Overview
Chemring Group PLC confirmed its FY26 outlook and reported an increase in order cover, with the group now 85% covered for the fiscal year. The company’s order book stood at 1.364bn as of January 30, 2026, a 1% rise from the 1.345bn reported on October 30, 2025.
Quarterly intake and year-on-year comparison
Order intake for the first quarter reached 122m, down 69% from 93m recorded in Q1 2025, a period in which the company won sizeable multi-year contracts.
Order cover by division
The group-wide FY26 order cover of 85% surpasses the Q1 2025 level of 81%. Within its operating segments there was divergence. The Countermeasures and Energetics division reported 96% cover for FY26, a slight increase from 95% in October 2025 but marginally below the 98% reported in Q1 2025. The Sensors and Information division saw order cover climb to 52% for FY26 from 45% in October 2025, although this remains short of the 54% recorded in Q1 2025.
During the period the Sensors and Information division secured National Intelligence order wins, and further STORM contract awards were announced after the period close.
Operational update and projects
Chemring said it has addressed operational constraints in countermeasures production that had previously impacted output. The Energetics division is described as virtually fully covered for FY26 at 96%.
On the development front, the company 's feasibility study in Norway has advanced into Phase 2 and is expected to reach a conclusion by year-end 2026.
Outlook and consensus expectations
The FY26 outlook remains consistent with the board 's expectations. Market consensus cited alongside the company puts projected revenue at 44m, adjusted EBIT at 0.7m and adjusted earnings per share of 20.4p for FY26.
Key points
- Group order cover rose to 85% for FY26, above the prior-year Q1 level of 81%.
- Order book increased slightly to 1.364bn at the end of January 2026.
- Sensors and Information secured National Intelligence wins and STORM contracts after the period, while Countermeasures and Energetics remain highly covered.
Risks and uncertainties
- First-quarter order intake fell 69% year-on-year to 122m, reflecting dependence on timing of large, multi-year awards which can create uneven intake across periods - a factor relevant to defense and industrial markets.
- Operational challenges in countermeasures production had affected operations earlier in the period; although the company reports these issues have been resolved, such disruptions can pose execution risk for manufacturing-led divisions.
Sectors impacted
- Defence and national intelligence contracting, given the nature of division wins and STORM contracts.
- Industrial manufacturing and supply chain considerations related to countermeasures and energetics production.
This article presents the company's reported figures, division updates, project status, and consensus FY26 projections without additional commentary.