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23 Jan 25. Alpha Omega, a leading provider of advanced technology solutions for the federal government, announced today the acquisitions of two IT contracting firms, Macro Solutions, LLC, and SeKON, LLC (formerly SeKON Enterprise, Inc.). These strategic acquisitions further advance Alpha Omega’s mission to ensure our nation’s continued global leadership.

The addition of Macro Solutions strengthens Alpha Omega’s National Security division, enhancing its technology modernization offerings within the U.S. Army, U.S. Navy, and U.S. Air Force; also building on Alpha Omega’s existing contracts within the Department of Homeland Security and the Department of State. With these combined capabilities, Alpha Omega is poised to address a comprehensive range of national security priorities, from diplomacy and homeland security to military operations.

“Macro Solutions’ unrestricted work and mature AI-driven code modernization is already well-known within the Tradewinds marketplace and the DoD,” said Gautam Ijoor, CEO of Alpha Omega. “Combining expertise and digital transformation in Workday and Oracle Cloud for ERP and human capital management Alpha Omega will increase delivery of more impactful and robust solutions across Defense, Financial Regulatory, and broader government sectors.”

“We are excited to become a part of Alpha Omega,” said Amy Wright, CEO of Macro Solutions. “Collectively, this merger will enable us to scale every aspect of our business and fulfill our role as an innovation partner for our federal agency partners.”

The acquisition of SeKON, LLC establishes a new Health domain vertical within Alpha Omega, creating opportunities to improve health outcomes for both military personnel and the general public. SeKON’s proven track record with agencies such as DHA, CDC, NIH, and SAMHSA add substantial value to Alpha Omega’s offerings and ability to field more complex contracts.

“Integrating SeKON’s Health domain expertise and capabilities represents a key market expansion for Alpha Omega,” said Gautam Ijoor. “SeKON is a vital addition as we continue to make our IT solutions readily accessible by way of our growing portfolio of unrestricted contract vehicles, including CIOSP4 unrestricted and Alliant 3.”

“This collaboration with Alpha Omega allows us to drive meaningful improvements in health outcomes while delivering state-of-the-art solutions to our federal clients,” said Dr. Angela Wilson, CEO of SeKON.

These acquisitions highlight Alpha Omega’s commitment to growth, innovation, and providing impactful solutions for federal agencies. Alpha Omega thanks Greg Nossaman of G Squared Capital Partners, Todd Taskey of Potomac Business Capital for their expert guidance, Morrison & Foerster for legal support, and BDO and Grant Thornton for financial and tax expertise throughout the merger and acquisition process.

ABOUT ALPHA OMEGA: Alpha Omega’s mission is to support federal agencies with tailored digital modernization, artificial intelligence, and cybersecurity solutions to promote national security and U.S. global leadership. Alpha Omega is committed to service excellence and continuous process improvement as demonstrated by our Capability Maturity Model Integration (CMMI) as well as ISO/IEC registration for 20000-1:2018, 27001:2013, and 9001:2015. It is our commitment to customers to not only deliver quality products, but to also be a strategic advisor and thought leader with our Agency partners. For more information, please visit www.alphaomega.com. (Source: PR Newswire)

 

23 Jan25. XTI Aerospace, Inc. (NASDAQ: XTIA) (“XTI” or the “Company”), a pioneer in advanced Vertical Takeoff and Landing (“VTOL”), Powered-Lift aircraft solutions, today issued the following letter to shareholders.

Dear Fellow XTI Aerospace Shareholders –

At the outset, I would like to take a moment to recognize that 2024 was a transformative year for XTI and extend my gratitude for your continued support in 2025 and beyond.

Along with the rest of our management team, I would like to update you on recent accomplishments supportive of our growth including strengthening our balance sheet and improving our overall financial condition, as well as making significant advancements in the development of the TriFan 600.

Business Highlights (Current)

• Raised $20,000,000 in gross proceeds through the sale of common stock, priced at-the-market under Nasdaq rules at an offering price of $13.75 per share (post 1-for-250 reverse stock split basis)
• Raised an additional approximately $25,000,000 in gross proceeds since the end of Q1 of 2024, by offering common stock at-the-market (ATM)

Under the offering terms, we have a standstill in place with respect to use of the ATM

• Reduced total balance sheet liabilities as of December 31, 2024 when compared to total liabilities as of September 30, 2024
• Streamlined our capitalization structure through the exchange for common stock and redemption of outstanding preferred stock and warrants
• Completed General Familiarization (Gen Fam) meeting with the Federal Aviation Administration (FAA) attended by more than 60 FAA representatives
• Released C211.2 configuration of Tri Fan 600 aircraft, enhancing aerodynamic performance and stability
• Made substantial progress with details of the aircraft including systems, structures, flight deck, cabin layout, and drivetrain, among other design items, in anticipation of the filing of our FAA Type Certification
• Advanced relationships with critical vendors
• Announced entry into non-binding agreement to acquire equity interest in ReadyMonitor AI-powered, autonomous drone company
• Formed Corporate Advisory Board of industry leaders in technology and aviation
• Launched Hangar X Studios to highlight our aerospace industry leadership and produced and distributed eleven episodes

In my view, XTI Aerospace is positioned at the intersection of great innovation and tremendous opportunity. The business climate is highly favorable for execution, and we are firmly focused on delivering long-term value.  We are grateful for you, our shareholders; your support is critical to our success. Respectfully, /s/ Scott Pomeroy, Chief Executive Officer. (Source: PR Newswire)

 

23 Jan 25. Wescom Group acquires leading safety technology company BCB International Ltd. World-leading survival solutions manufacturer Wescom Group has expanded its influence in the safety technology market through the acquisition of Cardiff based, BCB International Ltd. A leading global supplier of safety equipment in the defence, outdoor and marine sectors.

Wescom Group Chief Executive Officer, Ross Wilkinson comments, “Today we can announce the successful completion of the acquisition of BCB International Ltd., this partnership will further enhance Wescom Group’s core safety and survival product portfolio.  We are excited to work with the management team on growing the business through the Group’s extensive distribution network, whilst also having a strong focus on new product development programs.”

BCB International’s Managing Director Andrew Howell states, “This announcement is an exciting opportunity and the BCB team are energised to be joining with Wescom Group. This partnership will help us to deliver BCB’s innovative MSC technology and world beating FireDragon eco-fuel to a much wider international audience as well as our core products that are constantly evolving. We have known some of the Wescom team for many decades and it is invigorating to be working with them to help save lives and protect the protectors to a much larger scale.”

Background

The Wescom Group reached an impressive milestone in 2023, celebrating 150 years of expertise in the manufacture and distribution of survival solutions, with specialist manufacturing facilities across multiple sites in Germany, UK, Spain and Australia and over 450 employees worldwide. Wescom Group is globally recognised for supplying the very best in quality, performance, reliability, and safety.

Welsh based BCB International has for more than 160 years developed life-saving and protective equipment for the defence, outdoor and marine sectors in multiple countries world-wide. With wide ranging experience in product development, supply chain operations and manufacturing, BCB’s history of innovation is reflected in numerous awards, including two Queen’s Award for Export Achievement.   For information about Wescom Group, please go to www.wescom-group.com for information on the BCB International range learn more at www.bcbin.com

 

23 Jan 25. IFS, the leading provider of enterprise cloud and Industrial AI software, today announces its strongest ever financial performance, for the year ending 31 December, 2024. Sustained organic global growth fuelled by demand for Industrial AI has driven Annual Recurring Revenue (ARR) to exceed €1 bn, with total revenue for the year at €1.228 bn.

IFS FY2024 Key Results:

• Annual Recurring Revenue increased by 32% YoY
• Cloud Revenue increased by 38% YoY

The impact of AI within the industrial setting is poised to contribute substantial long-term economic value, which is why companies in the hardcore industries that protect, power, and service the planet are turning to IFS.ai. IFS’s significant growth in 2024 reflects this demand, with the company continuing to take market share from legacy vendors.

With more of the world’s largest and most respected brands moving to IFS, the company was proud to welcome over 350 new customers, including: Comcast, Electrify America, E.On, Exelon, HomeServe, Miele, Molson Coors, Modulaire Group, Rolls-Royce Power Systems, Saudi Electricity Company, Sureserve Group, Quanta Services, and Vattenfall. The customers who are new to IFS are larger businesses, which is reflected in the average deal size of IFS’s largest customers increasing by 64% YoY.

The IFS global partner community continues to play a significant role in delivering value to customers, with partner revenue increasing 34% YoY. Organic growth was complemented by the completion of two strategic acquisitions including Copperleaf, the global leader in asset management and asset investment planning (AIP), and EmpowerMX, an AI-powered aviation maintenance software provider.

Mark Moffat, Chief Executive Officer, IFS commented: “IFS is leading the Industrial AI revolution, evidenced by our sustained financial performance that is fueled by customer demand for IFS.ai. It is testament to the trust we have built, and I offer my gratitude to our customers and partners for their collaboration, visionary spirit, and confidence in our shared future.”

