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27 Mar 14. Sypris Solutions, Inc. (Nasdaq/GM: SYPR) today reported financial results for its fourth quarter and full-year ended December 31, 2024.
HIGHLIGHTS
* The Company’s gross profit for the quarter increased 23.1% from the prior-year period, while gross margin expanded 350 basis points.
* For the full year, the Company’s gross profit increased 15.3% from the prior year, while gross margin increased 150 basis points.
* Gross profit for Sypris Technologies surged 41.6% for the quarter and 39.3% for the full year, reflecting favorable exchange rates, improved mix and productivity improvements. Orders for energy products were up 8.6% year-to-date.
* EPS for the quarter increased $0.06 to $0.01 per diluted share, up from a loss of $0.05 per diluted share for the prior-year period.
* The Company announced its financial guidance for 2025, projecting revenue between $125-$135 m, gross margin expansion in the range of 150 to 175 basis points, and a forecast of 10-15% increase in gross profit. The revenue outlook partly reflects the conversion of certain shipments from our facility in Mexico to a value-add only sub-maquiladora basis.
“We are pleased with the year-over-year revenue growth at Sypris Technologies, driven by an increase in sales of our energy products during the period,” commented Jeffrey T. Gill, President and Chief Executive Officer. “Orders for our energy products increased during the year, and additional opportunities for growth may exist with new global projects in support of increasing LNG demand including support for the steep increase in electricity demand from data centers to support AI. We are also actively pursuing applications for our products in adjacent markets including CO2 capture to further diversify our industry and customer portfolios.
“Demand from Sypris Technologies customers serving the automotive, commercial vehicle, sport utility and off-highway markets has remained relatively stable, with new product line shipments helping to offset the anticipated cyclical decline for the commercial vehicle market. We believe that the market diversification Sypris Technologies has accomplished over recent years by adding new programs in the automotive, sport-utility and off-highway markets will help offset some of this decline.
“The backlog at Sypris Electronics exceeds $90m and is expected to support growth through 2025 and beyond. Customer funding has already been secured for a significant portion of these key programs, which enables us to procure inventory under multi-year purchase orders to mitigate future supply chain issues.”
Fourth Quarter and Full-Year Results
The Company reported revenue of $33.4m for the fourth quarter ended December 31, 2024, compared to $34.7m for the prior-year comparable period. The Company reported net income of $0.1m, or $0.01 per diluted share, compared to a net loss of $1.1m, or $0.05 per diluted share, for the prior-year period.
For the full-year 2024, the Company reported revenue of $140.2m compared with $136.2m for the prior year. The Company reported a net loss of $1.7m, or $0.08 per share, for 2024 compared with a net loss of $1.6m, or $0.07 per diluted share, for the prior year.
Sypris Technologies
Revenue for Sypris Technologies was $19.5m in the fourth quarter of 2024 compared to $19.0m for the prior-year period, reflecting strong energy shipments during the period, partially offset by the anticipated cyclical decline in the commercial vehicle market. Gross profit for the fourth quarter of 2024 was $4.4m, or 22.5% of revenue, compared to $3.1m, or 16.3% of revenue, for the same period in 2023. Gross profit for the fourth quarter of 2024 benefited from a favorable mix and favorable exchange rates.
Sypris Electronics
Revenue for Sypris Electronics was $13.9m in the fourth quarter of 2024 compared to $15.7m for the prior-year period. Material delays and supplier quality issues caused a temporary delay in shipments for the period. Gross profit for the fourth quarter of 2024 was $1.0m, or 7.1% of revenue, compared to $1.3m, or 8.1% of revenue, for the same period in 2023 primarily due to the lower revenue, an unfavorable mix and additional labor and overhead costs incurred on programs that recently ramped production.
Outlook
Commenting on the future, Mr. Gill added, “Demand from customers serving the markets for electronic warfare, aircraft and missile avionics, secure and subsea communications, and ground-based radar remain robust, while the outlook for the energy market continues to move in the right direction. Similarly, demand from customers serving the automotive, commercial vehicle and sport utility markets remains healthy despite the anticipated cyclical decline in the commercial vehicle market.
“With a strong backlog, new program wins, and continued long-standing contractual relationships in place, we are confident 2025 has the potential to be very positive for Sypris. While we anticipate a modest decline in revenue reported resulting from the conversion of certain shipments from Mexico to the U.S. into a sub-maquiladora, and the cyclical decrease in production volumes in the commercial vehicle market, we expect the combined strength of our backlog for Sypris Electronics and increasing orders for our energy products to largely serve as an offset. Additionally, we expect to achieve gross margin expansion in the range of 150 to 175 basis points, with gross profit expected to grow 10-15% in 2025.” (Source: BUSINESS WIRE)
27 Mar 14. Guerrilla RF, Inc. (OTCQX: GUER), a leading provider of state-of-the-art radio frequency (RF) and microwave semiconductors, today announced fourth quarter and full year 2024 financial results.
Fourth quarter 2024 revenue decreased slightly over the same period in 2023, coming in at $4.4m compared to $4.7m for the year ago quarter. Weakness in the quarter came from a 42% drop in Automotive sales, while Infrastructure grew 10% and our Catalog markets expanded 62% due in part from increases in SatCom and wireless audio.
Revenue for fiscal year 2024 increased 33.4% as compared to fiscal year 2023. Revenue gains came from the acquisition of new customers, the release and introduction of new products and through gain of market share in each of our markets. Catalog, wireless audio and SatCom revenue increased for the full year. Our automotive products drove revenue increases and experienced significant order volume increases during the first three quarters of 2024 from our OEM customers. These customers included a new direct EV automotive customer, as well as growth from customers who are major electronics suppliers to automotive OEM component suppliers.
