Jefferies UK Industrials - Charts of the Week

Research evidence excerpt

Jefferies UK Industrials - Charts of the Week

UK | Industrials EquityMayResearch22, 2026

This week, we initiated on Cohort (link) alongside a UK defence sector note

(link), and updated Smiths numbers prior to 3Q26 (link). In addition, RS

Group (link) and QinetiQ (link) reported FY26F results, Coats (link), Essentra

(link), and Hill & Smith (link) reported AGM updates, Smiths reported 3Q26F

(link), discoverIE acquired 3Gmetalworx (link), and Sweden chose Naval

Group for its frigates (link). Next week, Bodycote and Vesuvius report

trading updates.

Exhibit 1 - May PMI: Germany & France both Exhibit 2 - UK Defence Book-to-Bill Ratios (1H24 -

declined, missing cons, the UK was flat, with a 2H26)

small beat to cons 2.6x

2.4x

55 2.2x

2.0x

1.8x

50 1.6x1.4x

1.2x

1.0x

45 0.8x

0.6x

0.4x

0.2x

40 0.0x

1H24 2H24 1H25 2H25 1H26 2H26 May-23 Nov-23 May-24 Nov-24 May-25 Nov-25 May-26 . Avon Babcock BAE Systems Chemring Cohort QinetiQ

UK France Germany Source: Company Data, Jefferies Estimates

.

Source: FactSet

Exhibit 3 - UK Defence: Our FY26F-FY28F Exhibit 4 - UK Defence: EPS growth over FY26F-

forecasts embed a similar level of organic revenue FY28F should be almost identical, although we

growth to the FY21-FY25 period note scope for improvement given future capital

14% allocation decisions

12% 25%

10%

20%

8.2%

8%

7.5%

6% 15% 13.7%

13.6%

4% 10%

2%

5%

0%

Cohort Babcock Chemring BAE Systems QinetiQ Avon

FY21-FY25 Avg FY26F-FY28F Avg Babcock Avon BAE Systems QinetiQ Chemring

Sector Avg (FY21 - FY25) Sector Avg (FY26F - FY28F) Cohort.

FY21-FY25 CAGR FY25-FY28F CAGRSource: Company data, Jefferies estimates

. Sector Avg (FY21 - FY25) Sector Avg (FY26F - FY28F)

Source: Company data, Jefferies estimates

Exhibit 5 - JMTBA: Apr Machine Tool orders were Exhibit 6 - May GLVP: The FY26F production