Sponsored by SPX CommTech (TCI & ECS)
www.tcibr.com
www.enterprisecontrol.co.uk
————————————————————————————————————————————————————————————————————————————————————————————————————————————————-
26 Apr 24. US private equity firm Thoma Bravo has agreed to take UK cyber security company Darktrace private in a transaction valuing the company at $5bn. The offer, which values the shares at $7.75 or 620p each, represents a 20 per cent premium on Thursday’s closing share price. The announcement sent Darktrace’s shares up 19 per cent in early trading in London. The offer comes less than two years after the technology investor previously held talks about buying the company but ultimately decided against bidding. Darktrace floated in April 2021 at 250p per share. If a deal goes through, it would mark the latest high-profile take-private of a UK-listed company by an overseas private equity group. Last year, a number of UK companies including veterinary pharmaceuticals company Dechra and the restaurant group behind Japanese chain Wagamama were acquired by buyout firms. (Source: FT.com)
26 Apr 24. Saab raises sales outlook after Q1 profit jumps. Swedish defence equipment maker Saab (SAABb.ST), reported on Friday a 28% rise in operating profit for the first quarter and raised its organic sales growth outlook for the full year.
Operating profit at the maker of the Gripen fighter jet was 1.19bn crowns ($109m), compared with 928m a year earlier.
Saab, which competes with U.S. defence giant Lockheed Martin (LMT.N), France’s Dassault and Britain’s BAE Systems (BAES.L), has seen strong demand for its products over the past year and has been boosted by Sweden’s accession to NATO.
“Geopolitical tensions in the world remain high and the importance of delivering systems and solutions with a shorter lead time has become even more critical,” CEO Micael Johansson said in a statement.
“Saab started 2024 by delivering increased order intake, strong sales growth and improved profitability,” he said.
Order bookings increased to 18.5bn crowns in the quarter from 17.0bn last year. Its order backlog increased to 158 bn crowns from 133bn.
(Source: Reuters)
26 Apr 24. Saab’s results Q1 2024: Full steam ahead to grow our business.
Saab presents the results for January-March 2024
“Saab started 2024 by delivering increased order intake, strong sales growth and improved profitability. I am satisfied with the progress we made in the quarter on capacity-related investments and recruitments. Supported by better visibility on deliveries and timing of capacity increases, we now upgrade our outlook for the full year on organic sales growth,” says Micael Johansson, President and CEO, Saab.
Key highlights Q1 2024
- Order bookings increased 9% and amounted to SEK 18,495m (17,018), driven by strong growth in medium-sized orders.
- Sales amounted to SEK 14,185m (11,485) in the quarter with an organic sales growth of 24%. All business areas and Combitech showed growth, with strong contributions from Aeronautics and Surveillance.
- EBIT increased 28% and amounted to SEK 1,191m (928). The EBIT margin also improved to 8.4% (8.1), driven by the strong sales development.
- Net income improved to SEK 784m (735) and the earnings per share increased to SEK 5.71 (5.45).
- Operational cash flow was SEK -1,998m (3,072) in the quarter due to a high level of investment, increased inventory and lower customer milestone payments.
- Net liquidity position was SEK 0.8 bn (5.3) at the end of period.
- Upgraded sales outlook 2024: organic sales growth between 15-20%, compared to previous outlook of between 12-16%.
- The AGM decided on a dividend of SEK 6.40 (5.30) per share for the fiscal year 2023, and a 4:1 split of the Saab shares.
26 Apr 24. Safran posts higher Q1 revenue, keeps financial targets. French jet engine maker Safran (SAF.PA), posted an 18.1% year-on-year increase in first-quarter revenue and reaffirmed financial targets for the year, while joining its U.S. partner GE Aerospace (GE.N), in lowering a target for engine deliveries.
The Paris-based company posted quarterly revenues of 6.22bn euros ($6.67bn), up by 19.1% on an underlying basis.
The widely watched civil aftermarket business grew 27.3% in dollar terms. But deliveries of the LEAP jet engine were flat after a slow start to the year in plane production, notably at Boeing.
Safran co-produces engines for Boeing and Airbus narrow-body jets with GE Aerospace through their CFM joint venture, which is the sole supplier to Boeing’s 737 MAX family of jets and competes with Pratt & Whitney on the Airbus A320neo series.
Echoing GE earlier this week, Safran is now projecting LEAP engine deliveries will be up by 10%-15% this year, a downward revision from its previous estimate of 20%-25% growth.
Earlier this month, Reuters first reported that Boeing’s MAX output had plunged into single figures per month.
Overall propulsion revenues, up 15.4% on a like-for-like basis, lagged other divisions including aircraft interiors whose 23.8% growth was driven mainly by service revenues that are linked to rises in air traffic. However, business-class seat deliveries fell 25%.
($1 = 0.9328 euros) (Source: Reuters)
25 Apr 24. L3Harris raises top end of 2024 adjusted earnings outlook amid global tensions. L3Harris (LHX.N), lifted the upper-end of its annual adjusted profit target on Thursday, betting on sustained weapons demand and robust defense spending amid escalating global security concerns.
