Published by Global Banking & Finance Review®
Posted on June 3, 2025
2 min readLast updated: January 23, 2026
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Chemring posts record order book driven by global defence spending amid geopolitical tensions, with steady demand projected.
(Reuters) -British defence contractor Chemring posted its highest-ever order book and order intake on Tuesday for the six months ended April 30, driven by rising global defence spending amid heightened geopolitical tensions.
The company, which also reported a half-year profit growth and reaffirmed its full-year expectations, said it anticipates steady demand for its air and naval products over the next decade.
CONTEXT
Chemring manufactures equipment such as sensors and countermeasures for naval and battlefield systems, among others.
Demand for the company's specialised energetics capabilities - high-performance explosive materials and devices - has remained strong since Russia's invasion of Ukraine in 2022.
WHY IT'S IMPORTANT
The Ukraine-Russia war has driven a surge in demand for munitions and military technology, prompting governments to expand contracts with defence products suppliers.
More recently, the British government pledged the largest sustained increase in defence spending since the end of the Cold War, expanding its fleet of attack submarines, which are nuclear-powered but carry conventional weapons.
KEY QUOTE
"With growing geopolitical uncertainty resulting in increased defence expenditure, particularly across NATO, the group is well positioned with a strong and sustainable platform to increase revenue to 1 billion pounds ($1.35 billion) by 2030", CEO Michael Ord said in a statement.
BY THE NUMBERS
The company reported an underlying operating profit of 27.1 million pounds for the six months ended April 30, growing 8% from the prior year, and said its order book totalled 1.30 billion pounds, a 25% increase.
It reaffirmed its expectations for the year ending October 31. Analysts, on average, estimate 75.5 million pounds in underlying operating profit, according to a company-provided consensus.
MARKET REACTION
Shares in the Romsey-based company rose as much as 3.6% to 504 pence during morning trade, their highest level since July 2011.
($1 = 0.7393 pounds)
(Reporting by DhanushVignesh Babu in Bengaluru)
Chemring's record order book was driven by rising global defense spending amid heightened geopolitical risks, particularly following Russia's invasion of Ukraine.
Chemring anticipates steady demand for its air and naval products over the next decade, supported by increased defense expenditure across NATO.
The company reported an underlying operating profit of 27.1 million pounds for the six months ended April 30, which is an 8% increase from the prior year.
Shares in Chemring rose as much as 3.6% to 504 pence during morning trade, reaching their highest level since July 2011.
The British government's pledge for the largest sustained increase in defense spending since the Cold War reflects the urgent need for enhanced military capabilities amid ongoing geopolitical tensions.
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