BATTLESPACE Updates

   +44 (0)77689 54766
   

BUSINESS NEWS

by

Sponsored by SPX Communication Technologies (TCI & ECS)

 

www.tcibr.com

 

www.enterprisecontrol.co.uk

 

——————————————————————————————————————————————————————————————————————————————————————————————————————————————-

31 Jul 25. Huntington Ingalls tops quarterly results as shipbuilding snags ease. U.S. military shipbuilder Huntington Ingalls (HII.N) reported second-quarter results above Wall Street estimates on Thursday, as production issues ease at its shipyards and demand booms for submarines. The company’s shares rose about 5% in premarket trading. Huntington is a prime contactor for the U.S. Navy’s nuclear-powered Columbia-class submarines and makes Virginia-class submarines at its Newport News Shipbuilding facility. Huntington’s output has suffered in recent quarters due to persistent problems in retaining skilled shipyard labor, despite China’s expanding naval footprint and high global tensions keeping demand for submarines and aircraft carriers high.

“We have seen early signs that targeted investments are helping to stabilize the workforce and supply chain, in support of the broader maritime industrial base,” CEO Chris Kastner said in a statement.

U.S. President Donald Trump’s push to revitalize American shipbuilding to deter China is also expected to boost sales for companies like Huntington. It posted a second quarter per-share profit of $3.86, surpassing analysts’ average estimate of $3.28. (Source: Reuters)

 

31 Jul 25. UK’s Melrose beats operating profit estimates on strong defence demand. GKN Aerospace owner Melrose Industries (MRON.L) reported first-half adjusted operating profit above market estimates on Friday, bolstered by rising defence and civil aerospace demand. While rising geopolitical tensions are fuelling defence spending and growth for aerospace suppliers, U.S. President Donald Trump’s sweeping tariffs are forcing companies like Melrose to reassess their supply chains and negotiate pricing. Melrose, which gets about 50% of its revenue from North America, said it had largely mitigated its direct exposure to tariffs through changes in the supply chain structure and other actions. The company reported 310m pounds ($409.17m) in adjusted operating profit for the first half of the year, compared with analysts’ estimate of 299m pounds, according to a company-compiled poll. Melrose maintained its 2025 forecast on a constant currency basis. ($1 = 0.7576 pounds) (Source: Reuters)

 

01 Aug 25. Melrose Industries Plc. Unaudited Results For Six Months Ended 30 June 2025.

Strong first half performance and focused execution

Melrose Industries PLC (“Melrose”, the “Company” or the “Group”), a world-leading global aerospace and defence business, today announces its interim results for the six months ended 30 June 2025 (the “Period”).

Group highlights

  • Strong first half performance with revenue growth of 6% on a like-for-like basis and adjusted operating profit1 up 29%2 versus the comparative period
  • Adjusted operating margin1 at 18.0%, up 380bps versus prior year with good progression in both divisions
  • Continued strong execution and commercial progress despite supply chain and tariff disruption
  • Multi-year transformation programme nearing completion, a key driver of margin expansion
  • Improvement of £91m in free cash flow versus the comparative period; on track to deliver £100+ m of free cash flow in 2025
  • Guidance for the full year unchanged on a constant currency basis

Net debt and leverage comparative information as at 31 December 2024

Peter Dilnot, Chief Executive Officer of Melrose Industries PLC, today said: “We delivered a strong performance in the first half with a 29% improvement in profit and cash flow significantly stronger than last year despite the backdrop of supply chain and tariff disruptions. Our multi-year transformation programme will be completed by year end and the benefits are already reading through with more to come.  We have a clear strategy underpinned by attractive aerospace and defence markets, differentiated technology and established positions on the world’s leading civil and defence aircraft. We are confident about delivering sustained increases in profit and cash flow in the years ahead and our free cash flow target of £600 m in 2029.”

Financial highlights2

  • Revenue of £1,720m, 6% growth on the prior year on a like-for-like basis (1% including exited businesses)
  • Statutory operating profit of £441m (2024: loss of £62 m) including gains on foreign exchange derivative contracts
  • Successful in largely mitigating the direct impact of current tariffs
  • Free cash outflow improved by £91m to £54m (2024: £145 m outflow) largely driven by higher earnings and lower restructuring costs
  • Adjusted diluted EPS1 of 15.1p compared to 11.9p in 2024 representing growth of 30%. Statutory diluted EPS of 22.2p (2024: loss of 6.1p)
  • Net debt1 of £1,404m, representing leverage1 of 2.0x, after funding growth and £71 m of share buybacks in 2025 (£91 m of current £250m buyback programme completed)
  • Continued dividend growth, with an interim dividend of 2.4 pence per share declared, an increase of 20% on the prior year

Divisional highlights2

Engines

  • Engines revenue growth of 11% to £781m with adjusted operating profit1 up 26% to £261m primarily driven by our leading risk and revenue sharing partnerships (RRSP) portfolio
  • Engines adjusted operating margin1 of 33.4%, 400bps higher than the comparative period driven by revenue growth and favourable mix
  • Adjusted operating profit1 included £182m (2024: £160m) of variable consideration from RRSP contracts
  • Five-year contract extension with Pratt & Whitney to support critical fan blade repairs with new San Diego facility fully operational
  • Continued strong progress in additive fabrication, with 100% serial production on the Fan Case Mount Ring for the PW1500G expected by the end of 2025
  • Deepened relationship with the Swedish Defence Administration (FMV), with investment in engine assembly, test and MRO repair capabilities for the RM16 engine

Structures

  • Structures revenue growth of 3% to £939m (7% lower including businesses exited in 2024) reflecting good growth in Defence partially offset by Civil where revenue was flat, as expected
  • Structures delivered 32% growth in adjusted operating profit1 to £63m as a result of revenue growth, business improvement actions and operational efficiencies
  • Adjusted operating margin up 200bps at 6.7%
  • Defence performing strongly driven by operational improvements; good progress in portfolio repricing, meeting our year-end target six months ahead of schedule
  • Six-year contract extension signed with BAE Systems for canopies on the Typhoon; and five-year contract signed with Lockheed Martin for C-130J nacelles
  • Agreement with Archer to further expand engagement in the ‘Midnight’ electric platform following our capital-light approach to investment
  • Restructuring programme nearing completion with full benefits expected in 2026 and beyond

Governance

  • Further to his appointment as Non-executive Director and Chair designate on 1 October 2024, on 30 March 2025, Chris Grigg took over as Non-executive Chairman of the Board
  • On 19 May 2025, Alison Goligher was appointed to the Board as Non-executive Director and Chair of the Remuneration Committee

