Chemring Group — Record order book driving confidence

Chemring’s H125 results showcase solid momentum in a transformed defence landscape, with order intake surging 42% to £488m and the order book reaching a record £1.3bn. Revenue grew 5% y-o-y to £234.3m, while the underlying operating margin improved modestly to 11.6%. Order book strength provides 85% visibility for FY25 revenue. With EU defence spending set to rise by more than €100bn by 2027 and the UK targeting 2.5% of GDP, Chemring’s positioning in niche market areas including energetics and electronic warfare creates a potentially solid investment case for the multi-decade rearmament cycle.