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17 Nov 23. Leonardo sells 6.9% in its U.S. unit DRS at $17.75 per share.   Italy’s defence and aerospace conglomerate Leonardo (LDOF.MI) said on Friday it had sold 6.9% of its U.S. subsidiary DRS (DRS.O) at $17.75 per share.

The state-controlled group sold 18 million shares in the upsized public secondary offering, leaving it with a 73.3% stake in DRS. Leonardo also granted a 30-day option to underwriters for the purchase of a further 2.7 million shares.

DRS will not receive any proceeds for the offering, the conglomerate said in a statement.

“With this transaction we will continue to consolidate Leonardo DRS and maintain a significant industrial and commercial presence in the US, the largest defense market in the world,” Chief Executive Roberto Cingolani said in the statement.

(Source: Reuters)

 

16 Nov 23. Astra Announces Third Quarter 2023 Financial Results. Astra Space, Inc. (“Astra”) (Nasdaq: ASTR) today announced financial results for its third quarter ended September 30, 2023.

Recent Business Highlights:

* Announced deliveries of 8 Astra Spacecraft Engines™ out of Sunnyvale manufacturing facility. These deliveries are expected to be recognized as revenue in Q4 2023 following anticipated customer acceptance.

* Signed two new Astra Spacecraft Engine™ customer contracts totaling $11.7m in contract value from the beginning of Q3 2023 through today. One of the customers is a major non-US defense prime and the other is an international commercial space company.

Third Quarter 2023 Financial Highlights:

For the three months ended September 30, 2023:

* GAAP Net Loss was $29.7m

* Adjusted Net Loss* was $27.4m

* Adjusted EBITDA Loss* was $24.7m

* Capital Expenditures during the quarter totaled $1.3m

* Cash and Cash Equivalents totaled $13.9m

* Restricted Cash totaled $5.0m

*Denotes Non-GAAP financial measure. Refer to “Explanation of Adjusted (or Non-GAAP) Financial Measures” later in this press release for reconciliation of GAAP to Non-GAAP financial measures.

(Source: BUSINESS WIRE)

 

16 Nov 23. Telenor sells Satellite unit for $217m. Norwegian telecoms operator Telenor (TEL.OL) said on Thursday it has agreed to sell its subsidiary Telenor Satellite to government-owned Space Norway for 2.36bn Norwegian crowns ($217.37m).

“The acquisition ensures that Norway – in a time of increasing geopolitical turmoil – has control over satellites that critical societal functions depend on and that are strategically important to Norway,” the Norwegian minister of trade and industry said in a separate statement.

Telenor Satellite provides satellites for the European, Middle East and North African (EMEA) market with broadcasting and data communication services. Space Norway’s activities range from small satellites in low earth orbits to large satellites and ground infrastructure.

The transaction is expected to close in January, Telenor said in a statement. ($1 = 10.8572 Norwegian crowns) (Source: Reuters)

 

16 Nov 23. GKN Aerospace-owner Melrose lifts 2023 profit expectations. British aerospace supplier Melrose (MRON.L) said on Thursday it expected 2023 profit to be 7% higher than its previous expectations, partly driven by stronger aftermarket demand and improved pricing.

The owner of GKN Aerospace, which counts Airbus (AIR.PA) and Boeing (BA.N) as its top customers, said trading and margin performance during the four month ended Oct. 31 was better than its previous expectations.

Melrose, which spun off its auto and other businesses in April to become a pure-play aerospace supplier, now expects an adjusted core profit of 680m pounds to 700m pounds ($842.5-$867.2m) for the year ending Dec. 31.

It also said that adjusted operating profit next year would be about 4% better than market expectations, given that demand would continue to be constrained by supply.

In September, Melrose flagged a potential cash hit of about 200 m pounds through 2026 after Pratt & Whitney parent RTX (RTX.N) warned of grounding of some engine variants for quality checks. GKN Aerospace has a 4% programme share on the GTF PW1100G variant impacted by this issue. ($1 = 0.8072 pounds)(Source: Reuters)

 

16 Nov 23. Melrose Trading Update.

Trading update

Strong growth, upgrading profit, higher margins

Melrose Industries PLC (“Melrose”) announces the following trading update for the four months from 1 July 2023 to 31 October 2023 (“the Period”) and gives upgraded guidance for the 2023 full year and a first guide for 2024. All numbers are calculated at constant currency1.

Current trading – better than previous expectations

* Melrose is trading ahead of expectations

* Strong revenue growth of 18%2 in the Period, with underlying demand higher

* The margin performance in the Period is substantially better than expectations, driven by higher aftermarket demand and pricing, and the successful delivery of operational improvements

Engines trading in the Period – margins comfortably exceed 25%

Engines revenue continues to grow at 18% and adjusted3 operating margins in the Period were comfortably in excess of 25%. This strong performance is driven by good aftermarket trading, up 24% in the Period, from higher volumes, increased scope and positive pricing. Engine OE volumes continue to increase, albeit they are constrained by industry OEM supply chain issues which are ongoing. Given the higher profitability of aftermarket, the resulting business mix is generating stronger margins and this shows no signs of slowing down.

Structures trading in the Period – margins exceed 4%

Revenue growth was 17%2 in the Period and adjusted3 operating margins have risen above 4%, ahead of the previous guidance. This is primarily due to business improvement projects progressing faster than expected. In particular, restructuring benefits from global plant consolidation are coming through and the repricing of contracts is ahead of plan. As a result, the division has positive momentum and is improving the quality of its earnings

New 2023 full year guidance1 – a 7% profit upgrade to previous expectations; stronger margins

* Revenue of between £3.3bn and £3.4bn

* Aerospace adjusted3 operating profit4 between £400m and £410m

* Aerospace adjusted3 operating margin over 12%

* Aerospace adjusted3 EBITDA4 between £545m and £555m

Expected full year revenue demand and growth continue to be strong at 18%2 year over year. Due to the stronger underlying margins being achieved, the 2023 full year profit expectations are upgraded by 7%, more than doubling profits compared to last year. This reflects ongoing confidence in the performance of the business with Engines full year margins now expected to be 25% and Structures margins 4% or more. Free cashflow5 and net debt, including the share buyback programme which commenced in October, are in line with expectations, with year end leverage3 expected to be c.1.3x.

First guide to 20241 – adjusted3 operating profit c.4% better than market expectations6

* Revenue of between £3.5bn7 and £3.7bn7

* Aerospace adjusted3 operating profit4 between £520m and £540 m

* Aerospace adjusted3 operating margin c.15%

* Aerospace adjusted3 EBITDA4 between £680m and £700m

The first guide to 2024 adjusted3 operating profit performance is c.4% better than market expectations6 even whilst prudently assuming that demand will continue to be constrained by supply. Growth will become higher when these ease. In addition, significant operational improvements are on track in both Engines and Structures to enhance margins further.

Including the cash impact arising from the recent announcements about the GTF Engine, ongoing restructuring spend, and the announced £500 m share buyback programme, Melrose expects leverage3 in 2024 to be comfortably below 2x, better than the previous medium term leverage guidance.

These higher expectations for 2023 and 2024 announced today, along with the recent signing of the new GE deal announced on 6 November 2023, show the guidance given in the Capital Markets Event on 17 May 2023 is being exceeded and the stated 2025 profit targets are substantially more underpinned than before.

Simon Peckham, Chief Executive of Melrose said: “It is a pleasure to hand over Melrose so well positioned for the future. 2024 will be another year of strong progress under its new leadership as the targets announced in the Capital Markets Event come into sight.”

1. Calculated using a foreign exchange rate of £1 = US$1.25
2. Excluding revenue from planned site closures
3. Described in the glossary to the Melrose Industries PLC Interim Financial Statements and considered by the Board to be a key measure of performance
4. Excluding PLC central costs
5. Free cashflow, post-central costs but before interest and tax
6. Per company compiled consensus of twelve analysts, being £510m adjusted3 operating profit for 2024
7. After exiting c.£150m of sales as planned, over the period from the Capital Markets Event on 17 May 2023 to the end of 2024

 

16 Nov 23. QinetiQ group plc (“QinetiQ” or “the Group”) today issues its interim results for the six months ended 30 September 2023.

Delivering long-term sustainable growth

* Strong and consistent operational performance globally. Orders up 19% at a record high of £953m, with a book-to-bill of 1.3x

* Revenue increased by 31% to £883m

* Underlying operating profit increased by 35%, with stable margins at 11.3%

* Significant new business and contract renewals during the period, with a highlight being the orders performance of Avantus with $657m of contract awards since the start of the financial year

* Full year performance in-line with market expectations, longer-term guidance unchanged

* On track to deliver organic growth to £2.4bn revenue at 12% margin by FY27, with strategic acquisitions providing optionality to build a business of c. £3bn by FY27

* QinetiQ’s value proposition remains highly relevant to our AUKUS customers’ mission and aligned with high-priority and high-growth segments to deliver increasing shareholder returns

Steve Wadey, Group Chief Executive Officer of QinetiQ said: “I’m delighted with our strong first half results that have been achieved as a result of consistent operational performance from across the Group and the continued dedication of our people to deliver high value services and products critical to national defence and security. We have delivered excellent organic growth and improved our margin performance. We have also won significant new business and major contract renewals, with a major highlight being the outstanding orders performance of Avantus with $657m of contract awards since the start of the financial year.

“We enter the second half of the year with confidence and positive momentum. Our relevance in the market is evidenced by the increasing demand for our distinctive offerings and growing order pipeline. We remain focused on supporting our customers’ mission and increasing returns for shareholders.”

 

16 Nov 23. Austal Australia has entered a Memorandum of Understanding (MOU) with Harland & Wolff Group (AIM: HARL) to pursue shipbuilding opportunities in the United Kingdom.

The MOU, signed at the 2023 Indo Pacific Maritime Exposition in Sydney, includes the transfer of technology, skills, and shipyard capabilities required to build the next generation of patrol vessels for the United Kingdom for maritime security agencies.

