Sponsored by SPX Communication Technologies (TCI & ECS)
www.tcibr.com
www.enterprisecontrol.co.uk
——————————————————————————————————————————————————————————————————————————————————————————————————————————————–
08 May 25. BlackSky Technology Inc. (“BlackSky” or the “Company”) (NYSE: BKSY) announced results for the first quarter ended March 31, 2025.
Q1 Total Revenue Increases 22% Over Prior Year Period
Backlog Grows 40% to $366m Driven By Over $130m in Q1 Contract Wins
Second Very-High Resolution Gen-3 Satellite Readying for Launch in Q2
“We’re excited that we won over $130m in contract bookings and with the successful launch of Gen-3, we are generating significant demand and driving a growing sales pipeline worldwide,” said Brian E. O’Toole, BlackSky CEO. “Our first Gen-3 satellite is now fully commissioned and we’re pleased that it is exceeding performance expectations. We are beginning a cadence of additional Gen-3 launches throughout the year; our next satellite is being shipped and is on track to launch in Q2. We’re seeing strong demand driven by new mission applications that are enabled by the combination of very-high resolution imagery, high-frequency monitoring, and AI-enabled insights. We’re on track to begin providing early access to major customers and commence general commercial availability later this year.”
First Quarter Financial Highlights:
• Revenue of $29.5m, up 22% from the prior year quarter
• Over $130m in new contract bookings
• Backlog grows $104m, or 40%, from the prior quarter to a total of $366m
• Cash balance increased 43% from the prior quarter
Recent Highlights
• Awarded a more than $100m seven-year subscription contract with an international customer for Gen-2 and Gen-3 satellite imagery
• Won multi-year contracts totaling approximately $20m to support India’s commercial Earth observation capabilities, including imagery services and a dedicated space asset
• Won a seven-figure multi-year contract with a new U.S. government customer for non-Earth imaging
• Continued to win orders through the online Global Data Marketplace to provide imagery support over various strategic locations around the world
• Awarded new and expansion imagery subscription contracts with several international customers
• First Gen-3 is fully commissioned, exceeding expectations, and delivering up to NIIRS-6 quality
• Very-high resolution Gen-3 imagery is being delivered and evaluated by customers worldwide
• Advanced AI analytics on Gen-3 imagery is exceeding expectations
• Second Gen-3 satellite is being shipped and on track to launch in Q2
Financial Results
Revenues
Total revenue for the first quarter of 2025 was $29.5m, up $5.3m, or 22%, from the first quarter of 2024. The significant year-over-year increase was primarily driven by progress to date capabilities made toward deliverables under a new contract to accelerate the development of India’s commercial Earth observation capabilities.
Cost of Sales(1)
Total cost of sales as a percentage of revenue was 43% for the first quarter of 2025, compared to 29% in the first quarter of 2024. The increase in cost of sales was primarily driven by a transfer of a previously capitalized satellite asset for the sale of that asset as part of a contract to support a new customer in India.
Operating Expenses
Operating expenses for the first quarter of 2025 were $28.9m, which included $2.8m of non-cash stock-based compensation expense, $7.2m in depreciation and amortization expenses, and the first full quarter of LeoStella operations. Operating expenses for the first quarter of 2024 were $30.5 m, which included $3.1m in non-cash stock-based compensation expense and $11.2m in depreciation and amortization expenses. Excluding the non-cash stock-based compensation and depreciation and amortization expenses from both years, cash operating expenses(2) for the first quarter of 2025 were $18.9m, compared to cash operating expenses of $16.1m for the first quarter of 2024. The year-over-year increase of $2.8m was primarily due to overhead expenses that were previously included in capitalized satellite assets purchased through our production contract with LeoStella as a third-party vendor.
Net Loss
Net loss for the first quarter of 2025 was $12.8m, compared to a net loss of $15.8m for the first quarter of 2024. The year-over-year improvement in net loss of $3.0m was primarily due to lower depreciation and amortization expenses and changes in the gain/(loss) on derivatives, which are driven by fluctuations in the Company’s equity warrants and other equity instruments that are measured at fair value and driven by the Company’s common stock price. (Source: BUSINESS WIRE)
09 May 25. Italy’s Leonardo posts 12.2% jump in first-quarter EBITA. Italy’s Leonardo reported a 12.2% jump in first-quarter earnings before interest, tax and amortisation (EBITA) to 211m euros ($238.58m) on Thursday, boosted by volume growth and increased profitability compared with the same period last year. Leonardo’s shares rose as much as 2.8% after the results and were up 2% by 1431 GMT. The state-controlled defence and aerospace group’s first-quarter revenue increased 13.5% year on year to 4.2bn euros, above the expectations of analysts at brokerage Equita and Banca Akros. Leonardo’s January-to-March new orders totalled 6.9bn euros, up 19.7% from the same period last year, spurred by heightened demand for security in response to rising geopolitical tensions.
The group, which could benefit from Europe’s push for increased defence spending, reported an order backlog of 46.18bn euros, up 7% from last year’s first quarter. The Rome-based defence conglomerate also confirmed its 2025 guidance. ($1 = 0.8844 euros)(Source: Reuters)
08 May 25. Leonardo’s Board of Directors, convened today under the Chairmanship of Stefano Pontecorvo, examined and unanimously approved the results for the first quarter 2025.
• Order Backlog exceeds €46bn threshold; Book-to-Bill ratio 1.7x, reflecting strong commercial performance
• Orders increase driven by continued strengthening of core businesses
• Revenue and EBITA growth in line with the sustainable growth path outlined in the Industrial Plan
• Net Result before extraordinary transactions €m. 115 (+23.7% vs 1Q2024)
• Free Operating Cash Flow (FOCF) shows steady improvement, with reduced cash absorption, demonstrating the effectiveness of the actions undertaken
• Group Net Debt improves to €2,125m (-27.5% vs 1Q2024)
(*) Excluding the contribution of UAS
(**) 2024 figure restated due to KPI revision with reference to the valuation of strategic participations
“We are continuing the execution of our Industrial Plan. The first-quarter results, along with the rating upgrade by Standard & Poor’s and the outlook revision by Moody’s, further confirm the positive market reception of the initiatives undertaken and the Group’s strategic outlook. We, therefore, reaffirm our 2025 guidance and our medium-to-long-term targets,” said Roberto Cingolani, CEO and General Manager of Leonardo. “During the first quarter of 2025, we signed a Memorandum of Understanding with Baykar Technologies for the development of unmanned technologies, aimed at further strengthening our position in the international competitive landscape, and finalized the establishment of Leonardo Rheinmetall Military Vehicles with Rheinmetall, to operationalize the formation of a new European hub for the development and production of military combat vehicles in Europe. The working group dedicated to the implementation of the Capacity Boost has elaborated the plan development guidelines, which will be presented by the summer,” Cingolani concluded.
1Q2025 Results
The solid Group performance continued in the first three months of 2025, with the gradual strengthening of its competitive positioning in both domestic and international markets supported by a further growth of volumes and a solid profitability. The good performance of the period, compared with the same period of the prior year, is even more significant in as much as it does not include the contribution from the Underwater Armaments & Systems (UAS) business, which had been recognised under the Defence Electronics & Security sector until 2024 and sold to Fincantieri in early 2025.
In the first three months of 2025 New Orders reached €bn. 6.9 (+19.7% compared to the figure of the comparative period), confirming the continuing strengthening of the core businesses as a result of the commercial successes and good positioning of the Group’s products, technologies and solutions, as well as the ability to effectively cover key markets in a market environment where demand for security remains high.
Revenues came to €4.2bn showing a significant increase (+13.5% compared to the figure of the comparative period), and EBITA was €211m (+12.2% compared to the restated* figure of the comparative period), in line with expectations and sustainable growth path envisaged in the Industrial Plan of Leonardo.
Free Operating Cash Flow, negative for €580m as a result of the usual interim trend that is characterised by cash absorptions in the first part of the year, showed an improvement (+6.6% compared to the figure of the comparative period) demonstrating the effectiveness of the actions undertaken. The FOCF performance and the first tranche of payment received from Fincantieri as part of the sale of the UAS business, related to the fixed component of the Enterprise Value equal to € mil. 287, determine a consequent positive effect on the Group Net Debt, down by about 27.5% compared to the comparative period.
(*) The figure for the comparative period is presented in restated form as a result of the revision of EBITA, starting from the 2024 Financial Statements, with reference to the strategic investments.
comparative period are provided in restated form. The reclassification has no effects on other indicators.
As already indicated, following the finalisation of the sale to Fincantieri of the Underwater Armaments & Systems (UAS) line of business, occurred on 14 January 2025, the figures of the first quarter of 2025 do not include the contribution from such business that, vice versa, was recognised within the Defence Electronics & Security sector until 2024. In order to make the Group’s operational performance more comparable, for some performance indicators we report below the figure of the comparative period – and the related change compared to the current period – excluding the contribution of the UAS business (isoperimeter):
chain, tariffs, inflationary levels and the global economy, subject to any further significant effects.
Commercial performance
• New Orders reached €6.9bn, highlighting an increase compared to the first three months of 2024 (+19.7%, +20.6% on a like-for-like perimeter) in all the core businesses. Particularly significant is the growth of orders noted in Helicopters, Defence Electronics & Security and Aircraft, in addition to the improvement of Aerostructures (+96.4% compared to the prior period), which benefitted from the partial recovery of demand. The level of new orders for the period is equal to a book to bill (the ratio of New orders to Revenues for the period) of about 1.7.
• The Order Backlog exceeded the €46bn threshold ensuring a coverage in terms of production exceeding 2.5 years.
Business performance
• Revenues (€4.2bn) increased compared to the first three months of 2024 (+13.5%), mainly driven by the volumes of Helicopters and Defence Electronics & Security, despite the change in the perimeter related to the sale of the UAS business (+14.9% on a like-for-like perimeter).
• EBITA (€211bn), increased significantly compared to the first three months of 2024 in almost all sectors (+12.2% against the restated figure), reflects the growth of volumes and the solid performance of the Group’s businesses. The period was particularly affected by the performance of the Helicopters and the Defence Electronics and Security sectors, which more than offset the persisting difficulties in the Aerostructures and the Space manufacturing segment. The good performance of the Group is even more evident if we exclude the contribution of the UAS business from the comparative figure (+17.9% on a like-for-like perimeter).
• EBIT (€189bn) was affected by the improvement of EBITA and reported an increase compared to the first quarter of 2024 (+12.5%).
• The Net Result before extraordinary transactions (€115m, +23.7% compared to the first quarter of 2024) benefitted from the performance of EBIT and from lower net financial costs, partially offset by the higher tax burden for the period.
• The Net Result (€396m) showed a decrease due to the fact that the figure of the comparative period (€459m) included the capital gain (€366m) recognised after the valuation at fair value of the Telespazio Group, carried out for the purposes of the line-by-line consolidation of the same. The figure for the first quarter of 2025, equal to €396m, included, beside the Net Result before extraordinary transactions, the capital gain recognised following the sale of the UAS business to Fincantieri, equal to about €281m, finalized in January 2025 and in respect of which the Parties are still defining the variable component of the operation, in addition to the usual price adjustment mechanism.
Financial performance
• The Free Operating Cash Flow (FOCF) in the first quarter of 2025, negative for €580m, showed an improvement compared to the performance of the comparative period (negative for €621m, negative for €628m on a like-for-like perimeter), confirming the positive results reached thanks to the effect of initiatives to strengthen operational performance and collection cycle, a careful investment policy in a period of business growth with stringent priorities, and an efficient financial strategy. The figure however highlighted the usual interim trend that is characterised by cash absorptions during the first part of the year.
• The net change in loans and borrowings included the repayment, occurred in March 2025, of the bonded loan of Leonardo S.p.a. issued in 2005 and amounting to €500m, which reached its natural maturity date.
The Group Net Debt, equal to €2 ,125m, reduced significantly (about €0.8bn) against March 2024 thanks to the strengthening of the Group’s cash generation and to the cash-in of the first tranche of payment related to the sale of the UAS business, determined on the basis of the fixed component of the Enterprise Value and equal to €287m, occurred in January 2025.
Compared to 31 December 2024 (€1,795m) the figure increased mainly as a result of the abovementioned usual FOCF performance, net of the effect of the abovementioned sale of the UAS business.
07 May 25. SkyWater Technology, Inc. (NASDAQ: SKYT), the trusted technology realization partner, today announced financial results for the first quarter 2025 ended March 30, 2025.
“We’re pleased to report that our financial results for the first quarter reflect modest upside to our expectations entering the year,” commented Thomas Sonderman, CEO. “A significant rebound in sequential growth for our Wafer Services business reflected strong traction with lead customers for our ThermaView℠ platform launched in January. In our Advanced Technology Services (ATS) business, the continued federal budget delays affecting overall Department of Defense (DOD) program funding are resulting in a near-term softening of our anticipated ATS growth trajectory, following record revenues achieved in 2024. We are confident in our ability to execute towards another record ATS revenue year in 2025, provided that the funding delays in Washington, DC are resolved soon. With our current visibility, and provided that the requisite program funding proceeds as planned, we believe we will achieve year-over-year revenue growth in both ATS and Wafer Services, expansion of our gross margin profile, strong adjusted EBITDA, and non-GAAP positive EPS for fiscal 2025. Finally, we look forward to sharing additional details of our long-term strategic vision for the acquisition of Infineon’s Fab 25, following an anticipated closing in mid-2025.”
Recent Business Highlights
• Strong sequential growth in Wafer Services revenue in Q1 was driven primarily by robust demand for our new ThermaView platform from two leading defense prime customers, demonstrating significant traction achieved since the January launch of SkyWater’s first proprietary product platform.
• In a landmark achievement announced during Q1, SkyWater partner D-Wave demonstrated quantum supremacy in simulation, an industry-defining milestone showcasing that quantum systems can outperform classical computers on targeted problems. This breakthrough leveraged SkyWater’s commercially-fabricated superconducting qubits, highlighting our essential role in enabling quantum innovation through secure, U.S.-based manufacturing.
• We continue to make strong progress towards the closing of the acquisition of Infineon’s flagship Fab 25 in Austin, TX, in support of SkyWater’s strategy to provide secure, domestic foundry capacity for foundational semiconductor nodes. Backed by a $1bn+ supply agreement, we believe that Fab 25 occupies a strategic sweet spot — delivering the output scale, quality standards, and process flexibility needed to meet the evolving demands of foundational semiconductor markets, while being firmly aligned with secure, U.S.-based supply chain goals – advancing SkyWater’s mission to serve as a foundational enabler of America’s semiconductor onshoring and industrial resilience strategy.
• SkyWater’s strong, strategic role providing Trusted semiconductor supply for multiple important DOD programs provides us with confidence that SkyWater will execute well on planned growth in ATS revenues in fiscal 2025, provided prompt resolution of the federal budget delays.
• Progress continues in our Florida operations, in support of our Advanced Packaging platform in preparation for an expected 2H-2025 revenue ramp.
Q1 2025 Results
• Revenue: Revenue of $61.3m decreased (23)% compared to the first quarter of 2024. ATS development revenue of $52.5m decreased (14)% compared to the first quarter of 2024. Wafer Services revenue of $7.5 m decreased (25)% compared to the first quarter of 2024. Tools revenue of $1.2m decreased (86)% compared to the first quarter of 2024.
• Gross Profit: GAAP gross profit was $14.3m, or 23.3% of total revenue, compared to gross profit of $13.0m, or 16.3% of total revenue, in the first quarter of 2024. Non-GAAP gross profit was $14.8m, or 24.2% of total revenue, compared to non-GAAP gross profit of $13.4m, or 16.9% of total revenue, in the first quarter of 2024. Tools revenue negatively impacted non-GAAP gross margin by 20 bps, compared to 170 bps in the first quarter of 2024.
• Operating Expenses: GAAP operating expenses were $18.3m, compared to $15.2m in the first quarter of 2024. Non-GAAP operating expenses were $15.2m, compared to $13.6m in the first quarter of 2024.
• Net Loss: GAAP net loss to shareholders was $7.3m, or $(0.15) per diluted share, compared to a net loss to shareholders of $5.7m, or $(0.12) per diluted share, in the first quarter of 2024. Non-GAAP net loss to shareholders was $3.7m, or $(0.08) per diluted share, compared to a non-GAAP net loss to shareholders of $3.7m, or $(0.08) per diluted share, in the first quarter of 2024.
• Adjusted EBITDA: Adjusted EBITDA was $4.0m, or 6.6% of total revenue, compared to $4.9m, or 6.2% of total revenue, in the first quarter of 2024.
A reconciliation between GAAP and non-GAAP financial measures is contained in the tables below in the section titled “Non-GAAP Financial Measures.”
Q2 2025 Financial Outlook
For the second quarter of 2025, we expect total revenue to be in the range of $55m to $60m, and less than $1m is expected to be tools revenue. We expect GAAP diluted net loss per share to be in the range of $(0.20) to $(0.26) and non-GAAP diluted net loss per share to be in the range of $(0.16) to $(0.22).
