Defense group Chemring receives £278m in new orders from Germany and US

Shares in London-listed Chemring rose on Monday after the defense group revealed new orders to supply the German and US armies worth £278m.

Chemring told shareholders that its Norwegian subsidiary had signed an agreement for the supply of “energetic material” used in 155mm munitions to be used by the German Armed Forces and its allies.

The initial purchase order, valued at €231m (£194m), will see Chemring Nobel supply Diehl Defense with deliveries over a five-year period starting in late 2026 as part of a collaboration with the Norwegian-Finnish defense Nammo AS.

Separately, Chemring said its US subsidiary has received an order valued at $106m (£82m) for the delivery of critical components for use in an “undisclosed US missile programme”.

The five-year agreement will begin in 2026.

Chemring Stock They rose 1.7 percent to 362 pence in early trading. They have added more than 80 percent in the past five years amid booming demand.

Chemring has a broad defense offering, from aerial engineering and reconnaissance technology to security products against cyber threats.

The group told shareholders last month that full-year profits will be in line with expectations of £70.8 million to £73.6 million, having received “a number of significant orders” in the most recent quarter. recent.

Chemring is targeting £1bn in annual revenue as governments around the world increase defense spending, amid a growing number of geopolitical crises.

It has been investing heavily to increase capacity to meet demand.

Chemring boss Michael Ord said: ‘These significant contract awards illustrate the deep, long-term relationships we have built with our customers.

“It is further evidence of the sustained and growing demand for our products and supports our investment decisions to increase the capacity of our three energy businesses, and reinforces Chemring’s position as a key supplier to NATO.”