Both parties have identified opportunities in the UK market, including the Border Force vessel replacement programme, and intend to work jointly in a non-exclusive partnership on such opportunities.

Austal Limited Chief Executive Officer Paddy Gregg said the MOU was the first step towards winning new business in the United Kingdom, collaborating with Harland & Wolff, an established manufacturing, services and support company operating in the maritime defence industry.

“Harland & Wolff is an ideal partner for Austal in the pursuit of defence opportunities in the United Kingdom with the facilities, expertise and capabilities to effectively pursue and help deliver new vessels for organisations such as the UK Border Force. We look forward to collaborating with Harland Wolff on new opportunities that leverage Austal’s proven leadership in aluminium patrol boat design and construction.”

John Wood, Group Chief Executive Officer of Harland & Wolff said “I am delighted to have signed this MoU with Austal, a global leader in the aluminium vessel market. As we embark on the next phase of the Company’s growth and development, we will be partnering with Austal not only for the transfer of technology to build aluminium vessels but to also join hands with them when bidding for contracts. Austal’s skills and decades of experience in the aluminium build space and border security vessels are second to none. I look forward to working closely with them to build the next generation shipyard capability for aluminium vessels in the UK.”

 

15 Nov 23. Leonardo DRS Announces Launch of Proposed Secondary Offering of Common Stock by a Leonardo S.p.A. Subsidiary. LEONARDO DRS INC. (NASDAQ: DRS) Leonardo DRS, Inc. (“DRS”) announced today the commencement of a public secondary offering of 16,500,000 shares of its common stock by Leonardo US Holding, LLC (the “Selling Stockholder”), a subsidiary of Leonardo S.p.A. The Selling Stockholder intends to grant the underwriters a 30-day option to purchase up to an additional 2,475,000 shares of DRS’s common stock from the Selling Stockholder. Upon completion of the offering, Leonardo S.p.A. is expected to beneficially own approximately 73.9% of the outstanding common stock of DRS, or approximately 72.9% if the underwriters fully exercise their option to purchase additional shares. All of the shares in the offering will be sold by the Selling Stockholder. DRS is not offering any shares of common stock in this offering and will not receive any proceeds from the sale of shares by the Selling Stockholder.

Morgan Stanley, BofA Securities and J.P. Morgan are acting as joint book-running managers for the proposed offering.

The shares of common stock in the offering are being offered pursuant to an automatically effective shelf registration statement on Form S-3 filed with the Securities and Exchange Commission (“SEC”) on November 15, 2023. The offering is being made only by means of a prospectus supplement and the accompanying prospectus that forms a part of the registration statement. Copies of the prospectus and prospectus supplement relating to the offering may be obtained if you request it by contacting: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014; BofA Securities, Inc., Attention: Prospectus Department, NC1-022-02-25, 201 North Tryon Street, Charlotte, North Carolina 28255-0001 or by email at ; or J.P. Morgan Securities LLC, Attention: c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717 or by telephone at 866-803-9204 or by email at .

This press release shall not constitute an offer to sell or a solicitation of an offer to buy securities, nor shall there be any offer or sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. (Source: BUSINESS WIRE)

 

15 Nov 23. Washington Harbour Partners LP Acquires SIXGEN. Washington Harbour Partners LP (“Washington Harbour”), a leading private investment firm that specializes in partnering with founders and management teams to unlock their next phase of growth, announced today it has acquired SIXGEN Incorporated (“SIXGEN”), a world-class cyber solutions company for the U.S. national security, intelligence, and defense communities, and critical commercial industries.

“We are thrilled to have this opportunity to partner with SIXGEN and help them continue their growth journey,” said Mina Faltas, Founder and Chief Investment Officer of Washington Harbour. “In SIXGEN, we see a company with best-in-class capabilities, outstanding reputation and qualifications, and a strong culture of excellence in delivery and commitment to the national mission.”

The acquisition of SIXGEN is a natural fit for Washington Harbour’s operational and domain expertise in high-growth companies in non-cyclical industries, including government services, defense technology, cybersecurity, software, and tech-enabled business and consumer services. SIXGEN will continue to be led by the Company’s founder and CEO, Ethan Dietrich.

Mr. Faltas added, “The national security cyber domain and threat landscape is rapidly evolving, and we are aligned with Ethan’s strategic vision for SIXGEN, bringing their exceptional talent and solutions to every corner of our national cyber needs. We look forward to investing behind our shared intent to accelerate growth and make a broader impact on our nation’s security. SIXGEN is a truly innovative technology-enabled cyber firm, and it’s an honor to partner and further their position as a leader in high assurance, zero trust security.”

“Mission impact is in our DNA. The shared values we have around innovation and technological advancement create massive possibilities to shift the cyber landscape to our country’s advantage,” said Ethan Dietrich, CEO of SIXGEN. “Our partnership with Washington Harbour will bring significant financial, strategic, and operational resources as well as global cyber expertise to help us in our next stage of evolution. Our aim is to fundamentally alter the landscape in which we operate, addressing our customers’ ever-evolving needs and serving the unique and critical missions of our government. Together with Washington Harbour, we will make larger impacts and significant leaps forward in national cyber capabilities.”

This acquisition is Washington Harbour’s second platform investment in the U.S. Federal Government IT sector. As a market leader and innovator, SIXGEN’s cyber services and high-end product suite are critical to the national security mission and designed to meet the unique and specific needs of the nation’s most important cybersecurity problems. With a world-class team of operators, pioneering developers and engineers, and cyber data science and threat prediction utilizing cyber-AI platforms, SIXGEN offers industry leading red team capabilities, with bespoke expertise in emulating and assessing real-world threats, supported by a portfolio of next generation intellectual property.

“The excitement around this partnership transaction has created a number of unique and strategic opportunities for our next chapter as a pioneering cyber solutions company that I look forward to capitalizing on alongside all of our SIXGEN teammates and partners,” said Shawn Devroude, SIXGEN’s Chief Strategy Officer. “Since joining SIXGEN earlier this year after a 20-year career in national security operations with the FBI, I have been keen on bringing our cutting-edge cyber solutions to new and existing customers across DoD and the US Intelligence Community, while also forging key partnerships within the cyber capabilities industry. Our partnership with Washington Harbour will only further strengthen our potential and underpin our industry leading offerings.”

“SIXGEN has cultivated a team of world-class cyber operators who aim to solve the most difficult challenges faced by their customers with a focus on innovation and customer mission success,” said Ralph Kahn, Operating Partner at Washington Harbour. ” One of the biggest challenges in the cyber space today is developing and deploying new cutting-edge cyber solutions quickly and at scale. With SIXGEN’s world class capabilities combined with Washington Harbour’s resources, I believe we can quickly make a game-changing impact that will strengthen our nation’s cybersecurity at scale. We look forward to supporting the continued growth of the business to further enhance and accelerate the team’s impact on customers and the nation.”

Washington Harbour was advised by Crowell & Morning on legal matters and PwC on financial. Holland & Knight served as the legal advisor and KippsDeSanto & Co. served as financial advisor to SIXGEN.

About SIXGEN

SIXGEN provides world-class cyber services, products and solutions to protect and enable government organizations and commercial industries. The Company’s highly skilled operators conduct research and assessments based on real-world threats, emulating global adversaries and malicious actors to report detailed and actionable findings on critical assets and infrastructures. Using innovative processes, tools, and advanced techniques, SIXGEN’s developers and engineers design products and capabilities to predict and overcome cybersecurity vulnerabilities and enable national security integrated deterrence strategies while prioritizing security best practice, customer requirements and privacy, and overall mission impact.

For more information, please visit www.sixgen.io.

About Washington Harbour Partners LP

Washington Harbour Partners LP, based in Washington DC, is a private investment firm that brings a fresh approach to investors and founders, providing flexibility and deep operational expertise at all stages of the investment cycle – from growth equity to control buyouts to public markets. The firm has deep domain expertise in the areas of software, cybersecurity, defense technologies, government & business services, and technology-enabled consumer services.

For more information, please visit www.washingtonharbour.com.

(Source: BUSINESS WIRE)

 

15 Nov 23. Sypris Reports Third Quarter Results.

Revenue up 33%; Margins Expand; Positive 2024 Outlook.

Sypris Solutions, Inc. (Nasdaq/GM: SYPR) today reported financial results for its third quarter ended October 1, 2023.

HIGHLIGHTS

* Revenue for the quarter increased 33.3% year-over-year, driven by a 73.5% increase for Sypris Electronics and a 13.8% increase for Sypris Technologies.

* Gross profit increased 105.0% year-over-year, with an improvement of 186.8% for Sypris Electronics and 36.2% for Sypris Technologies.

* Gross margin for the quarter increased 420 basis points to 12.0% with an increase of 710 basis points to 18.1% for Sypris Electronics and 120 basis points to 7.5% for Sypris Technologies.

* Backlog increased by 8.4%, reflecting a 9.0% year-over-year increase at Sypris Electronics after having taken into account the significant increase in shipments during the period.

* During the quarter, Sypris Technologies announced that it had received an order to supply 72-inch insulated joints for use in the expansion of the Atoka Water Pipeline for the Oklahoma City Water Utilities Trust. Shipments are expected to begin in 2023 and extend into 2024.

* Sypris Technologies also announced that it had received an award for specialty high-pressure closures for use in the Venture Global CP2 LNG Export Terminal and the Venture Global CP Express Natural Gas Pipeline Project. Shipments under this award are anticipated to be completed by year-end 2023.

* Subsequent to quarter end, Sypris Electronics announced that it had received a follow-on contract to manufacture advanced integrated electronic warfare and communications avionics system modules for an American family of single-seat, single-engine, all-weather stealth multirole combat aircraft. The program is one of the largest government DOD programs, and production is expected to begin in 2023 and will continue into mid-year 2025.

