Chemring Grp Plc Unsp/Adr (CMGMY) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and thank you for joining us for Kemring's full year results for the period ending 31st of October 2025. I'm joined today by James Mortenson, our Chief Financial Officer, and we have Tony Wood, our Chairman, with us also. This morning I'll start with the group highlights for the year, then hand over to James for a detailed review of our financial and operational performance. I'll then return to discuss the market environment and update you on the progress we've made in delivering our growth-oriented strategy. FY25 was another year of solid performance for Kemring. What was particularly pleasing is that we achieved this despite some short-term headwinds, most notably softness in UK government order placement across national security and defence, which impacted ROC. This resilience reflects the work we've done to build a high-quality business capable of navigating challenges and delivering sustainable growth. Global defence spending continues to increase, driven by US demands for greater burden sharing across NATO, the conflict in Ukraine and rising tensions in the Asia-Pacific region. These dynamics underpin a sustained upcycle in defence and security investment, which is expected to persist into the next decade. Our record order book is clear evidence of this trend. During the year, we secured several strategically important contracts, including Storm, Rogue's £251 million UK MOD multi-year missile defence programme. These wins strengthen our future prospects and support our ambition to double annual revenue to £1 billion by 2030 while maintaining strong margins. Turning to the headline numbers. our three Energetics businesses delivered exceptional results, with all three achieving record order books and two delivering record revenues and operating profi...