Nato supplier Chemring reveals £278m boost as geopolitical tensions fuel boom
Defence contractor Chemring has unveiled £278m in contract wins at its Norwegian and US subsidiaries, as demand for military equipment booms amid rising geopolitical tensions.
The Hampshire-headquartered firm said its Norwegian chemicals arm, Chemring Nobel, had signed a 12-year framework agreement with the German weapons manufacturer Diehl Defence.
Under the deal, Chemring Nobel has agreed to an order valued at €231m (£193.9m), with deliveries under the contract commencing in late 2026 for a period of five years.
Chemring also said its US subsidiary, Chemring Energetic Devices, which manufacturers electric devices for the aerospace and defence industries, had received a $106m (£81.7m) order for critical components for use in an undisclosed US missile programme.
Chemring hails ‘sustained and growing demand’
“These significant contract wins illustrate the deep long-term relationships that we have built with our customers,” Michael Ord, chief executive of Chemring, said.
“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.”
It comes as government spending on defence booms in the wake of conflict in the Middle East and Ukraine.
The likes of BAE Systems, Lockheed Martin and Qinetiq have reported booming order books and record sales since Russia’s full-scale invasion in February 2022.
Updating markets, Chemring reiterated its full-year guidance for the year ended 31 October, which is expected to fall in line with consensus expectations of £70.9m.
Shares in the group are up over 26 per cent in the last 12 months and rose nearly two per cent in early trading on Monday.
In October last year, Chemring, which specialises in producing countermeasures and sensors, reported a record-high order intake of £922m.