* The Company updated its full-year outlook for 2023, with revenue now expected to increase 25% year-over-year, at the lower end of our prior guidance due to customer design changes. Gross profit is expected to increase in line with revenue, while gross margin is expected to approximate the prior year due to the continuing unfavorable impact of the Mexican peso relative to the U.S. dollar.

* The outlook for 2024 remains quite positive, reflecting a strong backlog and the continued momentum of new contract awards across many of the Company’s markets. Revenue for 2024 is forecast to increase 15-20%. Gross profit is expected to increase 25-30%, while gross margins are expected to expand 150-200 basis points year-over-year.

“We were pleased with our third quarter performance, as both operating segments reported significant growth in revenue, gross profit, and gross margin. Our teammates have done an excellent job navigating inflationary pressures, supply chain challenges, customer demand volatility and currency fluctuations to position the business for further growth and increased profitability during the remainder of 2023,” commented Jeffrey T. Gill, President and Chief Executive Officer.

“Backlog for Sypris Electronics increased, rising 9.0% on a year-over-year basis. This strong backlog is expected to support revenue growth over the balance of this year and 2024. Customer funding has already been secured for a portion of these key programs, which enables us to procure inventory under multi-year purchase orders to mitigate future supply chain issues.

“Overall demand from customers serving the automotive, commercial vehicle, sport utility and off-highway markets has remained stable. We continue to invest in new equipment and drive continuous improvement initiatives to support more cost-efficient operations, which will help offset headwinds for our automotive and commercial vehicle components as our customers adjust inventory levels to align with OEM build schedules.

“Shipments of Sypris Technologies energy products increased 27.3% year-over-year, while orders during the quarter increased 24.1% sequentially. With open quotes outstanding on several large projects both domestically and internationally, additional opportunities for growth may exist with these and other projects in support of elevated domestic natural gas production and in adjacent markets to further diversify our industry and customer portfolios.”

Third Quarter Results

The Company reported revenue of $33.6m for the third quarter of 2023, compared to $25.2m for the prior-year comparable period. Additionally, the Company reported a net loss of $0.6m, or $0.03 per share, compared to a net loss of $2.2m, or $0.10 per share for the prior-year period. Results for the quarter reflected the unfavorable impact of the appreciation of the Mexican peso relative to the U.S. dollar.

For the nine months ended October 1, 2023, the Company reported revenue of $101.5m compared with $80.4m for the first nine months of 2022. The Company reported a net loss of $0.5m, or $0.02 per share compared with a net loss of $2.6m, or $0.12 per share, for the prior-year period.

Sypris Technologies

Revenue for Sypris Technologies increased to $19.3m in the third quarter of 2023, compared to $17.0m for the prior-year period. Commercial vehicle component shipments and energy-related product sales both increased during the quarter. Gross profit for the third quarter of 2023 was $1.5m, or 7.5% of revenue, compared to $1.1 m, or 6.3% of revenue, for the same period in 2022. The strength of the Mexican peso relative to the US dollar had a negative impact of $0.8m on gross profit when compared to the prior-year period.

Sypris Electronics

Revenue for Sypris Electronics increased to $14.2m in the third quarter of 2023 compared to $8.2 m for the prior-year period. Shipments of communications products increased significantly during the quarter, driving the increase in revenue. Additionally, shipments under two follow-on programs began ramping during the quarter and contributed to the growth over the prior-year comparable period. Supply chain constraints and delays in certain customer approvals limited shipments and revenue from certain programs during the quarter, while also contributing to a $12.0 sequential increase in inventory. Gross profit for the third quarter of 2023 was $2.6m, or 18.1% of revenue, compared to $0.9m, or 11.0% of revenue, for the same period in 2022. Margins improved on higher volume, favorable mix, and cost savings on certain component purchases.

Outlook

Commenting on the future, Mr. Gill added, “Demand from customers in the defense and communication sectors remain robust while demand also remains strong from customers serving the automotive and sport utility markets. Similarly, demand from energy market customers remains higher than in the prior year and continues to move in the right direction.

“We have updated our outlook for 2023 to include a 25% growth in the top line, which is at the lower end of our previous guidance. Gross profit is expected to increase in line with revenue, while the continuing unfavorable impact of the Mexican peso relative to the U.S. dollar and changes in the revenue mix are anticipated to impact margin for the full year.

“With a strong backlog, new program wins and long-term contract extensions in place, we are confident that 2024 has the potential to be very positive for Sypris. In our initial outlook for 2024, we expect the top line to increase 15-20% year-over-year as a result of the combined strength of our backlog for Sypris Electronics, increasing orders for our energy products and anticipated new program wins for Sypris Technologies, partially offset by the anticipated 13.4% decline in the commercial vehicle market. We also expect gross profit to increase 25-30%, while gross margins are expected to expand 150 to 200 basis points in 2024 on a more favorable revenue mix, improved operational performance and more favorable foreign exchange rates.”

Webcast and Conference Call Information

Sypris Solutions will host a listen only conference call to discuss the Company’s financial results today, November 15, 2023, at 9:00 a.m. (Eastern Time). To listen to the call, participants should dial (833) 316-0560 approximately 10 minutes prior to the start of the call (ask to be joined into the Sypris Solutions, Inc. call).

The live broadcast of Sypris’ quarterly conference call will also be available online at www.sypris.com on November 15, 2023, beginning at 9:00 a.m. (Eastern Time). The online replay will be available at approximately 11:00 a.m. (Eastern Time) and continue for 30 days. Related presentation materials will be posted to the “Investor Information” section of the Company’s website at www.sypris.com, located under the sub-heading “Upcoming Events,” prior to the call.

About Sypris Solutions

Sypris Solutions is a diversified manufacturing and engineering services company serving the defense, transportation, communications, and energy industries. For more information about Sypris Solutions, visit its Web site at www.sypris.com. (Source: BUSINESS WIRE)

 

15 Nov 23. Fincantieri financials demonstrate “positive progression.”

Based on its Q3 results, the Italian naval manufacturer foresees a positive progression of its 2023-27 Business Plan despite European sentiment drop.

Italian naval manufacturer, Fincantieri, has released its Q3 financial results which the company’s CEO, Pierroberto Folgiero, indicates a “positive progression” toward achieving its 2027 goals.

The European prime announced a 60% yearly increase in its nine-month core earnings, which came in at €276m ($299.6m), registering an improved margin of 5.1% compared to its nine-month results last year.

Among its 2023 activity, the company secured: the third submarine of the U212NFS (Near Future Submarine) programme for the Italian Navy; 3 Offshore Patrol Vessels, plus 3 additional units under option, for the Italian Navy assigned to the joint venture with Leonardo, Orizzonte Sistemi Navali; and the mid-life upgrade of the Italian and French Horizon-class frigates, awarded to Naviris, the 50/50 owned joint venture by Fincantieri, Naval Group and eurosam, a JV by MBDA and Thales.

“The production performance was particularly satisfactory: thanks to the expertise and the commitment of our people, we delivered 17 ships from 10 shipyards,” Folgiero added.

Marginal growth despite European filings slump

“The underwater domain is becoming increasingly important due to the presence of critical infrastructure, resources and assets,” the company confirmed. “This, in combination with defence budgets that have been revised upward, is opening up new potential opportunities for Fincantieri.”

However, despite this factor GlobalData intelligence tells us that the broader European defence market is on track for a slight fall in company filing mentions.

In 2021, the market reached a height of 12,388 mentions; in 2022, it registered a slight fall of 12,108; whereas now, at the Q3 mark for 2023, the market has currently reached half this sentiment at 6,606 mentions in a nine-month period as we begin to enter the final quarter for this year.

This drags further behind the United States, which accounts for 9,642 mentions right now. Despite its historical lead, the country’s sentiment has also dropped from last year’s 15,599 mentions.

(Source: army-technology.com)

 

14 Nov 23. CAE reports second quarter fiscal 2024 results. 

* Revenue of $1,088.5m vs. $993.2m in prior year

* Earnings per share (EPS) of $0.18 vs. $0.14 in prior year

* Adjusted EPS(1) of $0.27 vs. $0.19 in prior year

* Operating income of $100.6m vs. $102.1m in prior year

* Adjusted segment operating income(1) of $138.5m vs. $124.7 m in prior year

* Adjusted order intake(1) of $1,183.6m for a record $11.8bn adjusted backlog(1)

* Net debt-to-adjusted EBITDA(1) of 3.16x vs. 3.22x at the end of the preceding quarter

* Announced the sale of Healthcare subsequent to the end of the quarter

(NYSE: CAE) (TSX: CAE) – CAE Inc. (CAE or the Company) today reported revenue of $1,088.5m for the second quarter of fiscal 2024, compared with $993.2m in the second quarter last year. Second quarter EPS was $0.18 compared to $0.14 last year. Adjusted EPS in the second quarter was $0.27 compared to $0.19 last year.

Operating income this quarter was $100.6m (9.2% of revenue(1)), compared to $102.1m (10.3% of revenue) last year. Second quarter adjusted segment operating income was $138.5m (12.7% of revenue(1)) compared to $124.7m (12.6% of revenue) last year. All financial information is in Canadian dollars unless otherwise indicated.

