Chemring (GB:CHG)
LSE:CHG
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Chemring
(LSE:CHG)
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Rating:63Neutral
Price Target:
559.00 p
▼(-0.09% Downside)
Action:Reiterated
Date:12/20/25
Chemring's overall stock score reflects strong financial performance and positive earnings call insights, particularly in the Energetics segment. However, bearish technical indicators and a high P/E ratio suggest caution. The company's long-term growth strategy and record order book are positive, but cash flow challenges and valuation concerns weigh on the score.
Positive Factors
Record order book and backlog
A GBP 1.3bn record order book provides multi-year revenue visibility and contract backlog, supporting sustained production and planning. This underpinning of future workload reduces near-term revenue volatility and strengthens the company's ability to execute strategic growth toward its 2030 revenue target.
Negative Factors
Weakness in Sensors & Information
An 18% drop in revenue and 25% fall in operating profit signals structural weakness in a higher-value segment. Reliance on program timing and lumpy deliveries creates persistence risk; prolonged underperformance could erode margins and require strategic restructuring or margin repair investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Record order book and backlog
A GBP 1.3bn record order book provides multi-year revenue visibility and contract backlog, supporting sustained production and planning. This underpinning of future workload reduces near-term revenue volatility and strengthens the company's ability to execute strategic growth toward its 2030 revenue target.
Read all positive factors
Chemring (CHG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.35B
Dividend Yield1.64%
Average Volume (3M)1.05M
Price to Earnings (P/E)39.1
Beta (1Y)1.27
Revenue Growth-3.99%
EPS Growth-22.35%
CountryUK
Employees2,672
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.12
Shares Outstanding272,126,800
10 Day Avg. Volume771,588
30 Day Avg. Volume1,046,652
Financial Highlights & Ratios
PEG Ratio1.11
Price to Book (P/B)4.06
Price to Sales (P/S)3.12
P/FCF Ratio-277.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£628.33Price Target Upside12.30% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.2
Revenue Forecast (FY)£546.73M
Chemring Business Overview & Revenue Model
Company Description
Chemring Group PLC is a global supplier of specialized countermeasures, sensors, and energetic solutions, catering primarily to the aerospace, defense, and security sectors. Its operations span key international markets, including the United State...
How the Company Makes Money
Chemring makes money primarily by selling defense and security products and delivering related services under contracts with government customers (notably the UK Ministry of Defence and the U.S. Department of Defense), prime defense contractors, a...
Chemring Earnings Call Summary
Earnings Call Date:Dec 09, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Dec 15, 2026
Earnings Call Sentiment Positive
The earnings call indicated strong performance and growth potential, particularly in the Energetics segment with a record order book and improved operational efficiency. However, challenges remain in the Sensors & Information segment due to delays in government spending and increased costs in Norway. The company is confident in its long-term growth strategy.Positive Updates
Record Order Book and Strong Growth Projections
Order intake reached GBP 781 million, up 20% year-on-year, delivering another record order book of GBP 1.3 billion, up 32% since last year. The company aims to double annual revenue to GBP 1 billion by 2030.
Negative Updates
Challenges in Sensors & Information Segment
Revenue in Sensors & Information fell by 18% and operating profit decreased by 25%, due to delays in U.K. government spending and the prior year's benefits from JBTDS LRIP.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Order Book and Strong Growth Projections
Order intake reached GBP 781 million, up 20% year-on-year, delivering another record order book of GBP 1.3 billion, up 32% since last year. The company aims to double annual revenue to GBP 1 billion by 2030.
