Chemring Group Plc · LSE:CHG
Chemring — FY2025 Earnings Presentation
35 slides from Chemring's earnings presentation, Dec 9, 2025
Slide 1: Chemring Group PLC 2025 results: Delivering the plan
Chemring Group PLC 2025 results Delivering the plan Presented on 9th December 2025 by: Michael Ord – Group Chief Executive James Mortensen – Chief Financial Officer
Slide 2: Michael Ord, Group Chief Executive
Michael Ord Group Chief Executive
Slide 3: Delivering the plan
Delivering the plan Resilient performance Robust returns and excellent cash conversion Record order book – underpinned by geopolitical environment Strategic organic investment to accelerate growth On track to double annual revenue to c.£1bn by 2030 3 Chemring Group PLC Results for the year to 31st O
Slide 4: 2025 good progress across all KPIs
2025 good progress across all KPIs Growth Earnings Cash generation Order book Revenue Operating margin Earnings per share Cash conversion Net debt: EBITDA +32% +2% 14.8% 19.4p 114% 0.90x £1.3bn £498m (2024: 14.3%) (2024: 18.9p) (2024: 103%) (2024: 0.58x) (2024: £1.0bn) (2024: £488m) Safety and ESG R
Slide 5: Well placed to capitalise on long-term demand
Well placed to capitalise on long-term demand » Diversified portfolio exposed to a number of structural tailwinds in Defence, National Security and Space sectors - underpinned by a rearmament upcycle and the fundamental need to re-build the defence industrial base » Market leading positions, often s
Slide 6: James Mortensen, Chief Financial Officer
James Mortensen Chief Financial Officer
Slide 7: Financial highlights
Financial highlights 2025 2024 Order book £1,345m +32% £1,022m Revenue £497.5m +2% £488.3m Summary: » Another record order book Operating profit £73.5m +6% £69.6m » Sales, profit and EPS growth Operating margin 14.8% +50bps 14.3% » Operating margin improving Diluted EPS 19.4p +3% 18.9p » Strong cash
Slide 8: Group and segmental performance
Group and segmental performance Operating Operating Revenue Revenue profit Operating profit Operating (£m) growth (£m) profit growth margin margin change Countermeasures & Energetics 322.7 +17% 61.6 +37% 19.1% 280bps Sensors & Information 174.8 (18)% 31.2 (25)% 17.8% (170)bps Group 497.5 +2% 73.5 +6
Slide 9: Countermeasures & Energetics
Countermeasures & Energetics Revenue (£m) H1 H2 Growth Business update 350 300 17% » Record order intake and order book driven by Energetics 250 200 » Energetics expansion projects delivering ahead of schedule, 150 100 continued focus on operational excellence 50 0 » Improving operational performanc
Slide 10: Sensors & Information
Sensors & Information Revenue (£m) H1 H2 Business update Growth 250 » Order intake up 19% to £179m, with 45% order cover for 2026 200 (18)% (2024: 48% 2025) 150 100 » Roke order book growing, good execution in US Sensors 50 0 » Revenue decreased by 18%, impacted by delays to UK Government 2023 2024
Slide 11: Group net debt bridge
Group net debt bridge » Cash conversion of 114%, with continued focus on cash management » Planned £105m capex and intangible spend: £76m Energetics; £29m on automation and maintenance » £26m returned to shareholders in the period » RCF refinanced to 2028 » Less than 1x leverage 11 Chemring Group PL
Slide 12: Capital allocation
Capital allocation Invest in the business Focused M&A Ordinary dividends Surplus capital » Investment in our » Bolt-on acquisitions in our » Dividend cover of c.2.5 » Return to shareholders Energetics businesses to core and close adjacencies times underlying EPS capitalise on multi-decade – in parti
Slide 13: Guidance and financial outlook
Guidance and financial outlook 2026 guidance Potential near-term headwinds » 76% order cover » Potential near-term budget timing disruption in the UK and US » Countermeasures & Energetics targeting low double-digit » Foreign exchange – volatility of US$/AU$/NOK to GBP growth in revenue, H2 weighting
Slide 14: Innovation showcase: CORTEXA Guardian
Innovation showcase CORTEXA Guardian » Counter threats posed by drones » Rapid to deploy and fully autonomous, CORTEXA can detect, track and identify multiple targets at extremely fast speeds » Customisable with your choice of sensors; compatible with a range of effectors » Underpinned by Roke’s AI
Slide 15: Michael Ord, Group Chief Executive
Michael Ord – Group Chief Executive
Slide 16: Market update
Market update Evolving defence and security landscape 2025 Revenue by Geography » Persistent traditional and hybrid conflict, and a heightened global threat environment EU 23% 40% UK ROW 4% » Rapid technological advances are reshaping defence capabilities US 33% » Growing emphasis on national sovere
Slide 17: Well placed to benefit from growing budgets in the UK and Europe
Well placed to benefit from growing budgets in the UK and Europe UK » Defence budget rising to 2.5% GDP by 2027, and 3% in the next Parliament » Strategic priorities: » Underpinning themes – security at home, strength abroad and sovereign capabilities » Focus on domestic production and resilience wi
Slide 18: Solid progress against our strategic priorities
Solid progress against our strategic priorities » Energetics expansion programmes delivering ahead of schedule Grow » Benefits of operational excellence and improved pricing continue to be seen Invest in people, technology, and increased capacity to drive growth » Early action to mitigate impact of