Gross profit for fiscal year 2024 was 63.7% of revenue as compared to 57.1% for fiscal year 2023. Although the Company has continued to experience supply chain price increases, we have been able to mitigate the effect of these increases by increasing the prices we charge our customers. Product contribution margins rose from 70.5% in 2023 to 74.8% in 2024. Product contribution margins were partially offset by higher overhead costs, on a comparative period basis, which increased due to headcount additions in our Quality group, as well as increased facility costs.
Operating loss was $8.8m for 2024 as compared to $12.9m for 2023. This decrease in operating loss was due to higher revenue, while our operating expenses remained relatively flat, with expenses in our engineering and research and development areas decreasing $0.6m or 6% year over year. Sales and marketing expenses increased, rising $0.6m to $6.3m or 10% over the prior year period. Administration costs experienced a small increase of $49 thousand or 1% over the prior year period.
Fourth Quarter and Full Year 2024 Financial Result Highlights
* The Company reported $20.1m in revenue for FY24 achieving the lower end of management’s revised full year 2024 guidance of between $20.0 and $25.0m.
* Contribution margin of 74.8% for FY24, compared favorably to 70.5% for FY23, indicating price stability as revenue grows.
* Gross profit increased 49.8% to $12.8 m for the FY24 compared to $8.6m for FY23.
* Gross profit increased for fiscal year 2024 to 63.7% of revenue as compared to 57.1% for fiscal year 2023. Full year operating expenses increased $0.1m to $21.6 for FY24 compared to $21.5m for FY23, while revenue expanded over 33.4 percent, reflecting the continued impact of previously announced expense management efforts.
* Operating loss was $8.8m for 2024 as compared to $12.9m for 2023.
* Research and development expenses decreased $0.6m to $9.7m for the year ended December 31, 2024, compared to $10.3m for the year ended December 31, 2023.
* We continue to invest in Sales and Marketing, which increased $0.6m to $9.7m for 2024.
* Backlog (a non-GAAP measure) remained steady quarter-over-quarter, ending 2024 at $5.4m. Subsequent to year end, backlog increased to $6.8m by March 14, 2025.
* During the year ended December 31, 2024, we recognized a loss of $1.5m on extinguishment of debt a change in fair value related to warrant liabilities gain of $2.2m.
* Net loss per share was $1.12 and $2.25 for fiscal year 2024 and 2023, respectively.
* International shipments amounted to $4.0m (approximately 20% of total product revenue) and $2.3m (approximately 16% of total product revenue) for the years ended December 31, 2024, and December 31, 2023, respectively. (Source: BUSINESS WIRE)
27 Mar 14. Allen Control Systems (ACS), a leader in autonomous precision robotics for defense, today announced it has raised a $30m Series A led by Craft Ventures with participation from existing investors Inspired Capital and Rally Ventures. The capital will accelerate ACS’ engineering growth and support the deployment of Bullfrog™, the company’s autonomous robotic weapon station designed to counter the rise of unmanned threats on the modern battlefield and drive responsible national security.
Bullfrog transforms legacy or modern weapons into precision-targeting systems using artificial intelligence, computer vision, and proprietary control systems, significantly increasing their accuracy. ACS’ autonomous weapon stations are the most effective countermeasure to the rapidly proliferating unmanned threat. Bullfrog is a leading counter-drone technology, built to enhance battlefield effectiveness and meet the rising threat of unmanned systems—making it essential for every organization responsible for national security.
“High-value targets around the world are at risk from small unmanned systems. The urgent need for scalable, effective air defense solutions is creating immediate opportunities across the Department of Defense, international allies, and commercial sectors,” said Mike Wior, co-founder and CEO, ACS. “With this new investment, we will continue to strengthen ACS’ engineering capabilities and radically advance the fielding of our counter-drone technology.”
“ACS’ technology is a necessity as we enter the next era of defense,” said Jeff Fluhr, co-founder and partner, Craft Ventures. “Bullfrog represents a new standard in counter-drone technology needed by every organization responsible for national security. ACS has built a platform with the flexibility and reliability needed to meet today’s most urgent defense challenges and level the economics of the battlefield. We’re proud to support ACS on their mission to protect U.S. forces and our allies.”
Unmanned systems are the most impactful technologies on the battlefield today, demanding an entirely new approach to defense. ACS will take the field at the upcoming JCO Counter-UxS demonstration this April, proving that its systems are purpose-built to close the most urgent gaps in modern battlefield defense. (Source: BUSINESS WIRE)
27 Mar 14. M-tron Industries, Inc. (NYSE American: MPTI) (“Mtron” or the “Company”), a designer and manufacturer of highly-engineered electronic components used to control the frequency or timing of signals in electronic circuits, announced strong financial results for the fourth quarter and full fiscal year ended December 31, 2024.
Fourth Quarter 2024 Highlights
* Revenues increased 18.9%, or $2.0m, to $12.8m for the three months ended December 31, 2024 from $10.8m for the three months ended December 31, 2023
* Gross margin increased 360 basis points to 47.2% for the three months ended December 31, 2024 from 43.6% for the three months ended December 31, 2023
* Net income per diluted share increased 2,333.3%, or $0.70, to $0.73 for the three months ended December 31, 2024 from $0.03 for the three months ended December 31, 2023
Fiscal Year 2024 Highlights
* Revenues increased 19.1%, or $7.8m, to $49.0m for the fiscal year ended December 31, 2024 from $41.2m for the fiscal year ended December 31, 2023
* Gross margin increased 550 basis points to 46.2% for the fiscal year ended December 31, 2024 from 40.7% for the fiscal year ended December 31, 2023
* Net income per diluted share increased 107.4%, or $1.37, to $2.65 for the fiscal year ended December 31, 2024 from $1.28 for the fiscal year ended December 31, 2023
“We are pleased to report robust financial results for the full fiscal year 2024, reflecting the continued momentum in our business and the effectiveness of our strategic initiatives,” said Cameron Pforr, Mtron Interim Chief Executive Officer. “Our performance underscores the strength and ability of the Mtron team to drive sustained growth and the confidence of our defense and commercial customers in Mtron’s ability to deliver critical components and solutions.”