“Our success is a result of strong execution of our industry-focused strategy. No other vendor understands our customers’ industries as well as IFS, which simply means that our customers are realising exceptional value from IFS.ai. We continue to outperform monolithic, legacy enterprise software vendors who have not kept up with the pace of change.”

Matthias Heiden, Chief Financial Officer, IFS commented: “Surpassing €1 bn ARR is a significant milestone in the enterprise software industry, reflecting the reliability with which we execute. Cash flow and conversion also grew significantly in the period, meaning business transformation and strategy execution was very strong, enabling us to grow ARR 32% YoY. I am confident that IFS is well-positioned for 2025, with a strong outlook based on the resilience we have built into the business, industry-focused innovation, and our subscription-based business model.”

Customer-centricity underpins consistently strong financial performance, and IFS strives for industry-leading satisfaction scores. IFS CSAT increased to over 80% in 2024, measured holistically across multiple touchpoints throughout the year and spanning the entire lifecycle, in contrast to the industry standard practise of an annual pulse check.

IFS now has the distinction of being a Gartner Peer Insights Customers’ Choice across three of its core solution areas: Field Service Management, Cloud ERP for Product-Centric Enterprises, and Enterprise Asset Management. IFS was recognised as the #1 vendor on The Software Report’s Top 100 Software Companies for 2024. IFS was also named the fastest growing vendor among top 10 companies in IDC Worldwide Asset Life-Cycle Management Applications Market Shares 2023 report.

 

23 Jan 25. Boeing Reports Preliminary Fourth Quarter Results. Results impacted by the International Association of Machinists and Aerospace Workers (IAM) work stoppage and agreement, as well as charges in the defense segment. The Boeing Company [NYSE: BA] announced today it will recognize impacts to its financial results related to the IAM work stoppage and agreement, charges for certain Defense, Space & Security programs and costs associated with workforce reductions announced last year when it reports fourth quarter results on January 28. The company expects to report fourth quarter revenue of $15.2bn, GAAP loss per share of ($5.46), and operating cash flow of ($3.5)bn. Cash and investments in marketable securities totaled $26.3bn at the end of the quarter.

“Although we face near-term challenges, we took important steps to stabilize our business during the quarter including reaching an agreement with our IAM-represented teammates and conducting a successful capital raise to improve our balance sheet,” said Kelly Ortberg, Boeing president and chief executive officer. “We also restarted 737, 767 and 777/777X production and our team remains focused on the hard work ahead to build a new future for Boeing.”

Commercial Airplanes results will reflect impacts associated with the IAM work stoppage and agreement including lower deliveries and pre-tax earnings charges of $1.1bn on the 777X and 767 programs. The 777X program pre-tax charge of $0.9bn reflects higher estimated labor costs associated with finalizing the IAM agreement and will be incurred over the next several years. The company still anticipates first delivery of the 777-9 in 2026. Commercial Airplanes expects to report fourth quarter revenue of $4.8bn and operating margin of (43.9) percent.

Defense, Space & Security expects to recognize pre-tax earnings charges of $1.7bn on the KC-46A, T-7A, Commercial Crew, VC-25B, and MQ-25 programs. The KC-46A program pre-tax charge of $0.8 bn reflects higher estimated manufacturing costs, including impacts of the IAM work stoppage and agreement. The T-7A program pre-tax charge of $0.5bn was primarily driven by higher estimated costs on production lots in 2026 and beyond. Defense, Space & Security expects to report fourth quarter revenue of $5.4bn and operating margin of (41.9) percent.

 

22 Jan 25. CACI Reports Results for Its Fiscal 2025 Second Quarter and Raises Fiscal Year Guidance.

Revenues of $2.1bn, up 14.5% YoY

Net income of $109.9m and diluted EPS of $4.88, up 30% YoY

Adjusted net income of $134.2m and adjusted diluted EPS of $5.95, up 36% YoY

EBITDA of $232.9m and EBITDA margin of 11.1%, up 180 bps YoY

CACI International Inc (NYSE: CACI), a leading provider of expertise and technology to government customers, announced results today for its fiscal second quarter ended December 31, 2024.

“Our second quarter reflected another exceptional period for CACI. Financial results were strong across the board with double-digit revenue growth, increased profitability, healthy cash flow, and growing backlog. In addition, we closed and integrated the previously announced strategic acquisitions of Azure Summit and Applied Insight,” said John Mengucci, CACI President and Chief Executive Officer. “With the momentum we see in our business, we are again able to raise our fiscal year 2025 guidance, and we are well on track to achieve the three-year financial targets we introduced at our Investor Day. Our strategy, capabilities, and performance position CACI extremely well to continue providing long-term value for our customers and our shareholders.”

Revenues in the second quarter of fiscal year 2025 increased 14.5 percent year-over-year, driven by 8.1 percent organic growth. The increase in income from operations was driven by higher revenues and gross profit. Growth in diluted earnings per share and adjusted diluted earnings per share was driven by higher income from operations, partially offset by increased interest expense and a higher tax provision. The decrease in cash from operations, excluding MARPA, was driven primarily by changes in working capital partially offset by higher earnings.

Second Quarter Contract Awards

Contract awards in the second quarter totaled $1.2bn, with approximately 45 percent for new business to CACI. Awards exclude ceiling values of multi-award, indefinite delivery, indefinite quantity (IDIQ) contracts. Some notable awards during the quarter were:

• CACI was awarded a seven-year sole-source contract valued at more than $131m to continue to provide advanced data visualization technology to support the Department of Defense (DoD) and the Intelligence Community (IC). As a key technology partner to this undisclosed customer, CACI enables decision superiority by providing analysts with pattern-of-life data to help find unique items of interest wherever the mission takes them. This invaluable asset has assisted in mission planning and battlefield forensics for nearly two decades.
• CACI was awarded a seven-year single-award contract valued at more than $238m to support space technology operations for a classified national security customer. CACI will provide 24/7 operators, analysts, and engineers with expert technical knowledge and experience for the Continental United States and Outside the Continental United States mission centers. As a space technology solutions provider, CACI protects our nation’s assets and interests by performing mission operations and data management ensuring space system optimization and resilience.

Total backlog as of December 31, 2024 was $31.8bn compared with $26.9 bn a year ago, an increase of 18.2 percent. Funded backlog as of December 31, 2024 was $4.1bn compared with $3.7bn a year ago, an increase of 10.8 percent.

Additional Highlights

• CACI completed its acquisition of Azure Summit Technology, a provider of innovative, high-performance radio frequency (RF) technology and engineering, focused on the electromagnetic spectrum, in an all-cash transaction for $1.275bn. With the closing of this transaction, CACI bolsters its market-based strategy by expanding its software-defined offerings in signals intelligence (SIGINT), electronic warfare (EW), and intelligence, surveillance, and reconnaissance (ISR), across multiple domains, platforms, and customer sets. In particular, this acquisition expands the breadth of CACI’s reach and insight into maritime and airborne platforms.
• CACI completed the acquisition of Applied Insight, a Northern Virginia-based portfolio company of Acacia Group, in an all-cash transaction. In alignment with CACI’s mission to deliver distinctive expertise and differentiated technology to meet its customers’ greatest national security challenges, Applied Insight delivers proven cloud migration, adoption, and transformation capabilities, coupled with intimate customer relationships across the DoD and IC.
• CACI hosted an Investor Day in November, showcasing the company’s strategy, unique industry position, differentiated capabilities, and focus on supporting enduring national security priorities in the markets it serves. President and CEO John Mengucci, joined by senior leadership, provided deeper insight into how CACI’s use of software and software-defined technology, investing ahead of need, and significant synergy between Expertise and Technology allow the company to more rapidly address critical customer needs with greater efficiency and flexibility. CACI also strengthened its investment thesis by presenting three-year financial targets, reinforcing its commitment to continue driving growth and shareholder value.
• CACI was recognized by Forbes as one of America’s Best Companies and one of America’s Most Trusted Companies for 2025, ranking fourth and seventh, respectively, within the Aerospace and Defense industry. As one of America’s best companies, CACI achieved high marks, ranking in the top 15 percent, for public trust, employee sentiment, and financial strength. CACI was selected as a most trusted company for its enduring commitment to character, integrity, and ethics.
• CACI earned 11 prestigious awards in 2024 for being a leader in veteran hiring and inclusivity. CACI was also recognized for its dedication to the military community and its commitment to fostering a welcoming environment where veterans can continue their mission.
• CACI Chairman of the Board of Directors Michael (Mike) A. Daniels was presented with the prestigious 2024 National Association of Corporate Directors (NACD) Directorship 100™ B. Kenneth West Lifetime Achievement Award at its annual gala in New York. This award is bestowed to a corporate director with distinguished service on public, private, and/or nonprofit boards over an extended period and who has demonstrated the principles of director professionalism—integrity, mature confidence, informed judgment, and high-performance standards.
• CACI President and CEO John Mengucci received the 2024 Technology Good Scout Award from the Boy Scouts of America National Capital Area Council. This award recognizes and honors outstanding leaders in the technology industry from the greater Washington, D.C. area who exemplify the values of the Scout Oath and Law in their daily lives. Mengucci received the prestigious 27th annual Technology Good Scout Award on Oct. 23 in Tysons, Virginia.