Guidance for 2025 full year4

On a constant currency basis, our guidance for the full year is unchanged. Given the strengthening of sterling against the US dollar we are updating our guidance to reflect an average exchange rate of GBP £ = US $1.335 (previously $1.25), representing a movement of 7%:

  • Guidance continues to exclude the direct and indirect impact of any new or changed tariffs
  • Revenue between £3,425 m and £3,575 m (previously £3,550m to £3,700m)
  • Adjusted operating profit (post PLC costs) of between £620m to £650m (previously £650m to £690m)
  • Variable consideration of between £310 m and £340m (previously £320m to £360m)
  • Free cash flow after interest and tax remains unchanged at £100+m

 

01 Aug 25. Melrose beats estimates on the road to positive cash flows.

Full-year estimates have been trimmed due to sterling’s appreciation against the greenback

  • A 380 basis point operating margin hike
  • Free cash flow continues its recovery

In February, when we laid out the investment case for Melrose Industries (MRO), we noted that “constrained free cash flow is set to turn positive this year and doubts about the accounting treatment of long-term contracts are looking increasingly overblown”. The aerospace company, which now falls under the ‘pure-play’ banner, didn’t achieve the former objective by the June half-year mark, although it did record an improvement of £91m in free cash flow versus the 2024 comparator.  It remains confident of turning the corner by the year-end. And given that unbilled work completed by the company has increased by £219m, there is reason to feel hopeful on that score, particularly given that cash flows are weighted to the second half.  There has been something of a conflab linked to the company’s revenue recognition and cash collection, a debate familiar to shareholders in Rolls-Royce (RR.), but the treatment of after-market sales in the industry has always been contentious, although we can say that the company’s cash flows in this area will rise in accordance with the increase in civil flight hours, albeit with a lagged effect.  Aerospace and defence markets have had to contend with supply chain and tariff disruptions through the first half of 2025. Yet Melrose still beat market estimates, booking a 29 per cent increase in adjusted operating profits to £310mn on a 380 basis point increase in the related margin to 18 per cent. Rising geopolitical tensions have boosted prospects for aerospace contractors, but the company has been forced to trim full-year guidance in response to sterling’s rise against the US dollar, with midpoint adjusted operating profits now pitched at £635mn, against previous guidance of £670m.    With the shares trading below the median peer EV/Ebitda average at 11.8 times, and on an undemanding price/earnings to growth ratio of 0.7, we remain in the buyers’ circle. Buy. Last IC view: Buy, 612p, 06 Mar 2025. (Source: Investors Chronicle)

 

30 Jul 25. VSE Corporation (NASDAQ: VSEC, “VSE”, or the “Company”), a leading provider of aftermarket distribution and repair services, announced today results for the second quarter 2025.

SECOND QUARTER 2025 RESULTS(1)

(As compared to the Second Quarter 2024)

  • Total Revenues of $272.1m increased 41.1%
  • GAAP Net Income(2) of $13.6m
  • GAAP EPS (Diluted)(2) of $0.66
  • Adjusted EBITDA(3) of $43.5m increased 51.9%
  • Adjusted Net Income(3) of $20.1m increased 149.1%
  • Adjusted EPS (Diluted)(3) of $0.97 increased 106.4%

1 From continuing operations

2 Percentage change is not meaningful (NM)

3 Non-GAAP measure. See additional information at the end of this release regarding non-GAAP financial measures

MANAGEMENT COMMENTARY

“VSE delivered record revenue and profitability in the second quarter, underscoring the strength of our aviation-focused strategy and the continued momentum of our business transformation,” said John Cuomo, President and CEO of VSE Corporation. “This quarter was marked by significant progress, including the divestiture of our Fleet segment and the acquisition of Turbine Weld Industries, a highly specialized MRO service provider for complex engine components. These strategic actions, combined with the ongoing integration of recent acquisitions, have sharpened our focus, expanded our capabilities, and strengthened our position in the high-growth, high-margin aviation aftermarket.”

Mr. Cuomo continued, “Our team continues to perform at a high level, delivering strong year-over-year sales growth and margin expansion, supported by robust end-market demand. Both our distribution and MRO businesses achieved record sales and profitability during the quarter, and we remain well-positioned to sustain this momentum as we enter the second half of the year.”

“VSE’s second quarter results reflect continued operational discipline and strategic execution, with double-digit revenue growth, record margins, and positive free cash flow,” said Adam Cohn, Chief Financial Officer of VSE Corporation. “Looking ahead, we are focused on driving improved free cash flow generation, optimizing our cost structure to support the streamlined aviation platform, and completing post-divestiture transition efforts.” (Source: BUSINESS WIRE)

 

31 Jul 25.  Activist Carronade builds pressure on Viasat to split business. Activist investor Carronade Capital Management urged Viasat (VSAT.O) to split its defense business as part of the satellite communications firm’s ongoing strategic review. Carronade — which holds a 2.6% stake in the satellite communications firm — in an open letter to shareholders on Thursday called for either a spin-off or an IPO of the defense and advanced technologies (DAT) business, which it said is alone worth $50 per share. ( (Source: Reuters)

 

30 Jul 25. Indra Strengthens its Position in the UAS Market With the Acquisition of Aertec Defence & Aerial Systems (DAS).

  • The operation strengthens Spain’s position to compete for contracts under the ReArm Europe program, which is endowed with EUR800 bn and identifies UAS as a strategic solution
  • With this transaction, Indra reinforces its Indra Weapons & Ammunitions division with the TARSIS family of unmanned aerial systems and Aertec DAS’s industrial production capabilities
  • Indra will accelerate the development of this highly innovative Andalusian company, facilitating its access to new programs and opportunities in a business segment with enormous growth potential in the international market

Indra Group has today completed the acquisition of Aertec Defence & Aerial Systems (DAS), a company specialized in unmanned aerial systems, thereby strengthening its position in this market. This division of the aerospace company Aertec Solutions S.L. (AERTEC) has become a benchmark in Spain for the development of complete medium-sized unmanned aerial systems (UAS) of up to 150 kg. Its TARSIS family of tactical systems stands out in particular, having already been tested by the Spanish Armed Forces and incorporated into their solutions.

“This operation is part of Indra’s strategy to become a national leader in the development of complete medium-sized UAS at a time when the market is demanding such solutions,” said Ángel Escribano, Executive Chairman of Indra Group. “With the incorporation of Aertec DAS, the company strengthens its new Indra Weapons & Ammunition division, focused on the development of anti-drone systems, precision-guided systems, directed energy systems, and unmanned vehicles.”

