Chemring (GB:CHG)
LSE:CHG
Want to see GB:CHG full AI Analyst Report?
Top Page
Chemring
(LSE:CHG)
Select Model
Select Model
Rating:63Neutral
Price Target:
547.00 p
▼(-2.23% Downside)
Action:ReiteratedDate: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
Large, growing order book
A GBP 1.3bn order book and rising intake provide multi-year revenue visibility typical of defence contractors. Backlog reduces near-term demand volatility, supports production planning, and underpins management's pathway to materially higher revenue by 2030, strengthening long-term cash flow predictability.
Negative Factors
Severe free cash flow decline
A pronounced drop in free cash flow undermines the firm's ability to self-fund growth, pay dividends, or absorb procurement timing swings. Even with strong operating margins, negative FCF signals working capital or capex pressure that can constrain M&A optionality and increase reliance on external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Large, growing order book
A GBP 1.3bn order book and rising intake provide multi-year revenue visibility typical of defence contractors. Backlog reduces near-term demand volatility, supports production planning, and underpins management's pathway to materially higher revenue by 2030, strengthening long-term cash flow predictability.
Read all positive factors
Chemring (CHG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.39B
Dividend Yield1.64%
Average Volume (3M)1.05M
Price to Earnings (P/E)32.2
Beta (1Y)1.08
Revenue Growth-2.53%
EPS Growth22.25%
CountryUK
Employees2,672
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.13
Shares Outstanding272,125,180
10 Day Avg. Volume771,588
30 Day Avg. Volume1,046,652
Financial Highlights & Ratios
PEG Ratio1.13
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
£630.00Price Target Upside12.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.2
Revenue Forecast (FY)£546.94M
Chemring Business Overview & Revenue Model
Company Description
Chemring Group PLC supplies countermeasures, sensors, and energetic solutions to aerospace, defense, and security industries in the United States, the United Kingdom, Norway, Australia, and internationally. The company operates through two segment...
How the Company Makes Money
Chemring makes money primarily by designing, manufacturing, and selling defence products and by providing related services to government and prime defence contractor customers. A major revenue stream comes from its Countermeasures business, which ...
Chemring Earnings Call Summary
Earnings Call Date:Dec 09, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 09, 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 | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 497.50M | 510.40M | 472.60M | 401.00M | 393.30M |
| Gross Profit | 497.50M | 510.40M | 472.60M | 401.00M | 393.30M |
| EBITDA | 100.20M | 82.70M | 67.10M | 71.20M | 75.50M |
| Net Income | 48.20M | 39.50M | 5.40M | 47.40M | 41.50M |
Balance Sheet | |||||
| Total Assets | 863.10M | 692.10M | 596.40M | 620.10M | 531.50M |
| Cash, Cash Equivalents and Short-Term Investments | 65.30M | 45.00M | 6.40M | 19.80M | 5.80M |
| Total Debt | 154.30M | 97.70M | 20.70M | 26.90M | 32.30M |
| Total Liabilities | 481.10M | 335.80M | 217.90M | 202.00M | 178.70M |
| Stockholders Equity | 382.00M | 356.30M | 378.50M | 418.10M | 352.80M |
Cash Flow | |||||
| Free Cash Flow | -5.60M | 11.40M | 31.70M | 46.00M | 45.50M |
| Operating Cash Flow | 84.60M | 81.00M | 65.90M | 80.50M | 75.70M |
| Investing Cash Flow | -85.70M | -47.60M | -39.40M | -30.50M | -34.90M |
| Financing Cash Flow | 43.30M | -37.30M | -40.20M | -35.80M | -50.40M |
Chemring Technical Analysis
Positive
559.50
Price Trends
523.51
Positive
507.24
Positive
526.45
Positive
Market Momentum
11.39
Negative
60.62
Neutral
76.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CHG, the sentiment is Positive. The current price of 559.5 is above the 20-day moving average (MA) of 528.90, above the 50-day MA of 523.51, and above the 200-day MA of 526.45, indicating a bullish trend. The MACD of 11.39 indicates Negative momentum. The RSI at 60.62 is Neutral, neither overbought nor oversold. The STOCH value of 76.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | £2.74B | 19.41 | 16.69% | 1.27% | 1.69% | 276.44% | |
74 Outperform | £558.21M | 24.99 | 11.27% | 1.58% | 23.91% | -14.66% | |
69 Neutral | £58.64B | 11.77 | 18.23% | 1.99% | 7.69% | 7.29% | |
68 Neutral | £5.32B | 9.88 | 43.22% | 0.56% | 7.36% | 48.93% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | £1.39B | 32.18 | 13.12% | 1.64% | -2.53% | 22.25% | |
58 Neutral | £2.26B | 20.00 | -35.50% | 2.00% | -4.59% | -256.51% |
* Industrials Sector Average
GB:CHG
Chemring
513.50
120.88
30.79%
GB:BA
BAE Systems
2,001.00
290.23
16.96%
GB:BAB
Babcock International
1,087.00
282.50
35.12%
GB:CHRT
Cohort plc
1,214.00
-116.26
-8.74%
GB:SRP
Serco Group plc
276.20
102.54
59.05%
GB:QQ
QinetiQ
435.60
45.36
11.62%
Chemring Corporate Events
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...
Business Operations and StrategyExecutive/Board Changes
Chemring appoints Baroness Kate Rock as senior independent director to bolster growth strategy
Positive
Mar 4, 2026
Chemring Group has appointed Baroness Kate Rock as an independent non-executive director, effective 1 April 2026, and she will also serve as Senior Independent Director and sit on the Audit, Nomination and Remuneration Committees. The move brings ...
Regulatory Filings and Compliance
Chemring Updates Share Capital and Voting Rights for Disclosure Purposes
Neutral
Mar 2, 2026
Chemring Group has confirmed that, as of 28 February 2026, its issued share capital comprises 272,123,407 ordinary shares carrying voting rights and 62,500 cumulative preference shares that generally do not carry voting rights. The updated share c...
Business Operations and StrategyShareholder Meetings
Chemring Wins Strong Shareholder Backing as All AGM Resolutions Pass
Positive
Feb 20, 2026
Chemring Group PLC reported that all resolutions put to shareholders at its annual general meeting on 20 February 2026 were approved by poll, with support levels generally above 90% on most items. Approximately 68% of the company’s issued sh...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Chemring holds FY26 outlook as record order book offsets slow start and UK defence delays
Neutral
Feb 20, 2026
Chemring said its fiscal 2026 outlook remains in line with board expectations despite a slightly slower start to the year, as it reported a record £1.364bn order book and 85% revenue cover from first-quarter revenues and existing contracts. T...
Regulatory Filings and Compliance
Chemring Confirms Share Capital and Voting Rights for FCA Disclosure Purposes
Neutral
Feb 2, 2026
Chemring Group PLC has confirmed that, as of 31 January 2026, its issued share capital comprises 272,122,862 ordinary shares of 1p each carrying voting rights and 62,500 cumulative preference shares that generally carry no voting rights except in ...
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.