“We delivered a good performance overall in the second quarter, with double-digit top- and bottom-line growth, driven mainly by strong momentum in Civil and a higher contribution from Defense compared to last year. We also further bolstered our financial position on the path to meeting our short-term leverage target,” said Marc Parent, CAE’s President and Chief Executive Officer. “We made excellent progress in the quarter to secure CAE’s future with nearly $1.2bn in total adjusted order intake, for a record $11.8bn adjusted backlog. Orders in Civil included 15 full flight simulators, long-term training agreements, and contracts for our next-gen crew management and aircraft operations solutions. In Defense, we continued to build our backlog with orders exceeding revenue in the quarter for simulation-based training solutions and support services. Following the end of the quarter, we announced a definitive agreement to sell Healthcare for an enterprise value of $311m, a decision which better positions CAE to efficiently allocate capital and resources to secure growth opportunities in our large core simulation and training markets. We are proud of CAE Healthcare’s significant contribution to patient safety and expect this to continue. Healthcare will be well positioned to support future growth under its excellent leadership and new ownership, focused on evolving simulation to drive patient safety and quality outcomes. As we look to the period ahead, we now expect Civil growth this fiscal year in the mid- to high-teens percentage range of adjusted segment operating income growth. The higher expected growth is based on our strong performance across all regions year to date, including Asia which had been lagging in the global air travel recovery. We also have good demand visibility given the regulated nature of aviation training. We expect Civil performance to be weighted more to the fourth quarter, based on planned simulator deliveries and training seasonality. In Defense, we will continue to transform our business by replenishing our backlog with more profitable programs and by retiring legacy contracts, which have been most affected by inflationary pressures. U.S. budget appropriation uncertainty is causing delays to our expected ramp up of new programs in backlog and to awards expected from our pipeline. As such, we currently expect Defense second-half adjusted segment operating income margins to remain in the mid-single-digit percentage range. The anticipated positive inflection in Defense performance is expected to occur during the next fiscal year, but will ultimately depend on the duration and magnitude of delays to new programs in the current environment. We are firmly focused on retiring legacy contracts as soon as possible and to mitigating the cost pressures associated with them. We remain very pleased with the accretive margin profile on our newly awarded work, which continues to underlie our conviction in our low double-digit margin target at steady state. We continue to be highly encouraged by the secular tailwinds in all segments and the growth we expect by harnessing our global market and technology leadership, and the power of One CAE.”

Civil Aviation (Civil)

Second quarter Civil revenue was $572.6m vs. $507.2 m in the second quarter last year. Operating income was $88.4m (15.4% of revenue) compared to $88.4m (17.4% of revenue) in the same quarter last year. Adjusted segment operating income was $114.3m (20.0% of revenue) compared to $104.4m (20.6% of revenue) in the second quarter last year. During the quarter, Civil delivered 11 full-flight simulators (FFSs) to customers and second quarter Civil training centre utilization was 71%.

During the quarter, Civil signed training solutions contracts valued at $617.8m, including a range of long-term commercial and business aviation training agreements and 15 FFS sales. Civil FFS orders total 37 for the first half of the fiscal year.

Notable Civil contract awards for the quarter included 15 FFS sales, including a multiyear purchase of six Boeing B737 Max simulators and two previous B737 Max simulator options converted to firm orders for Ryanair and two Airbus A320 simulators for United Airlines. In commercial aviation Civil signed a multi-year aviation training agreement with Delta Airlines, and in business aviation, it signed a 2‑year training agreement with Windrose Air Jetcharter GmbH. In Flight Operations Solutions, Civil signed long-term, next-gen crew management and flight operations solutions agreements with Wizz Air and Air India.

The Civil book-to-sales ratio(1) was 1.08 times for the quarter and 1.27 times for the last 12 months. The Civil adjusted backlog at the end of the quarter was a record $5.9 bn.

Defense and Security (Defense)

Second quarter Defense revenue was $477.4m vs. $442.4m in the second quarter last year. Operating income was $9.3m (1.9% of revenue) compared to $12.1m (2.7% of revenue) in the same quarter last year. Adjusted segment operating income was $21.3m (4.5% of revenue), compared to $18.4m (4.2% of revenue) in the second quarter last year.

Defense booked orders for $527.3m and an additional $155.5m of unfunded contracts this quarter.

Notable Defense contract awards include a contract for simulation-based training for the U.S. Army’s key Next Generation airborne intelligence, surveillance, and reconnaissance (ISR) system, the High Accuracy Detection and Exploitation System (HADES), which is based on the Bombardier Global 6000/6500 business jet. It is also now under contract with Bell Textron to support the U.S. Army Future Long Range Assault Aircraft program. As part of a teaming arrangement with Bell for their Future Vertical Lift family of systems, CAE is expected to provide maintenance training devices, assist in the development of flight training devices, and deliver other training products. It also received an order to provide the U.S. Army with support services for the Advanced Helicopter Flight Training Support Services for aircrew and non-aircrew personnel. Defense was awarded contracts for the modification and maintenance of F-16 training devices for the U.S. Air Force, as well as for the upgrade of various training devices.

The Defense book-to-sales ratio was 1.10 times for the quarter and 0.93 times for the last 12 months (excluding unfunded backlog totaling $155.5m). The Defense adjusted backlog, including unfunded contract awards and CAE’s interest in joint ventures, at the end of the quarter was a record $5.9bn. The Defense pipeline remains strong with some $9.5bn of bids and proposals pending.

Additional financial highlights

CAE incurred restructuring, integration and acquisition costs of $37.9m during the second quarter of fiscal 2024 relating mainly to the acquisitions of Sabre’s AirCentre airline operations portfolio and the L3Harris Technologies’ Military Training business.

Net cash provided by operating activities was $180.2m for the quarter, compared to $138.0 m in the second quarter last year. Free cash flow(1) was $147.5 m for the quarter compared to $108.4m in the second quarter last year. The increase was mainly due to a higher contribution from non-cash working capital, partially offset by lower cash provided by operating activities.

Income tax recovery this quarter amounted to $8.5m, representing an effective tax rate of negative 16%, compared to an effective tax rate of 24% for the second quarter last year. The adjusted effective tax rate(1), which is the income tax rate used to determine adjusted net income and adjusted EPS, was nil this quarter as compared to 24% in the second quarter of last year. The decrease in the adjusted effective tax rate was mainly attributable to the recognition of previously unrecognized deferred tax assets, which had an approximate $0.05 positive EPS impact this quarter.

Growth and maintenance capital expenditures(1) totaled $61.9m this quarter.

Net debt(1) at the end of the quarter was $3,184.5m for a net debt-to-adjusted EBITDA(1) of 3.16 times. This compares to net debt of $3,166.4m and a net debt-to-adjusted EBITDA of 3.22 times at the end of the preceding quarter.

Net finance expense this quarter amounted to $48.0m, compared to $54.1m in the preceding quarter and $41.3m in the second quarter last year.

Adjusted return on capital employed(1) was 7.0% this quarter compared to 6.6% last quarter and 5.1% in the second quarter last year. (Source: PR Newswire)

 

14 Nov 23. Momentus Inc. Announces Third Quarter 2023 Financial Results.

Momentus Inc. (NASDAQ: MNTS) (“Momentus” or the “Company”), a U.S. commercial space company that offers satellite buses, transportation, and other in-space infrastructure services, today announced its financial results for the third quarter of 2023.

“In the third quarter, we saw significant traction in the commercial market that continues into the fourth quarter. We recently announced six contracts to provide hosted payload services and orbital transportation missions,” said Momentus Chief Executive Officer John Rood. “We have executed four missions and deployed 18 customer satellites into orbit during our Company’s short history. Our technology is performing, we are earning the trust of new customers, and we have repeat customers, which reflects the cost-effective and reliable services we provide.”

“We’re focused on advancing our technology on the Vigoride Orbital Service Vehicle and our M-1000 bus as we continue to lean into the commercial and defense markets. We’re confident in our capabilities, technology, and team, and we continue to push forward as an in-space infrastructure leader and provider of satellite buses.”

Recent Business Highlights:

* Momentus has raised approximately $16.9m in gross proceeds over the past two months. Two registered direct offerings of common stock were successfully executed, one in the third quarter on September 11 and one subsequent to it on October 4, which resulted in an aggregate of $9m in gross proceeds. The Company also raised gross proceeds of $1.35m on October 17 and $6.5m on November 9 from the exercise of common stock purchase warrants previously issued by the Company.

* The Company continues to position itself in order to quickly capitalize on any potential opportunities with interested parties and evaluate all viable strategic options.

* Momentus signed a contract with C3S for transportation and orbital delivery services in 2025. C3S is a repeat customer for Momentus. The C3S VIREO payload was transported to orbit on the Vigoride-6 mission launched in April 2023.

* Momentus signed a contract with Aarhus University for transportation and orbital delivery services in late 2024. Aarhus is also a repeat customer. Momentus placed a satellite in Low Earth Orbit for Aarhus on the Vigoride-6 mission that launched in April 2023.

* Momentus signed a contract with FOSSA Systems, a Spanish company that offers global low-power Internet of Things (IoT) connectivity and in-space services to provide hosted payload services starting in 2024. The contract also includes two options for additional hosted payloads. FOSSA is another repeat customer.

* Momentus signed a contract with RIDE! Space for transportation and orbital delivery services of two payloads – including the first Senegalese satellite and the second satellite for Djibouti. Momentus and RIDE! also signed an agreement to make Momentus’ services available through the RIDE! Space digital platform built to handle the end-to-end launch process for both launch vehicles and satellite operator ecosystems.

* Momentus signed a contract with SatRev for transportation and orbital delivery of their SOWA-1 payload in the first quarter of 2024.

* Momentus signed a contract with AVS, Inc. for transportation and orbital delivery of the LUR-1 payload in the first quarter of 2024.

* To date, Momentus has executed four missions, deployed 18 customer satellites in orbit, and provided hosted payload support for Caltech’s Solar Power Project Demonstrator mission that recently demonstrated its ability to wirelessly transmit power in space and to beam detectable power to Earth.

* In addition to the Vigoride Orbital Service Vehicle, Momentus is now also offering its M-1000 satellite bus. With a growing demand for satellite bus services, Momentus is positioned to advance its hardware and flight-proven technology for this market. The M-1000 bus is a flexible option to meet various mission requirements. Innovations to improve sensor capability, maneuverability, increased power, and lower costs are integrated into the product. Momentus believes it can manufacture satellite buses like the M-1000 at a rapid and scalable pace.