The complementarity of both companies’ businesses enhances Indra’s position to pursue new business opportunities emerging from the EU-driven ReArm Europe program, which is endowed with €800 bn and identifies drones as a critical capability to be developed. The synergies generated between the two companies consolidate Spain’s competitive capacity to lead this market, thanks to the combination of Indra’s experience in coordinating large international programs with Aertec DAS’s notable industrial UAS production capabilities and the deep technological knowledge of its 46 professionals. Aertec DAS’s engineering capabilities and its TARSIS UAS family—with proprietary design and technology for observation and surveillance applications, low technological risk, and unique functionalities—are key elements to accelerate the deployment of this strategy. Its integration will facilitate the creation of a drone technology hub in Seville with industrial and engineering capabilities. With this move, Indra Group is committed to accelerating growth and strengthening the position of the Spanish industry in the drone business segment, which is expected to continue growing in the coming years. The use of such vehicles is essential for any military force to operate in modern conflicts, given their enormous versatility to carry out all kinds of missions effectively and at relatively low cost. (Source: ASD Network)

 

30 Jul 25.  Leonardo DRS Announces Financial Results for Second Quarter 2025.

  • Revenue: $829m, up 10% year-over-year
  • Net Earnings: $54m, up 42% year-over-year
  • Adjusted EBITDA: $96m, up 17% year-over-year
  • Diluted EPS: $0.20, up 43% year-over-year
  • Adjusted Diluted EPS: $0.23, up 28% year-over-year
  • Bookings: $853m (book-to-bill ratio of 1.0x)
  • Backlog: $8.6bn, up 9% year-over-year
  • Revises 2025 guidance across all metrics
  • Dividend: Company declares $0.09 cash dividend per share to be paid on September 3, 2025

Leonardo DRS, Inc. (Nasdaq: DRS), a leading provider of advanced defense technologies, today reported financial results for the second quarter 2025, which ended June 30, 2025.

CEO Commentary “Leonardo DRS delivered another set of strong financial results marked by healthy bookings, solid organic revenue growth and continued profit and margin expansion in the second quarter. The need to deter and contest heightened global threats continues to bolster customer demand for our innovative, high-performance technologies. Amidst a more dynamic macro backdrop, we remain focused on disciplined execution and delivering differentiated capabilities to customers,” said Bill Lynn, Chairman and CEO of Leonardo DRS.

The company delivered 10% revenue growth in the second quarter 2025. The year-over-year revenue growth for the quarter was primarily driven by programs related to electric power and propulsion, advanced infrared sensing and ground network computing. Increased volume and higher profitability on electric power and propulsion programs, namely Columbia Class, drove healthy Adjusted EBITDA growth and margin expansion. Strong operational performance coupled with reduced interest expense fortified bottom-line profitability with year-over-year growth visible across net earnings, adjusted net earnings, diluted EPS and adjusted diluted EPS.

Cash Flow

Net cash flow used in operating activities was $28 m for the second quarter. The company’s free cash flow use was $56 m in the quarter. Both operating and free cash flow uses were greater than the second quarter of last year due to higher working capital investment to fund continued growth. However, despite the increased capital expenditure associated with the company’s new South Carolina facility, higher profitability and improved working capital efficiency during the first six months of 2025 resulted in reduced free cash flow usage and better linearity in the half year compares.

Dividends and Stock Repurchases

During the second quarter, the company paid dividends to shareholders totaling approximately $24m or $0.09 per common share. DRS today announced that its Board of Directors declared a cash dividend of $0.09 per common share payable on September 3, 2025, to shareholders of record on August 20, 2025. Additionally, the company repurchased 265,120 shares of its common stock for approximately $11m in the second quarter.

Balance Sheet

At quarter end, the balance sheet had $278m of cash and $197m of outstanding borrowings under the company’s credit facility, which provides the company with sufficient financial capacity to deploy capital for growth and return capital to shareholders, while maintaining a healthy balance sheet. The company secured $853m in new funded bookings in the second quarter. Resilient customer demand for the company’s electric power and propulsion, naval network computing, advanced infrared sensing and ground systems technologies generated strong bookings in the quarter. Total backlog stood at $8.6 bn in the second quarter, representing a year-over-year increase of 9%. ASC bookings were driven by consistent customer demand for the company’s naval network computing, advanced infrared sensing and airborne sensing technologies. Revenue growth in the segment was most prominent in advanced infrared sensing and ground network computing programs. Adjusted EBITDA growth was aided by higher volume but margin contracted on higher internal research and development investment, less favorable mix and less efficient program execution. Strong customer demand was clear across the IMS segment with the company’s electric power and propulsion and force protection technologies bolstering second quarter bookings. Electric power and propulsion programs (Source: BUSINESS WIRE)

 

30 Jul 25. Tata Motors to buy Italy’s Iveco for $4.4bn. Tata Motors of India will buy Italy’s Iveco Group for 3.8bn euros ($4.4bn) in a bid to create a “global champion” in the commercial vehicles sector, the two companies said Wednesday. The deal excludes Iveco’s defence division for armoured vehicles, which is to be sold to Italian defence and aerospace group Leonardo, in a 1.7bn-euro deal announced earlier Wednesday. The combined company after Tata’s takeover aims to sell around 540,000 vehicles a year for total annual revenues of 22 bn euros, of which half would come from Europe, 35 percent from India and 15 percent from the Americas. Tata and Iveco — which also makes engines and buses — said in a joint statement there was “no overlap in their industrial and geographic footprints, creating a stronger, more diversified entity” which would use a shared strategic vision to drive long-term growth. The deal is expected to close in the first quarter of 2026, underscoring the status of Tata in Europe, with Jaguar Land Rover notably a wholly owned subsidiary of Tata Motors.

“The reinforced prospects of the new combination are strongly positive in terms of the security of employment and industrial footprint of Iveco Group as a whole,” Iveco’s chairwoman Suzanne Heywood said in the statement.

Iveco defence unit sold

For Natarajan Chandrasekaran, chairman of Tata Motors, “this is a logical next step following the demerger of the Tata Motors Commercial Vehicle business and will allow the combined group to compete on a truly global basis with two strategic home markets in India and Europe.

“The combined group’s complementary businesses and greater reach will enhance our ability to invest boldly. I look forward to securing the necessary approvals and concluding the transaction in the coming months,” he added in the statement.

