Chesterfield Special Cylinders lifts earnings outlook after ‘strong growth’ in overseas defence contracts
Yorkshire-based engineering firm Chesterfield Special Cylinders has lifted its earnings outlook after the company said it had seen “strong growth” in its overseas defence contracts.
The firm, which is based in Sheffield, said it now expects to report full-year earnings before interest, taxes, depreciation and amortisation (EBITDA) of around £0.8m, ahead of market expectations and up from an EBITDA loss of £0.9m last year.
The company added that it also expects to post revenue of around £16.5m, up from £14.8m, and a closing net cash position of £2.1m, up from net borrowings of £0.9m
Chesterfield Special Cylinders added that it had seen “strong growth” from overseas defence contracts that it secured in the first half of the year.
It said this had offset lower revenue from its UK naval new build contracts, which are nearing completion, adding that it had seen record full-year revenue performance from UK naval “integrity management” deployments, as well as hydrogen contracts.
A statement from the firm to the London Stock Exchange said: “A robust defence order book and significant opportunities in the UK hydrogen market, where the company is actively engaged with key developers regarding new build contracts for hydrogen storage and transport systems, underpin a positive outlook for further earnings growth in FY26.”
The announcement comes ahead of the company’s preliminary full year results, expected towards the end of December.
Chesterfield Special Cylinders provides compressed gas storage solutions across sectors including defence, hydrogen, aerospace and energy. In defence, the company supplies its technology to submarines and fighter jets, while elsewhere the firm works on decarbonisation projects and industrial gas transportation.
In March of this year, the company announced that it had been awarded a “strategically significant” contract from hydrogen systems integrator, Hydrasun Limited.
The project will see the firm supply pressurised hydrogen storage systems to the bp Aberdeen Hydrogen Hub project, a joint venture between bp and Aberdeen City Council. The hub will feature integrated hydrogen production and distribution facilities, using electricity generated locally by a dedicated solar power plant.
Chesterfield Special Cylinders said it would commence manufacturing on the project in the third quarter of 2025.