This outlook for non GAAP diluted net loss per share excludes anticipated equity-based compensation expense of approximately $2m, or $0.04 per share. Non-GAAP diluted net loss per share should be considered in addition to, but not as a substitute for, our financial information presented in accordance with GAAP. (Source: BUSINESS WIRE)
07 May 25. Patria Group’s Interim Report for 1 January – 31 March 2025
Patria’s net sales and operating profit grew in the first quarter, success in vehicle programmes continues.
The first quarter of 2025
Patria’s net sales increased by 10% to EUR 189,2m in the first quarter 2025 compared to the comparison period in 2024 and the growth was primarily driven by armoured vehicles. Group operating profit (EBIT) developed positively and rose to EUR 7.9m. Patria’s order stock reached EUR 2.5bn at the end of March 2025.
There is strong demand for Patria’s products and services, and the defence technology market is growing. The company has increased investments to respond to growing demand and to develop its offerings for enhanced customer value and competitiveness.
A significant portion of operational efforts has been directed toward increasing production capacity to meet the growing demand for armoured vehicles and improving the productivity of operations. In March, Patria announced plans to change its operating model to focus on three key business areas. Change negotiations concerning all units in Finland began on 17 March 2025 and ended on 22 April 2025. On 26 March 2025, a EUR 40 m investment was announced to enhance and expand armoured vehicle production in Hämeenlinna.
Millog and Nammo had a clear positive impact on net sales and operating profit growth in the first quarter.
Key events during the quarter
• In January, Patria signed an agreement with Airways Aviation Group on them acquiring the entire share capital of its subsidiary Patria Pilot Training Oy. As of 1 February, 2025, all employees, operations and ongoing training courses of Patria’s Pilot Training were transferred to Airways Aviation.
• In January, Patria announced its plan to acquire Belgium-based digital defence platform provider ILIAS Solutions. With the acquisition of the number-one digital defence platform for fleet management, Patria enhances its standard of digital services. The related authority approval process is in progress.
• In February, Slovenia and Finland signed Letter of Intent on support for the procurement of 8×8 Armoured Modular Vehicles from Patria.
• Several steps were taken in Common Armoured Vehicle System (CAVS) programme during the quarter: Patria and Babcock agreed partnership on 6×6 vehicle for the UK armed forces and Germany took final step to full member of CAVS programme as well as Germany and Patria signed work package for CAVS Patria 6×6 programme-related mortar variants development.
Event after the period
• Denmark joined the CAVS programme by signing the Technical Arrangement on 1 April, 2025.
Outlook
Demand for Patria’s products and services continues to grow. Strong net sales growth is expected in 2025, supported by an increased order stock. Most of the growth is expected to be generated by the armoured vehicle business. The outlook for the other business areas is also positive.
The start of the serial production for certain 8×8 armoured vehicle projects has been slower than planned, which may have an impact on the net sales for the year.
The impact of the geopolitical situation and general economic uncertainty on long-term development in the operating environment is difficult to evaluate. These factors could potentially have significant direct and indirect impacts on the demand and Patria’s operations.
07 May 25. Curtiss-Wright Corporation (NYSE: CW) reports financial results for the first quarter ended March 31, 2025.
First Quarter 2025 Highlights:
• Reported sales of $806m, up 13%, operating income of $129m, up 29%, operating margin of 16.0%, and diluted earnings per share (EPS) of $2.68;
• Adjusted operating income of $134m, up 34%;
• Adjusted operating margin of 16.6%, up 260 basis points;
• Adjusted diluted EPS of $2.82, up 42%; and
• Record new orders of $1.0bn, up 13%, reflecting a 1.26x book-to-bill.
Raised Full-Year 2025 Adjusted Financial Outlook:
• Sales guidance increased to new range of 8% to 9% growth (previously 7% to 8%), which continues to reflect growth in the majority of Curtiss-Wright’s end markets;
• Operating income guidance increased to new range of 13% to 16% growth (previously 10% to 12%);
• Operating margin guidance range increased by 40 basis points to 18.3% to 18.5%, now up 80 to 100 basis points compared with the prior year;
• Diluted EPS guidance increased to new range of $12.45 to $12.80, now up 14% to 17% (previously $12.10 to $12.40, or 11% to 14%);
• Free cash flow (FCF) guidance range increased by $10m to $495m to $515m, which continues to reflect greater than 105% FCF conversion; and
• Full-year 2025 guidance includes the potential direct impacts from tariffs on our operations as well as mitigating actions.
“I’m proud of our team’s outstanding first quarter 2025 performance as we delivered significant increases in new orders, sales, operating income and diluted EPS, and continued to execute on our Pivot to Growth strategy,” said Lynn M. Bamford, Chair and CEO of Curtiss-Wright Corporation.
“We achieved strong growth in the majority of our end markets, accentuated by the timing of naval defense revenues which drove a better than expected increase of 15% in our A&D markets. Additionally, we benefited from a stronger than anticipated operational performance in our Defense Electronics segment, which in combination, greatly contributed to 42% growth in diluted EPS. We were also pleased to start the year with strong momentum in orders, reaching a record quarterly high of more than $1 bn. This performance continues to reflect strong demand in our Aerospace & Defense and commercial nuclear markets.”
“Overall, we are confident in our ability to achieve strong growth and profitability this year. Building on the strength of our first quarter results, we have raised our full-year outlook and now expect to generate total sales growth of 8% to 9%, operating margin expansion of 80 to 100 basis points, and diluted EPS growth of 14% to 17%. Furthermore, we continue to maintain an efficient balance sheet, with ample liquidity, to execute on our disciplined capital allocation strategy. Curtiss-Wright remains well positioned to deliver long-term profitable growth for our shareholders.”
First Quarter 2025 Operating Results
• Sales of $806m, up $92m, or 13% compared with the prior year;
• Total Aerospace & Defense (A&D) market sales increased 15%, while total Commercial market sales increased 9%;
• In our A&D markets, strong growth in the defense markets was driven by higher than expected submarine revenues in naval defense and increased sales of defense electronics products supporting all defense markets, as well as higher OEM sales in the commercial aerospace market;
• In our Commercial markets, strong growth in the power & process market was principally driven by the contributions from acquisitions and higher organic sales of commercial nuclear products, while sales in the general industrial market increased slightly; and
• Adjusted operating income of $134m increased 34%, while Adjusted operating margin increased 260 basis points to 16.6%, principally driven by favorable overhead absorption on higher revenues in all three segments, the benefits of the Company’s restructuring and operational excellence initiatives, and favorable foreign currency translation, as well as an unfavorable naval contract adjustment in the prior year that did not recur in 2025.
First Quarter 2025 Segment Performance
Aerospace & Industrial
• Sales of $227m, up $8m, or 4%;
• Aerospace defense market revenue increases reflected higher sales for our actuation equipment, principally on the F-35 and other fighter jet programs;
• Commercial aerospace market revenue increases reflected increased demand and higher OEM sales of sensors products and surface treatment services on narrowbody and widebody platforms;
• General industrial market revenue reflected higher sales of industrial automation equipment offset by reduced sales of industrial vehicle products serving on- and off-highway vehicle platforms; and
• Adjusted operating income was $32m, up 15% from the prior year, reflecting a strong Adjusted operating margin that increased 140 basis points to 13.9%, driven by favorable absorption on higher revenues, the benefits of the Company’s restructuring initiatives and favorable foreign currency translation.
(1) Note: There were no adjustments to segment operating results.
• Sales of $245m, up $33m, or 16%;
• Strong revenue growth in the aerospace defense market was principally driven by increased sales of our embedded computing equipment on various helicopter programs;
• Ground defense market revenue increases principally reflected higher sales supporting U.S. ground vehicle modernization;
• Higher revenue in the naval defense market reflected increased sales of our embedded computing equipment supporting various domestic and international programs; and
• Adjusted operating income was $67m, up 40% from the prior year, while Adjusted operating margin increased 480 basis points to 27.5%, primarily due to favorable absorption on higher defense revenues, the benefits of our operational excellence initiatives, and favorable mix of products.
• Sales of $333m, up $51m, or 18%;
• Revenue growth in the naval defense market was stronger than anticipated principally due to higher demand and the timing of revenues on the Virginia-class and Columbia-class submarine programs, in addition to higher growth on various next-generation submarine development programs and increased sales of aircraft handling systems equipment to international customers;
• Lower revenue in the aerospace defense market reflected the timing of sales of arresting systems equipment supporting various international customers;
• Higher power & process market revenues mainly reflected the contribution from acquisitions to our commercial nuclear and process markets, as well as higher organic sales of commercial nuclear products supporting the maintenance of existing operating reactors and the development of next-generation advanced reactors; and
• Adjusted operating income was $45m, up 28% from the prior year, while Adjusted operating margin increased 100 basis points to 13.5%, due to favorable absorption on higher revenues partially offset by unfavorable mix of products and higher investment in development programs. Our results also reflected an unfavorable naval contract adjustment in the prior year that did not recur in 2025.
Free Cash Flow
• Free cash flow of ($55)m increased $3m, as higher cash earnings were partially offset by the timing of collections as well as higher capital investments driven by growth investments in all three segments.
New Orders and Backlog
• New orders of $1.0bn increased 13% compared with the prior year principally reflecting strong demand across our naval defense, commercial aerospace and commercial nuclear end markets; and
• Backlog of $3.7bn, up 7% from December 31, 2024, reflects higher demand across the A&D and Commercial markets.
Share Repurchase and Dividends
• During the first quarter, the Company repurchased 42,383 shares of its common stock for approximately $14m; and
• The Company declared a quarterly dividend of $0.21 a share.
08 May 25. Steep growth at Rheinmetall in the first quarter of 2025 – operating result in defence business almost doubled
• Dynamic continues: Group sales grew by 46% in the first three months to €2.3bn – defence business increased by 73%
• Group operating result significantly increased by 49% from €134m to €199m; the operating result in defence business almost doubled
• Group operating result margin climbs to 8.7%
• Orders increased significantly: Rheinmetall Nomination increased by 181% to €11bn
• Order Backlog: Rheinmetall Backlog increases significantly to €63bn
• Operating free cash flow improves by €454m to €266m
• Annual forecast 2025 confirmed, further upside potential
The growth curve at Rheinmetall continues to trend steeply upwards. The Düsseldorf-based technology group concludes the first quarter of 2025 with new record values in both sales and income. Demand in the defence business remains high and the market situation continues to gain momentum, particularly driven by the geopolitical developments since the beginning of the year. The Group’s civilian business, on the other hand, remains behind the previous year due to the continued weak market conditions.
The Group once again achieved a significant improvement in operating free cash flow due to increased customer advance payments, which leads to a further increase in the flexibility of the financial cushion.
Due to the current market situation, the continued very good order situation and the expected business development in the second quarter of 2025, the management confirms at least the current annual guidance for the expected sales growth and operating profit margin for the Group. As already stated in the previous ad hoc announcement on April 28, 2025, the Group sees the possibility to adjust the annual guidance if the expected increase in demand due to the latest geopolitical developments materializes.
Armin Papperger, Chair of the Executive Board of Rheinmetall AG, on the company development: “Rheinmetall is needed – customers are buying entire factories from us today. Europe must prepare itself for a new era in which we must oppose the threat to our liberal values with all our strength. Rheinmetall stands firmly by its responsibility in this epochal break.”
Armin Papperger: “We must and will deliver. We are experiencing growth like never before in the Group and are getting closer to our goal of becoming a global defence champion. Future-oriented cooperations testify to this. We also have promising projects in the USA, the UK, Italy or Ukraine and numerous major orders in the pipeline that will secure further sales growth in the coming years. We are also massively expanding our capacities with the construction of new plants and strategic acquisitions.”
Rheinmetall Group:
Profitable sales growth of 46% – Rheinmetall Nomination increased by 181%
After the first three months, Group sales increased noticeably by €724m or 46% to €2,305 m compared to the previous year (previous year: €1,581m). Of this, 70% of sales were generated abroad. In the defence business, i.e. excluding the Group’s civilian activities, sales growth was as high as 73%. In the first quarter, sales rose from €1,038 m to €1,795m here.
At Group level, the operating result as at March 31, 2025 – after deduction of holding costs – was €199m, up €66m or 49% on the previous year’s figure of €134 m. The Group’s operating profit margin increased slightly to 8.7% after the end of the first quarter of 2025 (previous year: 8.5%). The Group’s defence activities saw its operating result rise to €206m, up from €105m in the previous year. With growth of 96%, it has almost doubled.
Basic earnings per share improved from €1.13 to €1.92 in the first three months of the 2025 fiscal year compared to the same period of the previous year (continuing operations).
Operating free cash flow improved significantly year-on-year by €454m to €266m, compared to €-187m in the same period of the previous year. The main driver for the positive development of the operating free cash flow is the improvement in working capital as a result of increased advance payments received, particularly from the TaWAN contract with the German Armed Forces.
The Rheinmetall Nomination increased significantly by 181% compared to the same period of the previous year. It increased to €11bn in the first three months (previous year: €4bn). Among other things, this was due to orders from Germany – here primarily from the special fund for the German Armed Forces.
Rheinmetall’s backlog reached a new all-time high of €63bn at the end of the first quarter (previous year: €40bn) due to several major orders. In addition to orders on hand, the order backlog also includes the call-offs expected from framework agreements in place with defence customers and the potential from customer agreements with civilian clients.
Vehicle Systems: Sales nearly doubled compared to last year
Sales at Vehicle Systems, with activities primarily in the field of wheeled and tracked vehicles, amounted to €952 m after three months of the fiscal year of 2025, up €459m or 93% on the previous year’s figure. The increase is due in particular to the delivery of swap body trucks for the German armed forces and the launch of tactical vehicle programs. Loc Performance, which was acquired on November 29, 2024, contributed €116 m to sales growth.
The Rheinmetall Nomination of the segment – the sum of the order intake and the volume of the newly concluded framework agreements with defence customers – was €464m in the first three months of the fiscal year below the previous year’s quarter in which the service contract was booked with regard to the commissioning of the Heavy Weapons Carrier for the German Bundeswehr with €628m.
The segment’s Rheinmetall backlog – the sum of the order backlog and call-offs expected from existing framework agreements with defence customers – was around €21bn as at March 31, 2025, up €4bn or 23% on the previous year’s figure. The operating result improved from €38 m to €81m. With 8.5%, the operative margin was above the previous year’s figure of 7.7%.
Weapons and Ammunition: New record sales of around €600m
Weapon and Ammunition achieved record sales of €599m with its weapon systems and ammunition activities in the first three months of 2025 exceeding the previous year’s figure by €237m or 66%. The increase compared to the same period of the previous year is attributable in particular to higher ammunition deliveries. Important projects included orders for artillery ammunition for NATO countries and Ukraine, as well as increased sales of tank ammunition.
Rheinmetall Nomination is at the level of the previous year at €826m after the first three months in fiscal year 2025 (previous year: €836m).
The Rheinmetall Backlog reached around €21bn as of March 31, 2025. Compared to the previous year’s figure (March 31, 2024: €12bn), the increase was €9bn or 80%.
The operating result more than doubled by the end of the first quarter of 2025 with an increase of €63m or 117% to €116m (previous year: €53m). Despite higher staff and material costs, the operating margin improved significantly from 14.7% to 19.3% The main driver for this is the significantly increased sales volume and the associated leverage effect.
Electronic Solutions: Rheinmetall Nomination increases by more than five times
Electronic Solutions, with its products in the areas of digitalization of the armed forces, infantry equipment, air defence and simulation, increased its sales by €141m to €427m after three months of the fiscal year 2025 (previous year: €287m); this corresponds to growth of 49%. The increase in sales is essentially attributable to the framework agreement for intercom sets with hearing protection for the German army, the short-range air defence system LVS NNbS for the German customer, as well as the delivery of other Skyranger and Skynex air defence systems ordered in previous years, in each case to European customers.
Rheinmetall’s Nomination more than quintupled year-on-year by €8bn or 435% to €10bn. The largest individual orders in the first three months of the fiscal year 2025 related to the two framework orders for a deployable, platform-based communication and radio relay management system (TaWAN LBO) and the follow-up procurement of future soldier systems IdZ-ES, both for the German customer. Rheinmetall’s backlog as at March 31, 2025 was around €17bn, a significant increase of 196% on the previous year’s figure (previous year: €6bn).
The operating result improved significantly to €27m by the end of the first quarter of 2025, compared to €17m in the previous year. The operating margin increased to 6.3% (previous year: 6.0%) due to a favorable portfolio mix.
Power Systems: Sales below previous year due to economic market weakness
At €505m, sales at Power Systems, which bundles technological expertise in civilian markets, were down on the previous year’s figure (previous year: €541m). At €325m, the booked business after the last three months of the fiscal year 2025 was down significantly on the previous year (previous year: €620m). The decisive factor is the economic weakness phase of the automotive industry and the associated time delay of the projects. The nominated backlog as at March 31, 2025 fell by 17% to around €7bn (previous year: €9bn).
The operating result fell by 70% compared to the previous year to €9 m (previous year: €31m). The main impact drivers were declining sales due to the weak market environment and a changed product focus. Therefore, the operating margin is at 1.8% (previous year: 5.8%).
