Cohort Reports Revenue Growth, Profitability Dips; Guidance Reaffirmed

Defense technology group Cohort PLC (LON: CHRT) released its half-year results for the six months ended October 31, 2025, showcasing a rise in revenue but a slight decrease in adjusted operating profit. Despite the profit dip, the company maintained its full-year outlook, projecting continued growth.

Headline Numbers:

• Revenue: Increased by 9% to £128.8 million (2024: £118.2 million).
• Adjusted Operating Profit: Marginally decreased to £9.7 million (2024: £10.1 million), resulting in a net margin of 7.5% (2024: 8.6%).
• Adjusted Earnings Per Share: Fell to 16.16 pence (2024: 20.00 pence), impacted by the lower operating profit and increased share capital.
• Order Intake: £122.3 million (2024: £139.2 million), representing 0.9x the period's revenue (2024: 1.2x).
• Order Book: Remained strong at £604.5 million as of October 31, 2025 (April 30, 2025: £616.4 million).
• Interim Dividend: Increased by 10% to 5.80 pence per share (2024: 5.25 pence per share).
• Net Debt: Stood at £32.5 million (October 31, 2024: £37.9 million net funds; April 30, 2025: £5.3 million net funds), reflecting capital expenditure and working capital build-up.

The company's board demonstrated confidence in Cohort's future by raising the interim dividend by 10%. This move signals a commitment to the company's progressive dividend policy and suggests a belief in sustained growth. The rise in net debt reflects planned investments, which are anticipated to yield returns in the second half of the year.

Driver Breakdown:

• Revenue Growth: Primarily driven by the acquisition of EM Solutions and strong performances across most group businesses.
• Communications & Intelligence Division: Showed a 23.2% increase in adjusted operating profit, supported by EM Solutions, MASS, and EID.
• Sensors & Effectors Division: Experienced lower net margins (4.8% vs. 8.3% in 2024) due to increased deliveries on the Italian sonar program and the sale of SEA's Transport business.

Cohort Chairman Nick Prest CBE, stated, “The Group delivered an increased revenue performance in the first half. As expected, adjusted operating profit was slightly short of last year's record performance due to the margin mix in Sensors and Effectors. Solid order intake ensured we have sustained our very strong order book at a high level, whilst the increased interim dividend reflects the Board's confidence in the Group's growth prospects and continued commitment to our progressive dividend policy.”

The company's outlook for the full year remains unchanged, with increased delivery expected in both divisions. This is projected to contribute to full-year growth in Group profit performance and adjusted earnings per share.

The existing order book covers over 96% of consensus forecast revenue for the full financial year. Cohort anticipates organic growth in the coming years, fueled by healthy demand in its core defense markets.