* Momentus started work in support of its Small Business Innovation Research award from the Space Development Agency. This project’s scope involves making tailored modifications to the system underlying the M-1000 satellite bus and Vigoride OSV to support a full range of U.S. Department of Defense (DoD) payloads. Some of these areas include adding a secure payload interface, optical communications terminals, a high-volume data recorder, and improving the modularity of the propulsion system. Completion of this work is expected in April 2024.

* Momentus submitted a bid for the Tranche 2 Tracking Layer to the U.S. Space Force Space Development Agency (SDA) to produce 18 satellites for missile tracking and fire control. Under this proposal to the SDA, Momentus is the prime contractor with a strong team of traditional and non-traditional space companies.

* The Company recently completed vibration testing of its Vigoride-7 spacecraft that is scheduled to launch no earlier than March 2024. On that mission, Momentus will support seven customers that require orbital delivery services and two customers requiring hosted payload services. The mission also will feature a Rendezvous and Proximity Operations demonstration of a new Momentus capability that has application to future satellite inspection, servicing, refueling, and de-orbit missions. During this demonstration, Momentus plans to release a satellite and then maneuver into proximity utilizing its Vigoride Orbital Service Vehicle.

* Momentus continues in-space testing of its Microwave Electrothermal Thruster that uses water as a propellant. As of today, Momentus has approximately 230 minutes of firing time on the MET between both thrusters at the range of durations needed for current use cases. In total, the Company has executed approximately 6.5 km in orbital raises of the Vigoride OSV by firing the MET in single or dual-thruster firings.

* Momentus recently conducted initial in-space testing of its Tape Spring Solar Array (TASSA) developmental payload onboard the Vigoride-6. TASSA utilizes flexible solar cell technology, allowing the solar array to be extended and retracted like a tape measure. To date, the testing was able to demonstrate the majority of the major TASSA performance requirements. Momentus was recently notified that its application was approved to issue the Company a patent for technology behind TASSA.

* The Company has space reserved on SpaceX Transporter missions launching in 2024 and is actively booking customers.

About Momentus Inc.

Momentus is a U.S. commercial space company that offers commercial satellite buses and in-space infrastructure services, including in-space transportation, hosted payloads, and in-orbit services.

(Source: BUSINESS WIRE)

 

14 Nov 23. Tel-Instrument Electronics Corp. Reports Financial Results For Second Quarter FY 2024. Tel-Instrument Electronics Corp. (“Tel-Instrument,” “TIC,” or the “Company”) (OTCQB: TIKK), a leading designer and manufacturer of avionics test and measurement solutions, today reported a net loss of $435K (($0.16) per basic share) on revenues of $1.6 m for the second quarter of 2024 fiscal year, ended September 30, 2023.

Notes On First Quarter:

* TIC paid the full Aeroflex judgement amount of $6,559,233 on September 15, 2023.

* TIC issued $721K of Series B and Series C Preferred Stock to Company insiders.

* Revenues for the second quarter were $1.6m, a 22% decrease from $2 m in the year-ago quarter.

* Bookings for the second quarter improved to $2.8m and backlog increased to $6.5 m.

* The gross margin percentage decreased to 23% versus 27% in the year-ago quarter. This decline was largely volume related.

* Operating expenses decreased by $250K, a 23% decline versus the year-ago level as a result of funded engineering projects.

* Net loss was $435K or $(0.16) per share, compared to net loss of $477K or $(0.17) per share in the year-ago quarter.

* Net loss for the first two quarters was $140K versus a net loss of $710K in the first half of the last fiscal year.

Mr. Jeffrey O’Hara, Tel-Instrument’s President and CEO commented: “The second quarter was disappointing from both a revenue and profitability standpoint as several large orders for our older test sets could not be shipped due to parts availability issues. $500k of revenue was shifted into the third quarter as the engineering work to replace an obsolete display on our TR-401 product was more complicated than anticipated. The improvement in bookings and backlog is encouraging but getting the necessary parts in a timely manner has been a continuing challenge. Large contracts in process include: (1) a $1.7m German T-4530i order; (2) a $1.5m MADL order and (3) a $1.2 CRAFT 708 order for the F-35 program. The SDR-OMNI test sets continue to gain market traction and we expect to secure a market leading position in the commercial avionics segment. The engineering for the U.S. Army software upgrade for the TS-4530A product is now complete and we are conducting final design verification testing. We expect to submit the $875k invoice for this work in the next few months. The CRAFT ECP engineering is proceeding on schedule and the Test Readiness Review (“TRR”) will take place late in the Spring of 2024. The CRAFT ECP production contract should commence later next year and is expected to generate annual revenues of up to $5 m per year.” (Source: BUSINESS WIRE)

 

14 Nov 23. EHang Stockholders to Investigate Claims into Unlawful Business Practices. Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against EHang Holdings Limited (“EHang” or the “Company”) (NASDAQ: EH) on behalf of EHang stockholders. Our investigation concerns whether EHang has violated the federal securities laws and/or engaged in other unlawful business practices.

On November 7, 2023, before the market opened, Hindenburg Research released a report entitled “EHang: Hollow Order Book and Fake Sales Make This China-Based eVTOL Company Last In Line For Takeoff.” The report stated, in pertinent part, that “92+% of EHang’s claimed 1,300+ unit preorder book is based on ‘dead’ or ‘abandoned’ deals, failed partnerships, and newly-formed customer entities with no discernible operations.”

On this news, the price of EHang American Depositary Shares (“ADSs”) declined $1.90 per ADS, or 12.7%, to close at $13.06 on November 7, 2023.

If you purchased or otherwise acquired EHang shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at , by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.

About Bragar Eagel & Squire, P.C.:

Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country.

(Source: UAS VISION)

 

14 Nov 23. Rohde & Schwarz closes challenging fiscal year successfully. Despite complex global challenges, Rohde & Schwarz has closed the 2022/2023 fiscal year successfully. For the first time in its 90-year history, the technology group topped the three bn euro mark for order intake. This shows that the group is well positioned in growth markets thanks to its focus on security and connectivity. Also in the reporting period, Rohde & Schwarz continued to invest systematically in its own vertical integration and key technologies in order to remain independent, flexible and technologically relevant for its customers.

Munich, November 14, 2023 — The 2022/2023 fiscal year (July to June) was marked by geopolitical uncertainty and difficult economic conditions. Nevertheless, Rohde & Schwarz achieved an excellent order intake of well over EUR 3bn and revenue rose to EUR 2.78bn. The positive operating result was also in line with expectations. On June 30, 2023, Rohde & Schwarz had around 13,800 employees worldwide.

The overall good consolidated financial statements show that Rohde & Schwarz is well positioned in markets with strong growth potential. The group’s diversification ensures greater security and stability.

Broad test and measurement portfolio drives innovation and transformation

The wireless communications T&M market declined, especially on the production side, due to the global economic situation. In this challenging environment, the diversified Rohde & Schwarz T&M portfolio proved highly advantageous and ensured a robust fiscal year. Customers in the aerospace & defense market continued to invest in the group’s state-of-the-art T&M technology. The automotive industry is driving the transition to electromobility and the development of autonomous vehicles. This, in turn, is generating high demand for the broad range of solutions that Rohde & Schwarz offers for demanding measurement tasks. The group also further expanded its established position in the Industrial Electronics, Components, Research & Universities market segment.

Science and research are already working on 6G, the next wireless communications generation. Rohde & Schwarz has been involved in these efforts from the very start by participating in various programs and initiatives. At Mobile World Congress 2023 in Barcelona, the group teamed up with NVIDIA to give the industry’s first hardware-in-the-loop demonstration of a neural receiver. This has laid the foundation for the integration of artificial intelligence (AI) and machine learning (ML) in the future 6G technology.

Partner for shaping the digital sovereignty of countries and industry

The ongoing geopolitical developments have led governments and industry to focus more strongly on digital and technological sovereignty. This paradigm shift is also affecting the business of Rohde & Schwarz. With its secure communications and reconnaissance solutions, the technology group was able to win strategically important projects with authorities and customers in the government sector in the reporting period.

In addition, by acquiring Schönhofer Sales & Engineering GmbH (SSE), the group successfully invested in expertise for key technologies such as big data analytics and AI. In August 2023, Rohde & Schwarz and SSE were commissioned, along with other partners, to develop the AI backbone for the European Future Combat Air System (FCAS).

Demand for network and security technology is increasing in both private and public sectors. The trend toward cloud applications and remote work continued. In the government sector, digitalization is gaining further momentum. Rohde & Schwarz, a key supplier in Germany with solutions to ensure digital sovereignty, is already benefiting from this trend. The group subsidiary LANCOM Systems in particular secured important projects and again achieved profitable growth.

Solutions for safe and smooth air traffic

Global air traffic is almost back at pre-pandemic levels. This increased worldwide demand for security scanners. After having been placed on the Transportation Security Administration’s (TSA) Qualified Products List in the USA, the R&S QPS201 security scanner is now being used to carry out smooth security checks at the first US airports. In addition, the R&S QPS Walk2000 – the world’s first 360° walk-through security scanner – is currently being tested at Frankfurt Airport.

Rohde & Schwarz also achieved successes in the air traffic control (ATC) sector. Together with DFS Deutsche Flugsicherung GmbH, the German air navigation service provider, the group completed a nationwide radio modernization program with around 4000 ATC radios at over 100 radio sites. With its tried-and-tested turnkey solution, Rohde & Schwarz ensures safe and efficient airspace operations.

Investments in own vertical integration and key technologies

Supply chains that were strained due to the pandemic stabilized somewhat in the reporting period. In the past few years, the group’s high degree of vertical integration once again proved its worth. The Rohde & Schwarz production plants ensure flexibility, dependability and reliable supply capability. The group reaffirmed its vertical integration strategy in the 2022/2023 fiscal year. In February, a groundbreaking ceremony took place at the Memmingen site for a state-of-the-art technology and production center with 18,000 square meters of floor space.