Outlook: Current annual guidance is at least confirmed
After the first three months of the fiscal year 2025, Rheinmetall at least confirms the sales and result guidance for the entire fiscal year 2025 with a growth in group sales of 25% to 30% due to the expected business development until the end of the year (sales of the previous year: €9,751m). Based on this sales forecast, Rheinmetall anticipates an improvement in operating result and an operating result margin of around 15.5% for the Group including acquisitions in the current fiscal year 2025 (operating result margin in fiscal year 2024: 15.2%), taking into account holding costs.
This outlook does not yet take into account the improvement in market potential that is expected to arise in the markets that are particularly relevant for Rheinmetall in Europe, Germany and Ukraine as a result of the geopolitical developments in recent weeks. Rheinmetall will therefore make any necessary guidance adjustments as the respective requirements of defence customers become more specific over the course of the year.
08 May 25. Germany’s OHB reports rise in Q1 revenue, provides outlook. German aerospace group OHB (OHBG.DE) posted a 13% gain in first-quarter revenues and forecast 2025 sales to come in at 1.2bn euros ($1.36bn) in 2025, broadly in line with an LSEG polls of analysts. The company, a partner for European Space Agency (ESA) projects, said its order backlog stood at 2.3 bn euros at the end of March, most of which attributable to its Space Systems segment. (Source: Reuters)
08 May 25. Kongsberg’s orders and profit soar on defence systems demand. Norway’s Kongsberg (KOG.OL) said on Thursday its order intake and profits soared in the first quarter, driven by demand for its missiles and air defence systems at a time when European nations step up defence spending and continue to back Ukraine. The group, whose defence equipment are used by militaries including the U.S. armed forces and many European countries, saw its quarterly order intake rise 63% from a year earlier to 20.74bn Norwegian crowns ($2 bn), half of which was for the defence and aerospace unit. The division, Kongsberg’s second biggest making up around 40% of its revenue, had last year secured deliveries of critical equipment to Ukraine while also contributing to the completion of F-16 fighter jets and training of Ukrainian soldiers on its systems. The unit’s order intake more than doubled over 2024 amid a surge in demand for defence equipment in light of the war in Ukraine and the escalating conflict in the Middle East. (Source: Reuters)
07 May 25. TASER maker Axon raises annual revenue forecast, shares jump. TASER maker Axon Enterprise (AXON.O) raised its full-year revenue forecast on Wednesday, banking on sustained demand for its software products and security devices, sending its shares up more than 7% after the bell. The Arizona-based company makes law enforcement technology such as body cameras, drones and sensors. Axon expects 2025 revenue to be between $2.60bn and $2.70bn, compared with its prior range of $2.55bn to $2.65bn. Analysts on average estimate of $2.62bn, according to data compiled by LSEG.
The company is the leading maker of police body cameras in the U.S. and supplies drones to law enforcement authorities across North America, Europe and Australia.
Capital expenditure for the year is expected to be in the range of $160m to $180m, excluding costs related to investments in a new headquarters, the company said. (Source: Reuters)
08 May 25. European High-Tech Consortium Secures Funding from the European Defence Fund to Develop Multipurpose Unmanned Ground Systems. The consortium that successfully delivered the groundbreaking iMUGS (integrated Modular Unmanned Ground System) project in 2023 has secured funding from the European Defence Fund (EDF) for the follow-up project, iMUGS2, which aims to develop next-generation Multipurpose Unmanned Ground Systems (UGS).
The consortium’s €55m proposal, submitted under the EDF’s 2024 call for collaborative defence research and development, was officially approved for funding of nearly €50m in late April. This strategic victory highlights Europe’s commitment to enhancing its defence capabilities and technological independence through innovative and cooperative industrial development.
“Winning this EDF call is a crucial step in ensuring that Europe remains at the forefront of developing advanced unmanned technologies. Our consortium unites top-tier expertise from across the EU, and we are prepared to deliver a capability that enhances our armed forces’ operational effectiveness and safety,” said Raul Rikk, Capability Development Director at Milrem Robotics, the consortium lead.
Unmanned vehicles (UxVs) have emerged as one of the most significant innovations in modern military operations, as evidenced by their deployment during the war in Ukraine. Effective cooperation among UxVs, manned vehicles, operators, and soldiers is crucial for enhancing combat effectiveness. This collaboration aims to reduce casualties, minimise collateral damage, and lessen the cognitive burden on warfighters.
Using outputs from iMUGS and other European-funded initiatives, iMUGS2 aims to expedite research and move rapidly towards practical, deployable solutions. The enhancement of operational capabilities will be demonstrated through trials with military tactical units. The project will also focus on developing interoperability among European nations and incorporate lessons from recent conflicts, including the war in Ukraine, where several Consortium member systems are deployed.
“Our project aims to develop and deploy cost-effective, modular unmanned systems capable of supporting dismounted, mechanised, and motorised infantry in all European environments, including GNSS-denied areas and adverse climatic conditions,” Rikk added.
iMUGS2 has three primary outcomes. Firstly, it aims to develop, validate, and demonstrate cost-effective, combat-ready UGSs that support dismounted troops at various operational levels and provide practical value in different operations. Secondly, the project will establish operational concepts demonstrating how UGS and unmanned aerial systems (UAS) can enhance the capabilities of infantry battalions and cross-domain operations. Thirdly, the project will improve the modular and open architecture and Through Life Capability Management (TLCM) framework, which enables the efficient integration of autonomous functionalities with both legacy and new systems across unmanned and optionally manned ground platforms, including the conversion of manned vehicles.
About the Consortium
The iMUGS2 consortium has grown to include 29 partners from 15 European Union member states and associated nations, encompassing all initial project partners. The team consists of large corporations, mid-sized businesses, SMEs, and research organisations. Each partner contributes leading expertise in their respective fields, promoting a comprehensive vision throughout the project’s lifecycle. This diversity allows the consortium to tackle potential challenges and deliver strategic and effective solutions.
The iMUGS2 Consortium consists of the following entities: AVL List, Bittium Wireless, Czech Technical University in Prague, Cybernetica, Delft Dynamics, Diehl Defence, dotOcean, Elettronica, Escribano Mechanical and Engineering, FN Herstal, GMV Aerospace and Defence, Huta Stalowa Wola, Insta Advance, Integrated Systems Development, John Cockerill Defense, KNDS France, KNDS Germany, Kongsberg Defence & Aerospace, Latvijas Mobilais Telefons, Łukasiewicz – PIAP, Milrem Robotics (project coordinator), Netherlands Organisation for Applied Scientific Research, Nortal (Talgen Cybersecurity), Norwegian Defence Research Establishment, the Royal Military Academy of Belgium, Safran Electronics & Defense, Secura, Svensk Konstruktionstjänst, Systecon Konsult.
For more information, please visit https://imugs.eu.
08 May 25. Kromek Group plc (“Kromek” or the “Group”) Full Year 2025 Trading Update.
Kromek to deliver revenue and profits ahead of market expectations
Kromek Group plc (AIM: KMK), a leading developer of radiation and bio-detection technology solutions for the Advanced Imaging and CBRN Detection segments, provides the following update on trading for the 12-month period ended 30 April 2025.
FY 2025 has been a transformational year as Kromek made significant strategic progress in both its Advanced Imaging and CBRN Detection segments.
In the Advanced Imaging segment, the Group signed a significant partnership agreement with Siemens Healthineers and received the initial payment of $25.0m out of a total of $37.5m, with the remaining amount to be received over the next four years. Consequently, revenue in the Advanced Imaging segment grew significantly year-on-year.
In the second half of FY 2025, Kromek’s CBRN Detection segment demonstrated a clear recovery following a subdued start to the year. Revenues in H2 2025 were more than double those of H1 2025, albeit from a low base, reflecting a strong rebound in activity. During the year, the Group secured two milestone agreements with UK Government entities for its nuclear security technologies. Notably, Kromek was awarded and successfully delivered a contract from the UK Ministry of Defence-one of the Group’s key strategic customers. Additionally, Kromek was selected as a supplier under a four-year UK Government framework contract, with initial orders under this programme expected to commence in the current financial year and continue throughout the contract duration. Beyond the UK, Kromek continued to strengthen its global footprint, securing and delivering multiple orders in the second half of FY 2025 from customers in the US and Europe. The Group also continued to successfully deliver on the two multi-year contracts from UK and US government agencies in its bio-security technology area.
As a consequence of the positive financial impact of the partnership with Siemens Healthineers, Kromek expects to report FY 2025 revenue ahead of market expectations, of not less than £26m, representing year-on-year growth of at least 34%. Profit before tax is also expected to be slightly ahead of market expectations. As at 30 April 2025, Group debt was £0.5m compared with £12.3m at 31 October 2024, and the Group expects to report net cash in line with market expectations.
Looking beyond FY 2025, Kromek anticipates delivering revenue growth for the fifth consecutive year in FY 2026, while also maintaining profitability. This positive outlook is underpinned by contracted revenue of approximately £20 m and a substantial near-term revenue pipeline.
Arnab Basu, Chief Executive Officer of Kromek, said: “FY 2025 has been a transformative year for Kromek. Our landmark agreement with Siemens Healthineers not only validates our leadership in Advanced Imaging technology but has also significantly strengthened our financial position – enabling us to substantially reduce debt and report pre-tax profitability for the first time. While the CBRN Detection segment experienced a slower start, momentum returned in the second half, supported by UK Government frameworks, US federal contracts, and a healthy international sales pipeline. This gives us confidence in sustainable growth for the year ahead.
“Looking forward, with contracted revenues of approximately £20 m, we have strong visibility for FY 2026 and are well-positioned to deliver another year of revenue growth, at least in line with market expectations, driving long-term value for our shareholders.”
BATTLESPACE Comment: We note that the defence CBRN results. The total lack of marketing and PR in this sector has caused low international sales and visibility. Kromek should sell that segment to someone who knows about that sector like TeledyneFlir, then Kromek can concentrate on medical products. It will be interesting to see how Kromek supports the Booth at DSEI.
06 May 25. Leidos Holdings, Inc. (NYSE: LDOS) today reported financial results for the first quarter of fiscal year 2025, highlighted by robust earnings and revenue growth.
• Revenues of $4.2bn, up 7% year-over-year
• Net income of $365m or $2.77 per diluted share
• Adjusted EBITDA (non-GAAP) of $601m (14.2% margin)
• Non-GAAP Diluted Earnings per Share of $2.97, up 30% year-over-year
• Cash Flows from Operations of $58m; Free Cash Flow (non-GAAP) of $36m
“Our robust first quarter results build on the momentum from 2024, demonstrating the team’s ability to execute in a dynamic environment that demands agility and innovation,” said Leidos Chief Executive Officer Tom Bell. “The five growth pillars defined by our NorthStar 2030 Strategy are well aligned to the priorities of the new Administration, and we will continue to focus on making customer outcomes smarter and more efficient. We are moving out with pace and conviction on our strategy through differentiated investments in technologies, including bolstering our full spectrum cyber capabilities through a pending acquisition. As evidenced by our $500m accelerated share repurchase, we remain confident in our positioning and the opportunities ahead.”
Revenues for the quarter were $4.25bn, up 7% compared to the first quarter of 2024. Revenues grew year-over-year due to increased demand across all customer segments, with three of the four reporting segments growing 7% or more.
For the first quarter, net income was $365m, or $2.77 per diluted share. Net income and diluted EPS were up 29% and 34% year-over-year, respectively. Net income margin of 8.6% increased from 7.1% in the first quarter of 2024.
Adjusted EBITDA was $601m for the first quarter, up 23% year-over-year. Adjusted EBITDA margin of 14.2% increased from 12.3% in the first quarter of 2024. Non-GAAP net income was $391 m for the first quarter, up 25% year-over-year, and non-GAAP diluted EPS for the quarter was $2.97, up 30% year-over-year. The primary drivers of increased profitability were increased volumes on managed health services programs and improved program execution and cost control across the company.
CASH FLOW SUMMARY
In the first quarter, Leidos generated $58m of net cash provided by operating activities and used $22m and $110m in investing and financing activities, respectively. Net cash provided by operating activities was driven by strong EBITDA and collections performance. Days Sales Outstanding (DSO) for the quarter was 62, in-line with the prior year period. Effective for the first quarter of fiscal 2025, Leidos retroactively changed its policy to exclude outstanding payments from “Cash and cash equivalents” on the condensed consolidated balance sheets. This change did not have a material impact on cash provided by operating activities in the quarter.
Investing activities consisted primarily of $22m in property, equipment and software payments, which resulted in quarterly free cash flow of $36 m. During the quarter, Leidos issued and sold $500m of senior unsecured notes maturing in March 2032 and $500m of senior unsecured notes maturing in March 2035. The annual interest rates for the senior unsecured obligations are 5.40% and 5.50%, respectively. The proceeds from the notes were used to retire the $500 m of senior unsecured notes due May 2025 and repurchase $500 m outstanding shares of common stock in connection with an Accelerated Share Repurchase agreement.
During the quarter, Leidos entered into a definitive agreement to acquire a company that develops offensive and defensive cyber platforms and other solutions for the U.S. Government for preliminary purchase price of $300 m, subject to working capital and other customary adjustments. The transaction is expected to be completed in the second quarter of 2025, subject to the satisfaction or waiver of customary closing conditions.
As of April 4, 2025, Leidos had $842m in cash and cash equivalents and $5.1 bn of debt. On May 2, 2025, the Leidos Board of Directors declared a cash dividend of $0.40 per share. The dividend will be payable on June 30, 2025, to stockholders of record at the close of business on June 16, 2025.
NEW BUSINESS AWARDS
Effective for the first quarter of fiscal 2025, Leidos changed its backlog policy to include estimated future revenue on task orders expected to be awarded under sole source indefinite delivery/indefinite quantity (IDIQ) contracts. Under the new policy, backlog at the end of the quarter was $46.3bn, of which $7.3bn was funded. Net bookings totaled $2.1bn in the quarter, representing a book-to-bill ratio of 0.5. The impact of the new policy on the book-to-bill ratio in the quarter is immaterial.
Included in the quarterly bookings were several notable awards:
• Defense Threat Reduction Agency (DTRA) Integrated Information Technology Support Services. Leidos was awarded a new five-year task order with a ceiling value of $205 m to modernize and operate enterprise IT services for DTRA. Under the contract, Leidos will leverage experienced personnel, proven processes, and targeted innovation to enable DTRA to improve user experience, enhance Zero Trust cybersecurity compliance, increase operational efficiency, and support mission execution to deter, prevent, and prevail against the global threat landscape.
• Defense Technical Information Center (DTIC) Signature Training Systems Development, Security, and Operations. The Naval Surface Warfare Center Carderock Division awarded Leidos a five-year $150m task order to provide engineering and software development capabilities to support Navy Signature Training Systems. The systems support Submarine, Surface Ship, and Integrated Undersea Surveillance shore based and deployed simulation and training systems for acoustic and visual signature detection and recognition capabilities. The Leidos led team provides systems engineering, development, integration, test and fielding of new and enhanced capabilities to fleet training locations and vessels.
• Project Night Owl Managed Service Provider. The U.S. Air Force awarded Leidos a $148m firm-fixed-price for managed services support for Project Night Owl, a critical national security system. Leidos will be responsible for managing and maintaining the system by delivering network, application, infrastructure and security support services.
• DTIC Naval Information Warfare Center (NIWC) Pacific Support. NIWC Pacific awarded Leidos a five-year $116m task order to support two complementary projects. On the Blue Swordfish Project, Leidos will integrate specialized maritime payloads, including sensor packages, energy, and communications capabilities, onto Uncrewed Surface and Subsea Autonomous Vehicles. On the Maritime Test Bed Project, Leidos will provide shore based and undersea naval infrastructure to support reliable, repeatable undersea testing of new and emerging capabilities for Navy program systems, prototypes, and industry or academic capabilities.
• Department of the Interior Office of Wildland Fires Medical Qualification Determination Services. Leidos won a highly competitive $40m single-award IDIQ to provide medical exams to wildland firefighters, expanding its managed health services to the Federal government. Leidos will provide comprehensive occupational medical exams, independent medical qualification determination, scheduling support and data and records management for all arduous duty wildland firefighters. The program also covers Bureau of Land Management law enforcement officers and communications tower climbers and National Parks Service law enforcement officers. Leidos will deploy its mobile medical clinics to service rural and remote locations across the country. (Source: PR Newswire)
07 May 25. HENSOLDT reports strong first quarter 2025 with growth in order intake and revenue.
• Order intake increases year-on-year to EUR 701m
• Order backlog reaches new record level of EUR 6,929m
• Revenue grows to EUR 395m (previous year: EUR 329m)
• Adjusted EBITDA at EUR 30m (previous year: EUR 33m)
• Financial restructuring successfully completed
• Guidance for the financial year 2025 confirmed in all key figures
The HENSOLDT Group (“HENSOLDT”) has started the financial year 2025 with a strong result and remains on course for growth. The company achieved an order intake of EUR 701m in the first quarter, once again exceeding the figure for the same period of the previous year (EUR 665 m). HENSOLDT benefited in particular from the contract extensions for the Eurofighter Mk1 radars and from orders under the Eurofighter Halcon programme. As a result, the order backlog again reached a record level and now stands at EUR 6,929 m. This corresponds to an increase of 4.3% compared to the end of 2024 and an increase of 18% compared to the previous year.