Iveco Group’s CEO Olof Persson said the merger was “unlocking new potential to further enhance our industrial capabilities, accelerate innovation in zero-emission transport, and expand our reach in key global markets.”

He added: “This combination will allow us to better serve our customers with a broader, more advanced product portfolio and deliver long-term value to all stakeholders.”

Separately, Iveco’s armoured vehicles unit will be sold to Leonardo, whose chief Roberto Cingolani said the move would make it a “reference player in the European land defence market”.

Leonardo has announced it plans to integrate its electronic systems, including new-generation combat sensors, into Iveco Defence vehicles to “guarantee optimal effectiveness of operational solutions offered”. (Source: Google/https://www.france24.com/)

 

31 Jul 25. Airbus presses Dassault for decision following fighter tensions.

  • Summary
  • Airbus backs governance of Franco-German-Spanish fighter project
  • CEO remarks come after Dassault called for clearer leadership
  • Fighter teamed with drones would replace current warplanes by 2040

Europe’s Airbus (AIR.PA) challenged its partner Dassault Aviation (AM.PA) on Wednesday to “decide what it wants to do” after Dassault questioned arrangements for a new fighter, in the latest sign of tensions over the Franco-German-Spanish project. Dassault and Airbus, two industry rivals called on to work together after French President Emmanuel Macron and then-German Chancellor Angela Merkel launched the Future Combat Air System (SCAF) initiative in 2017, have sparred repeatedly over the running of the project to replace current warplanes by 2040. (Source: Reuters)

 

30 Jul 25. Airbus reports Half-Year (H1) 2025 results

  • 306 commercial aircraft delivered
  • Revenues € 29.6bn; EBIT Adjusted € 2.2bn
  • EBIT (reported) € 1.6bn; EPS (reported) € 1.93
  • Free cash flow before customer financing € -1.6bn
  • 2025 guidance unchanged

Airbus SE (stock exchange symbol: AIR) reported consolidated financial results for the Half-Year (H1) ended 30 June 2025.

“The commercial performance in the first half of 2025 has been strong across the Company,” said Guillaume Faury, Airbus Chief Executive Officer. “Our H1 financials reflect transformation progress in our Defence and Space division and the lower commercial aircraft deliveries compared to a year ago. We are producing aircraft in line with our plans but deliveries are backloaded as we face persistent engine supply issues on the A320 programme. The operating environment is complex and fast-changing. On tariffs, the recent political agreement between the EU and the US to revert to a zero-tariff approach for civil aircraft is a welcome development for our industry. Our 2025 guidance, which continues to exclude the impact of tariffs, remains unchanged.”

Gross commercial aircraft orders totalled 494 (H1 2024: 327 aircraft) with net orders of 402 aircraft after cancellations (H1 2024: 310 aircraft). The order backlog amounted to 8,754 commercial aircraft at the end of June 2025. Airbus Helicopters registered net orders totalling 171 units (H1 2024: 233 units), which were well spread across the product range. Order intake by value at Airbus Defence and Space totalled €5.1bn (H1 2024: €6.1bn).

Consolidated revenues increased 3% year-on-year to €29.6bn (H1 2024: €28.8bn). A total of 306 commercial aircraft were delivered (H1 2024: 323 aircraft), comprising 41 A220s, 232 A320 Family, 12 A330s and 21 A350s. Revenues generated by Airbus’ commercial aircraft activities decreased 2% to €20.8bn, mainly reflecting the lower number of deliveries. Airbus Helicopters’ revenues increased by 16% to €3.7bn, reflecting a solid performance from programmes and growth in services. Helicopter deliveries totalled 138 units (H1 2024: 124 units). Revenues at Airbus Defence and Space increased 17% year-on-year to €5.8bn, driven by higher volumes across all its business lines.

Consolidated EBIT Adjusted – an alternative performance measure and key indicator capturing the underlying business margin by excluding material charges or profits caused by movements in provisions related to programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses – totalled €2,204m (H1 2024: €1,391m). H1 2024 included charges recorded in the Space Systems business totalling €989m.

EBIT Adjusted related to Airbus’ commercial aircraft activities totalled €1,714m (H1 2024: €1,954m), mainly reflecting the lower deliveries partly offset by a favourable hedge rate and lower R&D expenses.

The A320 Family programme continues to ramp up towards a rate of 75 aircraft per month in 2027. The A330 programme is currently stabilising at a monthly production rate of 4 aircraft and in order to meet customer demand the Company now targets rate 5 in 2029. Specific supply chain challenges, notably with Spirit AeroSystems, are putting pressure on the ramp up of the A350 and the A220. The Company continues to target rate 12 for the A350 in 2028 and a monthly A220 production rate of 14 aircraft in 2026.

The Company is making good progress on the acquisition of certain Spirit AeroSystems work packages. While the expected closing date is now shifting into Q4 2025 due to ongoing regulatory approvals, all parties are putting the necessary efforts into the closing process.

Airbus Helicopters’ EBIT Adjusted increased to €249m (H1 2024: €230m), reflecting the growth in services and higher deliveries but with a less favourable mix.

EBIT Adjusted at Airbus Defence and Space amounted to € 265 m (H1 2024: €-807m), supported by higher volumes and improved profitability across all business lines.

On the A400M programme, the Company is engaged in positive and forward-looking discussions with the launch nations and OCCAR. This was notably marked by the agreement reached in June with OCCAR to advance seven deliveries for France and Spain and to further increase the visibility on the programme’s production. In light of uncertainties regarding the level of aircraft orders, Airbus continues to assess the potential impact on the programme’s manufacturing activities. Risks on the qualification of technical capabilities and associated costs remain stable.

Consolidated self-financed R&D expenses totalled €1,406m (H1 2024: €1,593m).

Consolidated EBIT (reported) amounted to €1,617m (H1 2024: €1,456m), including net Adjustments of €-587m.

These Adjustments comprised:

  • €-391m related to the dollar working capital mismatch and balance sheet revaluation, of which € -378m were in Q2. This mainly reflects the phasing impact arising from the difference between transaction date and delivery date;
  • €-105m related to the Airbus Defence and Space workforce adaptation plan recorded in Q1;
  • €-57m related to Spirit AeroSystems work packages stabilisation costs, mostly recorded in Q2;
  • €-34m of other costs including compliance and M&A, of which €-10m were in Q2.

The financial result was €490m (H1 2024: €-108m), mainly reflecting the revaluation of certain equity investments and revaluation of financial instruments, partially offset by the evolution of the US dollar. Consolidated net income(1) was €1,525m (H1 2024: €825m) with consolidated reported earnings per share of €1.93 (H1 2024: € 1.04).

