Chemring starts PS40 million buyback as order book tops PS1 billion

Chemring Group PLC on Wednesday said its order book is at a ‘record level’, as the military equipment maker secured new contracts, and it announced a £40 million share buyback.

Its shares were up 4.4% to 390.09 pence in London on Wednesday morning.

Chemring is a Romsey, England-based defence, security and space technology manufacturer. It is holding its annual general meeting on Wednesday.

Its order book stood at £1.35 billion as of January 30, up from £991 million a year earlier. The company reported order intake of £393 million for the first quarter, with ‘significant orders’ secured across both its Sensors & Information and Countermeasures & Energetics sectors.

Chief Executive Michael Ord said: ‘Our order book is at a record level and order intake across both sectors benefitted from the receipt of several significant orders, demonstrating continued customer demand and confidence in Chemring’s market-leading products and services.’

Chemring also announced a new share buyback programme worth up to £40 million, starting on Wednesday and completing by the time of its annual general meeting in 2027. The company said the capital return reflects the board’s confidence in its long-term growth prospects.

Looking ahead, Chemring said its outlook for financial 2025 remains in line with market expectations. The company noted that 81% of its expected revenue for the year is already covered by its first-quarter revenue and existing order book.

Chemring will release its results for the half-year ending April 30 on June 3.

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