Revenues amounted to EUR 395m, a significant increase on the same period last year (3M 2024: EUR 329m). Alongside additional revenue from the ESG Group’s business activities, this was mainly due to strong revenue growth in the Optronics segment. At EUR 30m, adjusted EBITDA was slightly below the previous year’s level (EUR 33m).
Oliver Dörre, CEO of HENSOLDT, says: “The ongoing war in Ukraine and the conflict hotspots in the Middle East dominate the geopolitical agenda. These developments, as well as increased pressure from the US on its NATO allies to further increase defence spending, are leading to increased investment in military capabilities and technological sovereignty in Europe and Germany. At HENSOLDT, we have made targeted investments in the digitalization and connectivity of our products, in securing our supply chains and in our infrastructure and locations in recent years. As a result, we now have the technologies, solutions and operational capabilities to play a significant role in the upcoming German and EU procurement programmes and to increase our previous ambition of EUR 5bn in revenue by 2030 to up to EUR 6bn.”
Christian Ladurner, CFO of HENSOLDT, assesses the financial results as follows: “In a dynamic political and economic environment, our operating business developed very robustly in the first three months of 2025. In terms of order intake, we once again exceeded the already very strong prior-year period once again and set a new record for the order backlog. This gives us excellent visibility for future business development. We therefore remain optimistic for the 2025 financial year and confirm our outlook for all relevant key figures.”
Optronics segment with improved profitability
Revenue in the Optronics segment increased significantly by 34%. The strong sales performance of the European business thus continued. Adjusted EBITDA also improved noticeably compared to the same period of the previous year. This is mainly due to higher production volumes and progress in efficiency measures at the South African site.
The Sensors segment recorded an increase in both order intake and revenue compared to the same period of the previous year. Adjusted EBITDA declined slightly, mainly due to a slight decrease in productivity resulting from the commissioning of a new logistics centre. While this temporary lag effect is expected to be compensated during the year, the new logistics centre provides the basis for scalability and additional growth through warehouse automation and integrated data management solutions.
New financing structure successfully implemented
In April 2025, HENSOLDT successfully completed the realignment of its financing structure and replaced its previous financing with an unsecured, flexible corporate financing structure as part of a comprehensive refinancing. All conditions have been improved, the capital structure optimized, and a long-term stable interest burden ensured. The company has thus taken a decisive step towards even greater financial independence and entrepreneurial freedom.
Positive outlook for financial year 2025 confirmed
HENSOLDT expects the positive business development to continue in the financial year 2025 and confirms its guidance for all relevant key figures. The company anticipates revenue of EUR 2,500 to 2,600 m and a book-to-bill ratio of around 1.2x. Profitability will be reported as an adjusted EBITDA margin and is expected to be around 18%. Continued German and European investment in security and defence will result in further high demand for HENSOLDT’s products and solutions.
07 May 25. BAE Systems – Market update. BAE Systems is providing the following market update ahead of its Annual General Meeting today.
Highlights:
• Trading so far this year in line with management’s expectations.
• Full year guidance maintained.
• Order backlog and pipeline of work on incumbent positions provide good visibility and support long-term growth.
• Well positioned to capture additional defence spending.
• Investing to support growth.
Charles Woodburn, BAE Systems Chief Executive, said: “We’ve had a strong start to 2025 and are maintaining our guidance for the full year. During this time where the defence and security landscape is rapidly evolving, we are focused on delivering our long-term programme commitments to our customers, while investing in our business to boost capacity, drive efficiencies and shape our portfolio to support future growth.”
Trading update
Trading so far this year is in line with management’s expectations. Our operational performance continues to be strong as we focus on consistent delivery of critical capabilities and technologies for our customers around the world. We are therefore maintaining our guidance for 2025.
Guidance
In 2025 we expect good growth in revenue and EBIT as well as solid cash generation. Our full year 2025 guidance remains unchanged from the preliminary results announcement published on 19 February 2025.
• Sales +7% to +9% (2024: £28.3bn)
• Underlying EBIT +8% to +10% (2024: £3.0bn)
• Underlying EPS +8% to +10% (2024: 68.5p)
• Free cash flow (FCF) in 2025 >£1.1bn
Guidance is provided on a constant currency basis using a GBP:USD exchange rate of 1.28 for the year, which is in line with the average exchange rate in 2024. The average exchange for the year to date is 1.28 (as at 6 May) and the current spot rate is 1.34.
As a guide to our sensitivity to foreign exchange rates, a 5 cent movement in the GBP:USD exchange rate impacts sales by c.£525m, underlying EBIT by c.£75m and underlying EPS by c.1.4p.
Order intake
Notable awards received in the year to date include:
• Armored Multi-Purpose Vehicles – $356m award to procure long-lead material to support a definitised full rate production contract expected in the second half.
• ARCHER mobile howitzers and TRIDON Mk2 systems – artillery package approaching $300m in total including 18 ARCHERs, further TRIDON Mk2 systems and additional artillery location radar systems.
• Amphibious Combat Vehicles (ACV) – awarded two full-rate production contracts from the US Marine Corps totalling more than $360m for ACV-30mm vehicles, to include fielding support, spares and test equipment.
• Integration Support Contract (ISC) – Intelligence & Security received a nearly $800m contract in January to extend our ISC services to the US Air Force with options through to July 2027.
• Canadian River-class Destroyer – contract for next phase of Canada’s River-class destroyer programme.
• MBDA – c£600m for various domestic and export awards.
Market backdrop of increased defence spending
The regions in which we operate are poised for higher defence spending. We expect this to provide a robust set of further opportunities across all our sectors.
In response to the increased global security challenges, a number of European NATO members have announced significant increases in their defence budgets. We have a strong, established position in Europe and our range of products and services aligns well to the capability requirements of these nations. These include combat aircraft, combat vehicles, air defence, missile systems, artillery, munitions, drones, electronic warfare and sensor technology.
The UK Government has stated its commitment to increase defence spending to 2.5% of GDP from 2027. It has also identified defence as one of eight growth-driving sectors in its upcoming industrial strategy. We are actively engaged with the Government on its ongoing Strategic Defence Review and Defence Industrial Strategy, which will make recommendations on the nation’s future defence plan in the coming months.
In the US, a Continuing Resolution was passed in March to provide funding through the end of fiscal year 2025. The new administration has said it intends to provide the country with unmatched military strength for years to come, a plan that calls for increased spending and a reprioritisation of where it is spent. Our portfolio is well-aligned with the key priorities of US and international defence and intelligence customers, including our capabilities in combat vehicles, electronic warfare programmes, precision guidance and missile defence systems, as well as space electronics, instruments and spacecraft.
As we observe evolving tariff policy, we note that the vast majority of equipment we deliver to our US customers is produced in our US operations with a largely domestic supply chain. As such, we do not expect to be materially impacted by the US tariffs, as they are currently proposed.
Our key markets in Asia-Pacific and the Middle East are also expected to see higher defence spending, and we will continue to support our government customers in these regions with leading products and services.
Shaping our portfolio to support future growth. We continue to invest in our technologies, facilities and people to ensure our business has the capacity and agility to deliver on our programmes as well as anticipate and respond to higher defence spending and the emerging threats our government customers are facing
In 2024 we invested a record amount in research and development (R&D) and capital expenditure, and we continue to invest to support future growth.
Our investment in self-funded R&D is focused on key technology areas including electronic warfare, autonomy, laser-guided weapons, uncrewed air systems, synthetic training, electrification applications and space solutions.
We are building on more than £1.0bn of capital expenditure in 2024, as we increase capacity for the future as well as develop and modernise our systems. This includes a new explosives filling facility in South Wales, a new shipbuild assembly hall in Glasgow and a modern shiplift and land-level repair complex in Florida, all of which are expected to become operational in the summer.
We continue to hire and train people to enable us to deliver for our customers. In the UK alone, we intend to recruit more than 2,400 apprentice, undergraduate and graduate roles this year.
Capital distributions
The 2024 final dividend of 20.6 pence per share will be paid, subject to shareholder approval, on 2 June 2025.
As at 6 May, we have completed £392m of the three-year up to £1.5bn share buyback programme, which commenced in July 2024.
Half year results
BAE Systems will announce its results for the six months ending 30 June 2025 on 30 July 2025.
07 May 25. Roark Aerospace Announce Successful $50m Bridging Round. Roark Aerospace (https://roark-aerospace.com) the UK based Defence-Tech leader have today announced the successful closing of their $50m bridge funding round. The round saw participation from over 300 individual and fund based investors from over 30 countries. The round followed what Roark have coined a “horizontal round structure” where the focus is on building a broad cap table with a view to leveraging the contacts and expertise of the investors to maximise the valuation prior to the next funding round. Roark are already considered to be a global leader in the production of autonomous systems for defence, law enforcement and commercial purposes. Their product range covers UAV’s, USV’s and AUV’s alongside advanced drone detection and counter-uas systems. In addition, Roark offer a number of direct deployment services including persistent WAMI and HyperSpectral Imaging alongside Drone First Responder Services. Recently Roark have also added component manufacturing to their product suite covering UAV C2 boards, Rf transceiver boards, airframes and optical units. The latest funding round will be used to onboard new clients from their extensive pipeline of service based opportunities where the cost of the hardware is amortised across fixed contract lengths. Roark expect the new funding round to facilitate an ARR increase from $100m to around $200m in advance of their planned Series A for later in 2025. In addition, mass production will be ramped up for UAV component manufacturing within the UK designed to replace the reliance on
Chinese parts. At the core of Roark’s solutions is the “Plexus Intelligential System” an edge AI powered ontology and visual relationship detection system that facilitates fully autonomous decision making a the edge. Roark believe that their self-built ontology instances are the most advanced available and have been built in conjunction with input from over 1400 partners, globally. Patton French, CEO of Roark said “Our mission is simple, to negate the human and moral costs of allied and homeland defence through fully autonomous infrastructure whilst also reducing the financial costs through the production of physical systems that are built en masse and are designed to be disposable. We feel that this mantra aligns with the asymmetric nature of threats to allies both at home and in theater”.
07 May 25. Cadre Holdings, Inc. (NYSE: CDRE) (“Cadre” or “Company”), a global leader in the manufacturing and distribution of safety equipment and other related products for the law enforcement, first responder, military and nuclear markets, announced today its consolidated operating results for the three months ended March 31, 2025.
Capitalizes on Continued Strong Demand for Mission Critical Safety Equipment
Completes Acquisition of Multiple Leading Nuclear Brands, Expanding Geographic Footprint
Increased Guidance Reflects Completed Acquisition and Reaffirmed Organic Growth Expectations
2025 Outlook: Net Sales of $618 to $648m and Adjusted EBITDA of $112 to $122m
• Net sales of $130.1m for the first quarter
• Gross profit margin of 43.1% for the first quarter
• Net income of $9.2m, or $0.23 per diluted share, for the first quarter
• Adjusted EBITDA of $20.5m for the first quarter
• Adjusted EBITDA margin of 15.8% for the first quarter
• Declared quarterly cash dividend of $0.095 per share in April 2025.
“Following a record year, we continued to see strong and recurring demand for our best-in-class, mission-critical safety products in the first quarter,” said Warren Kanders, CEO and Chairman. “Despite more pronounced uncertainty in our business environment, we have been pleased with our team’s ability to navigate challenges and leverage the Cadre operating model to drive continuous improvement every day. Over the course of our history, Cadre’s performance has been resilient through economic, political, geopolitical and other cycles, and we anticipate similar performance as we move ahead. To begin 2025, we are pleased to have delivered another quarter of financial results above expectations, highlighted by gross margins that increased 130 basis points year-over-year.”
Mr. Kanders added, “In April, we completed the acquisition of the Engineering Division from Carr’s Group, an important next step in scaling our nuclear safety vertical. With increasing global demand driven by energy, defense, and nuclear waste tailwinds, we believe in the consistent growth profile of the nuclear industry, and today, Cadre is uniquely positioned to deliver unparalleled capabilities in this market to a worldwide customer base. As we look forward, complementing our core organic growth initiatives, M&A remains an essential component of our strategy to continue to build our industry-leading safety platform. Consistent with our patient and disciplined approach, we are actively evaluating a robust pipeline of potential transactions focused on complementary businesses with strong margins, leading and defensible market positions, and recurring revenue.”
First Quarter 2025 Operating Results
For the quarter ended March 31, 2025, Cadre generated net sales of $130.1m, as compared to $137.9m for the quarter ended March 31, 2024, primarily as a result of large order shipment timing for explosive ordnance disposal (“EOD”) and armor products, partially offset by recent acquisitions and higher demand for crowd control products.
For the quarter ended March 31, 2025, Cadre generated gross profit of $56.1m, as compared to $57.6m for the quarter ended March 31, 2024.
Gross profit margin was 43.1% for the quarter ended March 31, 2025, as compared to 41.8% for the quarter ended March 31, 2024, mainly driven by favorable mix, favorable pricing net of material inflation and the absence of inventory step up amortization, partially offset by lower volumes.
Net income was $9.2m for the quarter ended March 31, 2025, as compared to net income of $6.9m for the quarter ended March 31, 2024, primarily as a result of acquisition related costs incurred in 2024.
Cadre generated $20.5m of Adjusted EBITDA for the quarter ended March 31, 2025, as compared to $24.5m for the quarter ended March 31, 2024. Adjusted EBITDA margin was 15.8% for the quarter ended March 31, 2025, as compared to 17.8% for the prior year period.
Product segment gross profit margin was 44.4% for the first quarter, compared to 43.0% for the prior year period.
Distribution segment gross profit margin was 21.6% for the first quarter, compared to 23.5% for the prior year period.
Liquidity, Cash Flows and Capital Allocation
• Cash and cash equivalents increased by $8.5m from $124.9 m as of December 31, 2024 to $133.4m as of March 31, 2025.
• Total debt decreased by $2.7m from $223.2m as of December 31, 2024 to $220.5m as of March 31, 2025.
• Net debt (total debt net of cash and cash equivalents) decreased by $11.2 m from $98.3m as of December 31, 2024 to $87.1m as of March 31, 2025.
• Capital expenditures totaled $1.4m for the three months ended March 31, 2025, compared with $1.3m for the three months ended March 31, 2024.
Acquisition of Carr’s Engineering Division
On April 22, 2025, Cadre completed its acquisition of Carr’s Engineering Limited (excluding Chirton Engineering) and Carr’s Engineering (US), Inc. (together the “Engineering Division”), each a subsidiary of Carr’s Group plc (“Carr’s Group”), for an enterprise value for the acquisition was £75m. The Engineering Division is comprised of industry-leading brands including Wälischmiller GmbH, CarrsMSM, Bendalls Engineering, NW Total Engineered Solutions, and NuVision Engineering, Inc.
Dividend
On April 22, 2025, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.095 per share, or $0.38 per share on an annualized basis. Cadre’s dividend payment will be made on May 16, 2025 to shareholders of record as of the close of business on the record date of May 2, 2025. The declaration of any future dividend is subject to the discretion of the Company’s Board of Directors.
2025 Outlook
For the full year 2025, Cadre expects to generate net sales in the range of $618m to $648m and Adjusted EBITDA in the range of $112m and $122m. We expect capital expenditures to be in the range of $8m to $10m. These ranges incorporate the estimated impact of tariffs in place today and assume that mitigating actions help offset future potential impacts. Cadre has not provided net income guidance due to the inherent difficulty of forecasting certain types of expenses and gains, which affect net income but not Adjusted EBITDA. Therefore, we do not provide a reconciliation of Adjusted EBITDA guidance to net income guidance. (Source: BUSINESS WIRE)
07 May 25. Astronics Corporation (Nasdaq: ATRO) (“Astronics” or the “Company”), a leading supplier of advanced technologies and products to the global aerospace, defense, and other mission critical industries, today reported financial results for the three months ended March 29, 2025.
• First quarter sales increased 11.3% to $205.9m
• First quarter net income was $9.5m, or $0.26 per diluted share; adjusted EBITDA1 was $30.7m, or 15% of sales
• Aerospace segment first quarter sales grew 17% to a record $191.4m
• Cash flow from operations was $20.6m in the first quarter
• Achieved record bookings in the quarter of $279.7m and record backlog of $673.0 m with book to bill ratio of 1.36x
• Maintaining 2025 revenue guidance in the range of $820m to $860m
Peter J. Gundermann, Chairman, President and Chief Executive Officer, commented, “Our first quarter results show a very strong start to 2025. Revenue exceeded the high end of our range, up 11% over the comparator quarter. Our leading market positions with our differentiated offerings for the aerospace industry across commercial, general aviation and military aircraft drove sales growth. Margin expansion reflects the operating leverage gained from higher volume coupled with actions we have been executing to improve operating efficiencies. Adjusted EBITDA1 of $31m, or 15% of sales, for the quarter and $110m, or 13.4% of sales, for the trailing twelve months, is a testament to the hard work our team has put into the last several years of recovery. We believe our concerted efforts to provide our customers with engineering excellence and responsive service also helped to deliver record bookings in the quarter. Demand has remained robust resulting in record quarterly bookings of $280m and a record backlog of $673m.”