U.S. defense companies are experiencing a surge in contracts as the Russia-Ukraine war, the Middle East crisis and the specter of Chinese aggression are driving demand, but growth is still hindered by pandemic-related labor and supply-chain disruptions.
Following the Aerojet buyout in 2023, L3Harris suspended its merger and acquisition activity for the “foreseeable future” in efforts to strengthen its balance sheet.
L3Harris also launched a review of its operational performance, cost structure and portfolio composition, which is expected to be completed by this year.
The company now expects the upper-end of its annual adjusted profit to be $13.05 per share, up from its previous guide of $12.80 per share.
Earlier this week, Reuters reported that L3Harris would cut 5% of its workforce this year as part of a cost saving measure, citing an email to employees.
Florida-based L3Harris posted an adjusted profit of $3.06 per share for the quarter ended March 31, compared with $2.86 per share a year earlier.
Its overall sales in the first-quarter rose 17% to $5.2bn. (Source: Reuters)
25 Apr 24. L3Harris Technologies Reports Strong First Quarter 2024 Results, Increases 2024 Profitability Guidance.
- Orders1 of $5.5bn; book-to-bill of 1.06x
- Revenue of $5.2bn, up 17%, up 5% organically1
- Operating margin of 7.3%; Adjusted segment operating margin1 of 15.1%
- Earnings per share (EPS) of $1.48; Non-GAAP EPS1 of $3.06
- 2024 adjusted segment operating margin1 guidance increases from ~15% to >15%*
- 2024 non-GAAP EPS guidance range increases from $12.40 – $12.80 to $12.70 – $13.05*
L3Harris Technologies, Inc. (NYSE: LHX) reported first quarter 2024 net income attributable to L3Harris of $283m, or diluted earnings per share (EPS) of $1.48, on first quarter revenue of $5.2bn. First quarter 2024 non-GAAP1 net income attributable to L3Harris was $584m, or non-GAAP1 diluted EPS of $3.06.
“We’re off to a strong start to 2024, reporting solid revenue with higher operating margin across all four segments and our Trusted Disruptor strategy continues to drive demand for innovative, resilient and mission-critical solutions aligned with national security needs. We delivered double-digit top line growth while continuing to drive improvements to operational and program performance,” said Christopher E. Kubasik, Chair and CEO.
Kubasik continued, “Given the strength of our first quarter, we are increasing 2024 profitability guidance, while reaffirming revenue and free cash flow commitments. With our progress, we remain confident in the financial framework that we laid out at investor day which is driven by operational rigor and structural enhancements from our LHX NeXt initiative.”
Revenue: First quarter revenue increased 17%, primarily from the acquisition of Aerojet Rocketdyne (AR) and organic growth from continued growth in Space and classified programs within Space & Airborne Systems (SAS) segment and growth from tactical, broadband communication and vision products within the Communication Systems (CS) segment. These increases were partially offset by a decline in Intelligence, Surveillance and Reconnaissance (ISR) aircraft procurement activity within the Integrated Mission Systems (IMS) segment compared with the first quarter 2023.
SEGMENT RESULTS AND GUIDANCE:
Space & Airborne Systems (SAS)
Revenue: First quarter revenue increased 6%, primarily from continued growth in Space Systems and classified program growth in Intel and Cyber.
Operating Margin: First quarter operating margin increased 100 bps largely due to improved operational and program performance, particularly in Space Systems reflecting progress on development programs and maturing capabilities resulting in net favorable program matters. Operating margin also benefited from higher volume which was partially offset by mix.
Integrated Mission Systems (IMS)
Revenue: First quarter revenue decreased 2%, primarily from lower ISR aircraft procurement activity compared with first quarter 2023.
Operating Margin: First quarter operating margin increased 50 bps from improved program performance, including stabilizing programs resulting in fewer negative Estimate as Completion (EAC) adjustments, partially offset by less favorable product mix.
Communication Systems (CS)
Revenue: First quarter revenue increased 11%, primarily from higher volumes in Tactical Communications, Integrated Vision Systems and Broadband Communications.
Operating Margin: First quarter operating margin increased 110 bps primarily from the benefit of higher volume and improved operational performance in Integrated Vision Systems, partially offset by higher domestic tactical radio mix.
Aerojet Rocketdyne (AR)
Revenue and Operating Margin: First quarter results are attributed to program execution across Missile Solutions and Space Propulsion and Power Systems. (Source: BUSINESS WIRE)
25 Apr 24. Textron Reports First Quarter 2024 Results.
- EPS of $1.03; adjusted EPS of $1.20, up from $1.05 from prior year
- Segment profit of $290m, up $31m from prior year
Textron Inc. (NYSE: TXT) today reported first quarter 2024 net income of $1.03 per share, as compared to $0.92 per share in the first quarter of 2023. Adjusted net income, a non-GAAP measure that is defined and reconciled to GAAP in an attachment to this release, was $1.20 per share for the first quarter of 2024, compared to $1.05 per share in the first quarter of 2023.
