AGM Update

Chemring, a key contributor to the defence industrial base, supplying materials, subsystems, components, and technologies into growing areas of defence, security, and space markets, issues the following update ahead of its Annual General Meeting taking place later today.

Key points:

• FY26 outlook in line with the Board's expectations.
• Order book at 30 January 2026 of £1,364m (30 January 2025: £1,351m).
• Q1 order intake of £122m (Q1 FY25 £393m). Orders received across both sectors as well as a £22.5m STORM Missile Defence Centre order for Roke received post 30 January 2026.
• Expected FY26 revenue 85% covered by Q1 revenues and current order book (30 January 2025: 81%). Outer years cover continuing to build with strong order pipeline.

Michael Ord, Group Chief Executive, commented:

"Chemring is well positioned to benefit from rising defence spending across NATO and allied nations, evidenced by our record order book and a strong pipeline of opportunities, and we will continue to invest in our business to capture further growth. For FY26 our outlook is unchanged."

Current Trading and Outlook

The Group's outlook for FY26 remains in line with the Board's expectations with a H2 weighting slightly heavier than the prior year.

We have had a slightly slower than anticipated start to the year, primarily due to some operational disruption in countermeasures production, which is now largely resolved. At our US countermeasures facility, Kilgore Flares ("KFL") in Tennessee, the operational performance and efficiency of its fully automated facility continues to steadily ramp. The decision has therefore been taken to retire a number of KFL's legacy operations and to transfer manufacturing to the automated facility, which is expected to lead to a non-cash impairment charge.

Whilst there continues to be disruption in the UK market due to the delayed publication of the UK's Defence Investment Plan, order intake has slightly improved in recent months and the medium-term outlook for sustained defence spending remains strong.

Significant investment in growing Energetics capacity continues at pace. This investment, which is being funded through existing debt facilities, is expected to result in net debt trending higher at H1 and the full year as we invest in the business.

In June 2025 the Norwegian Government announced that the feasibility study into the establishment of a second production facility to further increase the production of military explosives had moved to the second phase. This concept selection phase will determine the design and size of the facility, along with regulatory and commercial arrangements. The Norwegian Government will provide up to £16m in funding towards the costs of this study, which is due to conclude by the end of 2026.

The Group's order book at 30 January 2026 was £1,364m (30 January 2025: £1,351m). Having started the financial year with order cover of 76%, the Group's expected FY26 revenue is now 85% (30 January 2025: 81%) covered by revenue generated in the period to date and the current order book.

Order intake since 31 October 2025 was £122m (30 January 2025: £393m) against a very strong prior year comparator period in which several multi-year contracts were won by both sectors.

The Countermeasures & Energetics ("C&E") sector's FY26 revenue is now 96% covered by revenue generated in the period to date and the current order book, having started the year with 95% cover (30 January 2025: 98%).

Of note, Chemring Countermeasures UK won contracts from a range of NATO and non-NATO customers totalling £55m for the delivery of airborne and naval countermeasures, with deliveries scheduled during FY26-FY29, further improving visibility.

In the Sensors & Information ("S&I") sector, Roke has continued to make good progress on key strategic activities receiving c.£45m of orders in the year to date, including the receipt of a £22.5m order relating to the STORM Missile Defence Centre contract, which was received in the period since 30 January 2026.

Having started the year with 45% cover, the S&I sector's FY26 expected revenue at 30 January 2026 was 52% covered by revenue generated in the period to date and the current order book (30 January 2025: 54%). Order intake within S&I has progressed as expected during the current financial year.

Board of Directors

As previously announced, Fiona MacAulay, Senior Independent Director, will not be seeking re-election at today's Annual General Meeting. The process to identify a suitable candidate to replace her is progressing well. In the meantime, Stephen King, Non-Executive Director, has been appointed the Interim Senior Independent Director. Stephen will fulfil this role in addition to his role as Chair of the Audit Committee.