For 90 years, Rohde & Schwarz has lived a tradition of innovation. Research, development and production take place primarily in Germany. The group is stepping up investment in the development and utilization of new technologies involving frequencies above 100 GHz, 6G, AI and microelectronics. This ensures that Rohde & Schwarz remains relevant for its customers in a highly dynamic competitive environment and can expand its leading position.

The group is currently participating in a microelectronics and communications technologies project funded by the European Commission (IPCEI ME/CT). Rohde & Schwarz is thereby helping to ensure Germany and Europe’s ability to shape key technologies.

Resource conservation and systematic use of renewable energy sources

As a privately owned company, Rohde & Schwarz is deeply committed to taking into account social and environmental effects in its economic activities. Sustainable business activities have always been at the heart of its corporate strategy and will remain so in the future.

Rohde & Schwarz aims to achieve the 1.5 °C climate protection target at selected group locations by 2030 without buying any offset certificates. To enable the energy transition, it is implementing sustainable product design and resource-conserving energy supply concepts. The group is actively saving energy and carbon emissions by using photovoltaic systems on its own buildings, heat pumps to heat and cool buildings and green electrical power.

In 2023, the Bavarian state government awarded Rohde & Schwarz the Gold Certificate of the Bavarian Environmental and Climate Pact for its longstanding commitment to environmental and climate protection.

 

14 Nov 23. Babcock reports Results.

Financial highlights

– Contract backlog £9.6bn, down year-on-year due to the impact of disposals, up slightly since year end

– Revenue up 2% to £2,177m. Organic growth of 18%, including major infrastructure programme growth, offset FY23 disposals

– Underlying operating profit up 27% to £154m, ahead of expectations, primarily due to earlier than anticipated receipt of licence income from the Polish frigate programme

– Underlying operating margin increased 140 basis points to 7.1%, boosted by the licence income

– Underlying basic earnings per share up 30% to 20.6p

– Underlying free cash flow of £67m, driven by 82% underlying operating cash conversion

– Net debt to EBITDA reduced to 1.1x on a covenant basis (FY23: 1.5x). Net debt reduced by £72m to £493m

– Dividend reinstated following a four-year hiatus. The interim dividend of 1.7 pence per share is expected to be around a third of the full year dividend

Outlook

The Board’s expectations for another year of organic revenue growth, underlying operating margin expansion and positive cash flow generation are unchanged, and we continue to build momentum to achieve the medium-term guidance set out within our FY23 results.

Strategic highlights

– Strategic cooperation agreement with Saab, including the development of an advanced naval corvette design

– Collaboration agreement with Huntington Ingalls Industries (HII) for US and UK naval and civil nuclear opportunities

– Teaming partnership with HII to collaborate on nuclear-powered submarine capabilities to support the AUKUS endeavour

– Babcock Skills Academy launched in Devonport to develop submarine support capabilities in our growing workforce

– Babcock General Logistics Vehicle (GLV) launched to target the upcoming UK Army Land Rover replacement programme

– Established partnership with Zero Petroleum to explore the use of synthetic fuels across air defence platforms

Operational highlights

Marine

– Type 31: HMS Venturer (ship 1) superstructure progressing, keel laid for HMS Active (ship 2)

– Critical Design Review completed for the UK Royal Navy’s next-generation Maritime Electronic Warfare Programme

– Cut steel on first MIECZNIK Class frigate for the Polish Navy. Three Arrowhead 140 licences delivered

Nuclear

– Major Infrastructure Programme (MIP) continuing to ramp up across Devonport Dockyard – revenue more than doubled to £218m. Further contract (£750m over four years) signed in November 2023

– Commenced deep maintenance and LIFEX on the second of the UK’s Vanguard Class nuclear submarines, HMS Victorious

– Five-year contract with the UK MOD to collaborate on the Ship Submersible Nuclear AUKUS (SSN-A) submarine detailed design

Land

– Awarded second land defence contract to manage and maintain ground support equipment at military bases across France

– Babcock’s contract to support UK-gifted platforms to Ukraine now operating at full capability

– Secured rebid on the six-year Royal Electro-Mechanical Engineers (REME) contract

Aviation

– Two additional H160 helicopters modified and delivered to the French Navy as part of a 10-year contract

– Secured a four-year contract extension with the South Australian Government for aerial emergency services

– Awarded a four-year support contract for H145 aircraft with French Securité Civile, partnered with Airbus

David Lockwood, Chief Executive Officer, said: “We have made a strong start to the year, as we continue to build on the exciting momentum we see across the Group.  We are delivering for our customers, reducing risk and positioning for growth through a number of significant new global teaming agreements. We have a clear capital allocation policy, which is providing the Group with the flexibility it needs to capture the growing number of value creation opportunities we see ahead. We are reinstating our dividend following a four-year hiatus, reflecting our confidence in the future, and our expectations for the full year remain unchanged.”

Notes to statutory and underlying results on page 1

(i) Contract backlog: The £9.6bn contract backlog represents amounts of future revenue under contract. This measure does not include £3.0bn of work expected to be done by Babcock as part of framework agreements (HY23: £3.4bn).

 

13 Nov 23. AECOM reports fourth quarter and full year fiscal 2023 results

* Initiated strong fiscal 2024 financial guidance, including adjusted EPS of $4.35 to $4.55 or 20% year-over-year growth at the mid-point

* Exceeded mid-points of initial and increased fiscal 2023 financial guidance, driven by double-digit NSR growth in the design business in the fourth quarter

* Delivered a record segment adjusted operating margin for the full year

* Design contracted backlog increased 15% to an all-time high

* Increased share repurchase authorization to $1 bn and quarterly dividend by 22%

AECOM (NYSE:ACM), the world’s trusted infrastructure consulting firm, today reported fourth quarter and full year fiscal 2023 results.

Fiscal 2024 Financial Guidance

* Building on the successes of fiscal 2023, AECOM expects to deliver another year of strong organic NSR2 growth, record segment adjusted1 operating margins3, and double-digit adjusted1 earnings per share growth, including:

o Organic NSR2 growth of approximately 8% to 10%.

o A segment adjusted1 operating margin3 of approximately 15.6%, a 90 basis point increase from fiscal 2023, which includes:

* Approximately two-thirds of the margin expansion from high-returning organic growth, which alone puts the Company ahead of its 15% target for fiscal 2024.

* Approximately one-third of the margin expansion from the acceleration of the Company’s continuous improvement initiatives, primarily related to real estate efficiencies.

o Adjusted1 EBITDA4 of between $1,065m and $1,105m, representing a 13% increase at the mid-point over fiscal 2023.

o Adjusted1 EPS of between $4.35 and $4.55, reflecting a 20% increase at the mid-point over fiscal 2023.

* Other assumptions incorporated into guidance:

o Reflecting the highly cash generative nature of its Professional Services business, the Company expects 100%+ adjusted1 net income to free cash flow5 conversion.

o An average fully diluted share count of 138m, which reflects only shares repurchased to-date, though the Company intends to continue repurchasing stock that would provide a benefit to per share earnings.

o An effective tax rate of between 24% and 26%.

* The Company expects a return on invested capital7 (ROIC) of approximately 20% in fiscal 2024, reflecting its achievement in fiscal 2023 of its previously increased 17% target.

Cash Flow, Balance Sheet and Capital Allocation Update

* Full year operating cash flow was $696 m and free cash flow5 was $591 m, reflecting the achievement of the Company’s cash flow guidance for a ninth consecutive year.

* The Company also affirmed its returns-focused capital allocation policy, including:

o The Board of Directors approved an increase to its share repurchase authorization to $1bn, reflecting the Company’s commitment to returning substantially all available cash flow to investors after investments in accelerating organic growth.

o Increased the quarterly dividend by 22% to $0.22 per share, marking a second consecutive year of 20%+ increases and fulfilling the Company’s ongoing commitment to raise the dividend per share by double-digits annually.

o Allocated approximately $475m to stockholders in fiscal 2023 through share repurchases and dividends.

* In total, shares outstanding has declined by 19% since the initiation of the repurchase program in September 2020.

* The Company continues to operate with a strong balance sheet that provides a competitive advantage, with approximately 80% of its debt fixed, swapped to fixed, or capped over the next several years and no near-term bond maturities.

“I am proud of our performance in fiscal 2023, including exceeding our initial and increased earnings guidance mid-points and enhancing our long-term visibility through a record design backlog and 20% pipeline growth,” said Troy Rudd, AECOM’s chief executive officer. “We have focused our capital and technical expertise on the fastest-growing markets around the globe, which has resulted in a record win rate on the highest-returning opportunities. As reflected in our strong fiscal 2024 guidance, which includes 20% expected adjusted EPS growth, we have built an enviable leadership position and competitive advantage to fully capitalize on robust end market growth ahead.”

“Our unrivaled technical expertise and culture of collaboration is evident in the many transformational wins of the past year that reaffirm our leadership position in key markets including water, transportation, and environment,” said Lara Poloni, AECOM’s president. “The secular megatrends of global investments in infrastructure, sustainability, resilience and the energy transition are converging to create an undeniable growth cycle and we are well positioned to lead. Through our Think and Act Globally strategy, we are magnifying our competitive advantages by collaborating to bring the best technical resources to our clients for their most complex and challenging projects.”

“Our consistently strong financial performance is a testament to the inherent attributes of our Professional Services business, including high-returning, lower risk consulting activities for well-funded clients, that result in consistently strong cash flow,” said Gaurav Kapoor, AECOM’s chief financial officer. “Through our returns-focused capital allocation policy, we have returned $2 bn to stockholders since 2020. We are furthering this focus with our increased repurchase authorization and increased quarterly dividend, which reflects our confidence in continued earnings and cash flow growth.”

Business Segments

Americas

Revenue in the fourth quarter was $2.9bn, a 12% increase from the prior year. Full year revenue was $11.0bn, a 10% increase from the prior year.

NSR2 in the fourth quarter was $1.0bn. This included 9% growth in the design business, which was led by the Company’s water, transportation, and environment markets. Full year NSR was $3.9bn, a 6% increase from the prior year, highlighted by 8% growth in the design business.