Fiscal Year 2025 Guidance

The table below summarizes our fiscal year 2025 guidance and represents our views as of January 22, 2025. The increase in our revenue guidance is driven by higher organic growth expectations. (Source: BUSINESS WIRE)

 

22 Jan 25. Hexcel Reports 2024 Fourth Quarter and Full Year Results. Hexcel Corporation (NYSE: HXL) today reported fourth quarter 2024 results including net sales of $474m and adjusted diluted EPS of $0.52 per share.

“Hexcel’s sales increased 6% in 2024, including 12% growth in our commercial aerospace business despite the ongoing challenges in the OEM supply chain,” said Tom Gentile, Chairman, CEO and President, Hexcel. “Our adjusted EPS of $2.03 increased 12%, highlighting the inherent operating leverage opportunity within the business as production rates continue to recover from the pandemic.”

“Hexcel met its latest 2024 guidance, including $203m of free cash flow generation, and we are now providing 2025 guidance. Our 2025 sales guidance includes roughly 10% year over year growth in commercial aerospace, despite the ongoing rate-ramp challenges the commercial aircraft industry supply chain is experiencing. We are also forecasting increased cash generation for the year to exceed $220m. With our multi-year cash generation potential remaining strong, growing the business and returning cash to shareholders remain key areas of focus.” continued Mr. Gentile.

“Our priorities for 2025 are Operational Excellence, focused on meeting our customer production rate increases, Innovation to win positions for Hexcel lightweight materials on the next generation of aircraft, and Growth. Growth is expected to come through build rate increases to meet the considerable backlog demand that exists, plus organic growth for existing programs with increased adoption of lightweight advanced composite materials. We will also explore inorganic growth through disciplined strategic deployment of our robust and growing capital resources. Innovation is a core tenet of Hexcel as we continually work to enhance our leading-edge lightweight materials to enable our customers to design products that are stronger and lighter and that support their increased manufacturing throughput. And of course, we are continually working to improve our operational efficiencies and productivity.” concluded Mr. Gentile.

Markets

Sales in the fourth quarter of 2024 were $473.8m compared to $457.5m, a 3.6% increase from the fourth quarter of 2023.

Commercial Aerospace

• Commercial Aerospace sales of $278.3m for the fourth quarter of 2024 increased 4.0% (4.6% in constant currency) compared to the fourth quarter of 2023 with modest growth in the Airbus A320neo and Boeing 787. Boeing 737 MAX sales were lower year-over-year, consisting primarily of LEAP 1-B and nacelle sales in the current quarter. Other Commercial Aerospace increased in the fourth quarter of 2024, led by strength in regional jets.

Space & Defense

• Space & Defense sales of $163.3m increased 7.2% (7.6% in constant currency) for the quarter as compared to the fourth quarter of 2023. Growth was strong with the Sikorsky CH-53K and Lockheed F-35 along with strength in Space, both domestically and internationally.

Industrial

• Total Industrial sales of $32.0m in the fourth quarter of 2024 decreased 14.6% (14.8% in constant currency) due to declines in all sub-markets except for recreation.

Consolidated Operations

Gross margin for the fourth quarter of 2024 was 25.0% compared to 22.5% in the fourth quarter of 2023. As a percentage of sales, selling, general and administrative for the fourth quarter of 2024 were 10.1% compared to 9.2% for the fourth quarter of 2023. R&T expenses as a percentage of net sales were 2.8% for the fourth quarter of 2024 compared to 2.6% for the fourth quarter of 2023. Adjusted operating income in the fourth quarter of 2024 was $57.1 m or 12.1% of sales, compared to $49.1m, or 10.7% of sales in 2023. Other operating expense for the fourth quarter of 2024 included asset impairments and other charges primarily associated with the announced potential divestiture for the Neumarkt, Austria plant that solely serves Industrial markets. In addition, other operating expenses for both the fourth quarter of 2024 and 2023 included restructuring costs. Other non-operating expense in the fourth quarter of 2023 primarily included charges related to the buy-out of the UK pension plan. Foreign exchange rates had a favorable impact of approximately 60 basis points on operating income as a percentage of sales in the fourth quarter of 2024 compared to the fourth quarter of 2023.

FY 2024 Results

Sales for the full year of 2024 were $1,903.0m compared to $1,789.0m, a 6.4% increase from 2023 sales.

Commercial Aerospace (63% of sales)

• Commercial Aerospace sales of $1,194.2m increased 11.8% (11.9% in constant currency) for the full year of 2024 compared to the full year of 2023. Widebodies led the growth including the Boeing 787 and Airbus A350, followed by the Airbus A320neo. Sales for the Boeing 737 MAX were down year-over-year. Other Commercial Aerospace increased 9.5% reflecting growth in regional jets.

Space & Defense (30% of sales)

• Space & Defense sales of $569.5m increased 4.5% (4.6% in constant currency) for the full year of 2024 as compared to the full year of 2023. Growth was driven by military helicopters including the CH-53-K, as well as the F-35 and classified programs. As expected, growth was partially offset by declining sales for the Bell Boeing V-22.

Industrial (7% of sales)

• Total Industrial sales of $139.3m in the full year of 2024 decreased 20.9% (21.1% in constant currency) compared to the full year of 2023 as all sub-markets declined.

Consolidated Operations

Gross margin for 2024 was 24.7% compared to 24.2% in the prior year, benefiting from higher sales volume leverage. As a percentage of sales, selling, general and administrative for the full year of 2024 were 9.3% compared to 9.2% for 2023. R&T expenses as a percentage of net sales were 3.0% for the full year of 2024 compared to 2.9% for the full year of 2023. Adjusted operating income for the full year of 2024 was $236.1 m  or 12.4% of sales, compared to $216.7m  or 12.1% of sales in 2023. Other operating expense for 2024 included asset impairments and other charges primarily associated with the announced potential divestiture of the Neumarkt, Austria plant. Other operating expenses for the full year of 2023 included restructuring costs partially offset by a pre-tax net gain of $0.8m from the sale of a facility in Colorado. Other non-operating expense for the full year of 2023 primarily included charges related to the buy-out of the UK pension plan. The impact of foreign exchange rates on operating income as a percentage of sales was favorable by approximately 40 basis points for 2024 compared to 2023.

Cash and other

• Net cash provided by operating activities in 2024 was $289.9m, compared to $257.1m in 2023. Working capital was a cash use of $0.8m in 2024 compared to a use of $27.4m in 2023. Capital expenditures on a cash basis were $87.0m in 2024. Capital expenditures in 2023 were $108.2m including approximately $38 m for the purchase of the land and building at the Hexcel Amesbury, Massachusetts facility. Net cash used for investing activities in 2023 included net proceeds of $44.7m from the sale of the joint venture interest in Malaysia and net proceeds of $10.3m received from the sale of a facility in Windsor, Colorado. Free cash flow was $202.9m in 2024 compared to $148.9m in 2023. Free cash flow is defined as cash generated from operating activities less cash paid for capital expenditures. Capital expenditures on an accrual basis were $81.1m in 2024 and $121.6m in 2023.
• The Company did not repurchase shares of its common stock during the fourth quarter. For 2024, the Company used $252.2m to repurchase shares of common stock. The remaining authorization under the share repurchase program on December 31, 2024 was $234.9m.
• As announced today, the Board of Directors declared a quarterly dividend of $0.17 per share, an increase of $0.02 per share, payable to stockholders of record as of February 7, 2025, with a payment date of February 14, 2025.