Results from Operations
Fourth Quarter 2024
Revenue was $12.8m in the fourth quarter of 2024 compared with $10.8m in the fourth quarter of 2023. The increase was primarily due to higher sales related to continued strong defense program product and solution shipments.
Net income was $2.1m, or $0.73 per diluted share, in the fourth quarter of 2024 compared with $73.0 thousand, or $0.03 per diluted share, in the fourth quarter of 2023. In addition to the factors discussed above, the increase was primarily due to lower stock-based compensation expense partially offset by higher manufacturing cost of sales driven higher revenues, higher engineering expenses related to increased investment in research and development, higher sales commissions related to the increase in revenues, and an increase in administrative and corporate expenses to support the growth in revenues.
Gross margin was 47.2% in the fourth quarter of 2024 compared with 43.6% in the fourth quarter of 2023. The increase was primarily due to higher revenues, improved manufacturing efficiencies, and a higher margin product mix.
Adjusted EBITDA was $3.1m in the fourth quarter of 2024 compared with $2.4m in the fourth quarter of 2023. The increase was primarily due to improved gross margins and continued containment of expenses as well as a higher margin product mix.
Fiscal Year 2024
Revenue was $49.0m in 2024 compared with $41.2m in 2023. The increase was primarily due to higher sales related to continued strong defense program product and solution shipments.
Net income was $7.6m, or $2.65 per diluted share, in 2024 compared with $3.5m, or $1.28 per diluted share, in 2023. The increase in revenues discussed above was partially offset by higher manufacturing cost of sales driven higher revenues, higher engineering expenses related to increased investment in research and development, higher sales commissions related to the increase in revenues, and an increase in administrative and corporate expenses to support the growth in revenues.
Gross margin was 46.2% in 2024 compared with 40.7% in 2023. The increase was primarily due to higher revenues, improved manufacturing efficiencies, and a higher margin product mix.
Adjusted EBITDA was $11.1 m in 2024 compared with $7.7m in 2023. The increase was primarily due to improved gross margins and continued containment of expenses as well as a higher margin product mix.
“The Company reported record revenues for the third year in a row, largely driven by strong growth in the Aerospace and Defense sector, which increased over 40% year over year. Our Avionics sector also grew slightly, which focuses on large commercial aircraft and some business jets. 2024 proved to be a difficult year for the major airframe providers, but we anticipate this sector picking up throughout the year and remaining strong as they begin to work through their large backlog of orders,” continued Mr. Pforr. “Overall business performance, combined with the exercise of stock options, significantly strengthened our balance sheet, which ended the year with $12.6m of cash and cash equivalents.”
Backlog
Backlog was $47.2 m as of December 31, 2024 compared to $47.8m as of December 31, 2023. The slight decrease reflects the continued strategy and focus on securing large, long duration program centric business, which can materially affect backlog to the timing and size of these orders.
Warrant Dividend
On February 27, 2025, Mtron’s Board of Directors declared a dividend of warrants to purchase shares of common stock to holders of Mtron’s common stock as means of distributing value to its stockholders. The record date for the warrants is March 10, 2025. (Source: BUSINESS WIRE)
27 Mar 25. Amundi is working on the summer launch of a European ETF. VanEck, a $114bn US fund manager, is also exploring the launch of a similar investment vehicle. (Source: FT.com)
27 Mar 25. S. Korea watchdog blocks Hanwha Aerospace $2.5bn capital raising plan. South Korea’s financial market watchdog on Thursday ordered Hanwha Aerospace to submit a revised filing after the defence company announced a capital increasing plan worth 3.6trn won ($2.46bn). The order comes a week after Hanwha Aerospace announced the plan, the country’s biggest-ever secondary share issue, to boost local and overseas production amid growing demand.
That filing “lacked information needed for investors to make rational investment decisions,” the Financial Supervisory Service said in a text message to reporters, without elaborating. On March 21, a day after the plan was announced, shares in Hanwha Aerospace posted their worst session since early November 2016, sinking 13 per cent, as analysts raised questions over the intent and necessity for raising capital. In November 2024, Korea Zinc dropped its share issuance plan worth 2.5trn won, with its chairman vowing to step down, after the financial watchdog blocked it and asked for a revision amid investor criticism. ($1 = 1,464.0000 won) (Source: Google/https://www.channelnewsasia.com/)
27 Mar 25. Houlihan Lokey announced that Intrepid, LLC, has been acquired by Systems Planning and Analysis, Inc. (SPA), a portfolio company of Arlington Capital Partners (ACP). The transaction closed on March 14, 2025. Based in Huntsville, Alabama, Intrepid connects SPA to the top two mission priorities for the U.S. Army: integrated battle management and enterprise modernization. As the lead Systems Engineering and Technical Assistance partner on the Integrated Battle Command System program since its inception, Intrepid has played a central role in shaping the Army’s warfighting posture for the foreseeable future, including strengthening homeland missile defense and countering offensive threats in the Indo-Pacific multidomain battlespace. Intrepid’s core capabilities in enterprise modernization deliver system agility, accelerate auditability, and enable multidomain operations for a range of defense-based clients. SPA is a global, independent analytical and technical innovation firm supporting complex national security programs and defense priorities. SPA’s portfolio of differentiated capabilities and tools delivers comprehensive support to the most critical programs for combatting threats, influencing long-term strategic priorities and shaping policies at the highest levels. SPA’s employees are subject-matter experts in numerous domains, including land, undersea, surface, and air warfare operations; intelligence community, radar, and sensor systems; unmanned systems and counter systems; defense industrial base and economic security; space systems; ballistic missile systems; cybersecurity analysis and policy; and hypersonics. Awards include GovCon Contractor of the Year in 2022, Washington Post Top Workplace consecutively since 2014, and Department of Labor HIRE Vets Gold Medal for the past seven consecutive years. SPA is a portfolio company of ACP.
