Business
Alloy Surfaces contract awards
Chemring Group PLC has secured significant new contracts for its Alloy Surfaces Company (ASC) business from the US Department of War, enabling the resumption of sustained manufacturing operations. An Indefinite Delivery, Indefinite Quantity (IDIQ) contract modification has a maximum value of $300 million over five years, with guaranteed minimum awards of $35 million annually for the first three years, and deliveries expected to begin in early FY28. Additionally, an Other Transaction Authority (OTA) agreement will provide $45 million in Industrial Base Analysis and Sustainment program funds over five years to restart manufacturing and transfer intellectual property. ASC will be reclassified as a continuing operation for FY26 reporting, with no impact expected on FY26 and FY27 performance. Disclaimer*
About this update from Chemring Group Plc
FOR IMMEDIATE RELEASE 25 JUNE 2026 CHEMRING GROUP PLC ("Chemring", the "Group" or the "Company") ALLOY SURFACES $300m IDIQ & $45m OTA US DEPARTMENT OF WAR CONTRACT AWARDS In November 2025 the Group initiated a strategic review of its Philadelphia, USA-based pyrophoric airborne decoys business Alloy Surfaces Company ("ASC"). In the FY25 Report and Accounts ASC was classified as a discontinued operation due to insufficient order intake to support sustainable, continuous manufacturing. The Group has since been actively assessing its strategic options for the business. The Group is pleased to announce that it has now signed agreements with the US Department of War ("DoW") to enable the resumption of sustained manufacturing operations at ASC. A modification has been awarded to an Indefinite Delivery, Indefinite Quantity ("IDIQ") contract, funded under the Defense Production Act, to produce pyrophoric airborne decoys. The new award has a maximum value of $300 million over five years, with guaranteed minimum awards of $35 million per annum for the first three years. Deliveries under this IDIQ are expected to commence in early FY28. These critical defence assets will support the survivability of aviation platforms across the US Army, Air Force, Navy, Special Operations Command, and allied nations through Foreign Military Sales. Under the terms of an Other Transaction Authority ("OTA") agreement, $45 million of Industrial Base Analysis and Sustainment program funds will also be received to launch the restart of manufacturing operations and the transfer to the DoW of intellectual property rights associated with ASC's pyrophoric decoys, with a modest amount received up front and the remaining amount spread over the next five years. The Group is working with the DoW to assess the financial profile of these awards and will provide updated guidance at the year end. No impact on FY26 and FY27 performance is expected. For FY26 r...
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