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Highlights
- Chemring Nobel signs €231 million deal with Diehl Defence for MCX energetic material, spanning five years from late 2026.
- Chemring Energetic Devices secures a $106 million order for U.S. missile components, also delivering over five years from 2026.
- Group adjusted operating profit for FY24 projected to meet expectations at £70.9 million.
Chemring (LSE:CHG), a global defense technology company, has announced two significant contracts secured by its subsidiaries. These deals bolster Chemring’s position as a key supplier of energetic materials and critical defense components, underpinning the company’s long-term growth and aligning with its strategic focus on defense sector partnerships.
Chemring Nobel’s €231M Framework Agreement with Diehl Defence
Chemring Nobel, Chemring’s Norwegian subsidiary, has signed a twelve-year framework agreement with Diehl Defence GmbH & Co. KG. This agreement will see Chemring Nobel supply MCX energetic material, essential for 155mm munitions production. An initial purchase order under this framework is valued at €231 million, with deliveries scheduled over five years beginning in late 2026.
The agreement supports Diehl Defence and Nammo AS's efforts to fulfill a German Government contract to provide 155mm munitions for the German Armed Forces and allied forces. Nammo’s advanced munitions technology requires MCX material, for which Chemring Nobel remains the only qualified supplier. This collaboration highlights Chemring’s strategic importance in Europe’s defense manufacturing ecosystem.
Chemring Energetic Devices Lands $106M U.S. Missile Program Contract
In another major development, Chemring’s U.S. subsidiary, Chemring Energetic Devices (CED), has secured a $106 million contract to supply critical components for an undisclosed U.S. missile program. Deliveries under this contract will also span five years, commencing in 2026. This order emphasizes Chemring’s integral role in the U.S. defense supply chain, particularly in high-precision and high-performance energetic systems.
Financial Outlook and Profit Expectations
Chemring reiterated that its Group adjusted operating profit for the fiscal year ending October 31, 2024, is expected to align with market expectations of £70.9 million. This announcement follows an earlier statement on October 17, 2024, confirming the company’s strong financial performance for the year.