2025 Guidance

• Sales of $1.95 bn to $2.05bn
• Adjusted diluted earnings per share of $2.05 to $2.25
• Free cash flow of greater than $220m
• Capital Expenditures less than $100m
• Effective tax rate of 21% (Source: BUSINESS WIRE)

 

22 Jan 25. Technologies Incorporated (NYSE:TDY)Reports Results.

• Record quarterly sales of $1,502.3m, an increase of 5.4% compared with last year
• Fourth quarter GAAP diluted earnings per share of $4.20 and record non-GAAP diluted earnings per share of $5.52
• Fourth quarter GAAP operating margin of 15.8% and fourth quarter non-GAAP operating margin of 22.7%
• Full year GAAP diluted earnings per share of $17.21 and record non-GAAP diluted earnings per share of $19.73
• Full year GAAP operating margin of 17.4% and full year non-GAAP operating margin of 22.0%
• Record full year cash from operations of $1,191.9m and record free cash flow of $1,108.2 m
• Full year capital deployment of $1.1 bn for debt repayments, stock repurchases and acquisitions. Expect to deploy approximately $770m on acquisitions in the first quarter of 2025
• Quarter-end Consolidated Leverage Ratio of 1.5x
• Recently completed acquisition of Micropac Industries, Inc. on December 30, 2024
• Announced pending acquisition of select aerospace and defense electronics businesses from Excelitas Technologies Corp.
• Issuing full year 2025 GAAP diluted earnings per share outlook of $17.70 to $18.20 and full year 2025 non-GAAP earnings per share outlook of $21.10 to $21.50, which includes Micropac but excludes Excelitas

Teledyne today reported fourth quarter 2024 net sales of $1,502.3m, compared with net sales of $1,425.0m for the fourth quarter of 2023, an increase of 5.4%. The fourth quarter of 2024 net sales included $17.3m in incremental net sales from acquisitions. Net income attributable to Teledyne was $198.5m ($4.20 diluted earnings per share) for the fourth quarter of 2024, compared with $323.1m ($6.75 diluted earnings per share) for the fourth quarter of 2023, a decrease of 38.6%. The fourth quarter of 2024 included $49.7m of pretax acquired intangible asset amortization expense, $52.5m of pretax, non-cash trademark impairments, $1.5m of pretax transaction and integration costs and $16.6m of income tax benefits from FLIR acquisition-related tax matters. Excluding these items, non-GAAP net income attributable to Teledyne for the fourth quarter of 2024 was $260.9m ($5.52 diluted earnings per share). The fourth quarter of 2023 included $48.6m of pretax acquired intangible asset amortization expense, $3.0m of pretax transaction and integration costs and $102.2m of income tax benefits from FLIR acquisition-related tax matters. Excluding these items, non-GAAP net income attributable to Teledyne for the fourth quarter of 2023 was $260.5m ($5.44 diluted earnings per share). Operating margin was 15.8% for the fourth quarter of 2024 compared with 19.1% for the fourth quarter of 2023. Excluding the items discussed above, non-GAAP operating margin was 22.7% for both the fourth quarter of 2024 and 2023.

“In the fourth quarter, we achieved all-time record sales and non-GAAP earnings per share,” said Robert Mehrabian, Executive Chairman. “Year-over-year growth accelerated, as our shorter-cycle businesses improved throughout 2024 coupled with strong demand in our longer cycle defense, space, and energy businesses. Given our record free cash flow in 2024, we ended the year with very low leverage despite $1.1bn of capital deployment. We successfully closed the Micropac acquisition at the beginning of fiscal 2025, and we expect the completion of the Excelitas carve-out transaction in the first quarter. We begin 2025 optimistic about our performance and business portfolio; nevertheless, we remain vigilant given the strong U.S. dollar and unpredictable geopolitical environment.”

Full Year

Full year net sales for 2024 were $5,670.0m, compared with $5,635.5m for 2023, an increase of 0.6%. Net income attributable to Teledyne was $819.2m ($17.21 diluted earnings per share) for fiscal year 2024, compared with $885.7m ($18.49 diluted earnings per share) for fiscal year 2023, a decrease of 7.5%.

Full year 2024 net sales included $49.4m in incremental net sales from acquisitions. The full year of 2024 included $198.0m of pretax acquired intangible asset amortization expense, $8.4m of pretax transaction and integration costs, $52.5m of pretax, non-cash trademark impairments and $77.8m of income tax benefits from FLIR acquisition-related tax matters. Excluding these items, non-GAAP net income attributable to Teledyne for the full year of 2024 was $939.2m ($19.73 diluted earnings per share). The full year of 2023 included $196.7m of pretax acquired intangible asset amortization expense, $8.8m of pretax transaction and integration costs and $100.5m of income tax benefits from FLIR acquisition-related tax matters. Excluding these items, non-GAAP net income attributable to Teledyne for the full year of 2023 was $943.3m ($19.69 diluted earnings per share). Operating margin was 17.4% for 2024, compared with 18.4% for 2023. Excluding the items discussed above, non-GAAP operating margin was 22.0% for both 2024 and 2023.

Full year 2024 income tax expense included $77.8m of income tax benefits from FLIR acquisition-related tax matters as well as $12.7m of income tax benefits related to share-based accounting. Full year 2023 income tax expense included $100.5m of income tax benefits from FLIR acquisition-related tax matters as well as $20.1m of income tax benefits related to share-based accounting.

In the fourth quarter of 2024, Teledyne completed its annual impairment testing of goodwill and indefinite-lived intangibles assets. As a result of the testing, the company recorded pretax, non-cash impairment charges of $52.m related to indefinite-lived trademarks.

Review of Operations

Comparisons are with the fourth quarter of 2023, unless noted otherwise.

Digital Imaging

The Digital Imaging segment’s fourth quarter 2024 net sales were $822.2m, compared with $802.5m, an increase of 2.5%. Operating income was $90.8m  for the fourth quarter of 2024, compared with $134.3m, a decrease of 32.4%. The fourth quarter of 2024 included $1.5m of pretax transaction and integration costs compared with $3.0m. Acquired intangible amortization expense for the fourth quarter of 2024 was $46.1m compared with $44.9m. In the fourth quarter of 2024, Teledyne recorded a $49.5m  pretax, non-cash trademark impairment. Excluding these items, non-GAAP operating income for the fourth quarter of 2024 was $187.9m, compared with $182.2m, an increase of 3.1%.

The fourth quarter of 2024 net sales increased primarily due to higher sales of unmanned air systems, surveillance systems, and commercial infrared imaging systems partially offset by lower sales of X-ray products, industrial automation imaging systems, and unmanned ground systems. The fourth quarter of 2024 also included $12.2m of incremental sales from a recent acquisition. The decrease in operating income was primarily due to a $49.5m pretax, non-cash trademark impairment recorded in the fourth quarter of 2024.

Instrumentation

The Instrumentation segment’s fourth quarter 2024 net sales were $368.9m, compared with $335.2m, an increase of 10.1%. Operating income was $100.8m for the fourth quarter of 2024, compared with $90.7m, an increase of 11.1%. In the fourth quarter of 2024, Teledyne recorded a $3.0m pretax, non-cash trademark impairment.

The fourth quarter of 2024 net sales increase resulted from a $29.0m increase in sales of marine instrumentation primarily due to stronger offshore energy and defense markets, a $1.9m increase in sales of electronic test and measurement instrumentation as well as a $1.9m  increase in sales of environmental instrumentation. The fourth quarter of 2024 also included $5.1 m  of incremental sales from recent acquisitions. The increase in operating income primarily reflected the impact of higher marine instrumentation sales as well as favorable marine instrumentation product mix and improved marine instrumentation margins.

Aerospace and Defense Electronics

The Aerospace and Defense Electronics segment’s fourth quarter 2024 net sales were $196.5m, compared with $184.0m , an increase of 6.8%. Operating income was $56.4m for the fourth quarter of 2024, compared with $50.0m, an increase of 12.8%.

The fourth quarter of 2024 net sales reflected higher sales of $15.3m  for defense electronics, partially offset by lower sales of $2.8m for aerospace electronics. The increase in operating income primarily reflected the impact of higher sales and favorable product mix.

Engineered Systems

The Engineered Systems segment’s fourth quarter 2024 net sales were $114.7m, compared with $103.3m, an increase of 11.0%. Operating income was $9.8m for the fourth quarter of 2024, compared with $12.3m, a decrease of 20.3%.

The fourth quarter of 2024 net sales reflected higher sales of $11.3m for engineered products and $0.1m for energy systems. The higher sales for engineered products primarily reflected increased sales from electronic manufacturing services products. The decrease in operating income included $2.9m of unfavorable contract estimate changes related to electronic manufacturing services products.

Additional Financial Information

Cash Flow

Cash provided by operating activities was $332.4m for the fourth quarter of 2024 compared with $164.4m, with the increase driven primarily by lower income tax payments in the fourth quarter of 2024. In the prior year, the Internal Revenue Service (“IRS”) announcements related to the California floods postponed approximately $139m of Teledyne’s second and third quarter 2023 U.S. federal income tax payments, which the Company paid in the fourth quarter of 2023. Depreciation and amortization expense for the fourth quarter of 2024 was $77.1m compared with $77.4m Stock-based compensation expense for the fourth quarter of 2024 was $7.7m compared with $8.0m.

Capital expenditures for the fourth quarter of 2024 were $29.0m compared with $40.2m, with the decrease related to timing of capital projects. Teledyne received $21.4m from the exercise of stock options in the fourth quarter of 2024 compared with $18.2m.

During the fourth quarter and full year of 2024, the Company repurchased approximately 47.9 thousand shares for $21.4m, and 885.3 thousand shares for $353.9m, respectively.

