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01 May 25. BigBear.ai Announces First Quarter 2025 Results; Affirms 2025 Outlook.
• 1Q 25 revenue of $34.8m (1Q 24 $33.1m) +5% year-over-year.
• During the first quarter of 2025, reduced long-term debt by $58m as a result of voluntary conversions of the 2029 Notes.
• Raised gross proceeds of $64.7m from the exercise of 2024 warrants and issued 3.77m new warrants at a per share exercise price of $9.00.
• Cash balance of $107.6m, as of March 31, 2025.
• Affirms 2025 Outlook
BigBear.ai Holdings, Inc. (NYSE: BBAI) (“BigBear.ai” or the “Company”), a leader in AI-powered decision intelligence solutions, today announced financial results for the first quarter of 2025 and issued an investor presentation that has been posted to the Investor Relations section of the Company’s website.
“As we enter the second quarter, we are seeing early and encouraging signs that our strategic focus is resonating, particularly in sectors where we’ve built deep relationships, have a clear understanding of the mission, and are deploying proven technologies,” said Kevin McAleenan, CEO of BigBear.ai. “We remain focused on capitalizing on this dynamic market and driving disciplined, sustained execution.”
Financial Highlights
• Revenue increased 5% to $34.8m for the first quarter of 2025, compared to $33.1m for the first quarter of 2024 primarily due to additional revenue related to Department of Homeland Security and Digital Identity awards.
• Gross margin was 21.3% in the first quarter of 2025, compared to 21.1% in the first quarter of 2024.
• Net loss in the first quarter of 2025 was $62.0m, compared to a net loss of $127.8m for the first quarter of 2024. The decrease in net loss was primarily driven by non-cash goodwill impairment charges of $85.0m in the first quarter of 2024 that were not repeated in the first quarter of 2025, partially offset by higher non-cash losses on the increase in fair value of derivatives of $33.3m in the first quarter of 2025 compared to $23.8m in the first quarter of 2024, $2.6m of non-cash losses on debt extinguishment in the first quarter of 2025 related to voluntary conversions by the holders of the convertible notes due in 2029, as well an increase of $2.2m in equity-based compensation expense, primarily as a result of awards granted in the first quarter of 2025.
• Non-GAAP Adjusted EBITDA* of $(7.0)m for the first quarter of 2025 compared to $(1.6)m for the first quarter of 2024, primarily driven by increased research and development expense and Recurring SG&A* due to government funding delays creating excess resource capacity.
• SG&A of $22.7m for the first quarter of 2025 compared to $16.9m for the first quarter of 2024 and Recurring SG&A* of $17.7m in the first quarter of 2025 compared to $13.6m in the first quarter of 2024. The year-over-year increases include Pangiam’s headcount and operating expenses not fully included in the first quarter of 2024 (acquired as of March 1, 2024) as well as the carrying cost of excess resource capacity due to government funding delays.
• Ending backlog of $385m as of March 31, 2025.
Financial Outlook
For the year-ended December 31, 2025, the Company projects:
• Revenue between $160m and $180m
• Adjusted EBITDA* in the negative single digit millions (Source: BUSINESS WIRE)
01 May 25. Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), a technology company that delivers mission-critical processing to the edge, today announced the closure of an agreement that will further advance the company’s leadership position in secure processing capabilities for aerospace and defense applications. Mercury has completed the acquisition of Star Lab, a subsidiary of Wind River Systems, Inc., that provides anti-tamper and cybersecurity software solutions designed to protect mission-critical processors from advanced attacks. Mercury has worked with Star Lab for more than a decade, leveraging its technology in deployed and awarded Common Processing Architecture and BuiltSECURE™ products, which mitigate reverse engineering and safeguard confidential data from adversarial threats even when a system has been compromised. This unique technology is required across many defense applications in order to deter, impede, detect, and respond to the exploitation of critical program information.
Star Lab software is readily and easily integrated with many other Mercury products to provide unique and valuable cybersecurity protection for customers. The acquisition will enhance a wide range of Mercury products and solutions, such as rugged servers, embedded processing cards, mixed signal cards, avionics, and integrated processing solutions. Star Lab will join Mercury’s Processing Technologies business unit.
“Mercury is a leader in secure processing technologies for aerospace and defense platforms, with unique expertise and IP related to advanced cryptography, secure boot, and physical protection technologies,” said Tom Smelker, Mercury’s Senior Vice President of Processing Technologies. “As holistic security becomes increasingly essential for government missions, the acquisition of Star Lab will allow Mercury to deliver an expanded portfolio of fully integrated security solutions to our customers and partners.”
01 May 25. Penten and Amiosec merge to form mobile secure comms firm PentenAmio. Australian and British firms complete merger to provide improved cyber defence offering sovereign capabilities at home and abroad. Australian firm Penten and the UK’s Amiosec have announced the successful merger of the two companies into the newly formed PentenAmio. With 300 security-cleared employees and sovereign capabilities in both countries, PentenAmio will be positioned to provide cyber security and electronic warfare capabilities to a wide-ranging customer base in allied nations. The newly combined business will have an annual revenue of more than $125 m, allowing PentenAmio to continue to invest in R&D and grow its workforce.
“This merger will help us provide our customers with the agility and innovation which they need, wherever they are in the world,” Adrian Cunningham, Executive Co-Chair of PentenAmio, said in a May 1 statement.
“By joining forces we give ourselves, our nations and their allies access to an unrivalled breadth and depth of expertise across secure communications and beyond.”
Cunningham founded Amiosec, while Penten’s founder, Matthew Wilson, will be the other co-chair of the company. Penten’s former Chief Financial Officer, Sarah Bailey, will stay on as CEO of PentenAmio Australia, while Matt Thomas is the newly appointed CEO of PentenAmio UK.
“This is a strategic union of two high-performing businesses with shared values and complementary technologies,” Bailey said.
“We are now uniquely positioned to deliver the future of secure mobility and cyber defence – at speed, at scale, and with sovereign assurance.”
Wilson added that the merger comes during a time he calls a “moment of global inflection”.
“Rising geopolitical tension and increasing digital threats demand transformative technology responses,” Wilson said.
PentenAmio is purpose-built to meet this demand, leveraging scalable, sovereign deep tech solutions.”
PentenAmio is privately held and founder-influenced, and is backed by minority shareholder Five V Capital. (Source: Defence Connect)
01 May 25. UK’s Rolls-Royce confident on targets despite tariff uncertainty. British engineering company Rolls-Royce (RR.L) said on Thursday it expected to be able to offset the impact of global tariffs to keep it on track for 2025 profit targets, following a strong start to the year.
Britain’s preeminent engineering company did not give details of the actions it was taking but the company is in the middle of a transformation plan to improve margins and make the business more resilient and agile.
“We expect to offset the impact of announced tariffs on our business through the mitigating actions we are taking,” Chief Executive Tufan Erginbilgic said in a statement on Thursday before the company’s annual meeting.
Rolls said the trade war between the world’s two biggest economies, with President Donald Trump imposing taxes of up to 145% on Chinese goods and Beijing hitting back with a 125% tariff, was causing uncertainty for industry.
It added that it was closely monitoring the potential indirect impact on economic growth and inflation.
