CHESTERFIELD SPECIAL CYLINDERS HOLDINGS PLC - Interim Results

Chesterfield Special Cylinders Holdings PLC reported FY2026 interim results broadly in line with expectations, supported by continued momentum in its defence business and growing life cycle services revenues despite ongoing delays in UK hydrogen projects. The company generated first-half revenue of £6.4 million, with defence accounting for 78% of sales, while adjusted EBITDA losses improved significantly year-on-year as operational performance strengthened. A robust defence order book, including key overseas submarine contract awards and progress toward US Navy supplier qualification, underpins confidence in a stronger second half and full-year guidance of approximately £17 million revenue and £0.8 million adjusted EBITDA. Chesterfield Special Cylinders continues to benefit from long-term relationships across NATO-aligned naval programmes, including UK Dreadnought, Type 26, and international submarine and surface ship contracts. The company also secured its first overseas naval integrity management contract, supporting expansion in higher-margin life cycle services, which are expected to exceed 40% of FY26 revenues. While delays to UK government-backed hydrogen allocation projects continue to impact near-term growth and contract timing, management remains operationally prepared for future hydrogen storage opportunities and maintains disciplined cost management. With a strengthened balance sheet, renewed long-term Sheffield site lease, expanding defence pipeline, and increasing contribution from recurring service revenues, Chesterfield Special Cylinders remains focused on delivering profitable growth and long-term value across defence, hydrogen storage, and safety-critical pressure system markets.