Consolidated free cash flow before customer financing was €-1,610m (H1 2024: €-529m), mainly reflecting the planned inventory build-up to support the ramp-up across businesses and the high level of produced commercial aircraft awaiting engines. Consolidated free cash flow totalled €-1,584m (H1 2024: €-559m). The gross cash position stood at €21.1bn at the end of June 2025 (year-end 2024: €26.9bn), with a consolidated net cash position of €7.0bn (year-end 2024: €11.8bn), also reflecting the 2024 dividend payment and the weakening dollar environment.

Outlook

As the basis for its 2025 guidance, the Company excludes the impact of tariffs on its business. The Company’s 2025 guidance includes the impact of the integration of certain Spirit AeroSystems work packages based on preliminary estimates and an assumed closing in the fourth quarter of 2025. The Company assumes no additional disruptions to global trade or the world economy, air traffic, the supply chain, its internal operations and ability to deliver products and services. On that basis, the Company targets to achieve in 2025:

  • Around 820 commercial aircraft deliveries;
  • EBIT Adjusted of around €7.0bn;
  • Free Cash Flow before Customer Financing of around €4.5bn.

The anticipated impact of the integration of certain Spirit AeroSystems work packages on the Company’s guidance remains in line with previous estimates.

Post-closing event

The Board of Directors has selected Oliver Zipse to become non-executive director of the Company, for submission at the 2026 Airbus Annual General Meeting. Oliver Zipse has been serving as Chairman of the Board of Management of BMW AG since 2019. He will bring an extensive industry experience from a distinguished career at BMW AG that has included senior roles in development, technical planning, corporate strategy, and production in Germany, the UK, and South Africa in addition to his CEO tenure.

His nomination is part of the Board’s strategy to have a staggered succession plan, designed to continuously maintain a strong leadership presence at the Board. “We are delighted to put Oliver forward for this role,” said René Obermann, Chairman of the Board of Directors of Airbus SE. “His wealth of global industry experience will be invaluable to the Company as we move forward.”

 

31 Jul 25. Hensoldt H1 sales boosted by higher military spending in Europe. German defence electronics maker Hensoldt (HAGG.DE) reported higher half-year sales on Thursday, as orders were boosted by increased European military spending amid conflicts in Ukraine and the Middle East. The company said its sales grew 11% from a year earlier to 944m euros ($1.08bn) in the first six months of 2025, underpinned by the performance of its optronics business which offset a slower start in the sensor segment. The firm’s home country Germany, traditionally wary when it comes to spending on armaments, this year approved a fiscal plan that largely removes defence investment from limits on state borrowing.

“We now expect this political will to increasingly translate into concrete orders,” chief executive Oliver Doerre said in a statement, as Hensoldt’s order intake came at 1.40 bn euros in the first half.

The pan-European aerospace and defence equity index (.SXPARO)  has risen 50% so far this year on the prospect of higher defence spending in Europe and a U.S. disengagement in Europe. (Source: Reuters)

 

31 Jul 25. HENSOLDT with growing revenue and strong order intake in the first half of 2025.

  • High order intake of EUR 1,405m in the first half of the year (previous year: EUR 1,359m)
  • New record order backlog of EUR 7,070m
  • Revenue grows to EUR 944m in the first half of 2025 (previous year: EUR 849m)
  • Adjusted EBITDA rises slightly to EUR 107m (previous year: EUR 103 m)
  • Adjusted EBITDA margin at 11.3% (previous year: 12.2%)
  • Outlook for the 2025 financial year confirmed

The HENSOLDT Group (“HENSOLDT”) continued its successful development in the first half of 2025 and reaffirmed its strong positioning in the field of defence and security electronics. The security policy environment, which was marked by numerous crises and conflicts, and the resulting increase in defence spending once again led to a high level of order intake. This rose to a total of EUR 1,405m in the first six months of the current financial year (previous year: EUR 1,359m). Revenue increased to EUR 944m (previous year: EUR 849m). The strong performance of the optronics business offset the expected slower start in the sensors segment. In addition, there was less pass-through business (revenue with low value added) compared to the previous year. The book-to-bill ratio remained at a high level of 1.5x (previous year: 1.6x). Adjusted EBITDA developed positively and amounted to EUR 107m in the first half of the year (previous year: EUR 103 m), while the adjusted EBITDA margin declined slightly to 11.3% (previous year: 12.2%). This development reflects the temporary lower productivity in the Sensors segment due to the ramp-up phase of the new logistics centre.

Oliver Dörre, CEO of HENSOLDT, says: “The current security situation makes it clear every day how important it is for Germany and Europe to invest more in their own security. We now expect this political will to increasingly translate into concrete orders – and to arrive in our production halls in very real terms. Our renewed increase in order intake underscores this development and shows that we have the right solutions to enable our customers to meet the security requirements of the future. But it also contains a clear mandate: we will do everything in our power to deliver quickly, reliably and with the highest quality. Because true defence capability comes from the consistent expansion of industrial capacity and innovative strength.”

Christian Ladurner, CFO of HENSOLDT, says: “Our solid financial performance confirms our strategic course and enables us to continue investing decisively in our future. With targeted measures such as capacity expansion through automation and outsourcing, the new logistics centre as the key to further production increases, and the new building in Oberkochen, which will enable more efficient and profitable processes, we are laying the foundation for tomorrow’s growth today. We are well on track with all key transformation initiatives, creating capacity that will be sustainable until at least 2028. In addition, we are anticipating further developments and, once we have binding planning reliability, we are ready to take further steps.”

Seven bn mark exceeded in order backlog

With a volume of EUR 1,405m, order intake in the first half of the current financial year exceeded the already high level of the same period last year by another 3%, thus showing strong development despite the federal elections and change of government. This increase led to a new record order backlog of EUR 7,070m (previous year: EUR 6,553 m), which ensures a very high level of visibility. In the Sensors segment, order intake remained at a high level and was particularly influenced by contract extensions for Eurofighter Mk1 radars, the Eurofighter Halcon programme and further orders for TRML-4D radars. In the Optronics segment, order intake was significantly higher than in the same period of the previous year. Orders for the Ground Based Systems product line accounted for the largest share.

Completed refinancing increases financial flexibility

In July 2025, HENSOLDT successfully placed a promissory note loan on the capital market, thereby taking advantage of the new financing opportunities resulting from the refinancing completed in April. Strong investor demand for the promissory note loan led to oversubscription, with the total volume reaching €300m. With this important building block in its long-term financial strategy, the company was able to secure attractive terms and further diversify its investor base.

