Chemring Group Plc · LSE:CHG
Chemring — H1 2026 Earnings Presentation
32 slides from Chemring's earnings presentation, Jun 2, 2026
Slide 1: Growing positions in key markets
UK MOD © Crown copyright 2022 Chemring Group PLC 2026 Interim results Growing positions in key markets Presented on 2nd June 2026 by: Michael Ord – Group Chief Executive James Mortensen – Chief Financial Officer Photo credit: United Launch Alliance Pho to cred it: NASA
Slide 2: Michael Ord
Michael Ord Group Chief Executive Pho to cred it: The U.S. Army Ralph Scott/Mis sile Defense Agency/U.S. Departmen t of Defense
Slide 3: Agenda
Agenda H1 2026 headlines Michael Ord Financial and operational review James Mortensen Market update and key growth areas Michael Ord Wrap up and Q&A 3 Chemring Group PLC Results for the six months to 30th April 2026
Slide 4: H1 2026 headlines
H1 2026 headlines H1 performance in line with expectations Full year guidance unchanged, underpinned by 91% revenue cover Countermeasures & Energetics delivering growth Energetics capacity expansion projects continue at pace Investing in capacity and capability to deliver future growth 4 Chemring Gr
Slide 5: H1 2026 KPIs
H1 2026 KPIs Growth Earnings Cash generation Order book Revenue Operating margin Earnings per share Cash conversion Net debt: EBITDA +8% +7% 10.3% 6.1p 42% 1.47x £1.4bn £237m (H1 2025: 11.9%) (H1 2025: 6.6p) (H1 2025: 83%) (H1 2025: 0.98x) (H1 2025: £1.3bn) (H1 2025: £223m) Order book (£bn) Safety a
Slide 6: James Mortensen
James Mortensen Chief Financial Officer Photo Pho Credit: to cred United it: NASA / SamLaunch Lott Alliance
Slide 7: Financial highlights
Financial highlights H1 2026 H1 2025 2025 Summary: Order book £1,399m +8% £1,296m £1,345m » Record order book of £1.4bn, up 8% Revenue £237.3m +7% £222.8m £497.5m » C&E delivered strong revenue growth and Operating profit £24.5m (8)% £26.5m £73.5m margin expansion » S&I margin impacted by mix and Op
Slide 8: Group and segmental performance
Group and segmental performance Operating Operating Operating Revenue Revenue profit profit profit (£m) growth (£m) growth margin Countermeasures & Energetics 142.1 +9% 26.1 +32% 18.4% Sensors & Information 95.2 +3% 9.6 (40)% 10.1% Group 237.3 +7% 24.5 (8)% 10.3% » Countermeasures & Energetics – str
Slide 9: Group net debt bridge
Group net debt bridge Opening Closing Net Net Debt Debt £nil £(89)m » Cash conversion of 42%, as we increased safety Operating Tax & Cash Finance stocks and secured inventory for H2 revenues £(4)m Other £16m £(6)m Capex £(145)m » Planned £44m capex and intangible spend; good progress on Energetics e
Slide 10: Energetics expansion projects continue at pace
Energetics expansion projects continue at pace Photo credi t: NASA Chicago Scotland Norway - Capex in line with budget - Capex in line with budget - Phase 1 – capex in line with budget, delivering in line with plan - Fit out complete - Construction complete, production equipment installed - Phase 2
Slide 11: Group order cover for 2026 is now 91%
Group order cover for 2026 is now 91% Order coverage Book & bill bridge to the full year 2026 2027 2028 100% 91% Countermeasures & Energetics 95% 81% 68% Covered Book & bill Sensors & Information 84% H1 C&E National Product UK FY Security RoW MoD S&I Group » High confidence in C&E and National Secur
Slide 12: Guidance and financial outlook
Guidance and financial outlook 2026 guidance unchanged Potential external headwinds » 91% order cover, improving performance in Q2, 70% H2 weighting » Near-term budget timing disruption in the UK, EU and US to operating profit » Countermeasures & Energetics targeting low double-digit growth in » Mid
Slide 13: Michael Ord – Group Chief Executive
Michael Ord – Group Chief Executive
Slide 14: Rising defence and security budgets
Rising defence and security budgets • Shift to high-intensity deterrence - NATO planning assumptions shifting from expeditionary operations to persistent territorial defence and peer-conflict readiness • Rebuilding defence industrial base - Governments are investing in sovereign and allied supply ch
Slide 15: Our critical role in NATO's supply chain
Our critical role in NATO’s supply chain Chemring is a strategically important merchant supplier across a broad range of NATO’s critical missile and munitions programmes Tomahawk JASSM/LRASM Harpoon • Operational usage, stockpile replenishment and initiation of new programmes, are widening the deman
