Chemring to sell US sensors business as order book hits record

Chemring Group PLC said on Thursday that it had achieved a record order book in financial 2026 and would begin the sale of its US sensors business as it seeks to focus on its other operations.

The Romsey, Hampshire-based company manufactures technology for the security and aerospace sectors.

Chemring said its order book stood at a record £1.4 billion at the end of October, up 7.7% from £1.3 billion a year earlier, driven by strong demand across its core markets.

The company expects to report underlying operating profit of around £79 million for the 12 months to October, compared with market forecasts ranging from £77.2 million to £81.8 million and a consensus estimate of £80.3 million.

Net debt is expected to be £145 million, below the market consensus of £174 million.

Chemring also expects underlying earnings per share to benefit from "modestly lower interest costs than previously expected".

Chief Executive Michael Ord said: "Our record order book and strategic contract wins demonstrate the strength of our business and the successful execution of our strategy. We delivered a solid performance in financial 2026 despite well-documented headwinds in parts of the UK market and we remain confident in delivering strong year-on-year growth in financial 2027, supported by our deliverable order book and a more balanced first-half and second-half weighting."

Chemring said it would sell its US Sensors business, Chemring Sensors and Electronic Systems Inc, following a strategic review.

The company said: "The board has concluded that CSES would have greater opportunities to develop as part of a broader portfolio of chemical, biological, radiological, nuclear, and explosive detection capabilities, which the group does not intend to build, and that it would therefore be better positioned under alternative ownership."

Chemring said the disposal would allow it to focus on its Countermeasures & Energetics business and Roke Manor Research Ltd.

The company expects the sale to result in non-underlying and non-cash provisions and adjustments.

Within its Sensors & Information division, research subsidiary Roke delivered a performance below expectations due to delays in defence contract awards, mainly from the UK Ministry of Defence, and in sales of electronic warfare systems to international customers. However, its record order book provides greater visibility over financial 2027.

Chemring also highlighted contract wins during the period for its Energetics and Countermeasures businesses with the UK Ministry of Defence.

Chemring shares were down 1.1% at 520.00 pence in London on Thursday.

The company will publish its annual results on December 8.

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