Read all positive updates
Company Guidance
During the call, Chemring reported a robust financial performance for the fiscal year ending October 31, 2025, despite short-term headwinds such as decreased U.K. government order placements. The company achieved a record order book of GBP 1.3 billion, up 32% year-on-year, with order intake rising 20% to GBP 781 million. Group revenue increased by 2% to GBP 498 million, and operating margin improved by 50 basis points to 14.8%. Earnings per share rose to 19.4p, and cash conversion was strong at 114%. The Countermeasures & Energetics segment saw a 17% revenue growth, with operating profit up 37% and margins increasing to 19.1%. Meanwhile, the Sensors & Information segment faced challenges, with revenue down 18% and operating profit falling 25%. Despite these challenges, operating margins were maintained at nearly 18%. The Board declared a final dividend of 5.3p, bringing the total dividend to 8p, up 3%. Looking ahead, Chemring is targeting significant growth in its Energetics and Sensors & Information segments, with strategic investments and acquisitions supporting its long-term revenue goal of GBP 1 billion by 2030.Chemring Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 500.50M | 497.50M | 510.40M | 472.60M | 401.00M | 393.30M |
| Gross Profit | 485.30M | 497.50M | 510.40M | 472.60M | 401.00M | 393.30M |
| EBITDA | 95.00M | 100.20M | 82.70M | 67.10M | 71.20M | 75.50M |
| Net Income | 33.90M | 48.20M | 39.50M | 5.40M | 47.40M | 41.50M |
Balance Sheet | ||||||
| Total Assets | 908.10M | 863.10M | 692.10M | 596.40M | 620.10M | 531.50M |
| Cash, Cash Equivalents and Short-Term Investments | 44.70M | 65.30M | 45.00M | 6.40M | 19.80M | 5.80M |
| Total Debt | 189.20M | 154.30M | 97.70M | 20.70M | 26.90M | 32.30M |
| Total Liabilities | 539.40M | 481.10M | 335.80M | 217.90M | 202.00M | 178.70M |
| Stockholders Equity | 368.70M | 382.00M | 356.30M | 378.50M | 418.10M | 352.80M |
Cash Flow | ||||||
| Free Cash Flow | -13.50M | -5.60M | 11.40M | 31.70M | 46.00M | 45.50M |
| Operating Cash Flow | 76.00M | 84.60M | 81.00M | 65.90M | 80.50M | 75.70M |
| Investing Cash Flow | -92.60M | -85.70M | -47.60M | -39.40M | -30.50M | -34.90M |
| Financing Cash Flow | 2.70M | 43.30M | -37.30M | -40.20M | -35.80M | -50.40M |
Chemring Technical Analysis
Negative
559.50
Price Trends
516.22
Negative
516.11
Negative
520.24
Negative
Market Momentum
-2.96
Positive
46.52
Neutral
11.74
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CHG, the sentiment is Negative. The current price of 559.5 is above the 20-day moving average (MA) of 513.70, above the 50-day MA of 516.22, and above the 200-day MA of 520.24, indicating a bearish trend. The MACD of -2.96 indicates Positive momentum. The RSI at 46.52 is Neutral, neither overbought nor oversold. The STOCH value of 11.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CHG.
Chemring Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | £2.34B | 16.25 | 16.69% | 1.27% | 1.69% | 276.44% | |
74 Outperform | £570.60M | 30.01 | 11.27% | 1.58% | 23.91% | -14.66% | |
69 Neutral | £54.17B | 26.78 | 18.23% | 1.99% | 7.69% | 7.29% | |
68 Neutral | £5.12B | 18.09 | 43.22% | 0.56% | 7.36% | 48.93% | |
68 Neutral | £2.25B | 21.36 | 19.34% | 2.00% | -0.47% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | £1.35B | 39.06 | 13.12% | 1.64% | -3.99% | -22.35% |
* Industrials Sector Average
GB:CHG
Chemring
500.00
-46.82
-8.56%
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Chemring Corporate Events
Executive/Board Changes
Chemring Launches Search as Long-Serving Legal Director Plans 2027 Retirement
Neutral
Jun 2, 2026
Chemring Group PLC has announced that Group Legal Director and Company Secretary Sarah Ellard will retire in 2027, after more than three decades with the company and over a decade on its board. The board has begun a formal search for her successor...
Business Operations and StrategyDividendsFinancial Disclosures
Chemring lifts revenue and order book as defence demand fuels record backlog
Positive
Jun 2, 2026
Chemring reported interim results in line with expectations for the six months to 30 April 2026, highlighting a record order book of £1.4bn that provides strong medium-term revenue visibility. Revenue rose 6.5% to £237.3m with an operati...
Regulatory Filings and Compliance
Chemring Updates Share Capital and Voting Rights Reference Total
Neutral
Jun 1, 2026
Chemring Group PLC has confirmed that, as of 31 May 2026, its share capital comprises 272,126,806 ordinary shares carrying voting rights and 62,500 cumulative preference shares that generally carry no voting rights. The updated voting share total ...
Regulatory Filings and Compliance
Chemring Updates Share Capital and Voting Rights for Disclosure Purposes
Neutral
May 1, 2026
Chemring Group PLC has reported that, as of 30 April 2026, its issued share capital comprises 272,126,806 ordinary shares with full voting rights and 62,500 cumulative preference shares that generally carry no voting rights. This updated capital s...
Regulatory Filings and Compliance
Chemring updates share capital and voting rights for FCA disclosure purposes
Neutral
Apr 1, 2026
Chemring Group PLC has confirmed that, as of 31 March 2026, its issued share capital comprises 272,125,179 ordinary shares of 1p each with voting rights and 62,500 cumulative preference shares without voting rights except in specified cases. The c...
Executive/Board ChangesRegulatory Filings and Compliance
Incoming Chemring Senior Independent Director buys shares ahead of board appointment
Positive
Mar 31, 2026
Chemring Group PLC reported that Baroness Kate Rock, who is set to join its board as Senior Independent Director on 1 April 2026, purchased 11,000 ordinary shares in the company on 31 March 2026. The transaction, executed on the London Stock Excha...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.