Slide 16: Enduring demand
Enduring demand • Epic Fury has depleted US munitions inventories • Significant re-stocking required in readiness for future conflicts • US DoW have announced several multi-year agreements with industry to boost production rates of missiles and munitions Source: CSIS April 2026 • European stockpiles
Slide 17: Our critical role in Air and Naval Platform protection
Our critical role in Air and Naval Platform protection Chemring is the leading supplier of countermeasures with >65% share of the addressable market, including 85% of NATO air fleets and 60% of NATO naval fleets • £123m of orders received in H1, an increase of 486% on prior year, primarily to Europe
Slide 18: Roke is a critical sovereign UK defence technology leader
Roke is a critical sovereign UK defence technology leader Significant opportunities to further deploy Roke’s unique technologies into customer prioritised areas of spend including Cyber, Electronic Warfare, Resilient Navigation, and Counter-Drone • Roke is targeting growth both domestically and inte
Slide 19: Summary and outlook
Summary and outlook H1 2026 was in line with expectations Medium / long term outlook is robust ➢ Solid performance despite near-term S&I headwinds ➢ Excellent market positioning with strong growth expected over the medium/long term ➢ Full year guidance unchanged underpinned by 91% revenue cover ➢ £1
Slide 20: Questions
Chemring Innovating to protect
Slide 21: Appendices
Appendices ay “¢ 24 Chemring Innovating to protect
Slide 22: NASA Standard Initiator - Artemis
Innovation showcase NASA Standard Initiator - Artemis » As the only supplier to meet the stringent technical, environmental and reliability requirements for qualification stipulated by NASA, Chemring Energetics is the sole supplier to NASA for the NASA Standard Initiator (NSI). » NSIs are electrical
Slide 23: Countermeasures & Energetics
Countermeasures & Energetics Revenue (£m) H1 H2 Growth Business update 350 9% » Strong growth in Energetics 300 250 200 » Margins reflect improving commercial terms and the benefits of 150 100 operational excellence 50 0 » Investment in working capital to support scheduled H2 deliveries 2023 2024 20
Slide 24: Sensors & Information
Sensors & Information Revenue (£m) H1 H2 Growth Business update 250 » Improving orderbook and increasing order cover 200 3% 150 » Return to revenue growth 100 50 » Margin impacted by revenue mix and maintaining operational 0 capability in anticipation of the sizeable pipeline of future 2023 2024 202
Slide 25: Group performance 2022 – H1 2026
Group performance 2022 – H1 2026 500 70 20 400 60 15 50 300 40 10 200 30 20 5 100 10 0 0 0 2022 2023 2024 2025 H1 2026 2022 2023 2024 2025 H1 2026 2022 2023 2024 2025 H1 2026 Revenue (£m) Operating profit (£m) Earnings per share (pence) 15% 150 200 150 10% 100 100 5% 50 50 0% 0 0 2022 2023 2024 2025
Slide 26: Adjusting items
Adjusting items H1 2026 Growth H1 2025 £m £m Statutory operating profit 21.7 (25)% 28.9 Acquired intangibles amortisation 1.3 0.7 Acquisition related expenses 1.8 0.8 Mark to market gain on FX forward contracts (7.3) (5.5) Pension Buy-in / Buy-out (0.1) 0.1 Restructuring 0.4 1.5 Retirement of legacy
Slide 27: 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 28: Impact of foreign exchange translation
Impact of foreign exchange translation Constant H1 2026 restated at currency 2025 rates H1 2025 H1 2026 movement £m £m £m Revenue +7% 237.4 222.8 237.3 EBITDA (5)% 37.0 38.8 38.2 Operating profit (12)% 23.2 26.5 24.5 Order book +5% 1,355 1,296 1,399 Sensitivities Translation » 41% of revenue is deno
Slide 29: Balance sheet
Balance sheet » Net debt of £144.5m and net debt: EBITDA ratio £m H1 2026 H1 2025 2025 of 1.47x Goodwill & intangibles 140.6 125.2 143.3 Development costs 19.9 18.9 20.2 » Over the 2 year period, 98% of EBITDA has been Property, plant & equipment 387.9 303.8 354.7 converted to operating cash funding
Slide 30: Market consensus
Market consensus » The Group is aware of eight analysts 2026 2027 2028 publishing independent research on the Revenue (£m) 547 625 706 Group Underlying operating profit (£m) 80.8 97.4 115.3 » The Group has compiled consensus data* Underlying earnings per share (pence) 19.8 24.5 29.5 from the researc
Slide 31: 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 32: Disclaimer
Disclaimer 2026 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