ACP is a Washington, D.C.-area private investment firm specializing in government-regulated industries. The firm partners with founders and management teams to build strategically important businesses in the government services and technology, aerospace and defense, and healthcare sectors. Since its inception in 1999, ACP has invested in more than 175 companies and is currently investing out of its $3.8 billion Fund VI.
Houlihan Lokey served as the exclusive financial advisor to Intrepid and marketed, structured, and negotiated the transaction on its behalf. This deal marks Houlihan Lokey’s seventh transaction in the Huntsville market since 2020, collectively valued at more than $1.3 billion. These transactions have covered the DoD’s highest priority markets, including hypersonics, electronic warfare, space, and missile defense.
Houlihan Lokey’s government technology and services team is part of Houlihan Lokey’s broader Aerospace, Defense & Government practice, which has a staff of approximately 30 investment banking professionals in Washington, D.C., London, and Los Angeles and is among the largest dedicated industry banking groups worldwide.
27 Mar 25. SRT MARINE SYSTEMS PLC (“SRT” or the “Group”)
HALF YEARLY REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2024
SRT, the AIM-quoted developer and supplier of maritime surveillance, analytics and management systems and products announces its unaudited interim results for the six months ended 31 December 2024 (the “Period”). The comparative for the results was the interim period to 30 September 2023, prior to the Group’s change of year end.
Financial Highlights
· Significant increase in revenues to £26.2m (H1 2023: £5.5m).
· 46% gross profit margin (H1 2023: 37%).
· £2.8m profit before tax and non-cash exceptional finance charge of £0.7m (H1 2023: Loss before tax £4.6m).
· $213m contract with the Kuwait Ministry of Interior to deliver an integrated SRT maritime surveillance system signed and commenced delivery in the period.
· Cash at 31 December 2024 of £4.5m (H1 2023: £3.9m) with receivables of £32.5m, most of which were paid shortly after period end.
Operational Summary
· Five active nation state customers for the SRT-MDA System.
· £320m systems under contract. £1.2bn of new prospects.
· Expansion of systems delivery team to sustain future growth.
· NEXUS type approved and in final test and smoothing phase prior to shipping.
Commenting on today’s results, Simon Tucker, CEO of SRT said: “I am delighted with our operational and financial performance during the first half which is rooted in many years of hard work to build up our technologies, products and global market position. As we expected we have seen solid revenues from both transceivers and systems divisions and look forward to continued growth into H2 and the years ahead.”
27 Mar 25. SRT – A maritime stock delivering on its momentum.
Simon Thompson: Share price surges on return to profit and implementation of a massive contract win
• First-half revenue up fivefold to £26.2m
• Gross profit rises six-fold to £12.1m
• Adjusted pre-tax profit of £2.8m reverses loss of £4.6m
• Potential to deliver full-year revenue of £84m
Aim-traded SRT Marine Systems (SRT:58.5p), a global leader in technology used to track maritime vessels, has returned to profit in a big way.
SRT’s systems business, which provides a sophisticated marine domain awareness (MDA) integrated AI-driven maritime surveillance system to sovereign agencies such as coast guards and fishing agencies, generated revenue of £21.7m at a healthy 46 per cent gross margin in the six months to 31 December 2024.
This was derived from four separate contracts, three of which were follow on projects with existing customers. One is a new customer systems project worth $213m (£165m) for delivery of an integrated maritime surveillance system for the Kuwait government.
The big news is that the €167m (£139m) MDA system contract with Bakamla in Indonesia, which was awarded in May 2023 and has been awaiting the completion of a UK to Indonesia inter-government loan, is now set to commence shortly with first deliveries scheduled before the financial year-end (30 June 2025).
Analysts at house broker Cavendish estimate total implementation revenues for the Kuwait and Indonesian contracts will be more than £260m over the next two years, accounting for the majority of SRT’s £320m order book. If all goes to plan, the systems business could generate revenue of around £75m for the full year and be ‘significantly profitable’ in the 2025-26 financial year with further earnings upside from conversion of a £1.2bn pipeline of contract opportunities.
Cavendish expect to release forecasts for both financial years as soon as the Indonesian contract commences, but it’s clear to me that SRT should be able to deliver more than £100m of revenue in the 2025-26 financial year when the Kuwait and Indonesian contracts are both up and running.
Even if gross margin dips below 40 per cent, it still implies annual operating profit of £20m. SRT has a market capitalisation of £146m and has current net debt of £4m, so even after a 27 per cent post results rally in the share price, the company’s enterprise valuation could be as low as 7.5 times likely operating profit in the new financial year.
The 75p target price I outlined when I suggested buying the shares, at 48.5p, ahead of the results (‘A technology stock gaining momentum’, 16 January 2025), is looking increasingly conservative. Buy.
(Source: Investors Chronicle)
27 Mar 25. Hexagon Acquires Septentrio to Strengthen PNT Capabilities. Hexagon has acquired Septentrio to enhance its GNSS and assured positioning solutions, optimizing size, weight, and power for autonomy and mission-critical applications. Hexagon has acquired Septentrio NV, a leading developer of assured position, navigation, and timing (A-PNT) solutions for mission-critical military, defense, and government applications.