Growth in sales was driven by the Aerospace segment due to continued strength in demand primarily from the Commercial Transport and Military Aircraft markets. Aerospace sales increased $27.7m, or 17.0%, which more than offset a $6.9m decline in Test Systems sales.
Higher volume and improving productivity drove gross profit up $13.3m to $60.8m, or 29.5% of sales. Of note, gross margin was 29.5% compared with 25.7% in the comparator quarter. Both periods reflect the change in presentation for research & development expenses (“R&D”), which is now identified as an expense item on the income statement below gross profit. Consolidated sales and gross profit were negatively impacted by a $1.9m revision of estimated costs to complete a long-term mass transit contract in the Test Systems segment.
In the first quarter of 2025, the $4.1m increase in selling, general and administrative expenses (“SG&A”) included a $6.2m reserve adjustment to the damage award relating to the patent infringement dispute in the UK. This included a $0.5 m increase to the original damage award reserve of $11.9 m and an additional reserve of $5.7m for interest expenses expected to be paid by the Company in connection therewith. R&D was down $2.3 m reflecting the timing of projects.
Consolidated operating income increased $11.5m to $13.1m, or 6.4% of sales. Adjusted operating income2 for the 2025 first quarter was $22.6m, or 11.0% of sales, compared with $5.5m, or 3.0% of sales, in the 2024 first quarter.
As a result of the refinancing in December 2024, interest expense was down $2.6 m, or 45%. Tax expense in the quarter was $0.6 m compared with a tax benefit of $1.4m in the prior-year period. Tax expense in the quarter was partially offset by a $1.1m discrete adjustment to reverse certain federal and state deferred tax liabilities.
Stronger profitability and lower interest expense resulted in consolidated net income of $9.5m, or $0.26 per diluted share, up from the net loss of $3.2m, or $(0.09) per diluted share, in the prior-year period. Adjusted net income2 for the 2025 first quarter increased $15.1m to $17.0m, or $0.44 per diluted share.
Consolidated adjusted EBITDA2 increased 74.4% to $30.7m, and was 14.9% of consolidated sales, primarily as a result of increased profitability from higher sales.
Record bookings of $279.7m in the quarter resulted in a book-to-bill ratio of 1.36:1. For the trailing twelve months, bookings totaled $883.7m and the book-to-bill ratio was 1.08:1. Backlog at the end of the quarter was $673.0 m, the highest recorded in the Company’s history.
Aerospace Segment Review
Aerospace First Quarter 2025 Results (compared with the prior-year period, unless noted otherwise)
Record Aerospace segment sales of $191.4m increased $27.7m, or 17.0%. Sales in the Commercial Transport market increased $16.1m, or 13.3%. Growth was primarily related to increased demand by airlines for cabin power and inflight entertainment & connectivity (“IFEC”) products, which are in the Electrical Power & Motion and Avionics product groups. Military Aircraft sales increased $16.2m, or 94.8%, to $33.3m, driven by progress on the FLRAA program and increased demand for lighting and safety products.
General Aviation sales decreased $4.3m, or 22.0%, to $15.2m due to lower VVIP and airframe power sales, which are in Electrical Power & Motion and Avionics product groups.
Aerospace segment operating profit of $22.3m, or 11.6% of sales, improved over the prior-year period despite the previously discussed $6.2 m true-up in legal reserves related to the UK patent dispute, which was partially offset by a $1.3m decrease in litigation-related expenses. Adjusted Aerospace operating profit2 was $31.0m, or 16.2% of sales, reflecting the leverage gained on higher volume and improving production efficiencies.
Record Aerospace bookings were $267.7 m for a book-to-bill ratio of 1.40:1, including a booking of $57 m for the next phase of the Company’s FLRAA development. Backlog for the Aerospace segment was a record $613.9m at quarter end.
Mr. Gundermann commented, “Our Aerospace business is performing quite well, with another quarter of double-digit revenue growth. Operating margin expansion validates the strong leverage of the business which we expect will continue to improve. Demand remains strong with record bookings and backlog, supporting our expectation of a very strong year in 2025.”
He continued, “We are conducting certain reviews of our Aerospace business to make sure we are properly focused on the major growth drivers important to our future. These reviews may result in certain rationalization efforts to optimize our performance going forward.”
Test Systems Segment Review (refer to sales by market and segment data in accompanying tables)
Test Systems First Quarter 2025 Results (compared with the prior-year period, unless noted otherwise)
Test Systems segment sales were $14.6m, down $6.9m from the comparator quarter in 2024. Segment sales were negatively impacted by $1.9m due to a revision of estimated costs to complete a certain long-term mass transit Test contract. The revision resulted in reduced revenue recognized in the period due to lower estimates of the percentage of work completed on the program. The project is now anticipated to be completed later in 2026.
Test Systems segment operating loss was $2.2m, compared with an operating loss of $3.1 m in the first quarter of 2024. The improvement was the result of savings realized from restructuring initiatives implemented in the prior year, despite lower volume, the previously mentioned long-term contract estimated cost revision and an increase in litigation-related legal expenses of $0.6m. Test Systems continues to be negatively affected by mix and under absorption of fixed costs at current volume levels.
Bookings for the Test Systems segment in the quarter were $12.0m. The book-to-bill ratio was 0.82:1 for the quarter. Backlog for the Test Systems segment was $59.1m at quarter end.
Mr. Gundermann commented, “Our Test business had some success in the first quarter reducing its level of losses despite the expected lower volume. Results were complicated by the increase in estimate at completion on an elongated and complex long-term contract in addition to low bookings, prompting a wide-ranging review of the business, which is currently in process. We expect results to improve steadily as the year progresses, anchored by the production start for the U.S. Army radio test program, which we believe remains on track for the fourth quarter.”
Liquidity and Financing
Cash provided by operations in the first quarter of 2025 was $20.6m due to higher net income and better working capital management. Capital expenditures in the quarter were $2.1m. Long-term debt, net of cash, decreased $16.0m to $134.2m at quarter end compared with $150.2 m at the end of the year, primarily as a result of higher cash balances.
Update on Legal Proceedings
Since 2010, Astronics has been defending itself in a long-running series of patent infringement cases brought by a single plaintiff. Cases were filed in the United States, France, Germany, and the United Kingdom (UK).
The United States case was resolved in 2017, when the court found that the patent was not novel and was therefore invalid.
In France, the courts similarly found that the subject patent was invalid, though the plaintiff appealed that decision to the French Supreme Court, which recently remanded the case back to the appellate court for reconsideration. A decision by the appellate court on validity is not expected to be rendered until 2026.
The German court dismissed some claims of the patent but upheld others for which the court found that the Company had been infringing. The Company has paid $3.5m in penalties and interest to date related to the case in Germany and has a reserve of $17.2m to cover the remaining estimated damages and associated interest. Damages proceedings in this case are expected to conclude in 2026.
Unlike in the U.S., French, and German proceedings, the UK court fully upheld the subject patent and found that the Company was infringing. The ruling published in February 2025, resulted in a damages award of $11.9m, which was reserved in full as of December 31, 2024. In a follow-up hearing held on March 20, 2025, the damages award was adjusted upwards by $0.5 m. The total damages award of $12.4m was paid by the Company in the second quarter of 2025. Additionally, on April 30, 2025, the UK High Court of Justice (the “Court”) issued an order assigning $5.7m in interest associated with the damages owed by the Company, which is likely to be paid in the second quarter of 2025. This amount was reserved in the Company’s financial statements in the quarter ended March 29, 2025. There will be a further hearing in May 2025 at which the Court will hear argument on permissions to appeal and the reimbursement of legal fees for the damages phase of the litigation. On May 1, 2025, the plaintiff estimated their legal fees for the damages phase of the litigation at approximately $7.2m. The Company believes that they have valid defenses against this claim and as such, no amounts have been reserved for legal fee reimbursement as of March 29, 2025.
The Company expects an appeal, if any, would likely be heard in 2026.
All patents related to the infringement cases expired years ago, and the lawsuits do not restrict the Company’s current business activities in any way.
2025 Outlook
Mr. Gundermann commented, “We are off to a very strong start to 2025 and believe we are positioned for a good year, though we acknowledge the threat of tariffs and other macroeconomic risks affecting our industry and have not incorporated the unknown effects in our guidance. We have improving margins, solid demand, a record backlog, and a healthy balance sheet. We believe we are well-prepared for the challenges and opportunities ahead.”
Astronics is maintaining 2025 revenue guidance at approximately $820m to $860m. The midpoint of this range would be a 6% increase over 2024 sales.
The Company is monitoring the evolving tariff situation closely. Astronics generates approximately 90% of its revenue from operations in the United States, though it has an international supply chain and a global list of customers. Based on the tariff rates in effect today, Astronics believes the potential incremental impact to annual costs of materials related to direct and known indirect effects is in the range of $10 m to $20 m before mitigation. The Company believes that certain actions including pass-through pricing, supply chain restructuring, duty drawbacks, the implementation of free trade zones, and other operational adjustments will significantly reduce the anticipated impacts of tariffs over time. The Company expects that tariff rates will remain in flux in the near future and will refine its strategy as the situation becomes more stable.
Backlog at the end of the first quarter was $673.0m, of which approximately 76% is expected to be recognized as revenue over the next twelve months. Planned capital expenditures in 2025 are expected to be in the range of $35m to $50m. (Source: BUSINESS WIRE)
07 May 25. Quantum Systems Raises €160m Series C Funding. Quantum Systems – a supplier of AI-powered aerial intelligence systems for defense, emergency services, and industry – has raised €160m in new funding, led by Balderton Capital, with participation from Hensoldt, Airbus Defense and Space, Bullhound Capital, LP&E AG and existing investors, including HV Capital, Project A, Peter Thiel, DTCP, Omnes Capital, Airbus Ventures, Porsche SE and Notion.
The funding, which brings the total raised by the company to €310m, will be used to accelerate global expansion, scale production, and advance the company’s autonomous drone systems, software and AI.
Founded in 2015 by a world-class team with experience in drones, robotics, and imagery collection, Quantum Systems is setting the benchmark for real-time aerial intelligence for governmental and commercial uses. Its family of modular, dual-use unmanned aerial systems (UAS) bring together the latest advances in eVTOL technology, AI, edge computing, and autonomy to help customers make better decisions, faster and more accurately.
“The need for sovereign, aerial intelligence has never been more pressing. Our systems, a powerful blend of hardware and software, are built for the realities of modern defense and security challenges – they are autonomous, interoperable, and proven under harsh conditions. With support from our new and existing investors, we are ready to become the European leader in robotised and AI-powered aerial intelligence solutions, providing both public and commercial customers with the high-quality, accurate data they need for daily decision making.”
– Florian Seibel, co-CEO and co-founder, Quantum Systems
Combat-Proven and Commercially Applicable
Quantum Systems’ drones and intelligence systems are currently used by NATO-aligned forces – including those in Germany, Ukraine, Australia, New Zealand and Spain. Following the acquisition of Germany’s AirRobot in March, Quantum Systems is a tier-1 supplier to the UK Ministry of Defence. More recently, the firm expanded into the UK market with the acquisition of Nordic Unmanned UK, a global provider of high-end drone products and services.
“The successful completion of our C Series marks a significant milestone in our company’s history. This investment allows us to follow our vision. We will increase our global production capacity to meet the growing demand for our AI-powered drone systems and expand our market presence worldwide.” – Sven Kruck, co-CEO, Quantum Systems
Commercial applications of Quantum Systems’ solutions include mapping drones across mining, agriculture, and infrastructure. Notable clients include RocketDNA and the Indian government’s Department for Science and Technology.
Since launching its flagship Vector platform in 2019, Quantum Systems has continuously innovated in response to the growing demands of its customers, and the shifting defence and business landscapes. Its latest iteration, Vector AI, debuted earlier this year and has already been combat-tested in Ukraine, offering real-time ISR (intelligence, surveillance, reconnaissance) capabilities in areas where GPS and communications aren’t available.
The new funding follows several years of exceeding 100% year-over-year revenue growth for the company, which now has 550 people across sites in Germany, Australia, Ukraine and Romania. (Source: UAS VISION)
07 May 25. Amentum Holdings, Inc. (“Amentum” or the “Company”) (NYSE: AMTM), a leading advanced engineering and technology company, today announced results for the second quarter ended March 28, 2025 and updated its outlook for fiscal year 2025, reaffirming the mid-points of prior guidance.
Revenues of $3.5bn, 1% growth on a pro forma basis
Net Income of $4m; Adjusted EBITDA of $268m
Diluted Earnings Per Share of $0.02; Adjusted Diluted Earnings Per Share of $0.53
Operating Cash Flow of $57m; Free Cash Flow of $53m
Backlog of $45bn; 1.0x YTD Book-to-Bill
“Amentum delivered solid results this quarter, underscoring the strength of our mission-focused portfolio and the consistency of demand across our markets,” said Amentum Chief Executive Officer John Heller. “Our performance, combined with our recently announced divestiture of Rapid Solutions, highlights the strength of our business as a premier pure-play advanced engineering and technology solutions company and enhances our financial flexibility. We remain focused on delivering differentiated value to our customers and driving long-term growth through disciplined execution.”
GAAP Results
GAAP revenues increased 70% year-over-year primarily as a result of revenues from the combination with Jacobs’ Critical Mission Solutions and Cyber & Intelligence (CMS) businesses. GAAP operating income increased as a result of the contribution from CMS, partially offset by increased intangible amortization expense. GAAP net income and diluted earnings per share improved year-over-year due to the higher operating income and lower interest expense.
Pro Forma and Non-GAAP Results
Pro forma revenues, which include the results of CMS prepared in accordance with the requirements of Article 11 of Regulation S-X, increased 1% year-over-year driven by growth in Digital Solutions. Pro Forma Adjusted EBITDA increased 3% year-over-year primarily due to the higher revenues and improved operating performance. Pro Forma Adjusted Net Income and Adjusted Diluted Earnings Per Share increased due to higher operating profit partially offset by increases in interest and tax expenses.
Digital Solutions revenues for the second quarter increased 3% year-over-year driven by higher volume from new commercial contract awards, partially offset by the expected ramp-down of other historical programs. Adjusted EBITDA increased 7% year-over-year due to the higher revenues and improved operating performance.
Global Engineering Solutions revenues for the second quarter decreased 1% year-over-year as a result of the expected ramp-down on certain historical programs, partially offset by new contract awards and growth on existing programs. Adjusted EBITDA increased 1% year-over-year as a result of improved operating performance.
Cash Flow Summary
During the three months ended March 28, 2025, Amentum generated $57m of net cash provided by operating activities and used $31m and $12m in investing and financing activities, respectively. Net cash provided by operating activities was driven by strong cash earnings and disciplined working capital management partially offset by the timing of tax and interest payments. Investing activities included $4m in capital expenditures, which resulted in quarterly free cash flow of $53m, as well as contributions of $27m to equity method investments. Financing activities consisted primarily of $9m in distributions to non-controlling interests. As of March 28, 2025, Amentum had $546 m in cash and cash equivalents and $4.7bn of debt.
Backlog and Contract Awards
As of March 28, 2025, the Company had total backlog of $44.8bn, compared with $27.2bn as of March 29, 2024, an increase of $17.6bn primarily due to the acquisition of CMS. Funded backlog as of March 28, 2025 was $5.8bn.
Notable Q2 Fiscal Year 2025 Awards
• Multiple Intelligence Awards – Amentum was awarded over $1bn in intelligence contracts, delivering a variety of mission-focused solutions including critical infrastructure management, cyber security and intelligence analysis. These awards illustrate the strong demand for Amentum’s expertise and innovative intelligence solutions.
• Sizewell C: New U.K. Nuclear Power Station – Amentum was selected as the program manager and lead design engineer for Sizewell C, delivering critical engineering and technical services, and modernized infrastructure solutions. The station will have two 1.6 gigawatt reactors capable of supplying electricity to six m homes each year.
• Multiple IDIQ Task Order Awards – Amentum was awarded over $500 m on IDIQ task orders, including a program with the Naval Surface Warfare, leveraging our proven track-record in electromagnetic environmental effects, communication and execution systems, and Amentum’s highly-skilled digital engineers.
Announced Divestiture
On April 23, 2025, Amentum announced it has entered into a definitive agreement to sell its hardware and products business, Rapid Solutions, for $360m in cash. The business accounts for approximately 1% of Amentum’s annual Revenues and Adjusted EBITDA. The transaction is expected to close in the second half of 2025 and generate approximately $325m in after-tax proceeds. (Source: BUSINESS WIRE)
06 May 25. TransDigm Group Incorporated (NYSE: TDG), a leading global designer, producer and supplier of highly engineered aircraft components, today reported results for the second quarter ended March 29, 2025.
Second quarter highlights include:
• Net sales of $2,150m, up 12% from $1,919m in the prior year’s quarter;
• Net income of $479m, up 19% from the prior year’s quarter;
• Earnings per share of $8.24, up 18% from the prior year’s quarter;
• EBITDA As Defined of $1,162m, up 14% from $1,021 m in the prior year’s quarter;
• EBITDA As Defined margin of 54.0%;
• Adjusted earnings per share of $9.11, up 14% from $7.99 in the prior year’s quarter; and
• Reaffirming our previously stated fiscal 2025 financial guidance.