Fourth quarter operating income increased by 10% over the prior year to $186m and increased by 9% for the full year to $715m. On an adjusted1 basis, fourth quarter operating income increased by 10% to $190m and increased by 9% to $732m for the full year. The fourth quarter adjusted operating margin on NSR2 was 19.0% and reflected a 60 basis point increase over the prior year, which contributed to a full year adjusted operating margin of 18.7%, which marked a 60 basis point increase over the prior year and included increased investments to capitalize on organic growth opportunities.

International

Revenue in the fourth quarter was $905m, a 12% increase from the prior year. Full year revenue was $3.4bn, a 6% increase from the prior year.

NSR2 in the fourth quarter was $722m, an 11% increase from the prior year. Full year NSR was $2.8bn, an 11% increase from the prior year.

Fourth quarter operating income increased by 25% over the prior year to $72m and increased by 15% to $25 m for the full year. On an adjusted basis1, operating income increased by 25% to $72m in the fourth quarter and increased by 15% to $256 m for the full year. The fourth quarter adjusted operating margin on NSR2 increased by 100 basis points to 10.0%, which marked the achievement of the Company’s target to deliver a double-digit margin in the International business. The full year adjusted operating margin increased by 60 basis points over the prior year to 9.2%.

Backlog

Total backlog in the design business increased by 12%6 over the prior year to $21.4bn, which set a new record, and included strong growth in both the Americas and International regions. This performance contributed to a full year book-to-burn ratio of 1.3 in the design business. Design backlog also included a record level of contracted backlog that provides for significant visibility into growth in the coming year. Total backlog of $41.2bn marked a 2% increase over the prior year. (Source: BUSINESS WIRE)

 

13 Nov 23. Defence company Chemring (CHG) is to shutter parts of its US sensors arm. The company is discontinuing its Explosive Hazard Detection business after the US Army curtailed production of the Husky Mounted Detection System used to identify landmines. It also said it was “no longer probable” it would proceed on the AVCAD programme, which is a competitive process being run by the US military for a system to detect airborne chemical agents.

There will be non-cash impairment charges of £31mn and £18mn, respectively, recorded in accounts for Chemring’s 2023 financial year, which ended last month.

Trading was otherwise in line with expectations, and market demand remained “robust”. The company is investing an extra £30m in its Chemring Nobel explosives arm, on top of £90mn of capacity increases already announced in June.

Broker Shore Capital was “disappointed” by the AVCAD decision, which it said was likely the result of a failed tender bid. However, downsizing the US sensors business is not likely to be too damaging, given the “sporadic” nature of awards from the US military. (Source: Investors Chronicle)

 

13 Nov 23. Airbus US Space & Defense Launches UAS Business Line. Airbus U.S. Space & Defense has unveiled a new business line focused on helping the Department of Defense meet its demand for uncrewed aircraft systems to detect and counter threats.

Nearly 20 years ago Vice Admiral Lowell Jacoby, Director of the Defense Intelligence Agency, testified before Congress that “lethal unmanned aerodynamic vehicles are expected to pose an increased threat to deployed U.S. and allied forces in various regions.” Director Jacoby’s words were prescient: today’s threat landscape is dominated not only by manned aircraft and expensive defense systems but also by swarms of unmanned systems of varying shapes, sizes, autonomy and operational capabilities.

The Department of Defense (DoD) has consequently shifted to new and additional ways to outpace the threat, including scaling uncrewed systems and platforms that can track, detect, and counter the today’s threats, while posturing for further advances in this technology.

Airbus U.S. Space & Defense is meeting this demand and expanding its portfolio of solutions by establishing a new, purpose-built line of business dedicated to Uncrewed Aircraft Systems (UAS).  This UAS line of business, led by Brian Zarchin, a retired U.S. Army Aviator, includes seasoned industry and former military UAS operators, maintainers, engineers, and stratospheric aviation professionals.

The team has a strong complement of U.S. military veterans, including those with U.S. Army tactical UAS and Military Intelligence fixed-wing ISR expertise, former U.S. Air Force and Google high altitude experts, and in-depth payload integration engineering experience.  With growing DoD demand, this new UAS team plans to leverage its carefully selected members to optimize, scale and employ UAS effectively for the DoD.

“The future battlespace is here and our team is ensuring the warfighter is equipped with technology that allows them to make informed decisions to counter the threat,” said Rob Geckle, Chairman and CEO of Airbus U.S. Space & Defense. “And while the Zephyr stratospheric platform is our foundational UAS program, we envision multiple UAS solutions supporting a range of customer missions and operational needs.”

The capabilities of the Zephyr solar-powered fixed-wing stratospheric platform are unmatched in the world today.  Over the past three years, Zephyr spent over 100 days in the stratosphere.  Most recently, it earned multiple altitude and endurance records including flying 64 days above 60,000 feet and travelling over 30,000 nautical miles in a single flight.  This 2022 flight demonstrated Zephyr’s ability to effectively employ an operationally relevant sensing payload outside of the Continental United States before returning stateside.

The Airbus U.S. Zephyr team’s “Stratospheric Center of Excellence”, located in Huntsville, Alabama, enables payload integration, global Zephyr Command and Control, and close collaboration with customers, with a goal towards industrialization in the United States.  This positioning helps ensure that the U.S. Zephyr program, supported by its UK affiliate AALTO, optimizes Zephyr to effectively and efficiently meet deep sensing and network extension needs.

“Airbus U.S. Space & Defense is uniquely positioned and passionately driven to provide trusted and affordable stratospheric deep sensing and network extension capability to our Warfighters,” said Zarchin.  “With ongoing great power competition, it’s critical that we do our part to help deter threats and, in crisis or conflict, present our adversaries with multiple dilemmas.  Our new business line is laser-focused on helping the DoD solve its toughest UAS challenges, from surface to stratosphere.” (Source: UAS VISION)

 

13 Nov 23. BAE on track as orders flow amid heightened geopolitical risk. BAE Systems (BAES.L) maintained its guidance for annual earnings to rise as much as 12% as orders for military kit continued to flow at a time of heightened geopolitical risk, benefiting Britain’s biggest defence company.

BAE upgraded its forecast in August, guiding that earnings per share would grow by 10%-12% in 2023 after orders soared following Russia’s invasion of Ukraine last year.

Since then, Israel has invaded Gaza in the wake of Hamas’ Oct. 7 attack, upsetting stability in the Middle East.

BAE said on Friday it had booked 10bn pounds ($12.2bn) of orders since the end of June, including 3.9bn of funding for the next phase of the AUKUS submarine programme between Australia, Britain and the United States.

“Order flow on new and existing programmes, renewals on incumbent positions and progress with our opportunity pipeline remains strong,” chief executive Charles Woodburn said in a statement.

The group, whose biggest customers are the United States, Britain, Saudi Arabia and Australia, said it had increasing exposure to “structurally growing” defence markets.

Weapons, ammunition and equipment have been in strong demand as western allies provide support to Ukraine and at the same time replenish their own stocks, with growing threats from China and instability in the Middle East also driving orders. ($1 = 0.8171 pounds) (Source: Reuters)

 

13 Nov 23. BAE SYSTEMS PLC – Trading Update.

Highlights

• Group guidance confirmed in line with half-year upgrade
• Strong order intake maintained with c.£10bn booked since half-year
• Good operational performance and effective supply chain management
• Share buyback programme ongoing

Charles Woodburn, BAE Systems Chief Executive, said: “Trading has been in line with the upgraded guidance we issued at the time of our 2023 half-year results. We are delivering another year of good sales and earnings growth, together with strong cash flow generation.

“Order flow on new and existing programmes, renewals on incumbent positions and progress with our opportunity pipeline remains strong. These underpin our confidence and visibility for good top line growth in the coming years, and we continue to reinforce our value compounding model with a sharp focus on operational performance and disciplined capital allocation.”

Guidance

The full year 2023 guidance across all metrics is unchanged from the upgraded guidance provided at the 2023 half-year results presentation:

Order Flow

We are securing another strong year of order intake with over £30bn booked year to date. Notable awards in the second half of the year so far have been:

• £3.9bn of funding for the next phase of SSN-AUKUS submarine programme
• $797m to begin AMPV full rate production, which includes prior funding for early order materials
• c.$800m under multiple awards for Bradley fighting vehicles and upgrades
• c.$500m award for ARCHER artillery systems from Sweden

Increasing exposure to structurally growing defence markets

Our global footprint and diverse product portfolio are key competitive advantages. The high order flow reflects continued customer confidence in our ability to deliver important capabilities at a time of heightening geopolitical risk. As we have previously highlighted, most major defence programmes are long cycle in the build and subsequent support phases. As a result, contracts secured now will be executed over many years providing us with long-term visibility over top line growth.

UK next generation submarine – SSN-AUKUS

The £3.9bn next generation submarine award is a prime example of the long cycle nature of customer commitments. The funding for this vitally important submarine programme provides for development work out to 2028. This phase includes the detailed design of the submarine and long-lead procurement for the build phase over the coming decades. The award also paves the way for significant infrastructure expansion at our Barrow site together with investment in critical skills and the supply chain to support the wider submarine enterprise.

Investment and industrial collaborations

Investment in the business and industrial collaborations are critical to support our growth aspirations and form part of our robust operating business model. Developments so far this year include:

• Plans advanced for expanding UK submarines facilities
• Progressing on a new ship building facility in Glasgow
• New investment in munitions manufacturing capacity
• Increased our UK apprentice intake in the Air and Maritime Sectors
• Approximately 6% net increase in employees in the nine months to 30 September 2023
• Progressing on Global Combat Air Programme industrial collaboration discussions
• Increased self-funded R&D year-on-year
• A robust and growing network of suppliers and industry partners to complement our Hägglunds and Bofors supply chain and production capacity across multiple product lines

Ball Aerospace Acquisition

The regulatory process is progressing well and we continue to target a completion date in the first half of 2024.