Hexagon’s Autonomy & Positioning division, which includes positioning solutions provider NovAtel, is producing end-to-end solutions to advance autonomy platforms such as unmanned aerial vehicles (UAVs).
The acquisition of Septentrio will strengthen Hexagon’s position as a leader in resilient, assured positioning solutions, and will provide users with greater accessibility to high-accuracy positioning technology with a size-, weight-, and power-optimized platform.
The combined portfolios will accelerate the adoption of autonomous systems and address the needs of emerging high-growth segments such as robotics, UAVs, autonomy and other mission-critical applications.
Septentrio, headquartered in Leuven, Belgium, will continue its business model of supplying state-of-the-art GNSS technology to its large base of original equipment manufacturer (OEM) users.
Antoon De Proft, CEO of Septentrio, commented, “We are excited to join Hexagon to leverage our combined strengths and deliver greater value to our customers, employees and stakeholders. This will accelerate innovation, and we look forward to the many opportunities ahead.”
Gordon Dale, President of Hexagon’s Autonomous Solutions division, added, “Combining Hexagon’s extensive positioning portfolio with Septentrio’s innovative GNSS platforms will provide our customers with cutting-edge solutions, enabling autonomy and mission-critical applications for diverse markets. This strategic step allows us to push boundaries to deliver technology and products with the lowest SWaP, putting Hexagon at the forefront of the industry.” (Source: https://www.defenseadvancement.com/)
27 Mar 25. The HENSOLDT Group (“HENSOLDT”) once again successfully performed in a dynamic environment in the past financial year, meeting or exceeding guidance. The company thus continued its profitable growth trajectory and consolidated its position as one of the leading companies in the European defence electronics market. The recently published 2024 Annual Report provides an overview of this positive development and highlights the key success factors.
In its annual report, HENSOLDT also reviews the past year, places it in the context of the current geopolitical environment and looks ahead to future developments – for the company itself and beyond. The war in Ukraine, for example, is still not over, while crises in the Middle East and the growing threat to the West from China, among other things, need to be added. Consequently, modern, flexible, and adaptable deterrent capabilities that are operational at all times are essential. Demand for advanced electronic defence and security solutions such as those offered by HENSOLDT will therefore remain high. In order to meet new challenges for the defence industry, HENSOLDT is continuing to pursue its “North Star” corporate strategy, which has already picked up significant momentum in the 2024 financial year. Major progress has been made in the provision of products and system solutions in significantly larger quantities while maintaining excellent quality. “North Star” will be the key to further sustainable growth for the company.
Oliver Dörre, CEO of HENSOLDT, says: “Our 2024 Annual Report shows that we can look back on an extremely positive financial year. We have met our ambitious targets and even exceeded them in key areas. Our outstanding products and solutions are the basis for this positive development. Looking ahead, it is clear that information, command and control as well as effect superiority of the armed forces will become even more important. This is where the concept of Software Defined Defence comes in – modular software solutions that can be quickly adapted and data-centric architectures that exploit the full potential of our sensors. We are excellently positioned in this area and will continue to develop HENSOLDT in this direction.”
27 Mar 25. Britain’s warehouses must be ready to store weaponry, says former Cold War soldier. Chief executive of Sirius Real Estate claims Russian aggression presents opportunities for land-owning businesses. Britain’s warehouse owners must be on standby to house weaponry for Western military, the chief executive of a major landlord has said. Andrew Coombs heads up Sirius Real Estate and served in the Territorial Army (TA) during the Cold War. He said his company is factoring military storage into all its investment decisions in the face of Russian aggression, which has triggered a surge in defence spending across the UK and EU. Germany has has pledged to ramp up its debt to fund €900bn (£750bn) in defence spending over the next decade, while Sir Keir Starmer, the Prime Minister, has also vowed to increase Britain’s military budget to 2.5pc of GDP. Mr Coombs said this will mean more money flowing into the UK to be spent on defence companies and equipment. Defence suppliers are enjoying a boom in demand, with Babcock securing a £1bn contract extension with the British Army on Wednesday, and Avon Technologies announcing a deal to supply Ukraine’s military with gas masks.
He added: “Whatever market you’re in, whether you’re in catering or you’re BAE Systems, you won’t be able to ignore €900bn of spending.
“If you own industrial and warehousing space, what you’re going to find is a very small amount of that €900bn is going to end up being spent on storage and logistics in the UK.
“No matter what it is, spare parts for drones or ration packs that feed soldiers in the field, or spare kit. All of this stuff’s got to be moved and stored.
“Defence logistics is not just pieces of metal, it’s people with electronics, boots, respirators, canisters that need to be replaced on the respirators. The logistics are huge.”
(Source: Daily Telegraph)
26 Mar 25. Leading European defence sector ETF nets over $550m in two weeks. WisdomTree Europe Defence UCITS ETF (WDEF) was launched on 11 March 2025 and since then has achieved $554m in net new flows in its first two weeks of trading. The ETF currently has $511m in assets under management. The European defence story is evolving rapidly. Analysts forecast that the sector is likely to grow quickly to account for 3.1% of total European GDP by 2029. It could also have knock on impacts on other sectors, like technology, as more money is made available for R&D.
Long term transformation of the sector
“European governments are not making short-term, reactionary purchases – they appear to be redesigning their defence strategies for the long term,” said Adria Beso, Head of Distribution, Europe for WisdomTree.
The EU recently unveiled a comprehensive plan to mobilise €800bn to bolster its defences, while military and political leaders are supporting the launch of a £100bn Defence Security & Resilience bank for rearmament in the UK and Continental Europe. These are just two of the many signals that highlight how the sector in Europe is at the start of a multi-year transformation. Given Europe’s historic underinvestment in defence, the WisdomTree Europe Defence UCITS ETF was created to capture the upside of Europe’s multi-year defence expansion.
