Defence group Chemring strikes £278m in fresh orders from Germany and the US

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

Chemring told shareholders 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 €231million (£194million), will see Chemring Nobel supply Diehl Defence with deliveries over a five-year period from late 2026 as part of a collaboration with Norwegian-Finnish defence group Nammo AS.

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

The five-year deal will commence in 2026.

Chemring shares were up 1.7 per cent to 362p in early trading. They have added more than 80 per cent over the last five years amid booming demand. 

Chemring boasts a broad defence offering, from air engineering, reconnaissance technology to cyber threat security products. 

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

Chemring is targeting £1billion in annual revenues as governments around the world boost defence spending, amid a growing number of geopolitical crises.

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

Chemring boss Michael Ord said: ‘These significant contract wins illustrate the deep long-term relationships that 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 energetics businesses, and reinforces Chemring’s position as a key supplier to NATO.’

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