Rolls-Royce, Airbus’s exclusive engine partner on its widebody planes and a supplier to Boeing’s 787, has substantial manufacturing facilities in the United States, in addition to its main base in Derby, England, its power systems business in southern Germany, and a maintenance facility in China. (Source: Reuters)
01 May 25. Airbus urges return to zero-tariff deal as first quarter beats forecasts
• Summary
• Companies
• European planemaker reiterates targets that exclude tariffs
• CEO calls for return to duty-free status for aerospace
• Airbus says in constructive talks over A400M production
The head of Europe’s Airbus called for a return to tariff-free trading for aerospace on Wednesday, joining a chorus of U.S. industry leaders seeking relief from a growing tariff war in which Airbus warned there could be “only losers”.
CEO Guillaume Faury said U.S. tariffs and the prospect of European retaliation had not so far had a significant direct impact on supply chains and remained manageable for now, but that it was closely watching air travel, airlines and suppliers.
Unveiling stronger-than-expected quarterly results buoyed by defence improvements, Faury called for a return to a 1979 treaty between 33 nations that spared aircraft and parts from duties.
“The complete industry has developed itself around that concept, with a lot of back and forth across the Atlantic. Given that situation, that’s a benefit to everyone,” Faury said. (Source: Reuters)
30 Apr 25. Airbus reports First Quarter (Q1) 2025 results.
• 136 commercial aircraft delivered
• Revenues €13.5bn; EBIT Adjusted € 0.6bn
• EBIT (reported) € 0.5bn; EPS (reported) €1.01
• Free cash flow before customer financing €-0.3bn
• 2025 guidance unchanged
Airbus SE (stock exchange symbol: AIR) reported consolidated financial results for its First Quarter (Q1) ended 31 March 2025.
“Our Q1 results demonstrate the progress we are making on our priorities across the business. We are ramping up production in line with our plan but the delivery profile will be backloaded, reflecting the specific supply chain challenges we are facing this year,” said Guillaume Faury, Airbus Chief Executive Officer. “We maintain the guidance that excludes tariffs which are adding complexity and remain uncertain in terms of implementation, scope and duration. We are closely monitoring and assessing the situation, but it is too early to quantify the impact today. When it comes to our defence activities, we support the recent approach to strengthen the European defence industry and we stand ready with our broad portfolio of products and solutions to respond to our customers’ requirements.”
Gross commercial aircraft orders totalled 280 (Q1 2024: 170 aircraft) with net orders of 204 aircraft after cancellations (Q1 2024: 170 aircraft). The order backlog amounted to 8,726 commercial aircraft at the end of March 2025. Airbus Helicopters registered 100 net orders (Q1 2024: 63 units), which were well spread across the product range. Order intake by value at Airbus Defence and Space increased to €2.6bn (Q1 2024: €2.0bn), reflecting good momentum across its business lines for both platforms and services.
Consolidated revenues increased 6% year-on-year to €13.5bn (Q1 2024: €12.8bn). A total of 136 commercial aircraft were delivered (Q1 2024: 142 aircraft), comprising 17 A220s, 106 A320 Family, 4 A330s and 9 A350s. Revenues generated by Airbus’ commercial aircraft activities increased 4% to €9.5bn, mainly reflecting a more favourable foreign exchange environment which was partially offset by the lower number of deliveries. Airbus Helicopters’ revenues increased by 10% to €1.6bn, reflecting a solid performance from programmes and growth in services. Helicopter deliveries totalled 51 units (Q1 2024: 50 units). Revenues at Airbus Defence and Space increased 11% year-on-year to €2.7bn, driven by higher volumes across its business lines.
Consolidated EBIT Adjusted – an alternative performance measure and key indicator capturing the underlying business margin by excluding material charges or profits caused by movements in provisions related to programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses – totalled €624m (Q1 2024: €577m).
EBIT Adjusted related to Airbus’ commercial aircraft activities was stable at € 494m (Q1 2024: €507m), with the decrease in deliveries offset by the favourable hedge rate and lower R&D expenses.
The A320 Family programme continues to ramp up towards a rate of 75 aircraft per month in 2027. The Company is stabilising the A330 monthly production rate at around 4. Specific supply chain challenges, notably with Spirit AeroSystems, are currently putting pressure on the ramp up of the A350 and the A220. The Company continues to target rate 12 for the A350 in 2028 and a monthly A220 production rate of 14 aircraft in 2026.
Airbus Helicopters’ EBIT Adjusted increased to €78m (Q1 2024: €71m), reflecting the solid performance in programmes and services growth. In March, the new H140 multi-mission helicopter was introduced and received its first orders and commitments.
EBIT Adjusted at Airbus Defence and Space amounted to €77m (Q1 2024: €-9m), reflecting higher volumes and improved profitability mainly for Air Power services and Connected Intelligence. On the A400M programme, the Company remains in constructive discussions with the launch nations and OCCAR on the production plan. In light of uncertainties regarding the level of aircraft orders, Airbus continues to assess the potential impact on the programme’s manufacturing activities. Risks on the qualification of technical capabilities and associated costs remain stable.
Consolidated self-financed R&D expenses totalled €673m (Q1 2024: €743m).
Consolidated EBIT (reported) amounted to €473m (Q1 2024: €609m), including net Adjustments of €-151m.
These Adjustments comprised:
• €-13m related to the dollar working capital mismatch and balance sheet revaluation. This mainly reflects the phasing impact arising from the difference between transaction date and delivery date;
• €-105m related to the Airbus Defence and Space workforce adaptation plan;
• €-33m of other costs including compliance and M&A.
The financial result was €621m (Q1 2024: €229m), mainly reflecting the revaluation of certain equity investments, partially offset by the evolution of the US dollar and the revaluation of financial instruments. Consolidated net income(1) was € 793m (Q1 2024: €595m) with consolidated reported earnings per share of € 1.01 (Q1 2024: €0.76).
Consolidated free cash flow before customer financing was €-310m (Q1 2024: €-1,791m), reflecting the planned inventory build up to support the ramp-up and the commercial momentum across the Company. Consolidated free cash flow totalled €-296m (Q1 2024: €-1,799m). The gross cash position stood at €26.1bn at the end of March 2025 (year-end 2024: €26.9bn), with a consolidated net cash position of €11.0bn (year-end 2024: €11.8 bn).
Outlook
As the basis for its 2025 guidance, the Company excludes the impact of tariffs on its business. The Company’s 2025 guidance includes the impact of the integration of certain Spirit AeroSystems work packages based on preliminary estimates and an assumed closing in the third quarter of 2025. The Company assumes no additional disruptions to global trade or the world economy, air traffic, the supply chain, its internal operations and ability to deliver products and services. On that basis, the Company targets to achieve in 2025:
• Around 820 commercial aircraft deliveries;
• EBIT Adjusted of around €7.0bn;
• Free Cash Flow before Customer Financing of around €4.5bn.
The anticipated impact of the integration of certain Spirit AeroSystems work packages on the Company’s guidance remains in line with previous estimates.
30 Apr 25. Piasecki Aircraft Acquires Kaman Air Vehicles’ KARGO UAV Program. Piasecki Aircraft Corporation has announced the acquisition of Kaman Air Vehicles‘ KARGO UAV program, expanding its portfolio of vertical lift and cargo UAS solutions. KARGO UAV is a medium-lift, autonomous unmanned aerial vehicle that has been demonstrated to both the U.S. Marine Corps and U.S. Army for its cargo VTOL capabilities, with successful autonomous lift and flight testing under military evaluation programs. Designed for operations in contested and remote environments, KARGO UAV has completed initial military contracts and is poised to disrupt both defense and commercial cargo transport.