Europe has historically relied on US defence contractors for high-end military technology, but policy changes are prioritising domestic suppliers. The European Defence Industrial Strategy (EDIS) is supporting a shift toward locally sourced defence systems, with targets to procure 50% of EU military equipment from European manufacturers by 2030 and 60% by 2035.
“We, therefore, expect European defence procurement to predominantly benefit European companies,” Beso said.
Industrial transformation for defence stocks
This view is reflected in investor appetite for the ETF, which provides exposure to the European companies likely to be best placed to capitalise on this critical megatrend. European defence stocks represent an industrial transformation that investors are still adjusting to. The shift in spending patterns, restructuring defence supply chains, and long-term contract backlogs make European defence one of the strongest secular growth stories in today’s market. According to the European Commission, just a 1.5% GDP increase in defence spending within the EU alone could bring over EUR 325m into the sector. (Source: https://www.thearmchairtrader.com/)
26 Mar 25. Defence stocks rejoice as UK falls in line with Europe. Spring Statement 2025: Shares in defence stocks rise as chancellor announces plans for defence innovation investment. Shares in defence stocks started rising after chancellor Rachel Reeves laid out plans to make the UK a “defence industrial superpower” in her Spring Statement, including multi-bn-pound increases in defence spending and a boost for investment in innovative technologies. As expected, Reeves committed to increasing the Ministry of Defence’s (MoD) budget by £2.2bn in the next financial year. It will receive an additional £6.4bn by 2027. The UK, along with European partners, has come under pressure to sharply raise defence spending by the new US administration. However, she added that a minimum of 10 per cent of the MoD’s equipment procurement budget will be spent on “novel technologies” such as drones and AI-enabled military systems from next year. Reeves also announced the creation of a new UK defence innovation unit, which will be active by July with a ringfenced budget of £400mn. That budget will rise over time.
Her plan to reform what she called the UK’s “broken defence procurement system” and improve competition for government contract work is perhaps one reason why there was a flat share price reaction to the statement at FTSE 100 defence contractor giant BAE Systems (BA). However, FTSE 250 defence technology player QinetiQ (QQ) gained by 4 per cent, while Aim-traded Cohort (CHRT) was up by over 3 per cent. Elsewhere in the UK defence stock world, Babcock International (BAB) confirmed earlier on Wednesday that it had secured a five-year £1bn contract extension with the MoD. The contract will cover maintenance and spare parts work on assets such as Challenger 2 tanks, 105mm artillery guns and Trojan armoured vehicles. (Source: Investors Chronicle)
26 Mar 25. Anduril says AI start-up sees good ‘vibes’ from new Trump Pentagon. Anduril President Christian Brose said the AI-powered defence start-up, whose founder left Facebook over his early support of Donald Trump, has good “vibes” about the Trump administration’s shakeup of defence and willingness to do things differently. Brose, who previously worked for Republican Senator John McCain, said Anduril was well positioned because the work it is doing on low-cost autonomous defence systems “seemingly align with the assumptions and proclivities the new administration is bringing”. Anduril said in December it would partner with OpenAI to deploy advanced artificial intelligence solutions for national security missions.
Brose has been critical of defence procurement, and said the Trump administration shared this frustration.
“There’s a huge opportunity and seemingly a lot of willingness on the part of the new Trump administration to do things differently,” he said in an interview at the Australian International Air Show on Wednesday.
“We have relationships with the current administration – its not secret that our founder has given money to Trump and is very supportive of Trump and has been for a very long time,” he said, referring to founder Palmer Luckey. (Source: Google/Reuters)
26 Mar 25. Rafael Reports Record FY2024 Results with 27% Growth in Sales.
Sales reached $4.8bn in 2024 — a 27% increase year-over-year — with approximately half of sales to international customers. Rafael reported $8.23bn in new orders and a net profit of $257m. Order backlog rose to $17.76bn.
Rafael Advanced Defense Systems Ltd. today (Wednesday) published its financial results for 2024, as approved by the company’s Board of Directors:
* Sales totaled $4.8bn; a 27% increase compared to $3.8bn in 2023. Approximately half of sales in 2024 were to international customers.
* An unprecedented order backlog of $17.76bn, representing a 24% increase from 2023 ($14.37bn). The backlog represents 3.6 years of sales, with nearly half derived from export contracts.
* A net profit of $257m, marking a 64% increase from 2023.
* New orders reached $8.23bn, compared to $8.1bn in 2023 and $4.34bn in 2022.
Q4 2024 was Rafael’s strongest quarter of the year and its highest-grossing quarter to date, with quarterly sales totaling $1.48bn —compared to $1.2bn in Q4 2023. Orders received in the quarter totaled approximately $3bn.
Dr. Yuval Steinitz, Chairman of Board of Directors, Rafael, said:
“Rafael concludes another year of outstanding achievements—demonstrating once again the company’s vital contribution to Israel’s security and its significant impact on the national economy. The attacks from Iran on April 14 and October 1, alongside the broader Iron Swords War, will be marked in the history of Rafael, the IDF, and military conflict more broadly. Rafael’s advanced systems—such as Iron Dome, David’s Sling, and Trophy—saved thousands of lives, enabled operational continuity under fire, and provided critical breathing room to maneuvering forces. This year, we also continued development of Rafael’s laser-based air defense system—the only one of its kind globally. Rafael’s local procurement remains a key driver of growth for Israel’s economy, especially in the north, and its continued expansion is creating real opportunities for regional recovery. On behalf of the Board, I extend my deepest appreciation to the company’s leadership, employees, and their families for their dedication and professionalism.”
