’s conference call:

• Chemring said first-half trading was in line with expectations, with revenue up 7% and the order book reaching a record GBP 1.4 billion, giving the company 91% cover for FY2026 revenue and leaving full-year guidance unchanged.
• Countermeasures & Energetics delivered a strong half, with revenue up 9% and operating profit up 32% as margins expanded to 18.4%, supported by strong demand and improved commercial terms.
• Sensors & Information returned to revenue growth, helped by a nearly 60% increase in order inflow, but margins were pressured by lower Roke utilization, early CORTEXA production, and more pass-through revenue.
• The company highlighted ongoing capacity expansion projects in Chicago, Scotland and Norway, all progressing on schedule or on budget, with management reiterating the target of GBP 100 million in revenue and GBP 30 million in operating profit from these sites by 2028.
• Cash conversion was weaker in H1 at 42% due to working capital investment and inventory build for second-half deliveries, but Chemring expects full-year cash conversion of 80% to 85% and net debt to rise further as investment continues.

Chemring Group Trading Down 7.0%

CHG opened at GBX 510.50 on Tuesday. The company has a debt-to-equity ratio of 40.39, a current ratio of 1.60 and a quick ratio of 0.71. Chemring Group has a fifty-two week low of GBX 446.52 and a fifty-two week high of GBX 614. The firm has a market capitalization of £1.38 billion, a PE ratio of 29.17, a P/E/G ratio of 1.99 and a beta of 0.82. The company’s 50-day moving average is GBX 519.96 and its 200 day moving average is GBX 511.28.

Analyst Upgrades and Downgrades

Separately, Royal Bank Of Canada restated an “outperform” rating and issued a GBX 600 target price on shares of Chemring Group in a report on Friday, April 17th. Four analysts have rated the stock with a Buy rating, According to MarketBeat.com, the stock currently has an average rating of “Buy” and an average price target of GBX 616.75.

About Chemring Group

We are a specialist manufacturing and technology business creating market-leading innovative solutions to meet our customers’ complex needs.

Using our extensive science and engineering expertise, we turn ideas into reality, designing and developing critical solutions that protect and safeguard in unpredictable environments in today’s increasingly unstable world.

We achieve this by innovating at every stage of the value chain, from research and development (“R&D”) through to design, manufacture and in-service support, working closely with our customers to deliver products, services and solutions for mission-critical success.

Our customer base spans national defence organisations, security and law enforcement agencies, as well as commercial markets such as space and transport.