Outlook for the 2025 financial year confirmed

HENSOLDT expects business to continue developing positively in the 2025 financial year and confirms its guidance for all relevant key figures. Specifically, the company expects revenues of between EUR 2,500 and 2,600 m and a book-to-bill ratio of 1.2. An adjusted EBITDA margin of approximately 18% is also forecast.

 

31 Jul 25. France’s Safran raises 2025 outlook after higher mid-year profit. French aerospace group Safran (SAF.PA) raised its annual forecasts after posting higher-than-expected first-half profits on Thursday, led by brisk demand for spare parts for jet engines. Safran, which together with GE Aerospace (GE.N) o-produces engines for Airbus and Boeing medium-haul jets, also reported higher maintenance profits and saw its recently troubled cabin interiors business edge further into the black. The company’s closely watched recurring operating income rose 27% after certain adjustments to 2.51bn euros ($2.87bn), as revenues climbed 13% to 14.77bn euros. Analysts were on average expecting first-half recurring operating profit of 2.39bn euros on revenue of 14.74 bn euros, according to a company-compiled consensus.  Safran raised its full-year forecast for the same profit measure to between 5.0bn and 5.1 bn euros, up from a previous range of 4.8bn to 4.9 bn. It predicted revenue growth in the low teens, instead of around 10%. (Source: Reuters)

 

31 Jul 25. Rolls-Royce raises profit and cash flow outlook after strong H1.

  • Summary
  • Raises top-end of operating profit forecast by 300 mln stg
  • H1 operating profit rises 67% to 1.7 bln stg
  • Improves durability of Trent engines, civil contract terms

British aero-engineer Rolls-Royce (RR.L) raised its full-year outlook for both operating profit and free cash flow on Thursday after it navigated supply chain challenges and tariffs to deliver a strong first half.

The company, whose engines power Airbus’s widebody planes and some Boeing 787s, increased the top end of its operating profit guidance by 300 m pounds ($400 m) to 3.2 bn pounds and its free cash flow by 200 m pounds to 3.1 bn pounds. (Source: Reuters)

 

29 Jul 25. UK’s BAE upgrades forecasts as threat environment drives orders

  • Summary
  • First-half earnings up 13%, beating consensus
  • Sees full-year earnings up 9-11%
  • Lifts interim dividend 9%

Britain’s BAE Systems upgraded its annual earnings forecast after strong first-half results, as it continues to benefit from the heightened global threat environment which is driving countries to spend more on defence. BAE’s order book has been ticking up since Russia invaded Ukraine in 2022. This year, U.S. President Donald Trump’s call for European countries to become more self-sufficient in defence prompted most NATO countries to pledge to significantly increase military budgets. (Source: Reuters)

 

30 Jul 25. BAE SYSTEMS announces Results.

Half-yearly Report 2025

Charles Woodburn, Chief Executive, said “Our teams have delivered another strong operational and financial performance in the first half of the year, giving us the confidence to upgrade our guidance. In this heightened global threat environment, we continue to deliver mission critical capabilities to armed forces around the world and invest in our people, technologies and facilities to drive the improved efficiency, capacity and agility needed to meet the increasing demand for our highly relevant products and services. The breadth and depth of our geographic and product portfolio, together with our trusted track record of delivery, strengthen our confidence in the positive momentum of our business.”

Financial highlights

As defined by the Group

  • Sales increased 11%2 in the period, with all sectors contributing growth. Organic growth was 9%2.
  • Underlying EBIT was up 13%2, increasing the Group’s return on sales for the period to 10.6%. Organic growth was 10%2.
  • Underlying EPS increased 12%2 to 34.7p, after accounting for the Group’s underlying net finance costs and tax.
  • Free cash outflow of £368m is inclusive of movements on customer advances and is in line with expectations.
  • Order intake of £13.2bn remained high across all sectors and we closed the period with an order backlog of £75.4bn.

As derived from IFRS

  • The reported growth in revenue of 9%2 reflects the same strong operational performance across the portfolio but excludes the impact of our equity accounted investments.
  • Operating profit increased 2%2 as the growth in underlying EBIT was offset by additional costs from the amortisation of acquired intangibles, reflecting the significant acquisitions in the prior year which included Ball Aerospace. The prior year also included a one-off profit on the disposal of our partial interest in Air Astana of £75m.
  • Basic EPS was up 3%2 to 32.3p, after accounting for net finance costs and tax.
  • Net cash flow from operating activities is also inclusive of movements in customer advances in the period, as well as timing of other working capital requirements.
  1. We monitor the underlying financial performance of the Group using alternative performance measures (APMs). These measures are not defined in International Financial Reporting Standards (IFRS) and therefore are considered to be non-GAAP (Generally Accepted Accounting Principles) measures. The relevant IFRS measures are presented where appropriate. The purposes and definitions of non-GAAP measures are provided in the Alternative performance measures section on page 38.
  2. Growth rates for sales, underlying EBIT and underlying EPS are on a constant currency basis (i.e. calculated by translating the results from entities in functional currencies other than pounds sterling for the period ended 30 June 2024 to pounds sterling at the average exchange rate of such currencies for the period ended 30 June 2025). The comparatives have not been restated. All other growth rates and year-on-year movements are on a reported currency basis.

Delivering for our customers

Our focus on operational performance and contracting discipline enables our consistent delivery of critical capabilities and technologies for our customers. In the first half of the year, we secured £13.2bn of orders and made good progress executing on our long-term major programmes.

Highlights in the period included the following:

  • We laid the keel of HMS Dreadnought, the first of four Dreadnought Class submarines we are constructing for the Royal Navy, at our Barrow-in-Furness shipyard in the UK.
  • Concept and assessment work on the Global Combat Air Programme (GCAP) continues with our international partners and we received a further £1.0bn of funding on the UK assessment phase contract in the first half of the year.
  • We launched Edgewing, a joint venture with our international industry partners in Italy and Japan on GCAP, which will be accountable for the design and development of the next generation combat aircraft under the programme.
  • We secured a $1.2bn (£0.9bn) contract to provide the US Space Force with space-based missile tracking capabilities as the prime contractor to design and build a constellation of satellites.
  • Our Armored Multi-Purpose Vehicle (AMPV) celebrated its 500th delivery milestone and is on track, in full-rate production, to meet the US Army’s plan to field nearly 3,000 AMPVs in its Armored Brigade Combat Team formations.
  • We played a critical role in preparing Royal Navy ships for the UK Carrier Strike Group 2025 and the Royal Navy selected our all-electric Malloy T-150 uncrewed air systems (UAS) to transport vital supplies between the ships for the first time during its ongoing deployment to the Indo-Pacific.
  • Her Royal Highness The Princess of Wales officially named HMS Glasgow, the first of eight Type 26 frigates we are building for the Royal Navy, at a ceremony in Glasgow, UK. Work continues on HMS Glasgow’s sister ships – HMS Cardiff moved to our Scotstoun yard last year to begin outfitting whilst HMS Belfast, HMS Birmingham and HMS Sheffield are progressing at our Govan site.

