Defense group Chemring secures £278 million in new orders from Germany and the US
- Chemring unveils separate agreements to supply German and US forces
Shares in London-listed Chemring rose on Monday after the defense group unveiled 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 ammunition for use by the German armed forces and its allies.
The initial purchase order, worth €231m (£194m), will see Chemring supply Nobel Diehl Defense for a period of five years from the end of 2026 as part of a partnership with Norwegian-Finnish defense group Nammo AS.
Chemring has a broad defense offering, from air technology and reconnaissance technology to security products for cyber threats.
In addition, Chemring said its US subsidiary has received an order worth $106m (£82m) for the supply of crucial components for use in an ‘undisclosed US missile programme’.
The five-year contract starts in 2026.
Chemring shares rose 1.7 percent to 362p in early trade. They have added more than 80 percent in the past five years as demand soars.
Chemring has a broad defense offering, from air technology and reconnaissance technology to security products for 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, after receiving ‘a number of significant orders’ in the most recent quarter.
Chemring is targeting £1 billion in annual revenues as governments around the world ramp up defense spending amid a growing number of geopolitical crises.
The country has invested heavily to increase capacity to meet demand.
Chemring boss Michael Ord said: “These important contract wins illustrate the deep, long-term relationships we have built with our customers.
“It is further evidence of the continued and growing demand for our products and supports our investment decisions to increase the capacity of our three energy companies, and strengthens Chemring’s position as a key supplier to NATO.”
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