KARGO UAV is a dual-use system built for agile logistics-whether in combat zones or remote commercial operations. Engineered for versatility, it features a compact footprint, allowing for easy transport and rapid deployment in austere environments. KARGO UAV is optimized for autonomous operations, utilizing advanced flight controls and modular payload integration. The system is designed to meet the needs of the Department of Defense and commercial customers that demand affordable and reliable logistics support. Its robust construction, adaptability, and small logistical footprint position it as a key solution for augmenting efficiency in remote and tactical settings.
KARGO UAV recently demonstrated autonomous cargo lift for the U.S. Army and completed fully autonomous flight testing using Near Earth Autonomy’s Peregrine system. With an initial $12m award from the U.S. Marine Corps Marine Corps Autonomous Resupply Vehicle – Expeditionary Logistics Program (MARV-EL), two full-scale prototypes, and demand projected to exceed 300 aircraft, Piasecki aims to accelerate development testing, towards a production variant to meet growing demand from both military and commercial customers.
The addition of Kaman’s advanced UAV technology aligns seamlessly with Piasecki’s existing rotorcraft portfolio, enhancing its ability to deliver cutting-edge cargo transport solutions to both military and commercial sectors. Piasecki will acquire all intellectual property and assets associated with the program and will relocate all R&D and operational activities to Piasecki’s state-of-the-art Heliplex facility in Coatesville, Pennsylvania.
“This acquisition is a perfect fit for Piasecki’s long-term vision for a family of autonomous VTOL UAS solutions to address a diverse range of customer mission requirements in both government and commercial markets,” said John Piasecki, CEO of Piasecki Aircraft Corporation. “Kaman’s KARGO UAV program has already achieved significant milestones. With our VTOL expertise, world-class Heliplex, and deep industry partnerships, we are positioned to accelerate KARGO’s transition from prototype to production. Piasecki has adopted a family of systems approach to the cargo UAS market that offers greater scalability and adaptability than single-platform strategies.”
“This was a strategic decision to ensure that Kaman’s impressive UAV technology finds a home where it can thrive,” said Ross Sealfon, President and CEO of Kaman Corporation. “Piasecki’s reputation for innovation and commercialization in vertical flight solutions makes them the ideal company to take KARGO UAV to market.” (Source: UAS VISION/Piasecki Aircraft Corporation)
30 Apr 25. VTG, an industry-leading national security solutions provider, announced that it has acquired Triaplex, Inc., gaining access to expert signals and cyber warfare expertise. Triaplex is based in Fulton, MD, and expands VTG’s Intelligence Community footprint to new customers in the National Capital Region.
“We are excited to welcome Triaplex and its exceptionally skilled cadre of deep domain experts and specialized engineers to VTG,” said John Hassoun, VTG President and CEO. “Acquiring Triaplex enables VTG to tackle emerging national security challenges and highlights our continued investments in the advanced technical capabilities and expertise the Intelligence Community needs most.”
Triaplex, Inc., founded in 2020, has earned a reputation for delivering radio frequency solutions that protect our nation’s warfighters and their mission-critical systems. Triaplex CEO David Lee said, “This partnership allows us to make the right, focused investments in our talent and technology, bolstering our core RF expertise. The combined resources & talent will scale exponentially across VTG’s diverse Defense and Intelligence Community program portfolio.”
The acquisition of Triaplex is VTG’s fourth since receiving a majority investment from private equity firm A&M Capital and underscores the Company’s commitment to accelerating growth within the Intelligence Community.
About VTG
VTG delivers modernization and digital transformation solutions that expand America’s competitive advantage in the modern battlespace. Headquartered in Chantilly, Virginia, VTG provides full lifecycle engineering for naval, aerospace, network, and digital requirements. Whether at sea, in the air, on land, or in cyberspace, VTG delivers Tomorrow’s Transformation Today. For more information, visit us at www.VTGdefense.com.
About A&M Capital Partners
A&M Capital Partners (“AMCP”) is A&M Capital’s flagship investment strategy focused on middle-market control transactions in North America with total commitments of over $4.0 bn. AMCP partners with founders, families, corporates, and management teams, providing the capital and strategic and operational assistance that it believes is required to take businesses to the next level of success. AMCP invests across a wide range of sectors including Business Services, Healthcare Services, Government Services, Industrial Services, Financial Services, Packaging & Distribution Services, and more. For more information, visit www.a-mcapital.com/partner.
About Alvarez & Marsal Capital
A&M Capital is a multi-strategy private equity investment firm with over $6.0bn in total commitments across its funds, vehicles, and accounts. The firm is led by a highly experienced investment team, which is augmented by a strategic association with A&M Consulting, a leading global operationally focused advisory firm. A&M Capital combines a focus on middle-market private equity investing with deep operational expertise, industry knowledge, and global corporate relationships, making A&M Capital an attractive partner to management teams and business owners. A&M Capital is headquartered in Greenwich, CT, with offices in Los Angeles, CA, West Palm Beach, FL, London, UK, and Milan, IT. For more information, visit www.a-mcapital.com. (Source: PR Newswire)
29 Apr 25. Europe’s SES beats earnings estimates, helped by new government contracts. European satellite company SES reported quarterly earnings well above market expectations on Wednesday, buoyed by new government contracts and lower costs across the board. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) in the first quarter of 2025 fell 0.9% year-on-year to 280m euros ($318.42m). That is 13% above the analysts’ average estimate of 246m euros, according to a company-compiled consensus poll.
SES operates a multi-orbit fleet of around 70 satellites providing services such as video broadcasting, government communications and broadband internet.
Its Paris-listed shares have soared this year, up 46% as of Tuesday, amid a wider rally in European defence stocks and as investors bet on European alternatives to SpaceX’s Starlink.
“We have secured 360m euros in new business and contract renewals to support future growth including an enhanced pipeline of government opportunities,” CEO Adel Al-Saleh said in a statement.
First-quarter revenue came in at 509m euros, while analysts expected 492m euros. (Source: Reuters)
29 Apr 25. Honeywell (NASDAQ: HON) today announced results for the first quarter that exceeded the company’s guidance on all metrics. The company also maintained its full-year organic growth guidance, raised its adjusted earnings per share guidance range, and reiterated its free cash flow guidance range.
• Sales of $9.8bn, Reported Sales Up 8%, Organic1 Sales Up 4%, Exceeding High End of Previous Guidance
• Earnings Per Share of $2.22 and Adjusted Earnings Per Share1 of $2.51, Exceeding High End of Previous Guidance by 26 Cents
• Backlog Up 8% Excluding Acquisitions, Led by Strength in Building Automation and Energy and Sustainability Solutions Businesses
• Deployed $2.9bn of Capital to Share Repurchases, Dividends, and Capital Expenditures; Announced the $2.2bn Acquisition of Sundyne
• Company Maintains Full-Year Organic Growth Guidance and Raises Adjusted Earnings Per Share Guidance, Including Net Expected Impact of Tariffs, Mitigation Actions, and Global Demand Uncertainty
• Separations Proceeding as Planned; Committed to Delivering for All Stakeholders
The company reported first-quarter year-over-year sales growth of 8% and organic1 sales growth of 4%, led by a second consecutive quarter of double-digit organic sales growth in both defense and space and building solutions. Operating margin contracted 30 basis points to 20.1% and segment margin1 was flat at 23.0%, exceeding previous guidance. Operating income increased 6% and segment profit1 increased 8% to $2.3 bn, driven by contribution from acquisitions and a continued focus on commercial excellence. Earnings per share for the first quarter was $2.22, flat year over year, and adjusted earnings per share1 was $2.51, up 7% year over year. Operating cash flow was $0.6bn and free cash flow1 was $0.3bn, up 61% year over year.