Yoav Tourgeman, CEO and President of Rafael, added:
“2024 was a historic year for Rafael—set against the backdrop of Israel’s longest and most complex multi-front war. As a cornerstone of Israel’s national defense, Rafael played a decisive role across offense, intelligence, and protection. Global demand surged, meeting Rafael’s operational excellence with a record order backlog. Thanks to the exceptional commitment of our employees, who rose to the occasion during a challenging time, we ended the year with record figures and over 27% growth. As part of this momentum, we recruited approximately 1,800 new employees—outstanding professionals who will help shape the next generation of advanced defense systems. We also increased R&D investment and expanded our development footprint by opening a new branch in Hadera, alongside our existing R&D centers in northern Israel, Be’er Sheva, Jerusalem, and Tel Aviv.”
27 Mar 25. French underwater drones maker Exail hopes to cash in on defence spending. French high-tech industrial group Exail Technologies on Tuesday forecast double-digit percent revenue growth for this year, driven by higher defence spending by European governments.
Exail is the latest small defence tech supplier propelled by prospects of a military ramp-up in Europe as the region rearms amid Russia’s war in Ukraine and fears of waning U.S. protection.
The company, which makes underwater drones and navigation equipment among others, said that defence spending in Europe could potentially double by 2030 to more than 200bn euros ($216.36bn) and that it was well suited to benefit from it.
Its revenue rose 16% to 373m euros in 2024, with current core earnings (EBITDA) growing 13% to 74m euros.
Exail earlier this year said it had won an order from “a leading navy” to supply a drone system. It said on Tuesday the order was worth several hundred million euros and would drive its backlog to more than 1 bn euros, from 708m at the end of 2024. The company’s Paris-listed shares have gained almost 80% since it won the contract, and were trading more than 7% higher at 1242 GMT on Tuesday. (Source: Reuters)
27 Mar 25. Germany’s Renk forecasts 2025 growth backed by 5bn euro order book.
* Summary
* Companies
* Renk’s 2025 outlook in line with market expectations
* Guidance doesn’t include upside potential from defence spending
* Maintained mid-term target looking cautious, with some upside – investor
German tank gearbox maker Renk expects its strong order backlog to support growth in 2025, even when excluding a potential boost from increased defence spending, it said on Wednesday. The Augsburg-based company, which at the end of January reported preliminary full-year revenue in line with its guidance, said its order backlog was 5bn euros ($5.39bn) at the end of 2024. It forecast revenue of 1.3bn euros for the year, in line with analysts’ mean estimate in an LSEG poll and above last year’s figure of 1.1 bn euros. Like Rheinmetall (RHMG.DE) two weeks ago, Renk also said the outlook did not take into account any further market potential from increased defence spending in the European Union. (Source: Reuters)
21 Mar 25. Southern Launch closes ‘significant’ funding round. Southern Launch says it has closed out a “significant funding round” and will use the new investment to expand its two spaceports.
The SA-based company, which hasn’t disclosed the exact amount, said the investment was led by a syndicate of “prominent Australian infrastructure investors”, including defence industry bank Brindabella & Company.
Following the deal, high-profile industry figure Jeremy Hallett, the SIAA Chair, has joined the company’s board.
“We are excited that this funding round will build out our infrastructure as we increase our cadence of activities at our ranges, and highlight Australia as a global space and high-tech industry development hub,” said Southern Launch CEO Lloyd Damp.
“Securing Jeremy to the board will help accelerate our growth and be the leading provider of test ranges and associated services.”
Southern Launch operates two spaceports in Australia. The Koonibba Test Range covers more than 41,000 square kilometres of uninhabited land and is designed to test rockets and payloads by blasting them into suborbital space before they return to Earth in the same location.
The more traditional Whalers Way Complex at the tip of the Eyre Peninsula, meanwhile, specialises in orbital launches over the sea.
The investment comes weeks after a capsule built by Varda re-entered the Earth’s atmosphere and landed at Kooniba Test Range last month.
The W-2 mission marked the first time a commercial spacecraft re-entry was granted under Australian legislation and was as a landmark moment for the local industry.
Southern Launch led the recovery operation alongside payload experts and representatives from the Far West Coast Aboriginal Corporation, the land’s traditional owners.
“Southern Launch secured a series permit to enable our customer Varda to bring their capsules back to Earth as soon as they are ready,” said Damp.
“Enabling high cadence missions is essential to support in-space manufacturing and Southern Launch has demonstrated our capability to support this emerging industry.”
The recovery came after Southern Launch earlier in the year blasted off a German rocket and signed a deal with a Canadian rocket manufacturer for a suborbital blast-off from its Koonibba Test Range in 2025.
Reaction Dynamics believes its RE-102 hybrid rocket engine is cheaper and more reliable than traditional fuelled boosters because its fuel is solid and non-toxic.
The suborbital launch will see the two-stage, seven-metre-tall Aurora vehicle reach an altitude of 125 kilometres above Earth, providing the team with critical data. It will also lift off using Southern Launch’s Mid-Range Launch Rail, which is stored onsite.
“We believe that the RE-102 hybrid rocket engine will be the most efficient hybrid rocket engine in the world,” Reaction Dynamics CEO Bachar Elzein said.
“Extensive hot fire tests have shown that the engine is able to maintain performance during prolonged burn periods thanks to our patented innovations.
“We are eager to put this technology to the test in the vacuum of space during our upcoming suborbital mission from the Koonibba Test Rang. (Source: Space Connect)
24 Mar 25. Airbus (AIR.PA)is in discussions with European nations on new defence and space orders as the continent increases spending and is seeing an improvement in supply chains for its core jetliner business, senior executives said at a company event on Monday.