“In the quarter, we saw profit growth across our Aviation, Bell, and Systems businesses,” said Textron Chairman and CEO Scott C. Donnelly. “At Aviation, we saw continued strong market demand which contributed to $177m in backlog growth. At Bell, we saw revenue growth driven by the FLRAA program.”
Cash Flow
Net cash used by operating activities of the manufacturing group for the first quarter was $30m, compared to $153m in cash provided last year. Manufacturing cash flow before pension contributions, a non-GAAP measure that is defined and reconciled to GAAP in an attachment to this release, reflected a use of cash of $81m for the first quarter, compared to a cash inflow of $104m last year.
In the quarter, Textron returned $317m to shareholders through share repurchases.
First Quarter Segment Results
Textron Aviation
Textron Aviation’s revenues were $1.2bn, up $39m from last year’s first quarter, reflecting higher pricing of $48m, partially offset by lower volume and mix of $9m.
Textron Aviation delivered 36 jets in the quarter, up from 35 in the first quarter of 2023, and 20 commercial turboprops, down from 34 in last year’s first quarter.
Segment profit was $143m in the first quarter, up $18m from a year ago, primarily reflecting a favorable impact from pricing, net of inflation, of $14m.
Textron Aviation backlog at the end of the first quarter was $7.3bn.
Bell
Bell revenues were $727m, up $106m from the first quarter of 2023, largely reflecting higher military volume of $95m, primarily related to the FLRAA program, partially offset by lower volume on the V-22 and H-1 programs.
Bell delivered 18 commercial helicopters in the quarter, down from 22 in last year’s first quarter.
Segment profit of $80m was up $20m from last year’s first quarter, largely due to a favorable impact from performance of $30m, which included $13m of lower research and development costs.
Bell backlog at the end of the first quarter was $4.5bn.
Textron Systems
Revenues at Textron Systems were $306m, flat with last year’s first quarter.
Segment profit of $38m was up $4m, compared with the first quarter of 2023.
Textron Systems’ backlog at the end of the first quarter was $1.8bn.
Industrial
Industrial revenues were $892m, down $40m from last year’s first quarter, largely due to lower volume and mix of $51m, principally in the Specialized Vehicles product line, partially offset by higher pricing of $16m in the segment.
Segment profit of $29m was down $12m from the first quarter of 2023, primarily due to lower volume and mix at Specialized Vehicles.
Textron eAviation
Textron eAviation segment revenues were $7m and segment loss was $18m in the first quarter of 2024, compared with a segment loss of $9m in the first quarter of 2023, primarily related to higher research and development costs.
Finance
Finance segment revenues were $15m, and profit was $18m.
Restructuring
In the first quarter of 2024, we incurred $14m in special charges under the 2023 restructuring plan, largely related to headcount reductions to improve the cost structures of the Textron Systems and Bell segments in light of the cancellation of the Shadow and FARA programs in the quarter. Textron expects to incur additional severance costs in the second quarter of 2024 in the range of $25m to $30m, largely related to headcount reductions in the Industrial segment. As a result, Textron has expanded its 2023 restructuring plan from the previously announced range of $115m to $135m in pre-tax special charges to a range of $165m to $170m.
(Source: BUSINESS WIRE)
25 Apr 24. Oshkosh Corporation Reports 2024 First Quarter Results.
Reports Diluted Earnings per Share of $2.71, up 102 Percent
Reports Adjusted1 Earnings per Share of $2.89, up 77 Percent
Reports Sales of $2.54bn, up 12 Percent
Raises 2024 Sales and Earnings Expectations
Declares Quarterly Cash Dividend of $0.46 Per Share
Oshkosh Corporation (NYSE: OSK), a leading innovator of purpose-built vehicles and equipment, today reported 2024 first quarter net income of $179.4m, or $2.71 per diluted share, compared to net income of $88.5m, or $1.34 per diluted share, for the first quarter of 2023. Adjusted1 net income was $191.1m, or $2.89 per diluted share, for the first quarter of 2024 compared to $107.6m, or $1.63 per diluted share, for the first quarter of 2023. Comparisons in this news release are to the first quarter of 2023, unless otherwise noted.
Consolidated sales in the first quarter of 2024 increased 12.2 percent to $2.54bn primarily due to sales related to the AeroTech acquisition of $176.1m, improved organic volume and improved pricing, offset in part by the sale of the rear-discharge concrete mixer business.
Consolidated operating income in the first quarter of 2024 increased 98.5 percent to $259.7m, or 10.2 percent of sales, compared to $130.8m, or 5.8 percent of sales, in the first quarter of 2023. The increase in operating income was primarily due to improved price/cost dynamics, favorable mix, higher organic sales volume and the absence of a loss on the sale of a business. Adjusted1 operating income in the first quarter of 2024 was $275.3m, or 10.8 percent of sales, compared to $151.7m, or 6.7 percent of sales, in the first quarter of 2023.