“Honeywell started the year off exceptionally well, exceeding guidance across all metrics, led by solid organic growth,” said Vimal Kapur, chairman and chief executive officer of Honeywell. “For the third straight quarter, we delivered both sequential and year-over-year backlog growth, driven by healthy order rates and continuing customer demand for our differentiated offerings. Despite the volatile macroeconomic backdrop, we maintained segment margin consistent with last year, which is a testament to the value delivered by our Accelerator operating system. Though we have not yet seen it in our results, we recognize we face an uncertain global demand environment for the remainder of 2025, and our company will work tirelessly, leveraging all tools available to us, to deliver for customers and shareholders.”
Kapur added, “As we look ahead to our planned spin of Advanced Materials and separation of our Automation and Aerospace businesses, we are even more confident about the significant opportunities for value creation and sustained growth as we transform into three industry-leading public companies.”
As a result of the company’s first-quarter performance and management’s outlook for the remainder of the year, Honeywell updated its full-year sales, segment margin2, and adjusted earnings per share2,3 guidance. Full-year sales are now expected to be $39.6 bn to $40.5bn with organic1 sales growth in the range of 2% to 5%. Segment margin2 is expected to be in the range of 23.2% to 23.5%, with segment margin2 expansion of 60 to 90 basis points year over year. Adjusted earnings per share2,3 is now expected to be in the range of $10.20 to $10.50, up 5 cents at the midpoint from the prior guidance range. Operating cash flow is still expected to be in the range of $6.7bn to $7.1bn. Free cash flow1 is still expected to be in the range of $5.4bn to $5.8bn. Excluding the impact of the Bombardier agreement signed in the fourth quarter of 2024, the company expects organic sales growth of 1% to 4%, segment margin down 10 to up 20 basis points year over year, and adjusted earnings per share down 1% to up 2% year over year. Guidance incorporates the net expected impact of current tariffs, mitigation actions, and global demand uncertainty. Guidance also assumes an early May close of the sale of the company’s Personal Protective Equipment business but does not yet include the impact of the pending Sundyne acquisition.
Portfolio Transformation
In February, Honeywell announced that its Board of Directors concluded its comprehensive portfolio review and decided to pursue a separation of its Automation and Aerospace businesses. The planned separation, coupled with the previously announced plan to spin Advanced Materials, will result in three publicly-listed industry leaders and is intended to be completed in the second half of 2026. To oversee the transformation processes, this quarter Honeywell formed dedicated separation management offices to ensure that its business leaders can remain focused on managing day-to-day operations over the coming months.
During the quarter, Honeywell continued its judicious deployment of shareholder capital, highlighted by the announcement of its acquisition of Sundyne in March for $2.2bn. Honeywell also repurchased $1.9bn of its shares in the quarter, furthering its commitment to deploy at least $25bn toward high-return capital expenditures, dividends, opportunistic share purchases, and accretive acquisitions through 2025.
First-Quarter Performance
Honeywell sales for the first quarter were up 8% year over year on a reported basis and 4% on an organic1 basis year over year.
Aerospace Technologies sales for the first quarter increased 9% organically1 year over year, driven by continued strong performance in commercial aftermarket and defense and space. Commercial aftermarket sales grew 15%, led by increased demand in air transport and better output from supply chain improvements. Defense and space sales increased 10% on an organic basis, aided by ongoing geopolitical uncertainty. Backlog grew 9% as orders were up high-single digits in the quarter. Segment margin contracted 190 basis points to 26.3% on account of expected mix pressure and the impact of acquisitions, partially offset by productivity actions.
Industrial Automation sales declined 2% on an organic1 basis year over year in the first quarter. Warehouse and workflow solutions returned to growth in the quarter, increasing 5%. Process solutions was flat year over year, as high single-digit growth in lifecycle solutions was offset by modest declines in smart energy and thermal solutions. Productivity solutions and services declined 1% when excluding the impact of prior-year license and settlement payments, driven by demand headwinds in Europe. Sensing and safety technologies decreased 5% year over year, as weaker volumes in our personal protective equipment business more than offset continued recovery in sensing, which delivered a second consecutive quarter of sales growth and high-single-digit orders growth. Segment margin contracted 130 basis points to 17.8%, driven by receivables write-downs and volume deleverage, partially offset by productivity actions.
Building Automation sales for the first quarter increased 8% on an organic1 basis year over year. Building solutions grew 11% organically for a second consecutive quarter, led by strength in the Middle East and North America. Building products grew 6% organically, highlighted by double-digit growth in fire products and the fourth consecutive quarter of organic growth in security offerings. Orders grew both year over year and sequentially, led by double-digit growth in projects. Segment margin expanded 150 basis points to 26.0%, driven by volume leverage and productivity actions, partially offset by mix.
Energy and Sustainability Solutions sales for the first quarter declined 2% on an organic1 basis. UOP grew 2% in the quarter led by strength in both refining and petrochemicals projects and sustainability projects. Advanced materials sales declined 4% as strength in specialty chemicals and materials was offset by challenging prior year comparisons in fluorine products. However, double-digit order growth in fluorine products led to a 7% increase in advanced materials orders year over year. Segment margin expanded 230 basis points to 22.2% as a result of commercial excellence, productivity actions, and the year-over-year benefit of the margin-accretive LNG acquisition. (Source: PR Newswire)
28 Apr 25. Apex, the world’s first spacecraft manufacturer to offer productized, high-rate configurable satellite bus platforms, announced its $200m Series C funding round. The funding round was led by Point72 Ventures and co-led by 8VC, alongside existing investors including Andreessen Horowitz, as well as new firms Washington Harbour Partners and StepStone Group. This fundraise will allow Apex to scale production to meet rapidly expanding customer demand for its satellite bus platforms and follows the successful one-year-on-orbit milestone of Apex’s first spacecraft mission.
“Apex’s approach to building spacecraft is key to America realizing its commercial and national security strategies in space. This successful raise accelerates our production, allowing Apex to expand its inventory ahead of demand to better enable the missions of our innovative customers, including defense primes, the U.S. government, and some of the most exciting companies in the country,” said Apex CEO and Founder Ian Cinnamon.
The only manufacturer of off-the-shelf satellite buses, Apex is revolutionizing the industry by helping customers shift risk and money away from crafting bespoke spacecraft to focus on advancing space capabilities using their standard spacecraft bus platforms.
“Apex is laser-focused on what we believe missions in space need most: rapid delivery, transparent pricing, and the highest possible quality,” said Chris Morales, Partner at Point72 Ventures. “The demonstrated success of Apex’s satellite buses and the company’s innovative approach to manufacturing have helped them win the trust of customers ranging from the U.S. Space Force to industry leading primes.”
