Chemring Group (CHG): Alloy Surfaces strategic review

This situation live

CHG Chemring Group

£1,460m · 539.5p · −1% since the first step

10 Nov 2025 · Strategic options being assessed; reported as discontinued · −11% until the next step The options include a sale of the business or assets.

9 Dec 2025 · Reported as discontinued operation · +5% until the next step discontinued operations in relation to EHD business, Alloy Surfaces Company, Inc. and other discontinued operations: £5.1m (2024: £2.0m)

2 Jun 2026 · Discontinued; £8.1m H1 loss after tax · −4% until the next step Loss after tax (£m) | - | (8.1) | (8.1)

25 Jun 2026 · Review outcome: retained, restarting manufacturing · +12% since The Group is working with the DoW to assess the financial profile of these awards and will provide updated guidance at the year end.

Disposal of a part (break-up)

Alloy Surfaces strategic review

Review outcome: retained, restarting manufacturing

Next: updated guidance on financial profile at the year end; reclassify ASC as continuing

Every step · 4

10 Nov 2025 Strategic options being assessed; reported as discontinued – The options include a sale of the business or assets. ↗
9 Dec 2025 Reported as discontinued operation – discontinued operations in relation to EHD business, Alloy Surfaces Company, Inc. and other discontinued operations: £5.1m (2024: £2.0m) ↗
2 Jun 2026 Discontinued; £8.1m H1 loss after tax – Loss after tax (£m) | - | (8.1) | (8.1) ↗
25 Jun 2026 Review outcome: retained, restarting manufacturing – The Group is working with the DoW to assess the financial profile of these awards and will provide updated guidance at the year end. ↗

What is happening

Chemring Group: Alloy Surfaces strategic review – Review outcome: retained, restarting manufacturing. ['Review outcome: retained, restarting manufacturing']

Announced: 10 Nov 2025 · Strategic options being assessed; reported as discontinued
Latest: 25 Jun 2026 · Review outcome: retained, restarting manufacturing
Why: Falling US DoD demand for ASC's pyrophoric decoys leaves too few orders to sustain continuous manufacturing, so options including sale are being assessed.
Value: £1,300.0m · 89% of market value – order book at 31 October 2025 (£1.0bn a year earlier)
The business: Loss-making · Normalised revenue c.£25m and operating profit c.£3.5m; expected FY25 loss of c.£3m in discontinued operations
What it changes: Alloy Surfaces moves from a discontinued, loss-making operation under review to a business retained with US government-funded demand. Earnings impact starts in FY28 and financials are still to be assessed, so FY26-27 guidance is unchanged.

What comes next

updated guidance on financial profile at the year end; reclassify ASC as continuing.

From the company's own announcements. Not investment advice.

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Also at Chemring Group 2 open

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