Investing to support future growth

We continue to invest in our technologies, facilities and people to boost efficiency, capacity and innovation, deliver on our programmes and respond to the emerging threats our government customers are facing:

  • We opened a new shiplift and land-level repair complex at our Jacksonville, Florida, shipyard. The $250m (£190m) investment significantly enhances the capabilities of the complex and increases capacity on the site to maintain and repair US Navy vessels and commercial ships.
  • We officially opened the Janet Harvey Hall at our ship build site in Glasgow, UK. The hall has capacity for two Type 26 frigates to be constructed side-by-side, with HMS Belfast and HMS Birmingham currently under construction in the hall.
  • Her Royal Highness The Princess Royal officially opened our Applied Shipbuilding Academy in Glasgow, UK. The £12m facility comprises a multi-purpose flexible learning hub and provides a high quality, hands-on training environment.
  • Secretary of State for Defence, John Healey, opened our new £25m artillery factory in Sheffield, which is the first to restore critical gun barrel manufacturing capability in the UK and is on track to be operational before the end of the year.
  • We have invested more than £8m to develop innovative new approaches in the production of energetics and propellants, which will support the ramp up of our critical munitions production and strengthen supply chain resilience for the UK and its allies.
  • We made good progress against our target to recruit 2,400 graduates and apprentices in the UK this year. In South Australia, we welcomed our largest ever cohort of apprentices, which is part of a wider intake of more than 250 graduates, apprentices and interns in 2025.

Capital deployment

  • The strength and outlook for the Group, alongside our disciplined capital allocation, means that, after investing in our people, technologies and capital expenditure, we have continued to make significant returns to shareholders. In the first six months of the year, we returned £849m to shareholders, a 5% increase compared to the £812m returned in the first half of 2024. This reflected paying £622m in respect of the 20.6p 2024 final dividend (2024 £562m in respect of the 18.5p 2023 final dividend) and repurchasing 15,038,662 (2024 19,403,928) ordinary shares at a total cost of £227m including transaction costs (2024 £250m) under our ongoing buyback programme.
  • In addition, the Board has declared an interim dividend of 13.5p in respect of the first six months of the year, which will be paid on 3 December 2025.

2025 Upgraded Group guidance1

Given the strong operational performance in the first half, we are upgrading our sales and underlying EBIT guidance for the full year by 100bps each. Sales are now expected to increase in the range of 8% to 10% whilst underlying EBIT is expected to increase in the range of 9% to 11%. The share price increase since the start of the year is expected to result in fewer shares being repurchased which, along with a marginally higher tax rate, means our guidance for EPS growth remains unchanged between 8% to 10%. Our free cash flow target remains >£1.1bn.

Guidance is provided on a constant currency basis using an exchange rate of $1.28:£1, which is in line with the actual 2024 exchange rate.

 

28 Jul `25. VisionWave Holdings, Inc. (Nasdaq: VWAV) (“VisionWave” or the “Company”), a next-generation defense technology company, today announced that it has entered into a transformative funding agreement with a prominent institutional investor, securing an equity line for up to $50m in capital through a Standby Equity Purchase Agreement (SEPA), along with a $5 m tranche funding commitment in the form of convertible notes. This financing empowers VisionWave to execute on the strategic initiatives outlined in its investor presentation including the scaled deployment of its AI-powered multi-domain defense solutions across autonomous aerial, ground, and maritime systems. Under the terms of the agreement, VisionWave has the right to sell up to $50 m in common stock over a 24-month period at its discretion, providing flexible, growth-focused capital. The investor also committed to funding $5 m through convertible notes to support immediate scaling efforts, of which, the first $3m was funded upon entering into the funding agreement. Importantly, the $5m tranche funding includes protective covenants which prohibit the use of proceeds to pay any pre-existing liabilities accrued before the Company’s business combination. This ensures that all capital raised is strictly designated for working capital and growth initiatives, reinforcing VisionWave’s forward-focused strategy.

Noam Kenig, Chief Executive Officer of VisionWave, stated: “This funding commitment is more than just capital — it is a validation of our business model, our mission, and the extraordinary work our team has accomplished. With this support, we are positioned to accelerate delivery on our promises, enter new markets, and deepen engagements with defense and homeland security partners globally.”

Douglas Davis, Chairman of VisionWave, added: “Our business combination and public listing laid the foundation. This financing is the fuel. It provides us with the financial strength to scale operations, deliver cutting-edge technologies, and move faster than ever toward becoming a leader in intelligent defense systems. We viewed this investment as a mission to support national security innovation at a critical moment in time”

The proceeds from this financing will be used for working capital, product deployment, and continued innovation across VisionWave’s defense technology platforms.

About VisionWave Holdings Inc.

VisionWave Holdings, Inc. is at the forefront of revolutionizing defense capabilities by integrating advanced artificial intelligence (AI) and autonomous solutions across air, ground, and sea domains. Its state-of-the-art innovations— ranging from high-resolution radars and advanced vision systems to radio frequency (RF) sensing technologies are seeking to redefine operational efficiency and precision for military and homeland security applications worldwide. From tactical ground vehicles to precision weapon control systems, VisionWave leads the development of reliable, high-performance technologies that transform defense strategies and deliver superior results, even in the most challenging environments. With headquarters in the U.S. and strategic partnerships in Canada and the United Arab Emirates, VisionWave is uniquely positioned to serve global markets, offering cutting-edge defense solutions that address the evolving needs of security forces across the world.

