Chemring Group - AGM Trading Update sees shares fall 5% to 496p - a Buyers opportunity, TP 620p

Mark Watson-Mitchell - 20.02.2026

This morning's AGM Trading Update from the Chemring Group (LON:CHG) saw traders knock the share price down to 496p - which is the wrong price.

Wrong price in AGM Trading Update reaction

In its update ahead of its AGM later today, the group confirmed that its FY26 outlook remains in line with expectations, with revenue 85% covered by current revenues and an Order Book of £1,364m as of 30th January, 2026, an increase from £1,351m in the prior year.

While Q1 order intake was £122m, lower than the prior year's £393m, the company secured a £22.5m STORM Missile Defence Centre order for Roke post-January 2026.

Investments in Energetics capacity are ongoing, expected to increase net debt, and a non-cash impairment charge is anticipated due to operational changes at Kilgore Flares.

The Norwegian government will provide up to £16m towards a feasibility study for a second military explosives production facility.

Management Comment

CEO Michael Ord stated that:

"Chemring is well positioned to benefit from rising defence spending across NATO and allied nations, evidenced by our record order book and a strong pipeline of opportunities, and we will continue to invest in our business to capture further growth.

For FY26 our outlook is unchanged."

My View

The market has got it wrong and sold off the shares to a ridiculous 496p level, at which buyers should now rapidly take advantage of the bargain on offer.

(Profile 20.06.19 @ 177p set a Target Price of 300p*)

(Profile 20.10.23 @ 278p set a Target Price of 350p*)

(Profile 04.12.25 @ 475p set a Target Price of 550p)