Cohort (LSE:CHRT) has secured a major contract through its German subsidiary ELAC SONAR, which has been selected by Saab to provide integrated sonar systems for Poland’s Orka Submarine Programme.
The contract is valued at €140.7 million, with work starting immediately and deliveries scheduled to continue into the mid-2030s. ELAC SONAR will supply advanced active and passive sonar technology for the Polish Navy’s new A26 submarines.
The long-term award further strengthens ELAC SONAR’s position within the European submarine market and gives Cohort increased exposure to defence investment associated with maritime security in the Baltic Sea region.
Contract expected to support future earnings
Cohort said the contract, together with other recently secured orders, is expected to make a positive contribution to adjusted earnings per share from the next financial year onwards.
The scale and duration of the programme also provide additional visibility for Cohort’s Sensors and Effectors division, strengthening its order book and supporting longer-term revenue generation.
Management said the award reinforces ELAC SONAR’s standing as a specialist in naval hydroacoustic technology as the German business marks its centenary.
Saab partnership expands Cohort’s European defence presence
The agreement with Saab strengthens Cohort’s participation in major European defence programmes and expands its presence in the international submarine systems market.
Supplying sonar systems for the Polish Navy’s A26 submarines also gives Cohort a role in a strategically important regional defence programme at a time of heightened focus on underwater capabilities and Baltic Sea security.
The contract builds on ELAC SONAR’s expertise in sophisticated underwater detection technology and further establishes Cohort as a specialist supplier of naval sensors and defence systems.
Growth and order momentum offset cash flow pressures
Cohort’s wider outlook is supported by continued growth and a generally sound balance sheet, although weaker cash generation remains a concern after free cash flow moved into negative territory in 2026.
Technical indicators remain supportive, with the shares continuing to trade within an established upward trend. Valuation is less favourable, however, due to a relatively high price-to-earnings ratio and a modest dividend yield.
More about Cohort plc
Cohort plc is an AIM-listed independent technology group serving defence and security markets through seven businesses operating across the UK, Australia, Germany, Italy, Canada and Portugal.
The group is organised around its Communications and Intelligence and Sensors and Effectors divisions, supplying technologies including naval communications, electronic warfare, surveillance systems, sonar and other specialist defence capabilities.
Its portfolio includes EID, EM Solutions, MASS, MCL, Chess Dynamics, ELAC SONAR and SEA, which together employ more than 1,700 core staff. Their capabilities range from satellite communications terminals and hydroacoustic systems to tracking, fire-control and training support services.
Headquartered in Reading, Berkshire, Cohort has expanded through acquisitions since joining London’s Alternative Investment Market in 2006. Its combination of secure communications, intelligence, sonar, surveillance and sensor technologies positions the group as a specialist supplier to naval and military programmes internationally.
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