(Source: PR Newswire)

 

29 Jul 25. Boeing’s quarterly loss shrinks as jet deliveries rebound, but shares drop

  • Summary
  • Boeing ramps up 737 MAX production, stabilizing operations
  • Boeing says FAA will not certify 777-9 and 737 MAX 7 and 10 models until 2026
  • Boeing faces supply chain disruptions, tariff pressures

Boeing’s quarterly loss more than halved and was much smaller than analysts expected as the U.S. planemaker ramped up jet deliveries, recovering from a regulatory crisis and a major strike that halted most production last year. The results highlighted Boeing’s efforts to cautiously increase monthly output this year, following years of quality issues and production delays on its flagship 737 MAX. Increased deliveries mark a pivotal step in Boeing’s effort to rebound from years of production disruptions and crises that piled on debt, increasing the urgency of accelerating output to restore financial stability. (Source: Reuters)

 

28 Jul 25. Firefly Aerospace seeks $5.5bn valuation in IPO as US space race heats up.

  • Summary
  • Companies
  • Company looks to price shares between $35-$39 each
  • Space startup plans to sell 16.2 m shares in IPO
  • US space industry poised for growth, analysts say

Northrop Grumman-backed space technology startup Firefly Aerospace is targeting a valuation of about $5.5bn in its U.S. initial public offering, as investor appetite for high-growth sectors shows signs of a sustained rebound. The Cedar Park, Texas-based maker of spacecraft and launch vehicles is aiming to sell 16.2 m shares, priced between $35 and $39 apiece, to raise as much as $631.8m, a filing showed on Monday. The launch comes as the U.S. IPO market shows signs of steady recovery in 2025 after a slump of almost three years, as easing interest rates, improved market conditions and a backlog of high-growth companies revive investor interest. Several notable listings, including neo-bank Chime (CHYM.O) and stablecoin issuer Circle (CRCL.N) have rekindled optimism in recent weeks, with more firms preparing to test the waters in the second half of the year.

“Although it isn’t riding on the hype of the current cryptocurrency and AI craze, Firefly still promises growth, represents a diversified portfolio exposure and plays to a defense investment theme that has been hot across both the IPO market and wider equities,” said Samuel Kerr, head of equity capital markets at Mergermarket. (Source: Reuters)

 

26 Jul 25. Moog Inc. (NYSE: MOG.A and MOG.B), a worldwide designer, manufacturer and systems integrator of high-performance precision motion and fluid controls and control systems, today reported fiscal third quarter 2025 net sales of $971 m, diluted earnings per share of $1.87 and adjusted diluted earnings per share of $2.37, all records, reflecting business growth and simplified operations.

(in millions, except per share results)

Three Months Ended

Quarter Highlights

  • Net sales increased to a record level, led by strength in Commercial Aircraft, Space and Defense, and Military Aircraft. Industrial declined due to divestitures completed at the beginning of this fiscal year.
  • Operating margin was relatively unchanged as charges for a program termination and charges for simplification initiatives offset stronger operational performance.
  • Adjusted operating margin increased due to the benefit from the sale of intellectual property and inventory associated with a non-core product line and a favorable sales mix, partially offset by tariff pressure.
  • Diluted net earnings per share increased as strong operational performance was partially offset by higher charges for a program termination and charges for simplification initiatives.
  • Adjusted diluted net earnings per share increased reflecting margin expansion and incremental profit from higher sales.
  • Free cash flow improved with a conversion greater than 120%.
  • Twelve-month backlog was at a record level of $2.7 bn with growth primarily driven by Military Aircraft and Space and Defense.
  • Acquired COTSWORKS after quarter-end, strengthening the Space and Defense product portfolio.

“We have just delivered another quarter of record financial results, reflective of our unrelenting focus on driving improved business performance,” said Pat Roche, CEO. “Our teams across the company continue advancing our simplification strategies, and our value proposition to our customers has resulted in strong order intake and a record 12-month backlog. Our employees are driving change and our business is strong, giving us confidence as we look to 2026.”

Segment Results

Sales in the third quarter increased 7% to a record $971m. Sales growth was led by Commercial Aircraft, which increased 16% on strong aftermarket demand. Space and Defense sales increased 11%, reflecting broad-based demand including satellite components and missile control programs. Military Aircraft sales increased 8%, driven by continued ramp-up on the FLRAA program. Industrial sales declined 4% due to previously completed divestitures.

Operating margin in the third quarter was 11.5%, down 10 basis points from the prior year. Military Aircraft operating margin declined 360 basis points to 8.0%, primarily due to charges tied to the termination of a product development effort, along with a less favorable sales mix and increased research and development investment in future programs. Industrial operating margin declined 20 basis points to 9.6%, reflecting charges related to portfolio shaping, facility rationalization and an investment impairment, as well as pressures from tariffs, and were partially offset by the benefit from simplification initiatives. Partially offsetting these declines was an increase in Commercial Aircraft operating margin of 200 basis points to 14.9%, supported by the benefit from the sale of a non-core product line and by record aftermarket sales, partially offset by pressures from tariffs and OEM customers’ production delays. In addition, Space and Defense operating margin increased 70 basis points to 13.3%, driven by profitable sales growth.

Adjusted operating margin excludes charges of $20m and $6m in the third quarters of 2025 and 2024, respectively, which primarily relate to simplification initiatives and a program termination. Excluding these charges, total company adjusted operating margin increased 130 basis points from 12.3% to 13.6%. Commercial Aircraft adjusted operating margin increased 180 basis points to 14.9%, supported by the benefit from the sale of a non-core product line and by record aftermarket sales, partially offset by pressures from tariffs and OEM customers’ production delays. Industrial adjusted operating margin improved 180 basis points to 13.5%, supported by the benefit of the simplification initiatives, including divestitures completed at the start of the year, partially offset by tariff pressure. Space and Defense adjusted operating margin increased 140 basis points to 14.1%, driven by profitable sales growth. Partially offsetting the increases was a decrease in Military Aircraft adjusted operating margin of 30 basis points to 11.6%, due to a less favorable program sales mix and increased research and development investment.

Free Cash Flow Results

Free cash flow for the quarter was $93m, driven by strong earnings and cash provided by changes in working capital. Capital expenditures were $33m.

2025 Financial Guidance

“We are increasing our sales guidance from 90 days ago based on the strength of the business. We are updating our adjusted operating margin guidance to reflect the expected pressures associated with tariffs and the underlying strength in our business. We are also moderating our free cash flow guidance based on working capital needs to support our elevated growth,” said Jennifer Walter, CFO. “We’re on track to close out a record year for sales in 2025. Our business is strong, and we’re continuing to expand our operating margin and generate an increasing level of free cash flow.” (Source: BUSINESS WIRE)

—————————————————————————————————————————————————————————————————————————————————————————————————————————————–

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

———————————————————————————————————————————————————————————————————————————————————————————————————————————————-