As of December 29, 2024, net debt was $1,999.2m which is calculated as total debt of $2,649.0m, net of cash and cash equivalents of $649.8m. As of December 31, 2023, net debt was $2,596.6m representing total debt of $3,244.9m, net of cash and cash equivalents of $648.3m.

As of December 29, 2024, $1.17bn was available under the $1.20bn credit facility, after reductions of $29.3m in outstanding letters of credit. (Source: BUSINESS WIRE)

 

22 Jan 25. Textron Reports Fourth Quarter 2024 Results; Announces 2025 Financial Outlook

• EPS of $0.76; adjusted EPS of $1.34
• Full-year adjusted EPS of $5.48
• Full-year share repurchases of $1.1bn
• Aviation backlog of $7.8bn at year-end 2024, up $676m from year-end 2023
• 2025 full-year EPS outlook of $5.19 to $5.39, full year adjusted EPS outlook of $6.00 to $6.20

Textron Inc. (NYSE: TXT) today reported fourth quarter 2024 income from continuing operations of $0.76 per share, as compared to $1.01 per share in the fourth quarter of 2023. Adjusted income from continuing operations, a non-GAAP measure that is defined and reconciled to GAAP in an attachment to this release, was $1.34 per share for the fourth quarter of 2024, compared to $1.60 per share in the fourth quarter of 2023.

“At Bell, we made significant progress on FLRAA achieving Milestone B, which launched the Engineering and Manufacturing Development phase of the program.”

Post this

Full year 2024 income from continuing operations was $4.34 per share, down from $4.57 in 2023. Full year 2024 adjusted income from continuing operations was $5.48, as compared to $5.59 in 2023.

“While a work stoppage at Textron Aviation impacted our 2024 financial results, we saw strong order activity, aftermarket growth, and continued new product development activities with the announcement of the Gen3 family of light jets,” said Textron Chairman and CEO Scott C. Donnelly. “At Bell, we made significant progress on FLRAA achieving Milestone B, which launched the Engineering and Manufacturing Development phase of the program.”

Cash Flow

Net cash provided by operating activities of the manufacturing group for the full year was $1.0 bn. Manufacturing cash flow before pension contributions, a non-GAAP measure that is defined and reconciled to GAAP in an attachment to this release, totaled $692m for the full year, down from $931m in 2023.

In the quarter, Textron returned $232m to shareholders through share repurchases. Full year 2024 share repurchases totaled $1.1bn.

Outlook

Textron is forecasting 2025 revenues of approximately $14.7bn, up from $13.7bn in 2024. Textron expects full-year 2025 GAAP earnings per share from continuing operations will be in the range of $5.19 to $5.39, or $6.00 to $6.20 on an adjusted basis, which is reconciled to GAAP in an attachment to this release.

The Company is estimating net cash provided by operating activities of the manufacturing group will be between $1.2bn and $1.3bn and manufacturing cash flow before pension contributions, a non-GAAP measure, will be between $800m and $900m , with planned pension contributions of about $50m .

“2024 was a challenging year with a strike at Aviation and difficult end markets in our Industrial segment. Our 2025 outlook of higher revenue and margin reflects a stabilized production line with improved productivity at Textron Aviation, growth across our aerospace and defense businesses driven by new product development, and an improved cost structure at our Industrial segment,” Donnelly concluded.

Fourth Quarter Segment Results

Textron Aviation

Revenues at Textron Aviation of $1.3bn were down $242m  from the fourth quarter of 2023, reflecting lower volume and mix of $282m, which was principally a result of production disruptions related to the strike.

Textron Aviation delivered 32 jets in the quarter, down from 50 last year, and 38 commercial turboprops, down from 44 last year.

Segment profit was $100m in the fourth quarter, down $93m from a year ago, primarily due to lower volume and mix, and manufacturing inefficiencies, which included idle facilities costs and higher costs associated with the labor disruption, resulting from the strike.

Textron Aviation backlog at the end of the fourth quarter was $7.8bn, up $219m from the prior quarter.

Bell

Bell revenues were $1.1bn, up $58m from last year’s fourth quarter, reflecting higher military and support program revenues of $67m, primarily due to higher volume on the FLRAA program, partially offset by lower volume on the V-22 program.

Bell delivered 78 commercial helicopters in the quarter, down from 91 last year.

Segment profit of $110m was down $8m from a year ago, primarily driven by mix as lower volume on the V-22 program offset higher volume on the FLRAA program.

Bell backlog at the end of the fourth quarter was $7.5bn.

Textron Systems

Revenues at Textron Systems were $311m, down $3m from last year’s fourth quarter.

Segment profit of $42m was up $7m from last year’s fourth quarter.

Textron Systems’ backlog at the end of the fourth quarter was $2.6bn.

Industrial

Industrial revenues were $869m, down $92m from last year’s fourth quarter, largely reflecting lower volume.

Segment profit of $48m was down $9m from the fourth quarter of 2023, reflecting lower volume and mix and inflation, partially offset by manufacturing efficiencies and lower selling and administrative expense, largely due to cost reduction activities.

Textron eAviation

Textron eAviation segment revenues were $11m in the fourth quarter of 2024, with a segment loss of $22m, largely associated with research and development expense on new products.

Finance

Finance segment revenues were $11m, and profit was $5m in the fourth quarter of 2024.

Restructuring

In December, Textron announced a strategic review of its powersports product line within the Industrial segment that resulted in additional restructuring actions as it indefinitely pauses production of powersports products. With these actions, in the fourth quarter, the Company recorded total pre-tax special charges of $53m and an inventory valuation charge of $38m to write down production-related powersports inventory. (Source: BUSINESS WIRE)

 

22 Jan 25. Zencity, the leading community engagement platform for local governments that counts 8 in 10 of America’s largest cities among its customers, today announced its acquisition of Commonplace, the renowned UK engagement software company. This strategic move underscores Zencity’s continued growth and momentum as a market leader, and solidifies its commitment to the UK market.

“This acquisition not only allows us to expand our presence in the UK market but also gives every Zencity customer access to unique capabilities in zoning and planning. We are excited to work together to continue setting the standard for community engagement globally.”

Commonplace has developed a reputation over 11 years in business as the gold standard software for place-based engagement in the UK. Their customers include the City of London, Westminster Council, Leeds City Council, Camden Council and the Mayor of London. The company’s technology has powered engagement with over 10m community members on behalf of more than 3,500 individual projects across the UK. Commonplace is particularly recognized as a unique market leader in zoning and planning, and its industry-leading map-based features and subscriber management will be widely adopted into the Zencity platform.

With this acquisition, Zencity is able to offer its customers in the UK – which include central government agencies, police forces, local councils and developers – an even higher level of service and responsiveness through its new office in central London. Zencity’s UK team brings deep experience in serving government customers in the region, ensuring stability and an improved customer experience for customers present and future.

“We are thrilled to welcome Commonplace into the Zencity team,” said Eyal Feder-Levy, CEO and Co-founder of Zencity. “This acquisition not only allows us to expand our presence in the UK market but also gives every Zencity customer access to unique capabilities in zoning and planning. We are excited to work together to continue setting the standard for community engagement globally.”

Commonplace’s customers will continue to receive the same high-quality services they have come to expect from their trusted partner, and will also gain access to new enhanced capabilities such as gold-standard representative surveys, sophisticated social media monitoring and analytics, post-interaction satisfaction surveys, and award-winning advanced AI capabilities.

“The joining of forces between Zencity and Commonplace is a win-win for our customers,” said Mike Saunders, CEO of Commonplace. “Not only will they continue receiving exceptional service, but they will also have access to new and enhanced capabilities that come with being a part of a larger company,” Saunders continued.

Zencity’s mission is to become the global standard for community engagement, and this acquisition is a clear step towards that goal. Together, Zencity and Commonplace will help over 400 governments and agencies around the world engage with their communities efficiently and effectively.

The combined company serves cities, counties and agencies in 45 US states, 6 countries, and covers a global footprint of over 200 m  people. Yesterday, on January 21, 2025, Zencity was named to the GovTech 100 – the most significant companies in govtech in the world.

For more information about Zencity and Commonplace’s combined capabilities, please visit www.zencity.io.

About Zencity

Zencity is a government technology company with the leading platform for community trust, purpose-built for government. By putting comprehensive community input tools, sophisticated analytics, and expert support at their fingertips, Zencity empowers government and public safety leaders with the data to make more informed decisions that earn residents’ trust. More than 400 government agencies use Zencity every day, from Los Angeles, Chicago, and London, to Greensboro, NC, Ft. Lauderdale, FL, and the British Transport Police. Zencity, founded in 2016, is headquartered in New York City, with offices in Tel Aviv, London, and Vancouver.