European nations are interested in space assets in part to replace Elon Musk’s Starlink, as well as aerospace assets including strategic airlift, he added.
“I think you’re … going to see a lot of space and air business come now; what ‘a lot’ is I will not quantify,” Airbus Defence and Space CEO Michael Schoellhorn told reporters.
Christian Scherer, CEO of Airbus’ core civil aircraft-making business, said that while any tariffs on aerospace products would be damaging to the industry, it was too early to judge how the latest round of trade tensions would unfold.
“We need to understand what the tariffs are before we can draw conclusions, whether it’s for us, for our suppliers – for whom we would be worried – or for our competitors,” he said. (Source: Reuters)
24 Mar 25. Fincantieri financial results reflect a year of strong growth, record order intake and a return to profitability ahead of plan forecasts.
Key highlights from the period include:
* Revenues up 6.2% to EUR 8,128m (EUR 7,651m in 2023)
* Record order intake of over EUR 15bn, more than double compared to 2023
* Return to profit with a profit for the year of EUR 27 m, ahead of plan forecasts
* EBITDA up 28% to EUR 509m
* EBITDA margin at 6.3% (5.2% in 2023), above 2024 guidance
* Further reduction in leverage, exceeding 2024 guidance
* Robust sales performance, with new orders reaching EUR 15.4bn, driven primarily by the Shipbuilding segment
* Strong outlook for 2025 with the consolidation of Remazel and Wass, with projected revenue growth to EUR 9bn, an EBITDA margin above 7% and continued financial discipline
Commenting on the results, Pierroberto Folgiero, Chief Executive Officer and General Manager of Fincantieri, said: “2024 has been a remarkable year for Fincantieri, in which we have begun to reap the first results of our strategy and industrial vision. The return to profitability, one year ahead of the Business Plan estimates, is a clear evidence of this. In a geopolitical context characterized by significant discontinuities, we maintained our full focus on execution and commercial development, leveraging our leadership in an increasingly complex sector. In addition to seizing the opportunities in the cruise and offshore market, we intensified our efforts in the international defense market and consolidated our expansion in the underwater domain, also thanks to two strategic acquisitions and a targeted rights issue. The growth in EBITDA, both in absolute terms and as a percentage, together with the record backlog and order intake, highlights our operational discipline and the market’s confidence in our ability to provide concrete and innovative solutions. We are also very satisfied with the financial performance achieved so far, which allowed us to halve the NFP compared to June 2022. These results reflect our operational excellence, but also our financial discipline combined with an industrial approach focused on driving innovation of products and construction processes”.
Mr. Folgiero concluded: “We look to the future with entrepreneurial courage, confident that this solidity will enable us to accelerate in addressing the international challenges of the naval industry, both civil and military, investing in the evolution of clean and digital ships, ensuring long-term competitiveness to our supply chain. With this trajectory, together with our people, we will continue to create value for our stakeholders and strengthen Fincantieri’s role as global point of reference in our traditional sector and in all its adjacent industries, such as underwater”.
24 Mar 25. SpearUAV, a leading developer of autonomous, AI-based encapsulated loitering combat systems, announces the successful completion of a significant funding round led by Deep Insight venture fund. The round also included participation from existing and new private investors, marking a major milestone in the company’s continued growth. This investment follows a period of accelerated expansion, with SpearUAV securing major defense contracts and scaling its operations to meet increasing global demand. The funding will enable the company to establish a new production line in Israel, while also supporting future expansion plans in the United States, including the eventual launch of a dedicated production facility.
“SpearUAV has demonstrated an exceptional ability to address evolving operational needs with its cutting-edge technology,” said Dr. Eyal Kishon, Chairman of Deep Insight “At Deep Insight, we specialize in elevating technology companies, and we recognize that SpearUAV possesses a unique combination of foundational capabilities, innovative technologies, and a disruptive market approach that sets it apart from existing solutions. We are excited to support SpearUAV’s continued innovation and global expansion and confident that our partnership will produce significant success in the defense sector.”
“SpearUAV has experienced rapid growth over the past year, driven by increased demand for our cutting-edge VIPER family of loitering weapon systems supporting combat vehicles, infantry forces, submarines and naval vessels,” said Yiftach Kleinman, CEO of SpearUAV. “Since the company was founded by Gadi Kuperman, Spear has attracted interest from high-profile private investors and strategic investors. The current investment round, led by Deep Insight, a sophisticated venture fund, which is led by highly experienced leadership, reflects the confidence of our partners in our technology and vision. Expanding our production capabilities in Israel is a critical step to meeting global demand, and we are also laying the groundwork for future operations in the U.S. to further strengthen our international presence and partnerships. We are proud to be part of Deep Insight’s portfolio.”
21 Mar 25. Italy’s Iveco targets 1.5bn euro valuation for defence unit, Bloomberg says. Italian truck-maker Iveco is looking to raise as much as 1.5bn euros ($1.6bn) from a sale of its defence unit, Bloomberg reported on Friday, as a projected defence spending surge in Europe stokes interest for military assets. The Turin-based company last month said it was considering spinning off its IDV defence unit this year to simplify its structure and create greater flexibility for both businesses.
A spin-off would normally lead to a separate bourse listing, but investors have been speculating that Iveco could opt instead for a sale of the unit. Media reports have mentioned among possible buyers Italian state-controlled defence group Leonardo (LDOF.MI) Franco-German joint-venture KNDS and UK defence giant BAE Systems (BAES.L).
IDV cooperates with Leonardo on a number of projects including a joint-venture between Leonardo and Germany’s Rheinmetall for combat ground vehicles. The Bloomberg report said Leonardo could bid for IDV with Rheinmetall, adding Iveco was also testing possible private equity interest. (Source: Reuters)
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