ESG update

We will present an ESG update and progress report on 25 January 2024.

Balance sheet and capital allocation

The 2023 interim dividend of 11.5 pence per share will be paid on 30 November 2023 and we are maintaining a good cadence on the current £1.5bn buyback programme announced in July 2022. This means that total cash returned to shareholders this year (including the 2022 final dividend) is expected to be c.£1.4bn.

Board and Executive Committee

As previously announced:

• Angus Cockburn joined the Board as a Non-Executive Director with effect from 6 November 2023 and became a member of the Audit Committee with effect from 7 November 2023.
• Chris Grigg will retire from the Board on 31 December 2023 and will be succeeded as Senior Independent Director by Nicole Piasecki with effect from 1 January 2024.

After long and successful careers, two members of our Executive Committee are retiring at the year-end. The Air Sector Managing Director Cliff Robson will be succeeded by Simon Barnes, who is currently leading our business in the Kingdom of Saudi Arabia. In Digital Intelligence, David Armstrong will be succeeded by Andrea Thompson, who currently leads the Air Sector’s Europe and International business.

Summary investment points

As we have reinforced throughout the year, our confidence in delivering our value compounding investment case is supported by:

• Strong programme performance underpinned by a robust operating model
• Continued investment in the business to support future growth
• Large order backlog that provides the foundation for growth over the medium term
• Leading technology solutions for our customers
• Broad geographic presence
• Diversity of capabilities across all security domains
• Ample opportunity pipeline to further enhance growth
• Strong balance sheet with good cash generation
• Value focused capital allocation

2023 Preliminary Results

BAE Systems will announce its preliminary results for the year ending 31 December 2023 on 21 February 2024.

 

10 Nov 23. Graham Corporation Acquires P3 Technologies to Expand Turbomachinery Capabilities and Technology Solutions

• Acquisition strategically augments Graham’s custom turbomachinery solutions, engineering and development team and advanced manufacturing capabilities
• Patented technologies create opportunities for product and technology integration to provide more effective solutions in multiple markets
• Deepens reach into existing space and new energy markets and creates greater diversification with addition of the medical market
• Similar culture of excellence and processes to support full product lifecycle
• Expected to be immediately accretive to earnings

Graham Corporation (NYSE: GHM) (“Graham” or the “Company”), a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the defense, space, energy, and process industries, announced today that it has acquired P3 Technologies, LLC (“P3”), a custom turbomachinery engineering, product development and manufacturing business for the space, new energy and medical markets. Based in Jupiter, Florida, P3 has established a strong reputation in the development of state-of-the-art rotating machinery including pumps, compressors, and turbines and are specialists in high-speed rotors and cryogenic pumps. With an experienced team of highly skilled gas-turbine engineers, P3’s development process results in innovative solutions to complex technical challenges.

Daniel J. Thoren, President and CEO, commented, “This is an excellent demonstration of the acquisition element of our growth strategy. P3 is an ideal bolt on business and brings highly complementary technology that enhances and expands our turbomachinery solutions. Our Barber Nichols’ team will provide the experience and know-how for addressing the anticipated rapid growth to support P3’s growing backlog and its funnel of opportunities. Importantly, P3 also is bringing unique intellectual property that we believe we can leverage to expand the market potential of the business. We are excited about our future opportunities and welcome P3 to the Graham team.”

High Value Add Technology

P3 has a strong intellectual property portfolio including the patented Multi-Channel Diffuser (“MCD”) and Self-Contained Actuating Magnetic Pump (“SCAMP”). These products provide a product family platform that can be leveraged across many applications and industries.

The MCD is revolutionary diffuser technology that improves the efficiency of pumps and compressors by increasing pressure recovery up to 20% and measurably increasing operating range. The MCD can be used in new designs or retrofit applications and can work with any pump or compressor that utilizes a centrifugal impeller.

SCAMP is a family of positive displacement pumps for low flow, high pressure cryogenic applications compatible with oxygen, hydrogen, methane and nitrogen.

P3 also has developed a family of turbopumps ranging in thrust from 5 thousand to 200 thousand pounds. The turbopumps are designed using state-of-the-art flow path design enabled by additive manufacturing to provide higher performance at competitive prices.

In addition, P3 has created robust turbomachinery development tools which enable efficient design iteration cycles reducing lead times to product launches for customers.

Solid Financial Performance; Transaction Terms

P3’s annual revenue is expected to be approximately $6.0 m in fiscal 2023 with gross and adjusted EBITDA margins that are consistent with Graham’s fiscal 2027 goal of low- to mid-teen adjusted EBITDA margins. Backlog at October 31, 2023 was approximately $8 m. We believe P3 has a pipeline with significant upside potential.

A stock and cash transaction, P3 was acquired from its sole owner who, along with P3’s leadership team, will remain with the Company. The acquisition price has not been disclosed at this time. However, the stock element of the purchase price is valued at $2 m and the number of shares of Company’s common stock issued as part thereof was determined using a stock price of $15.92, which represents the average closing price for the Company’s common stock for the 10 trading days ending on November 3, 2023.

About Graham Corporation

Graham is a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the defense, space, energy, and process industries. The Graham Manufacturing and Barber-Nichols’ global brands are built upon world-renowned engineering expertise in vacuum and heat transfer, cryogenic pumps, and turbomachinery technologies, as well as its responsive and flexible service and the unsurpassed quality customers have come to expect from the Company’s products and systems.

Graham Corporation routinely posts news and other important information on its website where additional information on Graham Corporation and its businesses can be found. (Source: BUSINESS WIRE)

 

10 Nov. 10, 2023. Firefly Aerospace, Inc., an end-to-end space transportation company, today announced the closing of another tranche of financing, valuing the company at $1.5bn pre-money. The round is being led by existing investors including AE Industrial Partners, LP, as well as new investors including Mitsui & Co., Ltd. Firefly has raised approximately $300 m in funding since February 2023.

“We have been successful at raising funds at an increased valuation in this challenging capital markets environment due to our focus on production and mission execution,” said Bill Weber, CEO Firefly Aerospace. “Following our most recent success with the groundbreaking launch of the VICTUS NOX mission by the U.S. Space Force, we have seen heightened interest from new investors.”

Along with Firefly’s recent responsive launch success, the company has been awarded contracts for multiple Alpha missions, including a NASA mission, concluded a launch agreement with Lockheed Martin, and signed a multi-launch agreement with L3Harris. Under their Blue Ghost Lunar Lander product line, the company also won multiple U.S. government and commercial contracts, including three NASA Commercial Lunar Payload Services (CLPS) task orders.

In addition, Firefly’s on-orbit vehicle, Elytra, is on contract for its first mission for the National Reconnaissance Office, scheduled to fly on Firefly’s Alpha Rocket next year, while The Medium Launch Vehicle being co-developed with Northrop Grumman has major milestones scheduled before the end of the year.

“Firefly has clinched key contracts and cemented itself as the leader in tactically responsive launch,” said Kirk Konert Partner at AE Industrial and Chairman of Firefly. “Their differentiated technology and astute leadership have propelled them to several successes over the past year. We are proud to back Firefly as they emerge as a leader in space and defense technology while fortifying our national security.”

The Company expects to announce a close of its current financing round in the near future.

 

13 Nov 23. TAT Technologies Ltd. (NASDAQ: TATT) (“TAT” or the “Company”), a leading provider of products and services to the commercial and military aerospace and ground defense industries, reported today its unaudited results for the three months and nine months periods ended September 30, 2023.

Financial highlights for third quarter of 2023:

• Revenues for Q3 2023 were $29.9m, an increase of 43% compared with $20.9m in Q3 2022. Revenues for the nine-month period that ended on September 30, 2023, were $81.9m an increase of 33% compared with $61.7m in the nine-month period that ended on September 30, 2022.
• Gross profit for Q3 2023 was $5.8m (19. 3% as a percentage of revenues) an increase of 70% compared with $3.4m (16.4% as a percentage of revenues) in Q3 2022. Gross profit for the nine-month period that ended on September 30, 2023, was $15.5m (19% as a percentage of revenues) an increase of 47.6% compared with $10.5m (17% as a percentage of revenues) in the nine-month period that ended on September 30, 2022.
• Adjusted EBITDA for Q3 2023 increased by 438% to $3m compared with $0.6m in Q3 2022. Adjusted EBITDA for the nine-month period that ended on September 30, 2023, increased by 297% to $7.7m compared with $1.9m in the nine-month period that ended on September 30, 2022.
• Net lncome in Q3 2023 increased to $2.1m, or income of $0.24 per diluted share, compared with a net loss of ($0.3)m, or loss of ($0.04) per diluted share, in Q3 2022. For the nine-month period that ended on September 30, 2023, net income was $4.3m, or income of $0.47 per diluted share compared with a net loss of ($2)m, or $(0.23) per diluted share, in the nine-month period that ended on September 30, 2022.
• Cash flow from operations in Q3 2023 was negative ($3.7)m compared to negative ($3.1)m in Q3 2022. For the nine-month period ended on September 30, 2023 cash flow from operations was positive $0.5m compared to negative ($9.5)m in the nine-month period that ended on September 30, 2022.

Mr. Igal Zamir, TAT’s CEO and President commented on the results: “we are very pleased with the results of the third quarter and nine months of 2023. We are facing swift growth in demand for our products and services, which has resulted in increasing revenue and profitability quarter after quarter. We remain positive that the trend will continue for the following quarters to come.

As part of our preparation to support the growth in the following quarters and meeting customers’ expectations for a short turnaround time, we focus on operational ramp up including manpower hiring and increasing the level of our available inventories.”

Mr. Zamir continues: ” In regard to the war in Israel, at this stage, there are no indications that prohibit us from continuing the growth and meeting our plans for the following quarters to come.

We are very proud of our employees in the Israeli facility for their spirit and consistent effort to continue the operations despite the war in Israel. ” (Source: PR Newswire)

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

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