Cohort, the UK defence technology group, reported adjusted full-year earnings per share of £0.62, outpacing the analyst expectation of £0.60. The company’s top line expanded by 13% year-over-year, fuelled principally by its Communications and Intelligence division.
Pretax profit for the year stood at £32.60 million, below the consensus estimate of £34.51 million compiled from seven analysts. Basic earnings per share were reported at £0.52 for the fiscal year.
The Communications and Intelligence division produced notable profit growth during the period. Management highlighted a full-year contribution from EM Solutions and almost 20% revenue growth at MASS as key drivers within the division. Overall revenue momentum was supported by higher export activity, with the company pointing specifically to stronger sales into NATO Europe, Australia, and Germany amid a broader rise in global defence spending.
By contrast, the Sensors and Effectors business delivered flat revenue and a decline in profit. Management attributed the weaker performance to a less favourable mix at SEA, the impact of legacy projects and the showing at Chess Dynamics.
In capital allocation moves, Cohort announced a 10% increase in its dividend per share. The group also reported a record order book, which underpins approximately £264 million of revenue for 2026/27 and represents coverage of about 88% of that year.
Looking ahead, the company has set a multi-year financial target: it is aiming for double-digit earnings growth in 2026/27 and for the two subsequent years. Cohort expects its operating margin to strengthen to the low-teens in 2026/27, with a further objective of reaching mid-teen operating margins by the end of the decade.
Summary analysis - Cohort’s near-term performance was a mix of positive operating momentum in communications-focused activities and offsetting softness in sensors and effectors. Export demand stands out as a clear contributor to revenue growth, while legacy programme dynamics and product mix constrained profitability in parts of the business.
- Financial highlights: adjusted EPS £0.62 (vs £0.60 expected), pretax profit £32.60m (vs £34.51m consensus), basic EPS £0.52.
- Division performance: Communications and Intelligence outperformed; Sensors and Effectors experienced flat revenue and lower profit.
- Orders and payout: record order book supporting ~£264m of 2026/27 revenue (88% coverage) and a 10% dividend increase.
These results and the stated targets provide a clearer line of sight into revenue visibility for 2026/27, while the company’s margin ambitions indicate management focus on operational improvement across the business over the medium term.