Shares in AIM-listed defence technology group Cohort (LON:CHRT) climbed 10% after FY26 results beat forecasts. The firm’s CEO also expressed confidence in its FY26/27 financial outlook.
Record revenue and orders
For the year to April, Cohort reported revenue of £303 million, up 12% and ahead of the consensus of £294 million. Operating profit of £36 million was also ahead of the consensus, which was pegged at £34.7 million.
The Communications & Intelligence division grew revenue by almost 27% to £159 million with a strong performance from EM Solutions. The business was only acquired in January of 2025 and is already making a major contribution to the group.
The Sensors & Effectors division posted a small dip in revenue to £144 million, although order intake was solid. The divisional margin target was also down but this was partly due to the sale of a higher-margin unit.
Order intake was around £313 million, up 10% on FY25 and once again above full-year revenue. The order book at 30 April stood at £620 million, a new record for the group.
Cohort has been a steady performer, even if the shares haven’t rocketed like BAE Systems (LON:BA.) and Rolls-Royce (LON:RR.). It is also winning more business from European and NATO countries as governments re-think their defence spending.
CEO Andrew Thomis said he was ‘particularly pleased’ with the contribution from EM Solutions. From the sound of it there are plenty of opportunities for the unit to grow and collaborate with other parts of the firm.
Orders in hand represent cover for FY27 of around 80% of anticipated revenue, so Thomis is confident in the outlook. We’re also confident, and we note the consensus price target is around £16 with one analyst aiming north of £19.
Read the press release here:
https://www.cohortplc.com/investors
