JBTDS FRP Contract Award

Research evidence excerpt

JBTDS FRP Contract Award

Deutsche Bank Group

Deutsche Numis Research

Rating Company Date

Buy Chemring Group 1 July 2026

Company Update

Europe PLC

United Kingdom

Reuters Bloomberg Exchange Ticker Price at 30 Jun 2026 (GBP) 512.00

CHG.L CHG LN LSE CHG

Price Target 650.00

Aerospace & Defence

592.96 -

Aerospace & Defence 52-week range 456.35

Valuation & Risks

Richard Paige

Three-year IDIQ Full Rate Production contract Research Analyst

Chemring's US Sensors business has been awarded a three-year IDIQ Full Rate +44-20-7545-4606

Production contract for the Joint Biological Tactical Detection System (JBTDS)

Thomas Elgar, CFA

Program of Record. This sole-source contract has a current ceiling value of $48.8m, Research Analyst

with an estimated completion date of June 2029. Chemring has received an initial +44-20-7541-1556

call-off against this worth $36.3m for delivery through to March 2028. We expect

a further order under this IDIQ to be received in 2027 for delivery in FY28. The IDIQ Price/price relative

was announced on the DoW contracting website on 26 June and was awarded by 750

the Capability Program Executive for Chemical, Biological, Radiological and

Nuclear Defense.

It is encouraging to see this contract award following the successful completion of 0

2024 2025 2026

the LRIP phase in FY24, albeit with a contract value and duration below our original

expectations. We had anticipated a single award covering all US services; however, Chemring Group PLC – (Rebased)

the programme has instead been separated, leaving scope for additional awards Performance (%) 1m 3m 12m

from other US military branches as well as future Foreign Military Sales (FMS)

Absolute -6.7 0.8 -8.0

opportunities. We also note that the UK's Defence Investment Plan (DIP), published