Post-close and contract wins update

Chemring Group PLC ("Chemring" or "the Group") today issues an update on its FY25 financial performance and on order book progress with further contract wins, as it enters its close period for the year ended 31 October 2025.

Key points:

• FY25 adjusted operating profit in line with analyst expectations*
• Robust growth outlook maintained
• Order book of £1.3bn at 31 October 2025 (31 October 2024: £1.0bn)
• Further significant contract wins during H2 FY25
• Alloy Surfaces to be reported as a discontinued operation

FY25 year-end update

Chemring is pleased to announce that the adjusted operating profit for the year ended 31 October 2025 is expected to be in-line with analyst expectations* and adjusted EPS is expected to benefit from slightly lower finance costs.

The Group's adjusted operating margin is expected to be c.14.7% (FY24: 14.2%) with Energetics performance stronger than expected. We continue to see increased levels of demand for propellants, energetic materials and high-integrity devices, as customers re-evaluate operational usage and stockpile requirements associated with traditional defence capabilities. This has offset continued softness in Sensors & Information resulting primarily from delayed UK Government order placement across both National Security and Defence areas, which is a continuation of the trend we highlighted in our interim results.

Net debt as at 31 October 2025 is expected to be c.£95m.

The Group also announces that we are assessing our strategic options for Alloy Surfaces, one of our US countermeasures businesses, which will be reported as discontinued in the FY25 results (see below).

Outlook

The Group continues to see robust market conditions, with increasing customer demand for its technology-driven solutions and a resurgent demand for traditional defence capabilities. This strong outlook is expected to be maintained.

Order book and contract wins

At 31 October 2025 order intake for the year was c.£781m (31 October 2024: £648m) and the order book was c.£1.3bn (31 October 2024: £1.0bn) as the Group continues to win significant orders.

Order cover for FY26 is building, with Countermeasures & Energetics having c.95% (31 October 2024: 97%) order cover of expected revenue and the shorter cycle Sensors & Information sector having c.47% (31 October 2024: 48%) cover.

Contract wins - Energetics

Our US subsidiary Chemring Energetic Devices ("CED") won a five-year $65m sole-source framework contract, and base-year delivery orders valued at $38m, for the production and repair of SCOT and JCAST aircrew flight equipment tester systems. These tester systems are used by air forces worldwide, playing a vital role in ensuring aircrew safety. Work under this framework contract will be performed at CED's facility at Downers Grove, Illinois, and is expected to be completed by June 2030.

In the UK, our Scotland-based business Chemring Energetics UK ("CEUK") won a £24m order for the delivery of rocket motors and critical components used in the Next Generation Light Anti‐Tank Weapon system ("NLAW"). Deliveries under this contract will commence in 2027 and continue into 2028. This contract is a follow-on to the £23m NLAW contract that CEUK won in February 2025, and overall CEUK has won £90m in orders for the NLAW system since March 2023, with further orders expected in the first half of 2026. Work under this contract will be performed at CEUK's site at Ardeer, Scotland.

Our Norwegian business, Chemring Nobel, continues to see strong order intake, including a £23m order from Nammo for the supply of various HMX products. Work under this contract will be performed at Chemring Nobel's Saetre site, with deliveries being made between 2027 and 2037.

Contract wins - Countermeasures

Our Australian Countermeasures business, Chemring Australia, won a US$35m contract from the Commonwealth of Australia for the manufacture of airborne countermeasures, with this work being performed at Chemring Australia's Lara site and all deliveries should be completed by October 2027.

In the UK, Chemring Countermeasures UK ("CCM UK") won a £15m order from the NATO Support and Procurement Agency ("NSPA") for the delivery of airborne countermeasures for a European NATO member. Work under this contract will be performed at CCM UK's site near Salisbury, with deliveries being made in FY28 and FY29.

Contract wins - Sensors & Information

Roke continues to win strategically important contracts and has a strong opportunities pipeline underpinning longer-term growth goals, however the rate of UK Government short-term order placement continues to be slower than usual. During the second half Roke received more than £40m of National Security contract renewals and its Defence business won a strategically important £20m contract to deliver the next phase of Project ZODIAC for the British Army. ZODIAC is the backbone of the Army's Land ISTAR Programme, and is delivering an integrated intelligence, surveillance, target acquisition, and reconnaissance ("ISTAR") system which will transform how the Army undertakes data-led decision making to generate operational advantage.

Roke is the Prime Systems Integrator on this critical technology programme and deliveries under this contract commenced in late FY25, with the majority expected to be delivered in FY26. A follow-on contract is expected to take the programme to late FY27.

Landguard Group acquisition

The Landguard Group acquisition completed on 29 August 2025. Landguard, based in Fareham, Hampshire, designs, manufactures and supports software defined radio systems and associated security products that enable defence, government and law enforcement customers to protect crucial operational assets. The acquisition creates further opportunities for Chemring to enhance and accelerate growth of its Roke business whilst driving strong operational synergies.

Strategic review of Alloy Surfaces Company

Over recent years the Group has seen a significant decrease in US Department of Defense demand for the special material pyrophoric airborne decoys manufactured by Alloy Surfaces Company ("ASC") in Philadelphia, and despite significant effort we have been unable to secure sufficient orders to viably sustain continuous manufacturing operations.

As such, the Group is considering its strategic options for this business, which will be presented as a discontinued operation in the FY25 report and accounts. The options include a sale of the business or assets.

Directorate change

Fiona MacAulay, Senior Independent Director, has informed the Board that she will not be seeking re-election at the Group's Annual General Meeting in February 2026. Fiona's second three-year term as a non-executive director would otherwise have expired on 2 June 2026. The Chairman and the Board of Directors wish to extend their thanks to Fiona for her considerable contribution to the Group. A process to identify a suitable candidate to replace her will now be instigated.

Full year results date

Results for the year ending 31 October 2025 will be released on 9 December 2025.

*On a continuing operations basis, when adjusted for ASC which will now be accounted for as a discontinued operation. The Group believes analyst forecasts for adjusted operating profit for the year ended 31 October 2025 inclusive of ASC are currently in the range of £73.3m to £77.4m, with a consensus of £75.8m. Annual normalised revenue for ASC would have been c.£25m and its operating profit c.£3.5m. However, given actions taken as part of the strategic review during the year, ASC is expected to report a loss of c.£3m as part of discontinued operations and the FY25 results will also include several one-off costs, of which c.£5m are expected to be cash related.