Quarter-to-Date Results
Net sales for the quarter increased 12.0%, or $231m, to $2,150m from $1,919m in the comparable quarter a year ago. Organic sales growth as a percentage of net sales was 6.9%.
Net income for the quarter increased $75m, or 18.6%, to $479m from $404m in the comparable quarter a year ago. The increase in net income primarily reflects the increase in net sales described above, the application of our value-driven operating strategy, lower one-time refinancing costs and lower non-cash stock and deferred compensation expense. The increase was partially offset by higher interest expense and income tax expense.
Adjusted net income for the quarter increased 14.5% to $529 m, or $9.11 per share, from $462m, or $7.99 per share, in the comparable quarter a year ago.
EBITDA for the quarter increased 18.5% to $1,089m from $919m for the comparable quarter a year ago. EBITDA As Defined for the quarter increased 13.8% to $1,162m compared with $1,021m in the comparable quarter a year ago. EBITDA As Defined as a percentage of net sales for the quarter was 54.0% compared with 53.2% in the comparable quarter a year ago.
“I am very pleased with the operating results for the second quarter. We continued to see strong performance as we closed out the first half of our fiscal year,” stated Kevin Stein, TransDigm Group’s President and Chief Executive Officer. “The consolidated business performed well in the second quarter with revenue growth driven by the commercial aftermarket and defense market. Additionally, we had a robust EBITDA As Defined margin for the quarter — our margin improved to 54.0%, up approximately 80 basis points from the comparable prior year period.
During the quarter, we returned approximately $53m of capital to shareholders via open market repurchases of our common stock. Subsequent to the quarter-end, we repurchased an additional $131m of our common stock. We view these repurchases like any other capital investment, and we expect this investment will meet or exceed our long-term return objectives.
We remain deeply committed to our operating strategy with dedicated efforts across our teams to consistently focus on our value drivers and management of our cost structure. We look forward to the second half of our fiscal 2025 and the opportunity to continue driving value for our shareholders.”
Share Repurchase Activity
During the second quarter of fiscal 2025, TransDigm repurchased 42,669 shares of its common stock at an average price per share of $1,249.52 for a total amount of approximately $53m. For the twenty-six week period ended March 29, 2025, TransDigm repurchased 295,469 shares of its common stock at an average price per share of $1,248.78 for a total amount of approximately $369 m.
Subsequent to the quarter-end, in April 2025, TransDigm repurchased 105,567 shares of its common stock at an average price per share of $1,240.91 for a total amount of approximately $131m.
Year-to-Date Results
Net sales for the twenty-six week period ended March 29, 2025 increased 12.1%, or $448m, to $4,156 m from $3,708 m in the comparable period a year ago. Organic sales growth as a percentage of net sales was 6.8%.
Net income for the twenty-six week period ended March 29, 2025 increased $186m, or 23.7%, to $972 m from $786 m in the comparable period a year ago. The increase in net income primarily reflects the increase in net sales described above, the application of our value-driven operating strategy, lower non-cash stock and deferred compensation expense and lower one-time refinancing costs. The increase was partially offset by higher interest expense and income tax expense.
GAAP earnings per share were reduced for the twenty-six week periods ended March 29, 2025 and March 30, 2024 by $0.83 per share and $1.75 per share, respectively, as a result of dividend equivalent payments made during each period. As a reminder, GAAP earnings per share are reduced when TransDigm makes dividend equivalent payments pursuant to its stock option plans. These dividend equivalent payments are made during TransDigm’s first fiscal quarter each year and also upon payment of any special dividends.
Adjusted net income for the twenty-six week period ended March 29, 2025 increased 12.7% to $986m, or $16.94 per share, from $875 m, or $15.15 per share, in the comparable period a year ago.
EBITDA for the twenty-six week period ended March 29, 2025 increased 22.5% to $2,176m from $1,777 m for the comparable period a year ago. EBITDA As Defined for the period increased 15.1% to $2,224m compared with $1,933m in the comparable period a year ago. EBITDA As Defined as a percentage of net sales for the period was 53.5% compared with 52.1% in the comparable period a year ago.
Please see the attached tables for a reconciliation of net income to EBITDA, EBITDA As Defined, and adjusted net income; a reconciliation of net cash provided by operating activities to EBITDA and EBITDA As Defined; and a reconciliation of earnings per share to adjusted earnings per share for the periods discussed in this press release.
Fiscal 2025 Outlook
Mr. Stein stated, “We are maintaining our previously issued fiscal 2025 financial guidance at this time. Additionally, we are maintaining the full year market channel growth assumption for the commercial aftermarket end market as underlying market fundamentals have not meaningfully changed. Our commercial OEM market and Defense market growth assumptions have been revised to reflect second quarter results and current expectations for the remainder of fiscal 2025.
The guidance incorporates the impact of recently enacted U.S. and non-U.S. tariffs. Based upon what we know today, we do not anticipate a material headwind from tariffs that we are unable to mitigate. The full-year guidance assumes no significant macroeconomic impacts or other factors, such as an economic recession, that could affect our business.
As the current environment is very dynamic, we will continue to evaluate our guidance and closely monitor our primary end markets as the year progresses.”
TransDigm expects fiscal 2025 financial guidance to be as follows:
• Net sales are anticipated to be in the range of $8,750m to $8,950m compared with $7,940m in fiscal 2024, an increase of 11.5% at the midpoint;
• Net income is anticipated to be in the range of $1,925m to $2,037m compared with $1,715m in fiscal 2024, an increase of 15.5% at the midpoint;
• Earnings per share is expected to be in the range of $32.27 to $34.19 per share based upon weighted average shares outstanding of 58.15m shares, compared with $25.62 per share in fiscal 2024, which is an increase of 29.7% at the midpoint;
• EBITDA As Defined is anticipated to be in the range of $4,615m to $4,755m compared with $4,173m in fiscal 2024, an increase of 12.3% at the midpoint (corresponding to an EBITDA As Defined margin guide of approximately 52.9% for fiscal 2025);
• Adjusted earnings per share is expected to be in the range of $35.51 to $37.43 per share compared with $33.99 per share in fiscal 2024, an increase of 7.3% at the midpoint; and
• Fiscal 2025 outlook is based on the following market growth assumptions:
• Commercial OEM revenue growth in the low single-digit to mid single-digit percentage range;
• Commercial aftermarket revenue growth in the high single-digit to low double-digit percentage range; and
• Defense revenue growth in the high single-digit to low double-digit percentage range. (Source: PR Newswire)
07 May 25. Filtronic (LON: FTC) shares rose nearly 7% to 102.25p on Tuesday after the company said it expects to exceed market expectations for both its 2025 and 2026 financial years. The AIM-listed aerospace and telecoms components maker has now gained 34.5% so far this year and is up around 104% over the past 12 months. Filtronic said strong momentum in the second half of its 2025 financial year would drive higher revenue and adjusted EBITDA, helped by increased production capacity now fully operational.
The company cited growing customer demand, particularly in the defence and space sectors, as a key factor behind its improved outlook.
“The strengthened trading performance in FY2025 is expected to carry through to FY2026 as anticipated new programmes come through with new and existing customers,” the company said in a trading update.
Chief Executive Nat Edington stated: “We are very pleased with the substantial progress we’ve made and the positive impact it’s having on our financial performance.”
“Our continued investment in engineering and manufacturing has positioned us to meet growing demand.”
Filtronic, which designs and manufactures advanced communications technology, added that new contracts and the ramp-up of customer programmes will support ongoing growth into next year.
07 May 25. Push to allow Norway’s wealth fund to invest in defence companies falters.
• Summary
• Companies
• Fund not allowed to invest in makers of nuclear arms
• Opposition looking to change ethical guidelines
• Appears not to have enough support to overturn minority government
Opposition efforts to allow Norway’s $1.8trn wealth fund, the world’s largest, to invest in large defence companies appear to be faltering, according to lawmakers involved in the process.
The fund follows ethical rules decided by parliament that prevent it from buying stakes in the likes of Airbus, Boeing (BA.N) BAE Systems and Lockheed Martin on the grounds they make components for nuclear weapons. (Source: Reuters)
07 May 25. Private investors are positioning themselves to play a key role in re-arming Europe by providing much-needed capital to help the defence industry scale up and boost the region’s industrial resilience. (Source: FT.com)
07 May 25. Houlihan Lokey Advises Klas. Houlihan Lokey announced that Klas has signed a definitive agreement to be acquired by Anduril Industries (Anduril). Klas is a global leader in edge computing and tactical communications. The company brings more than 30 years of experience developing innovative, rugged, scalable, and portable communications solutions for the network edge. Klas’ rugged, low size, weight, and power (SWaP) deployable communications solutions are designed to meet the demanding needs of government, military, automotive, and transportation markets. Klas operates across two offices located in Herndon, Virginia, and Tampa, Florida, with corporate offices located in Washington, D.C., and internationally in Dublin, Ireland.
Headquartered in Costa Mesa, California, Anduril is a defense technology company with a mission to transform U.S. and allied military capabilities with advanced technology. By bringing the expertise, technology, and business model of the 21st century’s most innovative companies to the defense industry, Anduril is changing how military systems are designed, built, and sold. Anduril’s family of systems is powered by Lattice, an AI software platform that turns thousands of data streams into a real-time, 3D command and control center.
The transaction brings Klas’ rugged hardware into Anduril’s portfolio of autonomous systems and connected warfare capabilities, delivering faster, more resilient, and seamlessly integrated solutions for operations in harsh conditions at the tactical edge. Klas is best known for its Voyager line: a modular family of computing and networking systems built to survive extreme temperatures, jamming, dust, and denied environments. Voyager is already deployed as part of Anduril’s Menace family of systems, supporting operations across ground, maritime, and air domains. By unifying Anduril’s Lattice software platform, autonomy, and sensor capabilities with Klas’ compute and networking infrastructure, Anduril can deliver lightweight, mission-tailored systems that are faster to deploy, easier to maintain, and more resilient under pressure. Anduril can now adapt edge compute and comms to the specific needs of each mission, platform, or unit—reducing integration risk and getting critical tech into the hands of warfighters faster.
Houlihan Lokey served as the exclusive financial advisor to Klas and marketed, structured, and negotiated the transaction on behalf of the company.
If you would like more information about Houlihan Lokey or have questions regarding the firm’s role in this transaction, please contact one of the team members listed below.
07 May 25. TEKEVER Confirmed As Europe’s Newest Unicorn. As It Invests GBP400m in the UK to Drive AI-driven Defence
• New funding round fully subscribed by existing investors to accelerate TEKEVER’s expansion.
• Company launches bold five-year program to enhance European security by building Defence innovation ecosystem.
TEKEVER, Europe’s leading provider of AI-driven Autonomous Systems, today announced the raise of a new funding round. Fully committed by existing investors, including round leader Ventura Capital, Baillie Gifford, the NATO Innovation Fund (NIF), Iberis Capital and Crescent Cove, the round confirms TEKEVER’s valuation above £1 Bn. This milestone cements TEKEVER as a European DefTech leader and fuels its continued expansion across Europe, as the company pursues global leadership in AI-driven autonomous defence and security.
The funding round coincides with the launch of TEKEVER’s ambitious five-year £400 m development program for the UK, known as OVERMATCH, aimed at transforming the UK’s defence industry and ensuring the UK and its allies remain at the forefront of vital autonomous, AI-driven technology.
The investment in research, infrastructure, and defence technology will generate more than 1000 high-skilled jobs and lay the foundation for a sovereign capability in next-generation warfare. The project will expand production of TEKEVER’s family of UAS (unmanned aerial systems, popularly known as drones), including the AR3 and AR5, in the UK, supporting the development of sovereign defence systems.
OVERMATCH is structured around four core pillars. The first is BUILD, through which TEKEVER will establish Centres of Excellence for Autonomy in the UK — hubs designed to unite academia, industry, and government in the pursuit of defence innovation. The second, NETWORK, involves the expansion of a pan-European testing and evaluation infrastructure, including new facilities built upon existing operations in the UK. The third pillar, SCALE, will deliver next-generation production hubs capable of responding with speed and flexibility to evolving operational demands. Finally, the PARTNER pillar reflects TEKEVER’s commitment to fostering an inclusive ecosystem, promoting collaboration between large and small players, and encouraging greater cross-border cooperation among like-minded nations.
At the heart of TEKEVER’s strategy is the creation of a defence innovation ecosystem that will bring together European businesses, particularly small to medium-sized enterprises, to integrate, test and scale new defence technologies to support the armed forces in the delivery of complex missions. A key lesson from the war in Ukraine is that success requires being constantly one step ahead. A new type of government-industry relationship, that puts operational output front and center, embraces new technologies faster than ever before, and iterates those capabilities faster than our adversaries is essential. With OVERMATCH, TEKEVER is stepping up and committing its full support in driving forward this critical agenda.
Ricardo Mendes, CEO of TEKEVER, commented: “The future of Europe relies on more than just increased defence spending; we need to transform our industrial base and be smarter about investments. TEKEVER’s experience deploying autonomous systems in Ukraine has shown us that the future of defence is about agility more than anything. That’s why we are launching our new strategy focused on establishing a defence innovation ecosystem that empowers companies of all sizes to innovate at pace and scale with the shared mission of securing the future of Europe. This latest funding round will help us deliver that mission. The continued backing from our investors, including Baillie Gifford and the NATO Innovation Fund, reflects their confidence in our vision, technology and long-term success.”
John Ridge, Chief Adoption Officer at the NATO Innovation Fund, commented: “I have been a fan of Tekever since my time as the Director of Innovation in the UK Ministry of Defence. Their mission focus and adaptability made them one of the most successful drone providers into Ukraine through Task Force Kindred. Their offering of uncrewed surveillance solutions has been instrumental in helping Ukraine counter Russian aggression by continuously innovating at the pace of conflict. It is therefore extremely exciting to be supporting them in my current role as the Chief Adoption Officer at the NATO Innovation Fund. Not only are they integrating increasingly sophisticated AI and software into their platforms, they are now also forging innovative new partnerships between government and industry to help transform Europe’s industrial base. We are committed to fully supporting Tekever’s Project Overmatch, which will catalyse the development of AI and autonomy in the UK, create thousands of high-skilled jobs, and help NATO unlock the potential of new technology to deal with an increasingly complex security environment in Europe.”
Mo El Husseiny, Managing Partner at Ventura Capital commented: “As a long-term investor in TEKEVER, we are proud of the company’s significant growth and to have led this investment round. TEKEVER is a flagship investment in Ventura’s portfolio of disruptive technology companies with market-leading technology, thousands of hours of operational experience and a uniquely profitable, sustainable business model.”
Chris Evdaimon, Investment Manager, Private Companies at Baillie Gifford commented: “The global defence and security landscape is rapidly changing and TEKEVER is well-placed to capture the opportunities emerging in this sector. With its vertically-integrated model and extensive operational experience in Ukraine, TEKEVER is driving the transformation of Europe’s defence capabilities and leading a new generation of agile, software-centric defence primes.”
Jun Hong Heng, Founder and Chief Investment Officer of Crescent Cove Advisors LP. commented: “We are excited to be part of TEKEVER’s next phase of growth as it scales to become a leader in Autonomy for defence and security. TEKEVER’s AI-first approach and vertical integration position it well to capture the opportunities emerging in the defence and security sectors.”
Diogo Chalbert Santos, Partner at Iberis Capital, commented: “TEKEVER stands out in the rapidly evolving defence and security sector with its unmatched innovation in autonomous systems. As the geopolitical landscape becomes increasingly complex, their ability to deliver scalable, advanced solutions positions the company as a leader in the defence and security ecosystem.”
A spokesperson for the National Security Strategic Investment Fund (NSSIF), said: ”As an existing investor, we are delighted to see further investment into TEKEVER that will strengthen our national security and defence, and benefit the UK economy.” (Source: ASD Network)
06 May 25. Expansion through acquisition and merger has been the focus of management over the past several years. The most recent acquisition of Aerojet Rocketdyne in mid-2023 was preceded by the acquisition of Tactical Data Links in early-2023 and the merger between Harris and L3 in 2019.The increased scale of L3Harris will make it a stronger competitor to defense prime contractors.
At the time of the acquisition of Aerojet Rocketdyne, L3Harris management stated: “The acquisition diversifies the L3Harris portfolio, adding considerable long-cycle backlog and broad expertise that enables opportunities in missile defense systems, hypersonics and advanced rocket engines, among other areas.” With the addition of Aerojet’s more than $2bn annual revenue, the company anticipated a significant boost to its overall market position. Early evidence with various recent contract awards provides some confirmation of this objective, while revenue growth has been modest to date. As the largest US propulsion enterprise, Aerojet Rocketdyne provides critical mass in propulsion. Aerojet covers all five propulsion categories: liquid, solid, air-breathing, electric, and hypersonic. Aerojet Rocketdyne is the only US company offering both solid and liquid propulsion systems. In recent years, it has established leadership in tactical missile propulsion systems and space propulsion in the
United States, such as that used for satellites and manned or unmanned spaceships. With Rocketdyne as part of the company, the position in liquid propulsion systems, an area that Rocketdyne dominated, has been strengthened dramatically.