“We’re off to a strong start in 2024, as we grew adjusted operating income by over 80 percent leading to adjusted earnings per share of $2.89 in the first quarter. Our results were driven by outstanding execution as well as healthy demand and strategic acquisitions,” said John Pfeifer, president and chief executive officer of Oshkosh Corporation. “Our Access and Vocational segments both delivered strong year-over-year earnings growth during the quarter and have solid visibility for the remainder of the year.
“We are delivering on many new technologies in electrification, autonomy and digital products. This month, we began production of the USPS Next Generation Delivery Vehicle and built a pre-production pilot of our all-electric, fully integrated Volterra ZSL refuse and recycling vehicle, representing key milestones on programs that we believe will drive growth at Oshkosh well into the future. Our outlook and visibility remain strong across the company, bolstered by solid market dynamics and backlogs, the ramp-up of new programs and capacity expansions. It’s truly an exciting time for our company.
“Based on our strong first quarter results and a combination of solid demand and operational execution, we are raising our full-year earnings per share outlook to be in the range of $10.55 per share and adjusted earnings per share outlook to be in the range of $11.25 per share. We remain highly committed to leading with innovation and delivering exceptional value for our shareholders, customers and the communities in which we live and operate,” said Pfeifer.
Factors affecting first quarter results for the Company’s business segments included:
Access – Access segment sales for the first quarter of 2024 increased 3.7 percent to $1.24bn as a result of higher sales volume in North America, offset in part by lower sales volume in Europe.
Access segment operating income in the first quarter of 2024 increased 54.1 percent to $208.1m, or 16.8 percent of sales, compared to $135.0m, or 11.3 percent of sales, in the first quarter of 2023. The increase was primarily due to improved price/cost dynamics, improved customer mix and higher sales volume.
Adjusted1 operating income in the first quarter of 2024 was $210.4m, or 17.0 percent of sales, compared to $136.0m, or 11.4 percent of sales, in the first quarter of 2023.
Defense – Defense segment sales for the first quarter of 2024 increased 4.6 percent to $536.9m primarily due to higher aftermarket parts and Family of Medium Tactical Vehicle sales volume, offset in part by lower Joint Light Tactical Vehicle program volume.
Defense segment operating income in the first quarter of 2024 increased 564.7 percent to $11.3m, or 2.1 percent of sales, compared to $1.7m, or 0.3 percent of sales, in the first quarter of 2023. The increase was primarily the result of improved product mix and higher sales volume.
Adjusted1 operating income in the first quarter of 2024 was $12.6m, or 2.3 percent of sales, compared to $4.1m, or 0.8 percent of sales, in the first quarter of 2023.
Vocational – Vocational segment sales for the first quarter of 2024 increased 37.3 percent to $772.4m due to the inclusion of sales related to the AeroTech acquisition and improved pricing. AeroTech had sales of $176.1m during the first quarter of 2024.
Vocational segment operating income in the first quarter of 2024 increased 185.1 percent to $80.1m, or 10.4 percent of sales, compared to $28.1m, or 5.0 percent of sales, in the first quarter of 2023. The increase was primarily due to improved price/cost dynamics, the absence of a loss on the sale of the rear-discharge mixer business and improved product mix.
Adjusted1 operating income in the first quarter of 2024 was $92.1m, or 11.9 percent of sales, compared to $45.0 m, or 8.0 percent of sales, in the first quarter of 2023.
Corporate – Corporate costs in the first quarter of 2024 increased $5.8m to $39.8m due to higher new product development investments and higher share-based compensation expense.
Interest Expense Net of Interest Income – Interest expense net of interest income in the first quarter of 2024 increased $13.6m to $20.8m due to increased borrowings on the Company’s revolving credit facility as a result of the acquisition of AeroTech.
Miscellaneous, net – Miscellaneous expense, net in the first quarter of 2024 was $2.0m compared to miscellaneous income, net of $5.8m in the first quarter of 2023. Miscellaneous income, net for the first quarter of 2023 included a $4.7m gain on a settlement with the Company’s pension advisor.
Provision for Income Taxes – The Company recorded income tax expense in the first quarter of 2024 of $54.7m, or 23.1 percent of pre-tax income, compared to $34.2m, or 26.4 percent of pre-tax income, in the first quarter of 2023. Results for the first quarter of 2023 were impacted by $3.4m of discrete tax charges, including a $1.7m charge related to a valuation allowance recorded with respect to a deferred tax asset on marketable securities. (Source: BUSINESS WIRE)
BATTLESPACE Comment: It is interesting to note that ‘Defense segment operating income in the first quarter of 2024 increased 564.7 percent to $11.3m, or 2.1 percent of sales, compared to $1.7m, or 0.3 percent of sales, in the first quarter of 2023. The increase was primarily the result of improved product mix and higher sales volume.’ This clearly shows that the JLTV Program profit margins were limited due to the limitations of price per vehicle of $250,000 placed by the DoD. AM General is likely to face similar limitations to profitability, with both companies making money from future spare and support contracts.
