A strong performance in trading is emphasized by Chemring

2 min read | October 17, 2024 09:43 AM BST | By Team Kalkine Media

Highlights:

  1. Chemring Group reported a strong trading performance with a year-to-date order intake of £638 million, up from £604 million the previous year.

  2. The company's order book has increased to £1.1 billion, with significant order cover for expected 2025 revenue reaching 95% in the countermeasures and energetics division.

  3. Recent contract wins in the U.S. include over $20 million in contracts from Boeing and United Launch Alliance, highlighting robust demand for Chemring's products.

Chemring Group (LSE:CHG) has announced a strong trading performance for the year-to-date, maintaining its full-year outlook in line with analyst expectations despite challenges related to foreign exchange rates. The FTSE 250 aerospace and defense company reported an order intake of £638 million as of September 30, an increase from £604 million a year earlier. The company’s order book has also seen significant growth, rising to £1.1 billion compared to £869 million at the same time last year.

In the countermeasures and energetics division, order cover for projected revenue in 2025 has reached 95%, up from 87% in the previous year. This strong order cover extends further into 2026 and 2027. Additionally, the shorter cycle sensors and information sector has achieved 47% revenue cover for 2025. Chemring Nobel, part of the group, is expanding its capacity and has secured long-term supply agreements, further strengthening its operational capabilities. Notably, the division has been awarded £90 million in grant funding for its expansion projects, with £19.5 million already received.

The U.S. operations of Chemring have also seen significant success, with multiple contracts valued at over $20 million awarded, including collaborations with Boeing and United Launch Alliance. Demand for the countermeasures business remains robust, with total orders amounting to £172 million year-to-date, including a £36 million order for Typhoon countermeasures from the UK Ministry of Defence.

Looking ahead, the company expressed confidence in its positioning for future growth, emphasizing strong order intake and long-term demand, which provide visibility into the 2025 financial year and beyond. Chemring plans to announce its results for the year ending October 31 on December 17.

 

 


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