It remains too early to get a strong understanding of how company financial performance is evolving following the merger and most recent acquisitions. A number of factors make the assessment challenging: divestiture of certain business units, integration and streamlining efforts, COVID impacts and longer-term supply chain disruptions as COVID recedes.
Total revenues finished calendar 2024 (the company’s fiscal year) at $21.3bn, a 9.8% increase over the 2023 figure of $19.4bn. Income before taxes was $1.60bn in 2024, up 31% from $1.22bn in 2023. Operating Margin was up from 6.3% to 7.5%.
The backlog was $34.2bn at year-end 2024, vs. $32.7bn the previous year. In comparison to other large US defense companies, the ratio of backlog to sales of 160% is on the low side.
Business segment revenues for 2024 were as follows: Integrated Mission Systems, $6.8bn (32% of total company revenue), Space & Airborne Systems $6.9 bn (32%), and Communications Systems $5.5bn (25%) and Aeroject Rocketdyne $2.3 bn (11%). Aerojet’s 2024 account for the full year, whereas its 2023 revenues represented only a part of the year. In 2024, the US Government accounted for 76% of all sales. Geographically, US customers represented 80% of sales and international customers the remaining 20%. (Source: tealgroup.com)
06 May 25. Europe’s burgeoning aerospace and defence companies to get stock- listings support under EIB accord with Euronext.
• EIB teams up with bourse Euronext to help European aerospace and defence entrepreneurs raise finance publicly
• EIB Advisory accord covers Euronext stock-listings programme planned for later this year
• Deal to empower next generation of European innovators
The European Investment Bank (EIB) is joining forces with bourse Euronext to bolster small and Mid-Cap companies in Europe’s aerospace and defence industries. Under an advisory agreement, the EIB will support Euronext in setting up a programme to ensure scale-up companies in the two sectors are able to navigate financial markets and access European capital.
The goal is to help aerospace and defence entrepreneurs understand their financing options and the steps needed to prepare for stock-market listings, also known as initial public offerings or IPOs. The planned Euronext programme, called IPOready Defence, is due to begin between 1 July and 30 September this year.
“Our collaboration with Euronext is important in empowering European innovators,” said EIB Vice-President Robert de Groot. “By combining our resources and expertise, we aim to support companies in the defence and aerospace sectors, helping them grow and maintain their strategic independence. This initiative focuses on enhancing autonomy in security and defence, steering Europe towards a stronger growth model that ensures European companies born in Europe to stay in Europe.”
In March, the EIB further expanded the eligibilities for security and defence investments. The accord involving the EIB’s advisory services marks the bank’s latest move to step up support for European Union security and defence.
“This partnership will enhance our IPOready programme,” said Euronext Chief Executive Officer Stéphane Boujnah. ”The programme aims to give innovative and high-growth small and mid-sized companies that contribute to the European continent’s strategic autonomy increased visibility and access to capital markets.”
In addition to facilitating innovation in the security and defence fields, the EIB support for the Euronext programme advances with a concrete step towards the improvement of the EU Capital Markets Union by filling a gap for European companies’ competitiveness.
The initiative is part of the EIB Action Plan to help European innovators scale up their businesses, getting listed on the stock market, and channel savings into productive investments.
Background information
EIB
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. We finance investments in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.
The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 bn in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security. The EIB Group stepped up its support to Europe’s security and defence industry in 2024 by enlarging the scope of projects eligible for financing and setting up a one-stop shop to streamline processes, doubling investment to €1 bn. The EIB expects to double this amount in 2025.
The Board of Directors approved in March a series of additional measures to further contribute to European peace, and included peace and security as a cross-cutting PPG to finance large-scale strategic projects in areas such as land border protection, military mobility, critical infrastructures, military transport, space, cybersecurity, anti-jamming technologies, radar systems, military equipment and facilities, drones, bio-hazard and seabed infrastructure protection, critical raw materials and research.
By fostering market integration and mobilising investment, the Group supported a record of over €100 bn in new investment for Europe’s energy security in 2024 and mobilised €110 bn in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB’s financing within the European Union targets cohesion regions, where income per capita is below the EU average.
In addition to financing, the EIB offers advisory services that help public and private partners develop and implement high-quality, investment-ready projects. In 2024 alone, our advisory teams helped mobilise over €200 bn of investment across Europe and beyond.
High-quality, up-to-date photos of our headquarters for media use are available here.
Euronext
Euronext is the leading European capital market infrastructure, covering the entire capital markets value chain, from listing, trading, clearing, settlement and custody to solutions for issuers and investors. Euronext runs MTS, one of Europe’s leading electronic fixed income trading markets, and Nord Pool, the European power market. Euronext also provides clearing and settlement services through Euronext Clearing and its Euronext Securities CSDs in Denmark, Italy, Norway and Portugal.
As of March 2025, Euronext’s regulated exchanges in Belgium, France, Ireland, Italy, the Netherlands, Norway and Portugal host nearly 1,800 listed issuers with €6.3 trillion in market capitalisation, a strong blue-chip franchise and the largest global centre for debt and fund listings. With a diverse domestic and international client base, Euronext handles 25% of European lit equity trading. Its products include equities, FX, ETFs, bonds, derivatives, commodities and indices.
06 May 25. Embraer Earnings Results 2025.
HIGHLIGHTS
• 2025 Guidance reiterated: Commercial Aviation deliveries between 77 and 85 aircraft, and Executive Aviation deliveries between 145 and 155 aircraft. Total company revenues in the US$7.0 to US$7.5bn range, adjusted EBIT margin between +7.5% and +8.3%, and adjusted free cash flow of US$200m or higher for the year. The company highlights Q1 results were not impacted by U.S. tariffs.
• Revenues totaled US$1,103m in 1Q25 – the best first quarter since 2016 – and +23% year over year (yoy). Highlight for Defense & Security revenues +72% yoy growth.
• Adjusted EBIT reached US$62.0m with a +5.6% margin in 1Q25 (+0.8% in 1Q24).
• Adjusted free cash flow w/o Eve was US$(385.8)m during the quarter in preparation for a higher number of aircraft deliveries in the coming quarters.
• The company approved the payment of R$51.4m in dividends (R$0.07 per share) related to 2024.
• Embraer issued a US$650m 10-year bond at 158bp over U.S. Treasury in 1Q25 and purchased US$522m in 2027 bonds (fully retired) and US$150 m in 2028 bonds.
• The company extended its debt duration to 6.3 years (3.8 years in 4Q) after the most recent liability management step and ended the quarter with a 0.5x net debt-to-EBITDA ratio, down from 1.8x yoy.
• Embraer delivered 30 jets in 1Q25, of which 7 were commercial jets (3 E2s and 4 E1s) and 23 were executive jets (14 light and 9 medium); +20% versus the 25 aircraft delivered yoy.
• Firm order backlog of US$26.4bn in 1Q25 – surpassed the all-time historical high set in the previous quarter. For more information please see 1Q25 Backlog and Deliveries release.
05 May 25. Palantir Reports Q1 2025 Revenue Growth of 39% Y/Y, U.S. Revenue Growth of 55% Y/Y; Raises FY 2025 Revenue Guidance to 36% Y/Y Growth and U.S. Comm Revenue Guidance to 68% Y/Y, Crushing Consensus Expectations.
Palantir Technologies Inc. (NASDAQ:PLTR) today announced financial results for the first quarter ended March 31, 2025.
“Our Rule of 40 score increased to 83% in the last quarter, once again breaking the metric. We are in the middle of a tectonic shift in the adoption of our software, particularly in the U.S. where our revenue soared 55% year-over-year, while our U.S. commercial revenue expanded 71% year-over-year in the first quarter to surpass a one-bn-dollar annual run rate,” said Alexander C. Karp, co-founder and chief executive officer of Palantir Technologies. “We are delivering the operating system for the modern enterprise in the era of AI. Consequently, we are raising our full-year guidance for total revenue growth to 36% and our guidance for U.S. commercial revenue growth to 68%.”
Q1 2025 Highlights
• U.S. revenue grew 55% year-over-year and 13% quarter-over-quarter to $628m
o U.S. commercial revenue grew 71% year-over-year and 19% quarter-over-quarter to $255m
o U.S. government revenue grew 45% year-over-year and 9% quarter-over-quarter to $373m
• Revenue grew 39% year-over-year and 7% quarter-over-quarter to $884 m
• Closed 139 deals of at least $1m, 51 deals of at least $5 m, and 31 deals of at least $10m
• Booked our highest quarter of U.S. commercial total contract value (“TCV”) of $810m, up 183% year-over-year
• U.S. commercial remaining deal value (“RDV”) of $2.32bn, up 127% year-over-year and 30% quarter-over-quarter
• Customer count grew 39% year-over-year and 8% quarter-over-quarter
• GAAP income from operations of $176m, representing a 20% margin
• Adjusted income from operations of $391m, representing a 44% margin
• Rule of 40 score of 83%
• GAAP net income of $214m, representing a 24% margin
• Cash from operations of $310m, representing a 35% margin
• Adjusted free cash flow of $370m, representing a 42% margin
• GAAP earnings per share (“EPS”) of $0.08
• Adjusted EPS of $0.13
• Cash, cash equivalents, and short-term U.S. Treasury securities of $5.4bn
Outlook
For Q2 2025, we expect:
• Revenue of between $934 – $938m.
• Adjusted income from operations of between $401 – $405m.
For full year 2025:
• We are raising our revenue guidance to between $3.890 – $3.902bn.
• We are raising our U.S. commercial revenue guidance to in excess of $1.178bn, representing a growth rate of at least 68%.
• We are raising our adjusted income from operations guidance to between $1.711 – $1.723bn.
• We are raising our adjusted free cash flow guidance to between $1.6 – $1.8bn.
• And we continue to expect GAAP operating income and net income in each quarter of this year. (Source: BUSINESS WIRE)
06 May 25. KBR Reports First Quarter Fiscal 2025 Results. Delivered Strong Financial Performance, Consistent Execution on Major Projects, and New Contract Wins
Over $150 m of Share Repurchases in the Quarter
First Quarter Fiscal 2025 Highlights
(All comparisons against the first quarter fiscal 2024 unless noted.)
• Revenues of $2.1bn, up 13%
• Net income attributable to KBR of $116m; Adjusted EBITDA2 of $243 m, up 17% with an Adjusted EBITDA2 margin of 11.8%
• Diluted EPS of $0.88; Adjusted EPS2 of $0.98, up 27%
• Bookings and options1 of $1.4bn with 1.0x book-to-bill1 (1.1x TTM book-to-bill1)
Fiscal Year 2025 Guidance
• Reaffirming previously provided outlook
KBR, Inc. (NYSE: KBR) today announced its first quarter fiscal 2025 results.
“KBR delivered strong performance in the first quarter, driving higher year-over-year revenues, margin, earnings, and cash flow,” said Stuart Bradie, President and CEO. “We remain focused on consistently executing well on our major projects and controlling what is within our control. We are benefiting from ongoing robust LNG demand, with increased Plaquemines activity yielding greater profit and cash flow. HomeSafe move volumes continued to ramp up during the quarter with rising customer satisfaction scores. Additionally, we are maintaining strong bid volumes and seeing continuing momentum with strategic new contract wins.”
Mr. Bradie continued, “Although we have not seen any material program or contract cuts in our U.S. government base, the environment remains volatile, and we remain agile to meet changing customer demand dynamics. We are realizing the benefits of our previously announced segment realignment plan and managing our indirect costs during this period of heightened uncertainty. We remain bullish on KBR’s long-term outlook. In the first quarter, we executed one of the largest share buybacks in the company’s history, acting on the board-authorized $750m repurchase program.”
Mr. Bradie concluded, “We have a strong, resilient portfolio, primarily comprising multi-year projects and programs, with multiple growth pathways as we operate across diversified geographies and end markets. Our focus is on executing our strategy, including continuing to partner closely with our customers to solve their most challenging problems.”
1 As used throughout this release, book-to-bill and bookings and options exclude long-term UK PFIs and the Plaquemines LNG project.
2 As used throughout this earnings release, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings per share, and Operating cash conversion are non-GAAP financial measures. See additional information at the end of this release regarding non-GAAP financial information, including reconciliations to the nearest GAAP measures.
First Quarter Fiscal 2025 Consolidated Results Review
(All comparisons against the first quarter fiscal 2024 unless noted.)
Revenues were $2.1bn, up 13% or $237m, primarily driven by growth in Defense & Intel, fueled by the LinQuest acquisition, and in Readiness & Sustainment due to moves associated with HomeSafe in Mission Technology Solutions and increasing demand in Sustainable Technology Solutions.
Operating income was $195m, up 17% or $29m, primarily due to increases in Gross profit and Equity in earnings of unconsolidated affiliates due to strong project execution on an LNG project, partially offset by increases in Selling, general and administrative expenses.
Net income attributable to KBR was $116m, up 25% or $23m, primarily due to the increase in Operating income noted above and flat below the line expenses.
Diluted earnings per share were $0.88, up 28% or $0.19, primarily due to higher Net income attributable to KBR noted above and lower diluted weighted average common shares outstanding due to open market share repurchases.
Adjusted EBITDA2 was $243m, up 17% or $36m, primarily due to the increase in Operating income noted above. Adjusted EBITDA2 margin was 11.8%, up from the prior year due to strong operating performance in the current year period.
Adjusted earnings per share2 were $0.98, up 27% or $0.21, due to the increase in Adjusted EBITDA2 noted above, flat below the line expenses, and lower adjusted weighted average common shares outstanding due to open market share repurchases.
Backlog and options as of the quarter end totaled $20.5 bn. Book-to-bill1 was 1.0x for the quarter and 1.1x on a trailing-twelve-months basis.
Summarized First Quarter Fiscal 2025 Segment Results
First Quarter Fiscal 2025 Segment Results Review
(All comparisons against the first quarter fiscal 2024 unless noted.)
Mission Technology Solutions (MTS)
Revenues were $1,505 m, up 14% or $180m, driven by growth in Defense & Intel, fueled by the LinQuest acquisition, and growth in Readiness & Sustainment due to moves associated with HomeSafe.
Operating income was $114 m, up 8% or $8m, primarily due to increases in Gross profit, partially offset by increases in Selling, general and administrative expenses and a gain related to the sale of our investment interest in a joint venture that did not recur in the current year period. Operating income margin was 7.6%.
Adjusted EBITDA2 was $145m, up 11% or $14m, generally in line with growth in Revenues. Adjusted EBITDA2 margin was 9.6%, generally in line with the prior year period.
Backlog and options as of the quarter end totaled $16.5bn. Book-to-bill1 was 0.9x for the quarter and 1.0x on a trailing-twelve months basis.
The following new business awards were announced:
• $229 m Contract for U.S. Army Cargo Helicopter Systems
• $176 m Advanced Space Technology Research and Optimization Contract for Air Force Research Laboratory
• $85 m Procurement as a Service Contract for Airfield Repair Kits with U.S. Air Force
Sustainable Technology Solutions (STS)
Revenues were $550m, up 12% or $57m, driven by increasing demand for sustainable technologies and services.
Operating income was $119m, up 27% or $25m, primarily due to increases in Gross profit and Equity in earnings of unconsolidated affiliates due to strong project execution on an LNG project. Operating income margin was 21.6%.
Adjusted EBITDA2 was $124m, up 20% or $21m, primarily due to higher Operating income noted above. Adjusted EBITDA2 margin was 22.5%, up from the prior year due to strong operating performance in the current year period.
Backlog as of the quarter end totaled $4.0bn. Book-to-bill1 was 1.1x for the quarter and 1.1x on a trailing-twelve months basis.
The following new business awards were announced:
• PMC Contract to Oversee Development of Fertilizer Project in Angola
• Second Ammonia Cracking Technology contract by Hanwha Impact Corporation in Korea
• Partnership with TerraPower for rapid deployment of Natrium Small Nuclear Reactors
Balance Sheet, Cash Flow, and Capital Deployment
Liquidity as of April 4, 2025, totaled approximately $917m, comprising $475m in borrowing capacity under the revolving credit facility and $442m cash and cash equivalents. Net leverage ratio as of April 4, 2025, was 2.6x.
Operating cash flows for the quarter were $98m, up 8% or $7m, with Operating cash conversion2 of 76%.
During the first quarter, KBR returned $176m in capital to shareholders, consisting of $156m in share repurchases (including withhold to cover shares) and $20m in regular dividends.
The company does not provide reconciliations of Adjusted EBITDA and Adjusted EPS to the most comparable GAAP financial measures on a forward-looking basis because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, and acquisition-related expenses without unreasonable effort, which could be material to the company’s results computed in accordance with GAAP.
Segment Realignment
To streamline and optimize our processes, we realigned our segments effective for fiscal 2025. As part of this realignment, our Government Solutions reportable segment has been renamed Mission Technology Solutions while Sustainable Technology Solutions has retained its name. The international business contained within Government Solutions has been integrated into both Mission Technology Solutions and Sustainable Technology Solutions. All information in this release is presented in accordance with the realigned reportable segments and all prior period information was recast to reflect the realigned reportable segments.