25 Apr 24. Airbus reports First Quarter (Q1) 2024 results.
- 142 commercial aircraft delivered
- Revenues €12.8 bn; EBIT Adjusted € 0.6bn
- EBIT (reported) €0.6bn; EPS (reported) €0.76
- Free cash flow before customer financing €-1.8bn
- 2024 guidance unchanged
Airbus SE (stock exchange symbol: AIR) reported consolidated financial results for its First Quarter (Q1) ended 31 March 2024.
“We delivered first quarter 2024 results against the backdrop of an operating environment that shows no sign of improvement. Geopolitical and supply chain tensions continue. In that context, we delivered 142 commercial aircraft,” said Airbus CEO Guillaume Faury. “We started 2024 with a solid order intake across our businesses. The strong momentum on widebody aircraft underpins our decision to increase the production rate for the A350 to 12 aircraft a month in 2028. Our ramp up plans are continuing, supported by the investments in our production system while relying on our core pillars of safety, quality, integrity, compliance and security.”
Gross commercial aircraft orders totalled 170 (Q1 2023: 156 aircraft) with the same number of net orders due to no cancellations (Q1 2023 net orders: 142 aircraft). The order backlog amounted to 8,626 commercial aircraft at the end of March 2024. Airbus Helicopters registered 63 net orders (Q1 2023: 39 units), mainly in the light and medium segments. Airbus Defence and Space’s order intake by value was €2.0bn (Q1 2023: €2.5bn).
Consolidated revenues increased 9 percent year-on-year to €12.8bn (Q1 2023: €11.8bn). A total of 142 commercial aircraft were delivered (Q1 2023: 127 aircraft), comprising 12 A220s, 116 A320 Family, 7 A330s and 7 A350s. Revenues generated by Airbus’ commercial aircraft activities increased 13 percent, mainly reflecting the higher number of deliveries. Airbus Helicopters’ deliveries totalled 50 units (Q1 2023: 71 units) while its revenues decreased 9 percent, reflecting the lower volume of deliveries, partially offset by services. Revenues at Airbus Defence and Space increased 4 percent mainly driven by the Air Power business, partly offset by a less favourable phasing in Space Systems. One A400M military airlifter was delivered in the quarter.
Consolidated EBIT Adjusted – an alternative performance measure and key indicator capturing the underlying business margin by excluding material charges or profits caused by movements in provisions related to programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses – was €577m (Q1 2023: €773m). It includes the planned impact linked to the increased Airbus Employee Share Ownership Plan, which saw record participation among employees, and resulted in a year-on-year expense increase of slightly above €0.1bn.
EBIT Adjusted related to Airbus’ commercial aircraft activities decreased to €507m (Q1 2023: €580m), with the positive impact from higher deliveries being offset by a slightly less favourable hedge rate as well as investments for preparing the future.
The A220 ramp-up continues towards a monthly production rate of 14 aircraft in 2026, with a focus on the programme’s industrial maturity and financial performance. On the A320 Family programme, the Company is making progress towards the rate of 75 aircraft per month in 2026. Entry-into-service of the A321XLR continues to be expected in Q3 2024. On widebody aircraft, the Company has decided to increase the production rate for the A350 to 12 aircraft a month in 2028 and continues to target rate 4 for the A330 in 2024.
Airbus Helicopters’ EBIT Adjusted decreased to €71m (Q1 2023: €156m), from a particularly strong first quarter in 2023 and reflecting the lower deliveries.
EBIT Adjusted at Airbus Defence and Space decreased to €-9m (Q1 2023: €36m), mainly reflecting the lower volume and profitability of Space Systems, notably linked to the Estimates at Completion updates performed in the second half of 2023.
On the A400M programme, development activities continue towards achieving the revised capability roadmap. Retrofit activities are progressing in close alignment with the customer. No net material impact was recognised in the first quarter of 2024. Risks remain on the qualification of technical capabilities and associated costs, on aircraft operational reliability, on cost reductions and on securing overall volume as per the revised baseline.
Consolidated self-financed R&D expenses totalled €743m (Q1 2023: €683m).
Consolidated EBIT (reported) amounted to €609m (Q1 2023: €390m), including net Adjustments of €+32m.
These Adjustments comprised:
- €-13m related to the dollar working capital mismatch and balance sheet revaluation. This mainly reflects the phasing impact arising from the difference between transaction date and delivery date;
- €+51m related to the gain on Airbus OneWeb Satellites, linked to the recent acquisition of the remaining 50% of the joint venture;
- €-6m of other costs including compliance costs.
The financial result was €229m (Q1 2023: € 149m), mainly reflecting a positive impact from the revaluation of certain equity investments. Consolidated net income(1) was €595m (Q1 2023: €466m) with consolidated reported earnings per share of €0.76 (Q1 2023: €0.59).