(Source: BUSINESS WIRE)

 

22 Jan 25. Safran India eyes 70% revenue boost from Gaganyaan space flight, other space, defence deals. Safran’s India unit expects a nearly 70% revenue boost in 2025 from its defence and space business, fuelled by its work on India’s human spaceflight mission Gaganyaan and rising private-sector contracts, top executives told Reuters on Wednesday. The Paris-based jet engine maker, 11% owned by the French government, is among the world’s largest aerospace suppliers. It develops the Ariane 6 rocket jointly with Airbus (AIR.PA) but is diversifying its supply chains amid Europe’s political instability. India is strategic in the geopolitical context, Jetendra Gavankar, head of Safran India, told Reuters. “The biggest market in aerospace is still the U.S., but also Oceania/Asia and within that, India is growing in its share for the space sector rapidly.” Two years ago, it bought Bengaluru-based Captronics Systems to become Safran Data Systems India (SDSI) to tap into the country’s aerospace and defence sectors, capitalising on the government’s push to boost private sector participation in these areas. (Source: Reuters)

 

21 Jan 25. Novaria Group, a leading manufacturer of specialty components and hardware for the aerospace and defense industries, announced today it has acquired Bandy Manufacturing, LLC from JW Hill Capital. Bandy Manufacturing is a recognized leader in the production of tight tolerance aerospace and defense hinges and pins. Terms of the deal were not disclosed. Founded in 1953, Bandy just celebrated 70 years of supplying its customers with high-precision aerospace hardware. Its worldwide reputation for quality and reliability, as well as its guiding philosophy to be the most responsive supplier in the market, has established it as a trusted partner to the aerospace and defense sectors.

“The acquisition of Bandy aligns perfectly with Novaria’s mission to deliver exceptional value to our customers in the aerospace and defense industries,” said Novaria CEO Bryan Perkins. “Bandy’s expertise in aerospace hinges and pins, combined with its legacy of innovation and excellence, enhances our ability to serve a critical need in the market.”

Bandy Manufacturing’s operations will remain in its Burbank, California, facility under the leadership of Roger Seaman, who will stay on as President and General Manager to oversee the business.

“We are thrilled to join the Novaria Group family,” said Seaman. “This partnership marks an exciting new chapter for our company, allowing us to expand our capabilities and better serve our customers while driving growth for both organizations.”

D.A. Davidson & Co. and Paul Weisbrich advised Bandy Manufacturing and JW Hill Capital on the transaction.

About Novaria Group

Novaria Group is a privately held business focused on precision component companies that deliver optimum performance and sustainable growth within the aerospace and defense marketplace. For more information on Novaria’s business units, please visit www.novariagroup.com.

About JW Hill Capital

Based in Scottsdale, Arizona, JW Hill Capital is an operations-centric private equity firm focused on manufacturing, value-add distribution, and industrial services, with a specialization in aerospace. More information can be found at www.jwhill.com. (Source: BUSINESS WIRE)

 

20 Jan 25. Swan Defence and Heavy Industries relaunches. The company’s stock opened at Rs35.99 ($0.42) on the BSE and has observed a 5% increase during the trading session. Swan Defence and Heavy Industries (SDHI) has successfully relaunched, setting the stage for future expansion as the company works towards establishing itself in the global maritime sector.  The company has recommenced the trading of its shares on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in the Indian market.   The company’s stock opened at Rs35.99 ($0.42) on the BSE and has observed a 5% increase during the trading session, achieving an intra-day peak of Rs37.78.   Previously known as Reliance Naval and Engineering, the company has undergone a rebranding to SDHI earlier this month.  The company was initially incorporated under the name Pipavav Shipyard. In January 2024, Swan Energy assumed management control of SDHI.  Swan Defence and Heavy Industries director Vivek Merchant said: “The resumption of trading in Swan Defence and Heavy Industries shares marks the beginning of a new journey for the shipyard.

“With our strategic location, state-of-the-art infrastructure and steady growth trajectory, we are uniquely positioned to transform our shipyard into a premier global maritime hub. Our vision is to establish the shipyard as a globally renowned centre of innovation and craftsmanship, playing a pivotal role in elevating India’s standing amongst the world’s top shipbuilding nations.”

Swan Energy acquired the former Anil Ambani group company Reliance Naval & Engineering in 2023.   The company aims to establish itself as the top player in green ship-breaking, ship repair, and a central hub for global manufacturing within the Asia Pacific region, according to senior executives.  Recently, SDHI has completed the refit of the Indian Coast Guard’s fast patrol vessel, Raj Ratan, ahead of its deadline.   With a shipyard equipped with a 662 metre (m) x 65m dry dock and an annual fabrication capacity of 144,000 tonnes, SDHI is poised to reinitiate its shipbuilding activities.

Vivek Merchant further added: “The resumption of trading marks a new journey to transform their shipyard into a premier global maritime hub, advancing India’s position in global shipbuilding. We welcome all stakeholders to the Swan Family!”  (Source: naval-technology.com)

 

21 Jan 25. Space and defense company Voyager Technologies confidentially files for US IPO. Space and defense company Voyager Technologies said on Tuesday that it had confidentially filed for an initial public offering in the United States, though the number of shares to be offered and the price range have not yet been determined. The company, previously known as Voyager Space, announced its rebranding as Voyager Technologies last week. Strong equity markets, falling interest rates and hopes of a friendlier regulatory environment for deals and offerings under U.S. President Donald Trump’s administration have ushered several companies to list their shares. (Source: Google/Reuters)

 

22 Jan 25. Sanlayan Tech acquires Dexcel Electronics to drive indigenous defence and aerospace innovation. Sanlayan Technologies and Dexcel Electronics join forces to enhance innovation in the Aerospace, Defence, and Space sectors to accelerate indigenous technology development and strengthen national security. Together, they will showcase their products and solutions at Aero India 2025. Sanlayan Technologies, a fast-growing strategic electronics company in India, announced its acquisition of a majority stake in Dexcel Electronics Designs, a trusted and leading Electronics System Design and Manufacturing (ESDM) firm with over two decades of expertise in the Aerospace, Defence, and Space sectors. This acquisition strengthens Sanlayan’s ability to deliver advanced indigenous solutions that support national security and drive technological innovation in critical sectors. Dexcel has contributed to major defence and space projects, including Jaguar and Sukhoi aircraft upgrades and ISRO’s Chandrayaan-3 and Aditya-L1 missions.

“Joining forces with Sanlayan represents a transformative step for Dexcel. This partnership will manifold our R&D investments, enabling us to deliver impactful solutions to our customers” said Amit Kumar Sinha, CEO & Managing Director of Dexcel Electronics Designs. “It will not only accelerate the design-to-deployment pipeline, but also drive innovation and efficiency, and position Dexcel to address complex challenges in Avionics, Radar electronics, Naval systems, and signal processing.”

In March 2024, Sanlayan raised $4.4M in its Seed round. The funding has been driving its expansion into embedded systems and the vertical integration of electronics solutions across India’s Aerospace, Defence, and Space sectors.

Founded in 2023 by Abhijit Kothawale, Rohan Gala, and Rahul Vamsidhar, Sanlayan brings industry expertise to the table. Abhijit previously led the Aerospace & Defence division at Zetwerk Manufacturing and has held roles at L&T, Tata Advanced, and Mahindra Group. Rahul, an IIT-Delhi graduate, led Corporate Development at Zetwerk, and Rohan, an IIM Calcutta alumnus, managed Zetwerk’s Consumer Electronics division following roles at ITC and Ola.

“In Dexcel, we found a company whose products and capabilities have immense potential, yet have only scratched the surface. This strategic investment allows us to scale Dexcel’s core capabilities, aligning perfectly with our mission to solve end-user challenges in embedded electronic systems,” said Rohan Gala, Co-founder & CEO of Sanlayan. “Together, we are poised to build a strong vertically integrated strategic electronics company that supports PM Modi’s Atmanirbhar Bharat Abhiyan, a testament to Sanlayan’s commitment to enhancing national security with the development of indigenous product solutions for Air, Water, Land, and Space applications.” (Source: Google/https://timestech.in/)

 

20 Jan 25. Redwire Corporation (NYSE: RDW), a leader in space infrastructure for the next generation space economy, today announced that it has signed a definitive agreement to acquire Edge Autonomy, a leading provider of field-proven uncrewed airborne system (“UAS”) technology. Under the terms of the merger agreement, Redwire will acquire Edge Autonomy for $925m on a debt free, cash free basis and subject to customary working capital, cash and debt adjustments. The merger consideration is expected to be paid using $150m in cash and $775m in shares of Redwire common stock, based on the volume-weighted average trading price on the NYSE for the 30 trading days ending on January 17, 2025 of $15.07 (“30-day VWAP”). Transaction financing and closing details are as described below. Following the merger, Edge Autonomy and its subsidiaries would be wholly-owned subsidiaries of Redwire.

“Both companies are committed to technology innovation, reliability and satisfying customer demand, and we see significant synergies within our collective capabilities that will positively impact both businesses and enable continued growth.”