Supplemental Financial Disclosure Update
The company is modifying its presentation of disaggregated revenue categories included in its financial statements. The company’s current disaggregated presentation of revenues includes the following categories: contract type, business unit, and geography. After a thorough review and analysis of peer disclosures, as well as independent third-party evaluation, the company is revising its disclosures to better align with industry standards. As part of its first quarter 2025 financial statements, the company has begun providing revenues by customer type. The company will continue to provide revenues by business unit for the next three quarters and will phase out the business unit disclosure at the end of 2025.
Conference Call Details
The company will host a conference call to discuss its first quarter fiscal year 2025 results on Tuesday, May 6, 2025, at 7:30 a.m. Central Time. The conference call will be webcast simultaneously through the Investor Relations section of KBR’s website at investors.kbr.com. A replay of the webcast will be available shortly after the call on KBR’s website or by telephone at +1.866.813.9403, passcode: 502816.
05 May 25. HII sees Q1 revenue, profit dip, reaffirms 2025 outlook
Q1 2025 net earnings reached $149m, a slight decrease from the $153m reported in the first quarter of 2024.
In Q1 2025, HII’s new contract awards totalled around $2.1bn.
Huntington Ingalls Industries (HII) has reported a 2.5% decline in revenues for the first quarter (Q1) ended 31 March 2025, amounting to $2.7bn.
This decrease has been attributed to lower volumes at Newport News Shipbuilding, Ingalls Shipbuilding, and Mission Technologies.
Operating income for Q1 2025 stood at $161m with an operating margin of 5.9%, showing an improvement from the $154m and 5.5% respectively recorded in Q1 2024. This increase was largely due to a more favourable operating FAS/CAS adjustment and improved segment operating results year-on-year, HII said.
Net earnings were $149m, a slight decrease from the $153m reported in the first quarter of 2024.
During the quarter, the company witnessed the issuance of contracts totalling $2.1bn. This influx of new agreements has contributed to the cumulative order backlog reaching an estimated value of $48bn by the end of March 2025.
Segment operating income for Q1 2025 was reported at $171m, a small increase from the $170m in Q1 2024. The figure were primarily driven by stronger results at Mission Technologies and Newport News Shipbuilding, which were largely offset by results at Ingalls Shipbuilding.
HII president and CEO Chris Kastner said: “We are encouraged by the pace of our operational initiatives in 2025. We expect throughput to ramp as we move through the year and, coupled with our cost savings initiatives, we expect steady improvement in support of our operational and financial goals.
“We are also very supportive of the administration’s commitment to expand our nation’s shipbuilding capabilities and the maritime industrial base.”
Ingalls Shipbuilding’s revenues for the Q1 2025 were $637m, a decrease of 2.7% from the previous year period, mainly due to lower volumes in amphibious assault ships.
Revenue from Newport News Shipbuilding stood at $1.4bn, down by 2.6% compared to same period a year ago. The decline is primarily attributed to lower volumes in aircraft carriers and naval nuclear support services, despite higher volumes in the Columbia-class submarine programme.
Mission Technologies reported revenues of $735m for the first quarter, a 2.0% decrease from the same period in 2024, due to lower volumes in C5ISR. This was partially offset by higher volumes in cyber, electronic warfare, and space.
HII forecasts shipbuilding revenues for FY25 to be between $8.9bn and $9.1bn, with an expected shipbuilding operating margin of between 5.5% and 6.5%.
Mission Technologies is projected to bring in revenues between $2.9bn to $3.1bn with EBITDA margin between 8.0% and 8.5%.
The company also anticipates a free cash flow of between $300m and $500m for FY25.
Last month, HII delivered the first two small uncrewed undersea vehicles (SUUVs) to the US Navy for the Lionfish system programme.
This delivery is part of a multi-year programme that could see the US Navy acquire up to 200 SUUVs, with a potential contract value exceeding $347m. (Source: naval-technology.com)
05 May 25. BWX Technologies, Inc. (NYSE: BWXT) (“BWXT”, “we”, “us” or the “Company”) reported first quarter 2025 results.
• 1Q25 revenues of $682.3m
• 1Q25 net income of $75.5m, adjusted EBITDA(1) of $129.8m
• 1Q25 diluted GAAP EPS of $0.82, non-GAAP(1) EPS of $0.91
• Acquisition of Kinectrics Inc. on track to close in mid-2025
• Land purchase in Oak Ridge, Tennessee to ultimately support the U.S. Department of Energy’s National Nuclear Security Administration Domestic Uranium Enrichment Centrifuge Experiment
• Reaffirms 2025 non-GAAP EPS(1) guidance of $3.40-$3.55
“We had a solid start to 2025 with financial results that were ahead of expectations, driven by an increased pace of work and good operational performance,” said Rex D. Geveden, president and chief executive officer. “We had another quarter of strong Commercial backlog growth and see robust opportunities for growth in our Government markets, highlighted by our recent land purchase to support the National Nuclear Security Administration’s domestic uranium enrichment program.”
“BWXT’s foundation is providing our customers with mission critical nuclear products and solutions, and I am proud of the diversified and resilient portfolio we have built over our nearly ten years as a standalone company,” continued Geveden. “Our vertically integrated nuclear capabilities, unique infrastructure, and highly-skilled workforce enable our customers to put their trust in BWXT to support their most important programs through all economic cycles in the global security, clean energy, and nuclear medicine markets.”
“Our robust backlog, strong demand in our end-markets, operational excellence programs, and recent acquisitions, including the pending Kinectrics acquisition, provide confidence in our near and medium-term outlook,” said Geveden. “As such, we are reaffirming our 2025 financial guidance.”
Revenues
First quarter revenue increased in both operating segments. The Government Operations increase was driven by higher naval nuclear component production, special materials processing, and contribution from the acquisition of A.O.T., partially offset by lower microreactor volumes. The Commercial Operations increase was driven by higher revenue associated with commercial nuclear components and fuel handling, as well as higher medical sales, partially offset by lower field services activity due to timing on life-extension and outage projects.
Operating Income and Adjusted EBITDA(1)
First quarter GAAP operating income increased as an increase in Government Operations was partially offset by lower Commercial Operations and higher corporate expense, as well as restructuring and transformation, and acquisition related costs. First quarter non-GAAP(1) operating income increased as increases in both operating segments were partially offset by higher corporate expense. The Government Operations increase was driven by higher revenue and solid operational performance. The Commercial Operations increase was driven by higher revenue and partially offset by revenue mix, material procurement costs, and growth investment.
First quarter adjusted EBITDA(1) increased for the reasons noted above.
EPS
First quarter GAAP EPS increased as higher operating income, a lower tax rate, and slightly lower interest expense, were partially offset by lower other income. Non-GAAP EPS(1) increased driven by the items noted above.
Cash Flows
First quarter operating cash flow increased driven by higher net income, working capital management, and timing of awards. Capital expenditures increased slightly due to timing of select growth investments, including the previously announced expansion of the Cambridge manufacturing plant that supports the commercial nuclear market.
Dividend
BWXT paid $23.7m, or $0.25 per common share, to shareholders in the first quarter of 2025. On May 1, 2025, the BWXT Board of Directors declared a quarterly cash dividend of $0.25 per common share payable on June 5, 2025, to shareholders of record on May 19, 2025. (Source: BUSINESS WIRE)
05 May 25. V2X, Inc. (NYSE:VVX) announced first quarter 2025 financial results.
First Quarter Highlights
• Revenue of $1.02 bn with +10% y/y growth in Indo-Pacific region
• Net income of $8.1m; Adjusted net income1 of $31.5m, up 10% y/y
• Adjusted EBITDA1 of $67.0m, with a margin of 6.6%
• Diluted EPS of $0.25; Adjusted diluted EPS1 of $0.98, up 9% y/y
• Enhanced capital structure to generate interest expense savings and cash flow
• Notable progress on new Foreign Military and International Sales opportunities
05
“The overall trends in our market remain positive and are being driven by customer requirements to improve deterrence, enhance readiness, and strengthen national security,” said Jeremy C. Wensinger, President and Chief Executive Officer. “We are performing well as V2X possesses the unique full lifecycle, mission driven solutions to deliver on these requirements. The V2X value proposition is being recognized by customers and is demonstrated by our recent wins and extensions, which provide substantial visibility for the next several years.”
Mr. Wensinger continued, “V2X is in an enviable position with strong visibility, differentiated capabilities, and a robust geographic footprint. We are capitalizing on this position by increasing bid velocity. Additionally, the foreign military sales and international markets continue to represent a large and growing addressable opportunity to deliver more solutions across locations in which we already operate. These customers know V2X, they trust V2X, and see the benefit of our solutions. Our focused engagement strategy and visible presence is yielding substantial traction on several nearer-term opportunities that align exactly to our core capabilities.”
Mr. Wensinger concluded, “We continue to execute in a dynamic market, bringing the whole of V2X to meet our customers critical mission requirements. It’s our employees that make this possible and I’d like to recognize their commitment and contributions.”
First Quarter 2025 Results
“V2X reported revenue of $1.02 bn in the quarter, with 10% year-over-year growth in the Indo-Pacific region,” said Shawn Mural, Senior Vice President and Chief Financial Officer. “We are pleased with our performance and start to the year, particularly in light of the overall market environment. We remain on track to achieve our commitments and are confident in the strength and resiliency of our business model that generates strong, predictable cash flow.”
“For the quarter, the Company reported operating income of $34.3 m and adjusted operating income1 of $61.5m. V2X delivered adjusted EBITDA1 of $67.0m, with a margin of 6.6%. Net income for the quarter was $8.1 m dollars, up from $1.1m dollars from the prior year. Adjusted net income1 was $31.5m dollars, increasing 10% year-over-year. First quarter GAAP diluted EPS was $0.25. Adjusted diluted EPS1 for the quarter was $0.98, increasing 9% year-over-year.”
Mr. Mural continued, “During the quarter we continued to demonstrate our steadfast commitment to increasing shareholder value by making further enhancements to our capital structure. Our strong fundamental profile and consistent financial performance created a compelling opportunity to reprice and extend both our revolver and Term Loan A.”
Reaffirming 2025 Guidance
Mr. Mural concluded, “The trends and demand signals in our business remain positive and we believe our strategy, visibility, and targeted growth opportunities will yield value creation. Given our performance in the first quarter and current trends, the Company is reaffirming guidance for 2025.” (Source: PR Newswire)
05 May 25. Anduril to acquire Ireland’s Klas to bolster AI warfare systems. AI-powered defense startup Anduril Industries on Monday said it has entered into a definitive agreement to acquire Ireland-based tactical communications systems maker Klas. Anduril, along with software maker Palantir (PLTR.O) and Elon Musk’s SpaceX, has emerged as frontrunners to win a crucial part of President Donald Trump’s “Golden Dome” missile defense shield, Reuters reported last month citing people familiar with the matter.
The deal, the terms of which were not disclosed and is subject to regulatory approvals, aims to strengthen the defense technology firm’s autonomous warfare systems with Klas’s hardware.
Klas manufactures compact computers and internet equipment that enable soldiers to communicate and control drones, even in environments lacking electricity and cellphone signals.
Anduril, which is backed by venture capital heavyweights, will integrate Klas’ hardware into its AI-powered software platform Lattice, the “central brain” of its AI-powered autonomous systems.
Lattice synthesizes data from sensors of various unmanned systems to provide a real-time battlefield overview, facilitating collaboration between machines and humans. (Source: Reuters)
27 Apr 25. Spire Global completes sale of the firm’s Maritime business—debt eliminated. Spire Global, Inc. (NYSE: SPIR) has completed the previously announced sale of the firm’s maritime business to Kpler for approximately $233.5m, before adjustments, plus a $7.5m agreement for services over a 12 month period, post close. Spire used these proceeds of the sale to retire all outstanding debt. The remaining proceeds will be used to invest in near-term growth opportunities. (Source: Satnews)
04 May 25. ‘Deluded’ banks driving up the cost of British rearmament
Lack of support from mainstream lenders is hitting defence firms hard, say bosses.
“Deluded” banks are driving up the cost of re-arming Britain by refusing to work with defence companies, a top military supplier has warned.
Supacat, which makes Jackal reconnaissance vehicles for the Army, said high street lenders were still refusing to provide loans or even bank accounts to military contractors, despite being repeatedly urged to do so by ministers.
Many discriminate against defence companies under so-called environmental, social and governance (ESG) guidelines, or to qualify for special B-corp statuses that prohibit working with “controversial industries”.
The lack of support from mainstream banks and investment funds often means they must choose between abandoning growth plans or borrowing from creditors who demand much higher rates of interest, warned Nick Ames, Supacat’s chief executive.
He said: “It’s why defence is expensive. You find [a reluctance] with banking, with debt funds, with equity funds. The only finance you can get is therefore flipping expensive.”
The unwillingness of banks to work with defence companies threatens to make Britain’s rearmament push more expensive, he added. The Government is scrambling to restock Britain’s munition supplies and modernise the military, with defence spending set to rise to 2.5pc of GDP by 2027.
As previously revealed by The Telegraph, the list of defence contractors that have been spurned by banks range from start-ups working on simulators and underwater drones to larger companies that provide equipment such as guns used by police counter-terrorism squads.
Before the Ukraine war, even BAE Systems, the country’s biggest defence company, was warned by shareholders that its involvement in Britain’s nuclear deterrent had “become a real problem”, the company’s chief executive has said.
In recent months, ministers have urged financial institutions to be more supportive, with Sir Keir Starmer hailing the domestic defence industry as as “a source of national pride”.
But bosses say there have been few concrete signs of change, even as banks insist publicly that they have no problem with the sector.
The issue is particularly sensitive for smaller firms to discuss publicly, as many fear being blacklisted by lenders or targeted by violent protesters if they speak out.
‘Not interested’
Mr Ames said there was a widespread view that lenders “will bank you as long as you’re big enough, but if you’re small, and in defence, they’re not interested”.
He said: “The Government has got to be much firmer. The banks all sit there at these events and say, ‘Oh no, no, no, we’re investing in defence,’ but it’s deluded.
“I don’t think they really know what goes on when you actually go and talk to your high street bank.”
Supacat’s Jackal, a high-mobility reconnaissance vehicle, was originally rushed into service in 2008 to support troops in Afghanistan.
It is designed to protect troops from roadside explosions and mine attacks, with some 500 having been purchased by the Ministry of Defence.
Mr Ames said even his company had struggled to secure finance in recent years, with a bid to supply armoured vehicles to the German special forces thwarted by a failure to secure loans from any mainstream lenders. It was also “flatly refused” banking services by HSBC.
‘Lack of societal pride’
This year, Supacat was also dropped by its website designer over its military links and bosses were told by another company that their defence work barred them from purchasing carbon credits, which are used to mitigate a company’s environmental impact.
Many defence companies resort to playing down their links to the sector, and the potential lethality of their products, because of such concerns.
Kevin Kraven, the chief executive of ADS, said the issue underscored a “lack of societal pride” in the industry, but said there were now more positive discussions happening with some banks, particularly around the types of finance most needed by defence companies.
He said: “The tone of the discussion has changed a lot. What has not happened is practical measures.
“But, clearly, it is bonkers to be saying we shouldn’t support our defence industry, particularly at a time when the world is in the state it is in.”
In January, Mark Rutte, general secretary of the Nato alliance, complained that banks and investment funds were putting defence into the same category as “illicit drugs and pornography”.
On Friday, UK Finance, which represents banks, said there was no conflict between ESG rules and working with defence companies and insisted efforts were under way to “tackle barriers that do arise”.
David Raw, the group’s commercial finance spokesman, said: “The UK banking sector is fully committed to supporting defence companies. They are a vitally important contributor to our national security and banks provide a significant range of support and lending to them.
“Providing finance in this area is complex and banks can face the threat of violent protest. They must also ensure they comply with a range of domestic and international laws and regulations.”
Some banks that do work with defence companies have also found themselves targeted by protesters who intimidate staff or vandalise branches.
‘Geopolitical instability’
A spokesman for HSBC said: “The bank has a defence policy that is designed to comply with the legal and regulatory requirements of the many markets in which we operate.
“We feel that policy strikes the right balance between respecting those laws, supporting our customers and abiding by international norms.”
A government spokesman said: “In a time of increasing geopolitical instability, maintaining a robust and thriving defence sector is essential to our national security.
“No company should be denied access to financial services purely on the basis that they work in defence.
“We are working with banks and defence sector to protect defence companies access to banking.” (Source: Daily Telegraph)
————————————————————————————————————————————————————————————————————————————————————————————————————————————-
SPX CommTech, part of SPX Technologies Inc, innovates specialised technologies within the Radio Frequency (RF) spectrum to ensure a smarter, more secure future for all. Formed by TCI and ECS, SPX CommTech’s Battlespace portfolio enables defence and security teams to detect, defeat and exploit RF signals to enhance communications intelligence (COMINT) and counter unmanned aerial systems (Counter-UAS). Additionally, its Tactical Data Link portfolio allows intelligence gathering agencies, special forces, emergency response, and security teams to securely and reliably transfer video and data between enabled-aircraft and ground teams over long distances for airborne Intelligence, Surveillance, Reconnaissance (ISR).
For more information visit www.tcibr.com and www.enterprisecontrol.co.uk
————————————————————————————————————————————————————————————————————————————————————————————————————————————–