“Apex’s satellite buses are delivering the on-orbit proliferation required for America to prevail in the new space race,” said Joe Lonsdale, Founder and Managing Partner at 8VC. “This Administration recognizes where our defense capabilities demand drastic evolution. Apex’s pace of innovation and manufacturing speed and scale exemplify the bold approach needed to secure the edge for our forces.”
Increased production will take place at Apex’s 50,000-square-foot Los Angeles-based spacecraft production complex, known as Factory One. Factory One enables Apex to build ahead of need, offering an inventory of satellite bus platforms that support missile defense, space-based interceptors, LEO and GEO space domain awareness, and combat power, while also delivering vehicles for communications and remote sensing constellations. Apex is positioned to support rapid delivery for Golden Dome, Proliferated Warfighter Space Architecture, and other programs.
“We intimately understand the needs of the warfighter and the technology that accelerates decisive capability,” said Mina Faltas, Founder and CEO of Washington Harbour Partners. “Without Apex, America cannot achieve the kind of mass it needs in space in the relevant time frame and at an acceptable cost.”
The raise caps off an eventful year for Apex, which includes celebrating one year on orbit for its first Aries spacecraft mission, Aries Serial Number One (SN1); winning a $46 m U.S. Space Force contract; developing GEO Aries, a productized satellite bus intended for geostationary orbit missions; and announcing Nova, a satellite bus platform supporting payloads ranging from 200 to 500 kg. (Source: PR Newswire)
29 Apr 25. MTU Aero Engines shares rise as tariffs headwinds priced in.. German engine manufacturer MTU Aero Engines’ shares rose on Tuesday, rebounding after previous losses as quarterly earnings beat market expectations, with analysts saying the impact from U.S. tariffs is largely factored into the stock. Shares in MTU, which were down 8.6% year-to-date before Tuesday, were up 1.8% at 0821 GMT, after rising as much as 3.9% earlier. The supplier for Airbus and Boeing said late on Monday it expects U.S. tariffs to have a “direct impact” in the mid to high double-digit m euro range this year, if no mitigation measures are implemented. MTU also cut its outlook for adjusted revenue in euros due to the recent development of the U.S. dollar exchange rate, impacted by global uncertainty.
It now expects adjusted revenue in euros for 2025 to come in at a range of 8.3bn euros to 8.5bn euros ($9.46bn – $9.69bn), based on an U.S. dollar to euro exchange rate of 1.10, instead of the previous rate of 1.05, it said.
“We think the bad news on foreign exchange and tariffs is largely priced into the shares and we do not expect a major reaction,” analysts at J.P. Morgan said. (Source: Reuters)
29 Apr 25. Honeywell lifts 2025 profit forecast despite $500m tariff hit. Honeywell on Tuesday raised its 2025 profit forecast despite flagging a $500m exposure to tariffs, saying it aims to cushion the impact through a mix of higher pricing and local sourcing.
Shares rose 6% as the industrial and aerospace giant surpassed first-quarter expectations for revenue and profit and said its forecast accounts for the impact of tariffs on demand.
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Honeywell said 60% to 70% of its tariff exposure is tied to China, where it is a net exporter mainly through its aerospace business.
The mitigation efforts include higher pricing paired with its strategy of each business line serving local markets, CEO Vimal Kapur told analysts.
“We are confident we can fully offset the impact of current tariffs and are well-positioned to manage future trade uncertainty,” Kapur said.
Honeywell has benefited from a shortage for new jets. With airlines flying older, more maintenance-intensive planes, sales for firms that supply parts and provide aircraft maintenance services have surged.
However, these companies are also likely to come under pressure from rising costs and supply-chain snags due to Trump’s broad levies on metals such as aluminum and steel along with steep tariffs on countries including China. (Source: Reuters)
30 Apr 25. Ahead of its AGM this morning, Melrose Industries PLC (“Melrose”), a leading global aerospace technology business, announces the following trading update for the first quarter ended 31 March 2025 (“the Period”). All growth rates are stated at constant currency and on a like-for-like basis.
Peter Dilnot, Chief Executive Officer of Melrose said: “We have made a good start to the year with revenue, profit and cash in the first quarter in line with our expectations. The recent introduction of tariffs has created additional complexity across the aerospace industry. We have acted swiftly to evaluate potential effects on the Group and have a path to successfully mitigate our identified direct exposure at current tariff levels. The situation remains fluid, and we will continue to work closely with our customers and suppliers to respond as needed. Melrose has established positions on all the world’s leading aircraft and underlying demand remains very strong in both our Civil and Defence markets. Our business improvements are reading through with more benefits to come going forwards. We are therefore confident about delivering profitable growth and significantly increasing free cash flow in 2025 and in the years ahead.”
First quarter trading
Melrose has made a positive start to the year, with Group revenue up 6% on the comparative period, with strong progress in Engines, up 9%, and Structures up 4%. As a result of our restructuring and business improvement actions, adjusted operating profit was well ahead of the same period last year. Net debt and free cash flow at period end were in line with our expectations.
Engines
The performance in Engines was largely driven by strong OE volumes and favourable mix. While we saw good growth in the aftermarket in both RRSPs and our repairs business, this was partially offset by military, which had a particularly strong year in 2024. The drop through impact of higher revenue and increased productivity resulted in an improvement in operating margins with adjusted operating profit well ahead of the comparative period.
Structures
Revenue growth in Structures in the first quarter was in line with our expectations. While the easing of our own supply chain in certain areas has enabled us to deliver the backlog for individual platforms, overall volumes continue to be constrained by broader, sector-wide supply chain issues. Adjusted operating profit for the division was ahead of the comparative period, reflecting the positive impact on operating margins from business exits and business improvement actions which will complete this year.
Tariffs
Our evaluation of the recent imposition of tariffs has primarily focused on the direct impact on the Group, specifically the movement of products to customers in the US and the supply of products into our manufacturing sites.
For those parts of the Group not able to make use of available exemptions and those without contractual protections, we are taking a number of measures to mitigate the impact. These include using mechanisms such as drawback, adjusting the supply chain and negotiating with customers and suppliers.
As a result of the work we have done to date, we have a path to successfully mitigate our identified direct exposure at current tariff levels.
We will continue to monitor the tariff situation closely, remaining alive to any further changes and ready to respond accordingly.
Outlook for full year 2025
Our guidance for the full year, which excluded the impact from tariffs or trade restrictions, remains unchanged:
· Revenue range of £3.55bn to £3.70bn
· Adjusted operating profit (pre-PLC costs of £30m) of £700m
· Free cash flow generation of >£100 m (after interest and tax)
· In line with historical and industry seasonality, profit and cash will be second half weighted, with negative FCF in the first half
· Guidance based on US$ = 1.25 average exchange rate[1]
With attractive fundamentals underpinning our end markets, our leading technologies and established positions on all the world’s aircraft, combined with successful execution, we remain well placed to deliver growth and increased free cash flow in 2025 and the years ahead.
Melrose Industries will publish interim results for the first half ending 30 June 2025 on Thursday 31 July 2025.
Results of Annual General Meeting
Melrose Industries PLC’s shareholders today approved each of the resolutions put to the 2025 Annual General Meeting with the exception of Resolution 2 concerning the approval of the Directors’ Remuneration Report, which was not passed.