Consolidated free cash flow before customer financing was €-1,791m (Q1 2023: €-876m), mainly reflecting the planned inventory build-up resulting from the execution of the ramp-up across programmes. Consolidated free cash flow was €-1,799m (Q1 2023: €-873m). The gross cash position stood at €23.4bn at the end of March 2024 (year-end 2023: €25.3bn), with a consolidated net cash position of €8.7bn (year-end 2023: €10.7bn).
Outlook
The guidance issued in February 2024 remains unchanged.
As the basis for its 2024 guidance, the Company assumes no additional disruptions to the world economy, air traffic, the supply chain, the Company’s internal operations, and its ability to deliver products and services.
The Company’s 2024 guidance is before M&A.
On that basis, the Company targets to achieve in 2024:
- Around 800 commercial aircraft deliveries;
- EBIT Adjusted between €6.5bn and € 7.0bn;
- Free Cash Flow before Customer Financing of around €4.0bn.
25 Apr 24. General Dynamics Reports First-Quarter 2024 Financial Results.
- Revenue of $10.7bn, up 8.6% from year-ago quarter
- Operating earnings of $1bn, up 10.4% from year-ago quarter
- Diluted EPS of $2.88, up 9.1% from year-ago quarter
- Operating margin of 9.7%, a 20 basis-point expansion from year-ago quarter
General Dynamics (NYSE: GD) today reported first-quarter 2024 revenues of $10.7bn, up 8.6% from the first quarter of 2023. Operating earnings of $1bn were up 10.4% from the year-ago quarter, with operating margins expanding 20 basis points to 9.7% from the year-ago quarter. Diluted earnings per share (EPS) were $2.88, up 9.1% from the year-ago quarter.
“Our businesses delivered solid operating results in the quarter, growing revenue and backlog, while expanding margins, even as we awaited G700 certification,” said Phebe N. Novakovic, chairman and chief executive officer. “In the Aerospace segment, the recent FAA certification of the Gulfstream G700 has enabled us to begin customer deliveries. This is a strong start to 2024 and we remain confident in our outlook.”
Cash And Capital Deployment
Net cash used by operating activities in the quarter was $278m due to growth of operating working capital in both the Aerospace and defense segments.
During the quarter, the company invested $159m in capital expenditures, paid $361m in dividends, and used $105m to repurchase more than 390,000 shares, ending the quarter with $1bn in cash and equivalents.
Backlog
The consolidated book-to-bill ratio, defined as orders divided by revenue, was 1-to-1 for the quarter. Company-wide backlog of $93.7bn was up 4.4% from the year-ago quarter. Estimated potential contract value, representing management’s estimate of additional value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $40.3bn. Total estimated contract value, the sum of all backlog components, was $134 bn, up 4.4% from the year-ago quarter.
In the Aerospace segment, orders in the quarter totaled $2.4bn, growing backlog to $20.5bn, up 6.2% from the year-ago quarter. Aerospace book-to-bill was 1.2-to-1 for the quarter.
In the defense segments, orders in the quarter totaled $8.8 bn, with particular strength in Combat Systems and Technologies, which had book-to-bill ratios of 1.6-to-1 and 1.2-to-1, respectively.
Significant awards in the defense segments included an IDIQ contract from the U.S. Army to provide medium-caliber ammunition cartridges, with a maximum potential value of $3bn among two awardees; $1.3bn, with a maximum potential value of $2bn, from Austria’s ministry of defense to produce Pandur 6×6 wheeled combat vehicles; four IDIQ contracts from the Canadian government with a maximum potential value of $1.3bn to support the Land Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) system for the Canadian army; $505 m, with a maximum potential value of $995m, for several key contracts for classified customers; $325m from the Canadian government to produce armored combat support vehicles; and $310m from the U.S. Navy for maintenance, modernization and repair work on a Wasp-class amphibious assault ship.
25 Apr 24. Northrop Grumman Reports First Quarter 2024 Financial Results. • Sales increase 9 percent to $10.1bn.
- Operating income increases 13 percent driven by strong performance and cost efficiencies
- Diluted earnings per share increase 15 percent to $6.32
- $1.5bn returned to shareholders through dividends and share repurchases
- Reaffirming 2024 company-level
Northrop Grumman Corporation (NYSE: NOC) reported first quarter 2024 sales increased 9 percent to $10.1bn, as compared with $9.3bn in the first quarter of 2023. First quarter 2024 sales reflect continued strong demand for our products and services. First quarter 2024 net earnings totaled $944m, or $6.32 per diluted share, as compared with $842m, or $5.50 per diluted share, in the first quarter of 2023.
“Northrop Grumman’s first quarter performance includes 9 percent sales and double digit earnings growth, showing we are off to a strong start to the year. We’re also seeing the results of our focus on productivity and cost efficiency to improve operating margin in many of our businesses,” said Kathy Warden, chair, chief executive officer and president. “Robust global defense spending and our strong backlog, along with expanding margins, continue to support our multi-year outlook for free cash flow growth.”
