- Record full year revenue and profit
- Record order book
- Earnings guidance raised
Defence and security group Cohort (CHRT) saw its shares jumped by as much as 15% to a new all- time high after reporting another record year of revenues and profits, ahead of market expectations and raising its earnings outlook for 2026.
The shares are ahead by 46% so far in 2025 and have doubled over the last 12-months driven by booming demand for defence services in the wake of the continuing war in Ukraine and persistent tensions in the Asia-Pacific region.
Chairman Nick Prest commented: ‘Cohort has reported another record revenue and profit performance, with robust operating cash generation and a record closing order book stretching out into the mid-2030s.
‘This gives good visibility for the coming years, and along with our net funds and market position provides a robust foundation for future organic growth as well as the ability to make further strategic additions to the Group, as we did this year.’
RECORDS BROKEN
The group delivered a record adjusted operating profit of £27.5 million on record revenue of £270 million, representing annual growth of 30% and 33%, respectively.
Order intake continued to be strong with the group winning £284.7 million of orders, representing 1.1 times full year revenue, resulting in a closing order book of £616.4 million, stretching out to 2037.
The board recommended a final dividend of 11.05p per share taking the total dividend to 16.3p, up 10% on the year and continuing the group’s track record of increasing the dividend every year since listing in 2006.
RAISED OUTLOOK
Looking ahead, the opening order book of £247 million underpins roughly 85% of 2026 expected revenue (£290 million), following a further £25 million of contract wins since the start of the new financial year on 1 May.
Cohort said it is well positioned to benefit from the UK Strategic Defence Review which highlighted the need for investment in many of the areas of the company’s capabilities, including systems for manned and unmanned naval platforms.
The recent NATO (North Atlantic Treaty Organisation) conference resulted in a step change in defence spending which should be a positive for the group’s operations in Germany, Portugal, Canada and the UK.
An improved mix in the coming year alongside a full year’s contribution from the acquisition of EM Solutions is expected to drive a higher net margin, with further improvement from 2026/27 onwards, in line with the aim of achieving a low-to-mid teens percentage.
Adjusted EPS (earnings per share) for the year to April 2026 is now anticipated to be ahead of the company’s previous expectations.
Shore Capital nudged up its 2026 adjusted EPS forecast by 9% to 60.5p, alongside a 7% and 6% increase in the following two years, with 74p penciled in for 2028.