While the Board is pleased that all other resolutions passed with large majorities, we are disappointed that Resolution 2 (an advisory vote) was not passed. The Company, and in particular the Board, takes this feedback very seriously and will continue to engage with shareholders and consider the feedback received. This will inform the Company’s future approach to remuneration. We will publish an update on our engagement and any actions taken in accordance with the UK Corporate Governance Code within six months of the 2025 Annual General Meeting.
BATTLESPACE Comment: The Melrose Directors gave a very upbeat forecast for the long term performance of Melrose and made the surprising but very welcome announcement that they are considering reverting the name of the Company back to GKN Aerospace which will boost the history of the company and take away the buy, improve, sell Melrose manta.
29 Apr 25. IFS, the leading provider of enterprise cloud and Industrial AI software, announces strong growth for the first quarter of 2025, ending 31 March, 2025. Buoyed by increasing customer adoption and the transformative impact of IFS.ai, the market value of IFS now exceeds EUR 15bn.
IFS Q1 2025 Key Financial Results:
• Annual Recurring Revenue increased by 30% YoY
• Cloud Revenue increased by 39% YoY
• Recurring Revenue share at 82%, increased by 24% YoY
Validation of IFS’s strategy has never been stronger, with existing IFS shareholders extending their commitment and new minority shareholders investing in the business. This will enable IFS to accelerate faster and capture more of the growing opportunity that Industrial AI presents.
Customer demand for IFS industrial applications of generative and agentic AI is soaring, thanks to the ease of which IFS.ai can be adopted and deployed, as well as the rapid value it delivers. IFS customers are not simply piloting AI, they are operationalising it at scale, unlocking productivity, business resilience, and strategic growth.
Over 50 new organisations became IFS customers in Q1, including global brands such as Total Energies, ArcelorMittal Projects Europe BV, Collins Aerospace, Goodyear, and Hitachi Energy.
IFS recently announced IFS Nexus Black™, a strategic innovation programme to expedite high-impact AI adoption for industrial organisations. Partnering with customers to solve bespoke, complex challenges in asset-intensive industries, IFS Nexus Black™ enables rapid development and deployment of AI capabilities to turn bold ideas into tangible outcomes in a matter of weeks.
“IFS is creating real market momentum thanks to more and more of the world’s most respected industrial companies embedding IFS.ai into the very fabric of their operations and business processes,” said IFS CEO, Mark Moffat. “This growth reaffirms our market leadership in mission critical areas of Enterprise Asset Management and Field Service Management.
“The development of IFS Nexus Black demonstrates our relentless commitment to innovation for customers. This is a true catalyst for accelerated AI value creation, designed exclusively for the complex needs of the industrial enterprise.”
IFS Chief Financial Officer, Matthias Heiden, said: “Now, more than ever, businesses understand that an adaptable technology stack is crucial for resilience in the face of global financial instability, reflected in our Annual Recurring Revenue increasing by 30% year-on-year. IFS is leaving no stone unturned for our industrial customers, delivering agile solutions and providing them with the tools to drive efficiencies across their business.”
Recent Highlights:
• IFS appointed as an Advisory Board Member of the UK’s All-Party Parliamentary Group (APPG) on AI, an evidence-based forum debating AI policy and governance at the highest levels
• IFS the only company named as a Customers’ Choice in the 2025 Gartner® Peer Insights™ Voice of the Customer for Enterprise Asset Management Software report
• IFS named a leader in IDC MarketScape: Worldwide SaaS and Cloud-Enabled Manufacturing ERP Applications 2024–2025 Vendor Assessment
• IFS named a leader in IDC MarketScape: Worldwide Remanufacturing Management Software 2024 Vendor Assessment
• IFS signs strategic agreement with SBM to highlight commitment to growth in Saudi Arabia
28 Apr 25. Rheinmetall’s first-quarter sales beat expectations, boosted by defence business. Europe’s top ammunition maker Rheinmetall (RHMG.DE), on Monday posted a 46% rise in preliminary first-quarter sales due chiefly to strength in its defence business, beating market expectations. Group sales for the quarter came in at 2.31bn euros ($2.63bn), above analysts’ expectation of 1.95bn euros, according to a consensus compiled by Vara Research, it said. The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here. It also posted a 49% rise in group operating profit, which came in at 199m euros, again beating market expectations for 165.8m euros. The increase is mainly attributable to the defence business, it said in a statement. (Source: Reuters)
28 Apr 25. In a landmark moment for Hybrid Drones Ltd – producers of the pioneering hybrid Jet-Electric Hydra 400 un-crewed aerial vehicle (UAV) – the company has announced that MBDA, a strategic partner to the UK Ministry of Defence (MOD) for complex weapons, has invested in the British SME. This is one of the first investments by MBDA in a British SME and a step towards future defence partnerships. It also reflects the essential nature of SME and major defence company collaborations under the UK’s defence industrial strategy.
The investment secures the continued development of the Hydra 400 heavy lift drone, which is capable of carrying an array of payloads including casualty evacuation pods, cargo or weapon systems.
With the investment, MBDA becomes a shareholder, bringing together the proven innovation of both Hybrid Drones Ltd and MBDA into an effective partnership to integrate MBDA effectors, and demonstrating its commitment to supporting national cutting-edge defence technologies.
Dr Stephen Prior, CEO of Hybrid Drones Ltd, said: “While our original collaboration with MBDA was a great validation of our agile and innovative technological approach, this further investment in our business means more than just financial backing. It allows us to meaningfully contribute to national defence capabilities while keeping our high-skilled workforce local.
“In light of an increasing need to invest in our indigenous technological development and to be less reliant on international suppliers, it is exactly partnerships such as the one between us and MBDA that can help create a nimble, resilient national defence supply chain that we are proud to be a part of. We look forward to continuing our partnership as we aim to make Hydra the heavy lift hybrid UAV of choice in defence, as well as other sectors.”
Suzanne Jude, Director of UK Sales and Business Development at MBDA, commented on the investment, saying: “Innovation and delivering sovereign capabilities are part of the DNA of MBDA. Having worked in partnership with Hybrid Drones Ltd, our investment is a natural next step in our continued collaboration. By supporting agile, pioneering SMEs such as Hybrid Drones, we’re not just investing in a product, but in the future of defence ecosystems, strengthening competitive advantage in an increasingly complex global defence landscape.”
The Hydra 400 is a new generation of heavy lift UAV using a hybrid of electric rotors and single spool jet turbines for lift and propulsion. Compact and portable, Hydra can be transported in the back of a flatbed truck and assembled ready for flight in minutes. Hydra is configurable as fully electric or as a hybrid using two, four or six jets.
The British Army’s Warfighting Experiment, which conducts live trials of emerging military technologies, provided a crucial framework for Hydra Drones to collaborate with MBDA, the UK MoD’s strategic partner for complex weapons.
“We owe a great deal to the Army’s Land Industrial Strategy for our successful collaboration with MBDA”, Dr Stephen Prior commented further. “Long-term collaboration between the Army and industry is vital to the work we do, and as a home-grown UK SME, this kind of innovative industrial partnership is exactly what will help position Britain at the forefront of advanced defence technologies.”
28 Apr 25. NATO demand drives Exosens’s revenue in first quarter. France’s Exosens (EXENS.PA) on Monday confirmed its strong full-year guidance and reported first-quarter revenue slightly ahead of expectations as demand from NATO and Tier-1 allies’ forces drove growth.