The acquisition is expected to transform Redwire into a global leader in multi-domain autonomous technology, broadening its portfolio of mission-critical space platforms to include combat-proven autonomous airborne platforms. Immediately upon closing, the transaction is expected to be accretive to Redwire’s revenue, Adjusted EBITDA, and Free Cash Flow. For the twelve months ended December 31, 2025, Redwire, as a combined company, is forecasting full year, revenues of $535m – $605 m  and Adjusted EBITDA of $70m – $105m  with positive Free Cash Flow, assuming the transaction had been consummated on January 1, 2025.1

Formed in 2021 through the merger of UAV Factory and Jennings Aeronautics, Edge Autonomy harnesses over three decades of experience developing uncrewed and autonomous technology systems. Edge Autonomy is vertically integrated with proven capabilities, extensive mission heritage, and strong relationships with U.S. Department of Defense, Special Operations Forces, and allied governments. Edge Autonomy’s fleet of UAS technology, including its Stalker series and Penguin series, is optimized for long endurance, long range reconnaissance missions and can be deployed quickly for time-critical operations. Executing on multiple programs of record, these field-proven capabilities are critical for the modern warfighter to collect crucial information and make informed decisions quickly and effectively. The combination of Redwire and Edge Autonomy is expected to create a transformative, multi-domain, scaled and profitable space and defense tech company focused on the convergence of integrated autonomous, AI-enabled multi-domain operations for defense and national security. For the last twelve months ended September 30, 2024, Edge Autonomy achieved revenues of $222m and Adjusted EBITDA of $72 m .2

Redwire has strengthened and grown its position as a critical provider of defense technology by scaling its national security space business and investing in enhanced capabilities. Redwire recently added two space platforms to its technology portfolio, Thresher and Mako, designed for software defined, AI-enabled, autonomous operations in low Earth orbit, medium Earth orbit, and geostationary orbit. Additionally, Redwire is currently developing Very Low Earth Orbit spacecraft or “orbital drones” that bridge the gap between airborne and space-based systems. The addition of Edge Autonomy’s UAS technologies with these capabilities expands our coverage across multiple domains and is expected to create new integrated capabilities for our customers that leverage connectivity across space and airborne operations.

“The combination of Redwire and Edge Autonomy creates a uniquely positioned space and defense company focused on two of the fastest growing trends in defense technology,” said Peter Cannito, Chairman and CEO of Redwire. “As space and airborne platforms converge into an integrated network of autonomous, collaborative systems, Redwire will be poised to provide end-to-end solutions for multi-domain operations from the surface of the earth to the surface of the moon and beyond.”

Headquartered in San Luis Obispo, California, Edge Autonomy has a team of more than 600 employees around the world. With more than 265,000 square feet of manufacturing and production capabilities across the U.S. and Europe, Edge Autonomy’s experienced team delivers proven solutions based on real-world mission needs.

“We are extremely excited to join forces with Redwire and merge two industry leaders in advanced multi-domain technologies,” said Steve Adlich, CEO of Edge Autonomy. “Both companies are committed to technology innovation, reliability and satisfying customer demand, and we see significant synergies within our collective capabilities that will positively impact both businesses and enable continued growth.”

Transaction Financing and Closing

Redwire will pay the purchase price for the acquisition in a combination of $150m in cash and $775m in shares of Redwire common stock issued at $15.07, the 30-day VWAP. The transaction consideration positions Redwire with a stronger balance sheet and enhanced credit quality as a result of significant cash flow accretion, better operational scale, and commercial diversification. Redwire, at its option, may finance the cash portion of the purchase price with cash on its balance sheet, availability under its existing credit facility, or proceeds from new committed debt facilities, taking advantage of the expected significant expansion of its Adjusted EBITDA and free cash flow on a combined company basis. Redwire, at its option, may also elect to use proceeds from a new issuance of Redwire common stock. If Redwire elects to raise cash in a common equity financing, the $15.07 issuance price would be increased or decreased depending on the per share price of such equity financing.

The transaction is subject to customary approvals and closing conditions, including a Redwire stockholder vote and regulatory approvals, and is expected to close in the second quarter of 2025.

In addition to approval by Redwire’s Board of Directors, the transaction has also been approved by a special committee of the Board composed entirely of directors who are independent both with respect to Redwire and AE Industrial Partners, LP and its affiliates (“AEI”). As a condition of the transaction, the stockholder approval must include a majority of the voting power not held by AEI. In connection with the transaction, entities affiliated with AEI, Genesis Park (through its affiliate Genesis Park II LP) and Bain Capital (through its affiliate BCC Redwire Aggregator, L.P.) have agreed to vote in favor of the proposals relating to the transaction at the stockholder meeting to be called for such purpose, representing an aggregate of approximately 73% of Redwire’s outstanding voting power, and over 50% of Redwire’s outstanding voting power held by persons other than AEI and Redwire management, as of January 20, 2025.

At the closing of the transaction, Redwire will enter into an amended and restated investor rights agreement (the “Investor Rights Agreement”) with AEI, Genesis Park Holdings, and Edge Autonomy Ultimate Holdings, LP (“Seller”) and certain of their affiliates, which would provide that (i) AEI would be permitted to designate four directors for election to Redwire’s Board of Directors, which number would be reduced once AEI no longer holds 50% or more of the shares of Redwire common stock issued beneficially owned by AEI (excluding the Seller’s) at the closing of the transaction and (ii) Seller would be permitted to designate one director for election to Redwire’s Board of Directors so long as Seller continues to hold 25% or more of the shares of Redwire common stock beneficially owned by Seller at the closing of the transaction. The Investor Rights Agreement also provides that AEI and Seller will not sell any of such Redwire Shares during the six-month period following the closing of the transaction, subject to certain limited exceptions. (Source: BUSINESS WIRE)

 

21 Jan 25. German Federal Cartel Office approves joint venture between Rheinmetall and Leonardo. In response to the decision of the German Federal Cartel Office (Bundeskartell¬amt) announced on 20 January 2025 to approve the establishment of a joint venture between Rheinmetall AG, Düsseldorf, and Leonardo S.p.A., Rome (Italy), Rheinmetall states:

Armin Papperger, CEO of Rheinmetall AG: “We welcome the Federal Cartel Office’s decision and are extremely grateful for the support and the rapid processing. Amid the current geopolitical situation, our project with Leonardo is of great importance for supplying the armed forces with the right equipment for the job – and thus for security in Europe. We expect the first extensive order from the Italian customer in the coming months”.

Leonardo and Rheinmetall, two leading European suppliers in defence technology, are joining forces to implement challenging projects. The closing of the joint venture is expected in due course after receiving the final regulatory approvals.

In October 2024, the companies had signed the contractual agreement to establish the joint venture in Rome.

Consequently, Rheinmetall AG and Leonardo S.p.A. will each hold an equal 50% share in the new Leonardo Rheinmetall Military Vehicles (LRMV), which will be headquartered in Rome and have an operational centre in La Spezia. The main objective of the joint venture is the industrial development and subsequent marketing of the new Italian Main Battle Tank (MBT) and the new Lynx platform for the Armoured Infantry Combat System (AICS) programme as part of the Italian Army’s land systems programme. The development and production of other vehicles of this family, such as recovery, engineer and bridge-laying vehicles, is also planned. The Panther KF51 developed by Rheinmetall will be the basis for the new main battle tank to replace the Ariete in the Italian Army. The Italian AICS programme intends to procure over 1,000 armoured combat systems, for which Rheinmetall’s Lynx infantry fighting vehicle shall form the technological basis.

 

17 Jan 25. Sweden’s Saab posts higher-than-expected 2024 organic sales growth. Swedish defence equipment maker Saab, expects to report 2024 organic sales growth of 23.4%, it said on Friday, above its previous outlook at the upper end of a 15-20% range. The company, which competes with defence giants such as Lockheed Martin (LMT.N), France’s Dassault Aviation (AM.PA), and Britain’s BAE Systems (BAES.L), is riding an industry-wide boom in demand as rising global tensions, not least due to Russia’s war in Ukraine, fuel rapid rearmament.

“The increased organic sales growth… follows a higher-than-expected sales development due to exceptional project execution in the fourth quarter,” Saab said in a statement.

Shares in Saab were down 4.7% by 1252 GMT after initially rising on the news. The stock is still up 30.7% in the last 12 months.

Saab said it expected sales for the October-December quarter of 20.9 bn Swedish crowns ($1.87 bn), up from 16.1 bn a year earlier, boosting full-year sales to 63.8 bn crowns from 51.6 bn in 2023. Preliminary operating income for the fourth quarter rose to 2 bn Swedish crowns from 1.4 bn a year earlier. The maker of military hardware such as missiles, advanced electronics, submarines and the Gripen fighter jet, maintained its expectation that operating income would grow at a faster pace than sales. The company will report its final earnings for 2024 on Feb. 7. ($1 = 11.1632 Swedish crowns) (Source: Reuters)

 

17 Jan 25. First Indian startups picked for Indo-US defence programme, investor says. Seven Indian privately-held startups have been chosen for a first-of-its-kind India-U.S. space and defence collaboration programme, potentially unlocking a lucrative and strategic market for Indian firms, an investor who co-launched the project told Reuters on Friday. The companies include space imaging company KaleidEO, rocket makers EtherealX and AI-driven company Shyam VNL. They will participate in a programme for defence and dual-use technology and explore opportunities to work with the U.S. Defense Innovation Unit, the Department of Defense and other government agencies on satellite observation and emerging space and defence technologies. Indian investor Indusbridge Ventures and U.S.-based FedTech, which established the programme in September 2024, selected seven Indian companies and talks are underway about specific projects.