Sales
First quarter 2024 sales increased $832m, or 9 percent, due to higher sales at all four sectors, including 18 percent growth at Aeronautics Systems. First quarter 2024 sales reflect continued strong demand for our products and services. Operating Income and Margin Rate First quarter 2024 operating income increased $124m, or 13 percent, and operating margin rate increased to 10.6 percent, primarily due to higher segment operating income and a benefit associated with the FAS/CAS operating adjustment.
Segment Operating Income and Margin Rate
First quarter 2024 segment operating income increased $102m, or 10 percent, primarily due to higher sales. Segment operating margin rate increased to 10.9 percent and reflects higher operating margin rates at Aeronautics Systems, Defense Systems and Mission Systems, partially offset by a lower operating margin rate at Space Systems.
Federal and Foreign Income Taxes The first quarter 2024 effective tax rate increased to 16.5 percent from 15.6 percent in the prior year period principally due to higher interest expense on unrecognized tax benefits. Net Earnings
First quarter 2024 net earnings increased $102m, or 12 percent, primarily due to a 13 percent increase in operating income and a $36m increase in the non-operating FAS pension benefit, partially offset by a higher effective tax rate.
Cash Flows
First quarter 2024 cash used in operating activities was comparable with the prior year period. Higher net earnings were offset by changes in trade working capital. First quarter 2024 free cash flow increased $35m, or 3 percent, principally due to lower capital expenditures largely driven by timing. The net use of cash during the first quarter is consistent with the company’s historical timing of operating cash flows, which are generally more heavily weighted towards the second half of the year.
Awards and Backlog
First quarter 2024 net awards totaled $6.5bn and backlog totaled $78.9bn. Significant first quarter new awards include $3.1bn for restricted programs (primarily at Aeronautics Systems, Space Systems, and Mission Systems). As previously disclosed, in January 2024, the company received a termination for convenience in our restricted Space business. The company reduced unfunded backlog by $1.6bn during the first quarter of 2024 related to the termination.
Financial Results
Segment Operating Results
AERONAUTICS SYSTEMS
Sales
First quarter 2024 sales increased $454m, or 18 percent, primarily due to higher volume on restricted programs, a $114m increase on the F-35 program driven by higher volume on sustainment and production contracts, and higher volume on the E-2, Triton and Global Hawk programs. The increases on F-35 and restricted programs are due, in part, to material timing in the first quarter.
Operating Income
First quarter 2024 operating income increased $60m, or 25 percent, due to higher sales and a higher operating margin rate. Operating margin rate increased to 10.0 percent from 9.4 percent principally due to higher net EAC adjustments largely driven by improved performance and cost efficiencies on certain production programs, including F-35 and F/A-18, which more than offset sales growth on a low margin restricted program. DEFENSE SYSTEMS
Sales
First quarter 2024 sales increased $36m, or 3 percent, primarily due to ramp-up on the Stand-in Attack Weapon (SiAW) program and higher volume on Guided Multiple Launch Rocket Systems (GMLRS) and certain military ammunition and cannon systems programs, partially offset by lower volume due to the completion of an international training program. Operating Income First quarter 2024 operating income increased $17m, or 11 percent, due to a higher operating margin rate and higher sales. Operating margin rate increased to 12.5 percent from 11.6 percent principally due to improved performance driven by changes in contract mix and cost efficiencies.
MISSION SYSTEMS
Sales
First quarter 2024 sales increased $96m, or 4 percent, primarily due to higher restricted sales on advanced microelectronics programs, partially offset by lower sales on the Scalable Agile Beam Radar (SABR) program. Operating Income First quarter 2024 operating income increased $18m, or 5 percent, due to higher sales and a higher operating margin rate. Operating margin rate increased to 14.2 percent from 14.0 percent, primarily due to sales growth on higher margin advanced microelectronics programs and a prior year loss related to an unconsolidated joint venture. These benefits were partially offset by lower net EAC adjustments on certain radar production programs.
SPACE SYSTEMS
Sales
First quarter 2024 sales increased $305m, or 9 percent, primarily due to a $117m increase on the Space Development Agency (SDA) Tranche 2 Transport Layer (T2TL) programs and higher volume on restricted programs, Commercial Resupply Services (CRS) missions, hypersonics programs and the Glide Phase Interceptor (GPI) program. These increases were partially offset by lower volume on the Ground-based Midcourse Defense (GMD) program. Operating Income First quarter 2024 operating income increased $19m, or 6 percent, due to higher sales, partially offset by a lower operating margin rate. Operating margin rate decreased to 9.1 percent from 9.3 percent principally due to a prior year benefit from the sale of a license to a customer, partially offset by an improvement in net EAC adjustments.
25 Apr 24. Northrop sees F-16 IVEWS, IBCS as ‘multibillion dollar’ international sales drivers. In addition, CEO Kathy Warden says the company sees a chance to sell up to five Triton UAVs to the NATO alliance.