The firm, which supplies night vision systems to NATO, posted first-quarter revenue of 104.9m euros ($119.3m), slightly ahead of 101m euros in an LSEG poll of analysts. Its amplification business, which produces the Photonis night vision systems, posted a 29% revenue increase to 81.7m euros in the quarter. (Source: Reuters)
30 Apr 25. Oshkosh Corporation (NYSE: OSK), a leading innovator of purpose-built vehicles and equipment, today reported 2025 first quarter net income of $112.2m, or $1.72 per diluted share, compared to net income of $179.4m, or $2.71 per diluted share, for the first quarter of 2024. Adjusted1 net income was $124.8m, or $1.92 per diluted share, for the first quarter of 2025 compared to $191.1m, or $2.89 per diluted share, for the first quarter of 2024. Comparisons in this news release are to the first quarter of 2024, unless otherwise noted.
Reports First Quarter Sales of $2.31bn
Reports Earnings per Share of $1.72 and Adjusted1 Earnings per Share of $1.92
Declares Quarterly Cash Dividend of $0.51 Per Share
Consolidated sales in the first quarter of 2025 decreased $231.0m, or 9.1 percent, to $2.31bn primarily due to lower sales volume in the Access segment, partially offset by improved pricing in the Vocational segment.
Consolidated operating income in the first quarter of 2025 decreased 32.5 percent to $175.4m, or 7.6 percent of sales, compared to $259.7m, or 10.2 percent of sales, in the first quarter of 2024. The decrease in operating income was primarily due to lower sales volume, higher operating expenses and higher new product development spending, partially offset by favorable price/cost dynamics. Adjusted1 operating income in the first quarter of 2025 decreased 30.3 percent to $191.8m, or 8.3 percent of sales, compared to $275.3m, or 10.8 percent of sales, in the first quarter of 2024.
“We are pleased with our start to 2025, led by strong performance in our Vocational segment, double-digit margins in our Access segment and solid progress on the ramp-up of Next Generation Delivery Vehicle production. Adjusted earnings per share of $1.92 was in line with our expectations of approximately $2.00 per share,” said John Pfeifer, president and chief executive officer of Oshkosh Corporation. “These results reflect the strength of our team and our People First culture, our portfolio of industry-leading businesses and the resilience of our operating model.
“We continued to benefit from solid underlying demand for Oshkosh products in the industries we serve and are confident that we will continue to lead our industries and work effectively across the enterprise to deliver strong customer service and shareholder value.
“We are closely monitoring the international trade environment, which has evolved rapidly and is likely to remain dynamic. We believe in the underlying trajectory of our operational performance across our company, which would have kept us on track to deliver our full-year adjusted earnings per share guidance of approximately $11.00 excluding the headwinds caused by the recent tariff announcements. Based on announced tariffs and current market conditions, we estimate that the direct adverse impact of tariffs, net of mitigation efforts, could be in the range of $1.00 per share for 2025. We anticipate that company-wide cost reduction actions will partially offset the impact of tariffs by up to $0.50 per share.
“We remain committed to advancing our strategic plan and we believe the trends that support our industry-leading businesses will support our long-term growth,” said Pfeifer.
Factors affecting first quarter results for the Company’s business segments included:
Access – Access segment sales for the first quarter of 2025 decreased $280.4m, or 22.7 percent, to $957.1m primarily due to reduced sales volume in North America and higher sales discounts, offset in part by sales related to the acquisition of AUSA.
Access segment operating income in the first quarter of 2025 decreased 50.5 percent to $103.1m, or 10.8 percent of sales, compared to $208.1m, or 16.8 percent of sales, in the first quarter of 2024. The decrease was primarily due to lower sales volume, higher sales discounts, higher operating expenses, unfavorable manufacturing absorption and higher new product development spending, offset in part by favorable customer mix.
Adjusted1 operating income in the first quarter of 2025 was $107.8m, or 11.3 percent of sales, compared to $210.4m, or 17.0 percent of sales, in the first quarter of 2024.
Vocational – Vocational segment sales for the first quarter of 2025 increased $94.4m, or 12.2 percent, to $866.8 m due to improved refuse and recycling collection vehicle sales volume and improved pricing.
Vocational segment operating income in the first quarter of 2025 increased 47.1 percent to $117.8m, or 13.6 percent of sales, compared to $80.1m, or 10.4 percent of sales, in the first quarter of 2024. The increase was primarily due to improved price/cost dynamics and higher sales volume, offset in part by higher operating expenses, warranty costs and new product development spending.
Adjusted1 operating income in the first quarter of 2025 was $128.8m, or 14.9 percent of sales, compared to $92.1m, or 11.9 percent of sales, in the first quarter of 2024.
Defense – Defense segment sales for the first quarter of 2025 decreased $46.1m, or 9.1 percent, to $463.0m, as lower sales of tactical wheeled vehicles for the Department of Defense, primarily the result of the wind-down of the Joint Light Tactical Vehicle program, were offset in part by the ramp-up of Next Generation Delivery Vehicle production for the United States Postal Service.
Defense segment operating income in the first quarter of 2025 decreased 95.5 percent to $0.6m, or 0.1 percent of sales, compared to $13.3m, or 2.6 percent of sales, in the first quarter of 2024. The decrease was primarily the result of lower sales volume and the impact of changes in cumulative catch-up adjustments.
Corporate and other – Net operating costs for corporate and other in the first quarter of 2025 increased $4.3m to $46.1m primarily due to unfavorable Pratt Miller results.
Interest Expense Net of Interest Income – Interest expense net of interest income in the first quarter of 2025 increased $4.2m to $25.0m due to a higher average interest rate on customer advances in the Vocational segment as well as higher borrowings on the Company’s Revolving Credit Facility. Borrowings were higher due in part to the acquisition of AUSA in the third quarter of 2024.
Provision for Income Taxes – The Company recorded income tax expense in the first quarter of 2025 of $36.8m, or 24.4 percent of pre-tax income, compared to $54.7m, or 23.1 percent of pre-tax income, in the first quarter of 2024.
Repurchases of common stock – The Company repurchased 287,552 shares of common stock in the first quarter of 2025 for $28.7m. Share repurchases completed during the previous twelve months benefited earnings per share in the first quarter of 2025 by $0.03 compared to the first quarter of 2024.
Dividend Announcement
The Company’s Board of Directors today declared a quarterly cash dividend of $0.51 per share of Common Stock. The dividend will be payable on May 30, 2025 to shareholders of record as of May 16, 2025.
2025 Expectations
Based on announced tariffs and current market conditions, the Company estimates that the direct adverse impact of tariffs, net of mitigation efforts, could be in the range of $1.00 per share for 2025. The Company anticipates that company-wide cost reduction actions will partially offset this impact by up to $0.50 per share.
The international trade environment has evolved rapidly and is likely to remain dynamic. The Company’s estimate of the direct impacts of tariffs is based on rates as of our earnings announcement and does not reflect potential future indirect impacts, including lower demand, which are difficult to predict at this time. (Source: BUSINESS WIRE)
28 Apr 25. French munitions firm Europlasma to take over former Renault foundry. France’s Europlasma (ALEUP.PA) said on Friday its offer for a foundry in Brittany, formerly owned by automaker Renault (RENA.PA) had been accepted by a court overseeing the insolvent plant, and that it would diversify production into the defence sector and other industries.
WHY IT’S IMPORTANT
The decision comes as Europe scrambles to ramp up production of tanks and weapons in response to U.S. President Donald Trump’s demands that it takes care of its own defences.
