FOR IMMEDIATE RELEASE                                                                                                                  25 JUNE 2026

CHEMRING GROUP PLC ("Chemring", the "Group" or the "Company")

ALLOY SURFACES $300m IDIQ & $45m OTA US DEPARTMENT OF WAR CONTRACT AWARDS

In November 2025 the Group initiated a strategic review of its Philadelphia, USA-based pyrophoric airborne decoys business Alloy Surfaces Company ("ASC"). In the FY25 Report and Accounts ASC was classified as a discontinued operation due to insufficient order intake to support sustainable, continuous manufacturing. The Group has since been actively assessing its strategic options for the business.

The Group is pleased to announce that it has now signed agreements with the US Department of War ("DoW") to enable the resumption of sustained manufacturing operations at ASC.

A modification has been awarded to an Indefinite Delivery, Indefinite Quantity ("IDIQ") contract, funded under the Defense Production Act, to produce pyrophoric airborne decoys. The new award has a maximum value of $300 million over five years, with guaranteed minimum awards of $35 million per annum for the first three years. Deliveries under this IDIQ are expected to commence in early FY28. These critical defence assets will support the survivability of aviation platforms across the US Army, Air Force, Navy, Special Operations Command, and allied nations through Foreign Military Sales.

Under the terms of an Other Transaction Authority ("OTA") agreement, $45 million of Industrial Base Analysis and Sustainment program funds will also be received to launch the restart of manufacturing operations and the transfer to the DoW of intellectual property rights associated with ASC's pyrophoric decoys, with a modest amount received up front and the remaining amount spread over the next five years.

The Group is working with the DoW to assess the financial profile of these awards and will provide updated guidance at the year end. No impact on FY26 and FY27 performance is expected. For FY26 reporting ASC will be reclassified as a continuing operation with prior period comparatives re-presented accordingly. Land and buildings currently classified as assets held for sale will be reclassified to property, plant and equipment.

Michael Ord, Chemring Group Chief Executive, commented:

"As missile threats increase in scale and sophistication, air platform survivability remains mission‑critical. Today's announcement underscores the sustained and increasingly resilient demand we are seeing across our global countermeasures business and its ability to generate attractive returns for shareholders.

This award builds on our already strong order cover across Countermeasures & Energetics and reflects our customer's trust and confidence in the vital role Chemring plays in NATO's defence industrial base."

-ENDS-

For further information:

Rupert Pittman                 Group Director of Corporate Affairs,                           01794 463401

                                             Chemring Group PLC             

James McFarlane              MHP Group                                                                     07584 142665

Ollie Hoare                                                                                                                   07817 458804

Cautionary statement

This announcement contains forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could, is confident, or other words of similar meaning. Undue reliance should not be placed on any such statements because they speak only as at the date of this document and, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and Chemring's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. There are a number of factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are: increased competition, the loss of or damage to one or more key customer relationships, changes to customer ordering patterns, delays in obtaining customer approvals for engineering or price level changes, the failure of one or more key suppliers, the outcome of business or industry restructuring, the outcome of any litigation, changes in economic conditions, currency fluctuations, changes in interest and tax rates, changes in raw material or energy market prices, changes in laws, regulations or regulatory policies, developments in legal or public policy doctrines, technological developments, the failure to retain key management, or the key timing and success of future acquisition opportunities or major investment projects. Chemring undertakes no obligation to revise or update any forward-looking statement contained within this announcement, regardless of whether those statements are affected as a result of new information, future events or otherwise, save as required by law and regulations.

Notes to editors

·   Chemring is a FTSE-250 listed global business that specialises in the manufacture of high technology products and the provision of services to the defence, security and aerospace markets

·   Employing approximately 2,700 people worldwide, and with production facilities in four countries, Chemring meets the needs of customers in more than fifty countries

·   Chemring is organised under two strategic product segments: Sensors & Information and Countermeasures & Energetics

·   Chemring has a diverse portfolio of products that deliver high reliability solutions to protect people, platforms, missions and information against constantly changing threats

·   Operating in niche markets and with strong investment in research and development ("R&D"), Chemring has the agility to rapidly react to urgent customer needs

www.chemring.com