“This programme offers valuable resources, mentorship, and essential connections with industry leaders in the U.S. and we look forward to partnering with FedTech on this initiative to accelerate private-sector partnership between the two countries in strategic sectors – defence and dual-use technology,” said Rahul Devjani, the managing partner at Indusbridge Ventures.

The startups will get access to the world’s biggest defence and space market and potentially work with U.S. defence industry leaders like Northrop Grumman (NOC.N), , Lockheed Martin (LMT.N) and RTX (RTX.N) two sources from the startups said. They declined to be identified owing to the sensitivity of the matter.

That could give them an edge against the competition as they compete for U.S. business in their niches worth about $1.5bn annually, one of the sources said.

The U.S. government bodies did not immediately respond to emails seeking comment. The development and details of the programme have not been made public before.

Lockheed and Northrop declined to comment, while RTX, formerly known as Raytheon, did not immediately respond to an email seeking comment.

Access to the U.S. defence and space market, the largest globally, could generate annual revenues between $500m and $1bn for the Indian companies, the second source said.

Indian National Security Advisor Ajit Doval this month met with his U.S. counterpart Jake Sullivan in New Delhi to discuss space technology collaboration and the “deepening cooperation between the U.S. Defense Innovation Unit and India’s Innovations for Defense Excellence to accelerate the adoption of cutting-edge commercial technologies for military solutions,” among other topics. (Source: Reuters)

 

20 Jan 25. Asset manager VanEck expects growth in defence sector as Trump returns. Demand for a leading defence sector exchange-traded fund (ETF) has been growing ahead of the return of Donald Trump to the White House, said investment company and ETF issuer VanEck.

The European arm of the New York-headquartered company launched its VanEck Defense UCITS ETF in March 2023. It rose around 55% in 2024 and is already up around 8% at the start of 2025, with assets under management of around $1.8 bn.

“We are observing strong momentum in the defense sector. Since the launch of our fund, we’ve experienced consistent inflows with the ongoing global geopolitical tensions being the main interest driver,” said VanEck EU CEO Martijn Rozemuller.

Earlier this month, Trump said NATO members should spend 5% of their gross domestic product on defence, a significant increase from the current 2% target.

Officials and analysts have also told Reuters they expect NATO to agree to go beyond this current defence spending target.

“As the political climate evolves, so too does investor sentiment towards defense stocks. Just a few years ago, the sector was taboo for most institutional investors. Today, with supporting government policies, the contrast could not be bigger,” added Rozemuller.

The ETF’s top holdings include Palantir Technologies, Thales, Booz Allen Hamilton and Leonardo. (Source: Reuters)

 

17 Jan 25. Department of Defense and U.S. Small Business Administration Publish Names of First 18 Licensed and Green Light Approved Funds for the Small Business Investment Company Critical Technologies Initiative. Today, the Department of Defense (DoD) is publishing the names of the entire first cohort of Licensed and Green Light Approved funds under the Small Business Investment Company Critical Technologies Initiative (SBICCT Initiative). The SBICCT Initiative is a partnership between the DoD and the U.S. Small Business Administration (SBA) to strengthen U.S. national and economic security by attracting and scaling private investment into the DoD Critical Technology Areas (CTAs) and into component-level technologies and production processes.

Collectively, this first cohort is projected to invest over $4 bn into over 1700 portfolio companies focused on all 14 CTAs and on strategic component technologies and production processes. These investment funds hail from all regions of the country with offices in 15 states and Washington, D.C. Taken together, this first cohort plans to invest across the full spectrum of stages and strategies of private investment including seed, venture, growth, buyout, direct lending, special situations, and fund-of-funds.

To meet the Green Light Letter milestone, these investment funds:

•  Prepared and submitted a detailed application describing, among other things, their management team, investment strategy, track record, fund structure, and copies of their governing documents.
•  Successfully underwent a rigorous operational and investment due diligence process and legal review of their application.
•  Participated in a formal interview with the SBA’s Investment Committee.
•  Received notification that the fund had demonstrated the requisite experience and skills to successfully manage a Small Business Investment Company (SBIC) from the Investment Committee, the SBA Agency Licensing Committee, and the SBA Administrator.

After receiving the “Green Light Letter,” each fund is invited to raise private capital. When the fund is ready to close on the initial tranche of private capital, that fund will apply to receive their SBIC license – after which they will be able to access their approved leverage and begin investing in portfolio companies. Seven funds in the first cohort are fully licensed and have commenced investment activity.

**The above graphic lists 17 of the 18 Licensed and Green Light Approved funds in the first SBICCT Initiative fund cohort. One fund that is Green Light Approved has elected not to have their name shared publicly, which is permitted under SBA policy.

Interest in the SBICCT Initiative continues to grow, with over 100 funds having expressed interest to date. The diligence process has commenced on the second cohort of funds that have applied to the SBICCT Initiative, with additional funds expected to file applications at the next filing deadline on March 31, 2025.

For more information on the SBICCT Initiative and the application process, please see the Investment Policy Statement here or reach out to to arrange a courtesy call. (Source: U.S. DoD)

 

17 Jan 25. Houlihan Lokey Advises Stellar Blu Solutions. Houlihan Lokey is pleased to announce that Stellar Blu Solutions LLC (Stellar Blu), a portfolio company of Fortress Investment Group LLC (Fortress), has been acquired by Gilat Satellite Networks Ltd. (Gilat). The transaction closed on January 6, 2025. Stellar Blu is a leading provider of next-generation SATCOM terminal technology, offering turnkey inflight connectivity solutions such as terminal development, aircraft integration, and certification and installation packages. The company’s flagship product, SIDEWINDER, is a multi-orbit, multi-network, aero terminal that utilizes an open architecture and fuselage-mounted electronically steered array (ESA) antenna. SIDEWINDER has been selected by Intelsat, Panasonic, OneWeb, and others to redefine the in-flight connectivity paradigm for its airline customers with its network-agnostic design, high throughput, minimalist design, and significantly lower total cost of ownership. Gilat (NASDAQ:GILT; TASE:GILT) is a leading global provider of satellite-based broadband communications. With more than 35 years of experience, Gilat creates and delivers deep technology solutions for satellite, ground, and new space connectivity and provides comprehensive, secure end-to-end solutions and services for mission-critical operations. Gilat’s comprehensive offerings support multiple applications with a portfolio of products and tailored solutions to address key applications, including broadband access, mobility, cellular backhaul, enterprise, defense, aerospace, broadcast, government, and critical infrastructure clients, all while meeting the most stringent service-level requirements. Fortress is a leading, highly diversified global investment manager. Founded in 1998 and based in New York City, Fortress manages $49 bn of assets (as of September 30, 2024) on behalf of approximately 2,000 institutional clients and private investors worldwide across a range of credit and real estate, private equity, and permanent capital investment strategies. Houlihan Lokey served as the exclusive financial advisor to Stellar Blu and assisted in structuring and negotiating the transaction on its behalf. This transaction exemplifies the continued success of Houlihan Lokey’s Aerospace, Defense & Government practice. Since 2020, the team has closed more than 70 transactions worth more than $13 bn in enterprise value. With a staff of approximately 20 financial professionals, Houlihan Lokey’s Aerospace, Defense & Government practice is among the largest dedicated industry banking groups worldwide. In 2023, Houlihan Lokey was ranked as the No. 1 M&A advisor for global industrials transactions under $1 bn, according to LSEG (formerly Refinitiv).* If you would like more information about Houlihan Lokey or have questions regarding the firm’s role in this transaction, please contact one of the team members listed below.

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SPX CommTech, part of SPX Technologies Inc, innovates specialised technologies within the Radio Frequency (RF) spectrum to ensure a smarter, more secure future for all. Formed by TCI and ECS, SPX CommTech’s Battlespace portfolio enables defence and security teams to detect, defeat and exploit RF signals to enhance communications intelligence (COMINT) and counter unmanned aerial systems (Counter-UAS). Additionally, its Tactical Data Link portfolio allows intelligence gathering agencies, special forces, emergency response, and security teams to securely and reliably transfer video and data between enabled-aircraft and ground teams over long distances for airborne Intelligence, Surveillance, Reconnaissance (ISR).

For more information visit www.tcibr.com and www.enterprisecontrol.co.uk

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