Slide 19: Energetics expansion projects continue at pace
Energetics expansion projects continue at pace Chicago £10m investment Scotland £45m investment Norway £90m net investment (£90m grants) +£10m incremental revenue +£30m incremental revenue +£60m incremental revenue - Capex in line with budget - Phase 1 – capex in line with budget, - Capex in line wi
Slide 20: Roke performing well in challenging markets
Roke performing well in challenging markets National Security provides a solid underpin to the business » Positive messaging from Government but order placement continues to lag; no evidence of Roke programmes either being lost or cancelled » Over £65m of programme renewals in the year » Recovery in
Slide 21: Outlook
Outlook 2026: In-line with market expectations Longer-term outlook increasingly robust » Record order book with 76% of 2026 revenue covered » Strong growth expected over at least the next decade – by the order book well positioned in high margin and growing markets » Board’s expectations for 2026 op
Slide 22: Appendices
Appendices Chemring Innovating to protect
Slide 23: Our strategic imperatives
Investing in sustainable growth and resilient performance • Attractive long term profitable growth underpinned by fundamental rearmament upcycle that is expected to continue for many years Grow – Invest in people, technology, and • Portfolio exposed to a number of structural tailwinds in the defence
Slide 24: £1bn revenue ambition
£1bn revenue ambition » Energetics: >£170m revenue » >£100m for expansion programmes already >150 £1bn announced >30 >25 » plus >£70m from underlying mid-single digit CAGR >100 >170 » Roke: >£100m revenue Revenue (£m) 500 » US Sensors: >£30m revenue » Countermeasures: >£25m from low single digit CAG
Slide 25: Medium term financial objectives and assumptions
Medium term financial objectives and assumptions Revenue » Group – targeting low double-digit % growth as Roke returns to growth and new capacity comes online » S&I – targeting segmental high-single digit % growth from double digit growth in Roke after an H2 2026 recovery and US Sensors expected to
Slide 26: Organisation
Organisation Sensors & Information Countermeasures & Energetics Roke Roke US Countermeasures Countermeasures Countermeasures Energetic Energetics Chemring Technology USA Sensors UK USA Australia Devices UK Nobel Solutions BUs/capabilities Operational mission support services ● Active cyber defence &
Slide 27: Group performance 2021 – 2025
Group performance 2021 – 2025 500 25 75 400 20 60 300 15 45 200 30 10 100 15 5 0 0 0 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 Revenue (£m) Operating profit (£m) Earnings per share (pence) 16% 120 150 100 125 15% 80 100 14% 60 75 40 50 13% 20 25 12% 0 0 2021 2022 202
Slide 28: ESG
ESG » Maintained AAA ESG rating with MSCI » Maintained good progress in line with our HSE Zero Harm strategy » Recordable injuries decreased to 0.48 (2024: 0.69) and remains below our annual limit of 0.9 » Zero injuries in connection with or arising from energetic events » Continue to consolidate wi
Slide 29: Adjusting items
Adjusting items 2025 Growth 2024 £m £m Statutory operating profit 73.4 30% 56.6 Acquired intangibles amortisation 1.7 2.0 Acquisition related expenses 3.0 3.4 Mark to market gain on FX forward contracts (7.3) 2.0 Pension Buy-in / Buy-out 0.4 7.5 Restructuring 2.5 - Non-underlying provision movement
Slide 30: Impact of foreign exchange translation
Impact of foreign exchange translation Constant 2025 restated at currency 2024 rates 2024 2025 movement £m £m £m Revenue +3% 502.2 488.3 497.5 EBITDA +9% 99.7 91.5 98.6 Operating profit +7% 74.3 69.6 73.5 Order book +29% 1,318 1,022 1,345 Sensitivities Translation » 40% of revenue is denominated in
Slide 31: Balance sheet
Balance sheet » Net debt of £89.0m and net debt: EBITDA ratio £m 2025 2024 of 0.90x Goodwill & intangibles 143.3 108.5 Development costs 20.2 18.6 » Over the 2 year period, 108% of EBITDA has Property, plant & equipment 354.7 287.8 been converted to operating cash funding Trade working capital 73.7
Slide 32: Alloy results
Alloy results Comparative Representation Financial Performance ASC Represented Statutory 2024 2025 2024 2023 Adjusted 2024 Order book £1,038m £(16)m £1,022m £19.2m £22.1m £27.3m Revenue Revenue £510.4m £(22.1)m £488.3m £(2.4)m £1.5m £9.7m Operating profit Operating profit £71.1m £(1.5)m £69.6m Opera
Slide 33: Market consensus
Market consensus » The Group is aware of six analysts currently 2025 2026 2027 publishing independent research on the Revenue (£m) 495 545 623 Group Underlying operating profit (£m) 72.5 81.4 98.5 » The Group has compiled consensus data* Underlying earnings per share (pence) 18.8 21.0 25.8 from the
Slide 34: Glossary
Glossary Acronym Meaning Acronym Meaning AI Artificial Intelligence FRP Full rate production CCM UK Chemring Countermeasures UK IDIQ Indefinite Delivery/Indefinite Quantity CCM US Chemring Countermeasures USA ISTAR Intelligence, Surveillance, Target Acquisition, and Reconnaissance CED Chemring Energ
Slide 35: Disclaimer
Disclaimer 2025 Chemring Group PLC The information in this document is the property of Chemring group PLC (“Chemring”) and may not be copied or communicated to a third party or used for any purpose other than that for which it is supplied without the express written consent of Chemring. This present