Chemring: British defence giant wins major US contract for missile radars
Chemring shares rose this morning after it unveiled a fresh deal with a US-based company for the supply of miniature radars.
The four-year contract is valued at £26m, with production commencing at the FTSE 250 firm’s Hampshire headquarters in October.
Shares rose around three per cent by mid-morning.
Chemring will supply Miniature Radar Altimeters (MRA) via its subsidiary Roke, to a US Prime Contractor working directly with the government.
MRA’s are used by missile systems and uncrewed air vehicles and are capable of measuring altitude at high speeds over land and sea.
“This agreement with a major US Prime Contractor is another success in Roke’s strategy to grow revenues from their portfolio of world-leading defence products and systems,” Mike Ord, Chemring’s chief executive, said.
“It also demonstrates the critical role we play in multiple space and missiles programmes is not confined to our Energetics businesses.
“Roke continues to see growing interest in its range of defence capabilities and has a significant medium-term pipeline of opportunities valued at more than £300m.”
Chemring shares have underwhelmed this year, falling 0.2 per cent since January despite the defence industry profiting from rising geopolitical tension across the globe.
Shares plunged in December despite the group’s order book reaching a record £1.04bn in 2024, as production and foreign exchange headwinds dented investor confidence.
Chemring is currently eyeing up a target of £1bn in annual revenue by the end of the decade, with the outlook for global defence markets looking increasingly robust.