It also follows slowing demand in the car industry, driven in part by a transition to electric vehicles that require fewer parts. The sector has shed almost 28,000 jobs over the last five years in France, or 10% of all employees, official data shows.
WHAT’S NEXT
The takeover of the plant is effective from May 1, and will save 266 jobs at the site, said the foundry in a statement.
Europlasma has said it will retool the factory to make mortar shell casings, scaling up in a few years to become a major manufacturer for Europe.
KEY QUOTES
The foundry is “opening a new page in its history”, said CEO Jerome Dupont.
“Our project allows us to preserve valuable know-how as well as a high-performance industrial tool. It restores industrial visibility by basing the turnaround on accelerated diversification in the field of defence and structural diversification in the agricultural and railway sectors in particular,” said Europlasma CEO Jerome Garnache-Creuillot. (Source: Reuters)
25 Apr 25. Moog Inc. Reports Second Quarter 2025 Results With Record Sales and Strong Operational Performance. Moog Inc. (NYSE: MOG.A and MOG.B), a worldwide designer, manufacturer and systems integrator of high-performance precision motion and fluid controls and control systems, today reported fiscal second quarter 2025 diluted earnings per share of $1.75 and adjusted diluted earnings per share of $1.92, reflecting strong operational performance.
Quarter Highlights
• Net sales increased primarily in Military Aircraft and Commercial Aircraft, while sales in Industrial declined due to simplification actions.
• Operating margin declined modestly due to the absence of the prior year’s one-time 150 basis point benefit from the Employee Retention Credit (ERC), masking stronger operational performance.
• Adjusted operating margin declined due to the absence of prior year benefit which offset stronger operational performance, primarily in Industrial and in Military Aircraft.
• Diluted net earnings per share declined due to last year’s ERC, partially offset by lower adjustments and higher operating margin.
• Adjusted diluted net earnings per share declined due to last year’s ERC, partially offset by higher adjusted operating margin.
• Free cash flow was driven by lower working capital requirements.
• Twelve-month backlog remained steady at $2.5bn.
• Reiterated 2025 guidance, noting potential net tariff risk to operating profit of $10m to $20m.
“We have delivered another quarter of strong financial results due to our unrelenting focus on operational performance,” said Pat Roche, CEO. “We achieved record sales and drove improved operating margin and earnings per share, both net of the prior year’s one-time Employee Retention Credit. In addition, we delivered free cash flow in line with our plan.”
Segment Results
Sales in the second quarter of 2025 increased marginally to $935m compared to the second quarter of 2024. Military Aircraft sales increased 6% to $214 m, driven by the continued ramp-up of the FLRAA program. Commercial Aircraft sales increased 4% to $216m, reflecting strong aftermarket demand partially offset by production delays on certain business jet and narrow-body programs. Space and Defense sales increased 1% to $270m, supported by broad-based defense demand. These gains were partially offset by a 7% decline in Industrial sales to $234m, primarily due to divestitures and purposeful product exits.
Operating margin was 11.7% in the second quarter, down 30 basis points compared to the second quarter of 2024, which included a one-time 150 basis point benefit from the ERC. Space and Defense operating margin declined 370 basis points to 12.1%, reflecting the absence of the prior year’s ERC benefit. Commercial Aircraft operating margin declined 20 basis points to 11.8%, driven by pressures arising from OEM customers’ production delays, partially offset by stronger aftermarket activity. Partially offsetting these margin declines was a Military Aircraft operating margin increase of 280 basis points to 11.1%. Lower amounts of restructuring and other charges, along with stronger operational performance in the current quarter, were partially offset by the prior year’s benefits of the mature product line sale and the ERC. Additionally, Industrial operating margin increased 50 basis points to 11.6%, driven by simplification initiatives.
Adjusted operating margin excludes $14m and $7m in restructuring and other charges in the second quarters of 2024 and 2025, respectively. Excluding these charges, total company adjusted operating margin decreased 110 basis points from 13.6% in 2024 to 12.5% in 2025. However, adjusted operating margin increased 40 basis points from a year ago, excluding the ERC benefit. Adjusted operating margin in Industrial increased 90 basis points to 13.4% driven by simplification initiatives. Commercial Aircraft adjusted operating margin declined 20 basis points to 11.8%, driven by pressures arising from OEM customers’ production delays, partially offset by stronger aftermarket activity. Military Aircraft adjusted operating margin decreased 140 basis points as the prior year’s benefits of the mature product line sale and the ERC were partially offset by stronger operational performance in the current quarter. Space and Defense adjusted operating margin decreased 330 basis points due to the absence of the prior year’s ERC.
Free Cash Flow Results
Free cash flow in the second quarter was $2m. This result reflects strong earnings, halted growth in physical inventories and secured customer advances, partially offset by the timing of collections. (Source: BUSINESS WIRE)
25 Apr 25. Defence tech start-up gets £7m boost for robot factories network. A technology start-up that wants to help re-arm Britain with factories of automated robots has raised £7m from investors. London-based Isembard, named after the revered civil engineer Isambard Kingdom Brunel, was founded last year by entrepreneur Alexander Fitzgerald. The company is developing high-tech factories that can quickly and cheaply manufacture precision components for critical industries such as defence and aerospace. Most of these are currently made by a legion of small businesses that feed into the processes of larger companies, such as engine maker Rolls-Royce or defence contractor BAE Systems. But Mr Fitzgerald, an Army reservist who previously founded challenger broadband provider Cuckoo, said the market is highly fragmented, with many of the firms not making use of the latest technologies or automation techniques. Many small manufacturers are also losing a growing number of machinists to retirement – creating skills gaps that must be filled. It comes as demand for precision components is surging as Britain and its European allies scramble to ramp up production of defence equipment including missiles, drones and ammunition in the wake of Russia’s invasion of Ukraine.
Mr Fitzgerald said Isembard aims to tackle the problem by setting up a network of factories that operate modular machine tools linked together by the company’s in-house computer software.
This will allow the company to remotely design parts, produce them and potentially assemble them as well. The modular nature of the factories should also mean production lines can be quickly reconfigured or scaled up.
Mr Fitzgerald said British manufacturing currently relied on “a long tail of family-run machine shops” but warned: “The existential threat we face is that the average age of the owners of these businesses is approaching retirement.
“So there is a huge risk that capacity starts to drop, just as demand from critical industries such as defence is really starting to ramp up.
“Rather than build a single large factory, we think the answer is to build a network of smaller factories.”
According to MakeUK, the industry group, 60pc of the manufacturing workforce in Britain is aged 50 or above.
There is also an acute shortage of workers known as computer numerical control machinists, who control the robots that machine or process parts, with nearly one fifth of vacancies taking up to a year to fill.
Isembard is also hoping to tap into greater demand for the “reshoring” of manufacturing domestically, following global supply chain chaos caused by the Covid pandemic and the US-China trade war.
Investors who backed Isembard in its funding round include Notion Capital, 201 Ventures, Basis Capital, Forward Fund, Material Ventures, Neverlift Ventures and NP-Hard Ventures, as well as angel investors Andreas Klinger and Joshua Western, the founder of Space Forge.
The money will be used to fully develop the company’s first factory in London and potentially other sites. Isembard says it is already doing work for defence clients that it cannot disclose. (Source: Daily Telegraph)
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