Chemring boasts record order book as global military spending swells
Chemring boasted record order intake and order book size in the first half as global defence spending continues to rise amid tensions in Europe and the Middle East.
The aerospace and defence contractor on Tuesday revealed its order intake totalled £488million in the six months ending April, a 42 per cent annual increase.
This contributed to the Hampshire-based company's order book growing by a quarter to £1.3billion, the highest in its history.
Multi-year purchases helped Chemring's order intake soar by over two-thirds to £418million in its countermeasures and energetics segment.
Its Scotland-based business secured a £23million deal to supply components used in the Next Generation Light Anti‐Tank Weapon system and an £11million deal from the Ministry of Defence for various air countermeasures.
Chemring's Norwegian subsidiary, Chemring Nobel, also struck a £278million deal with Diehl Defence to provide MCX, a type of explosive material used in munitions.
But overall revenues rose by just 5 per cent to £234.3million due to a weaker performance from its sensors and information segment.
The FTSE 250 firm said the division's rate of new order placement had slowed amid delays by the UK Government in the publication of its strategic defence review.
However, the group saw its total underlying operating profits expand by 8 per cent to £27.1million and kept its guidance for 2025 unchanged.
Michael Ord, chief executive of Chemring, said: 'Both sectors benefitted from the receipt of several significant orders in the period, evidencing confidence in our market-leading products and services.
'With growing geopolitical uncertainty resulting in increased defence expenditure, particularly across NATO, the group is well positioned, with a strong and sustainable platform to increase revenue to £1billion by 2030.'
Global military expenditure went up by 9.4 per cent to $2.7trillion last year, according to the Stockholm International Peace Research Institute, as wars raged in Ukraine and the Middle East, and concerns remained elevated over China's intentions towards Taiwan.
Total spending by NATO member states grew to $1.5trillion, partly driven by European countries ramping up spending following pressure from US President Donald Trump for them to bear a greater share of the defence burden.
British defence giants, such as BAE Systems, Babcock, and Chemring, have been major beneficiaries of this added spending, which has led to their share prices jumping considerably.
Chemring Group shares were the FTSE 250's top riser on Tuesday morning, rising by 6.3 per cent to 517p, meaning they have leapt by approximately 58 per cent since the year began.
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