Burgeoning international weapons demand is poised to spur “multibillion-dollar” sales for Northrop Grumman on programs like F-16 electronic warfare modernization and air and missile defense battle management, company executives projected today.
Speaking to investors during the defense giant’s first quarter earnings call for 2024, which beat analyst expectations, Chief Executive Officer Kathy Warden said that exports currently make up about 14 percent of the contractor’s overall sales. While executives don’t expect that number to change “significantly” in the near term, Warden said Northrop anticipates that international sales will grow at a faster rate than domestic deals as sales are executed in the coming years.
The robust international demand “is the strongest that I’ve seen in a long time,” she said.
Specifically, Warden pointed to a few key programs that are informing the company’s rosy outlook on international expansion. One is the Integrated Viper Electronic Warfare Suite (IVEWS), a new EW system for the F-16. Northrop has booked two international customers already and is in talks with seven others, Warden said, which “has the potential to be a new multibillion-dollar product line for us.”
Additionally, fresh off a successful sale to Poland, Warden said that she sees global demand for the company’s Integrated Air and Missile Defense Battle Command System (IBCS) materializing in a “pipeline” worth roughly $10bn.
Other sales opportunities are growing as export restrictions on certain platforms are relaxed, according to Warden. One example she cited is the MQ-4C Triton maritime surveillance drone: NATO is looking to expand its maritime surveillance capabilities, Warden said, which could offer the chance to sell up to five Tritons to the alliance. Other customers in Europe are interested in the platform as well, though she did not say who.
To score wins on those product lines, Northrop will likely have to aggressively compete. L3Harris, for example, is pitching its Viper Shield F-16 EW suite and has already booked multiple foreign customers. Similarly, Northrop has stiff competition for battle management capabilities from the likes of Lockheed Martin. And, NATO would presumably have other options for maritime surveillance.
Generally, Warden said Northrop would look to offer autonomous systems as global drone demand grows, though the company suffered a setback yesterday after the US Air Force decided to proceed with only General Atomics and Anduril for the service’s Collaborative Combat Aircraft program.
Warden today downplayed that loss, saying that the phase the service down-selected for yesterday “was relatively small” and that more opportunities lay ahead. Looking forward, she said the company doesn’t want to be seen as only offering “exquisite and expensive technology,” though she cautioned that desire would only go so far.
“We are really positioned to provide the best solutions that our customer needs against a high end threat. However, we are not looking to compete in a more commoditized part of the market that’s very low cost and not survivable systems. That’s just not our business model and we know that,” she said. (Source: Breaking Defense.com)
25 Apr 24. DJI Just Got a New Rival in the US that Licenses, DJI Technology. There’s no doubt about it – DJI is the industry-leading maker of the best drones. However, if you’re in the US that’s a problem because of the uncertainty around future restrictions and current bans on Chinese-made drone tech amid data security concerns. Cue Anzu Robotics, a new name in the drone space and a DJI alternative that actually uses DJI tech.
Launched by former Autel Robotics CEO Randal Warnas, the new company Anzu Robotics has fast-tracked the creation of high-quality drones by licensing proven DJI drone technology. In a one-time deal for its new Raptor series of drones (and no ongoing DJI partnership being reported), Anzu Robotics has used DJI Mavic 3 Enterprise hardware: a highly-rated professional folding drone from 2022 with superb 20MP micro four thirds sensor.
If Raptor drones use DJI tech, how does it avoid restrictions in US air space? Well, the drones are manufactured outside of China in Malaysia and use domestically-developed software created in collaboration with Aloft Technologies. This ingenious approach takes advantage of the best technology from the drone industry leader DJI, while circumventing potential bans and current restrictions imposed on Chinese-tech in the US.
It’s a move that could have Skydio and Brinc sweating. The two US-based drone makers have benefitted from DJI’s recent troubles in the US, with a recent Congressional bill proposing a complete ban on DJI drones in federal government bodies including the armed forces, plus geofencing for public safety departments such as the fire service. Consequently, Skydio ceased production of its consumer drones to focus on the lucrative commercial and government markets where DJI drones are banned or facing bans.
Skydio and Brinc professional drones are also super expensive, and Anzu Robotics is looking to disrupt the US-based drone market by undercutting its rivals with new drones that use industry-leading DJI tech. Many such companies that previously used DJI drones and are familiar with the tech have been forced to close down their fleets. For them, Anzu Robotics would be the compelling choice to take to the US skies once more.
Raptor drones start at $5,000 (around £4,000 / AU$7,790) which is more than double what you pay for the DJI Mavic 3 that the Raptors’ hardware is based on. It’s the steep price that US-based agencies could have to pay to avoid the restrictions on Chinese drone tech.
The Ongoing DJI Saga
We’ve been reporting about a DJI ban in the US for years. In 2024, it’s still not a total ban; consumers are able to use their DJI drones purchased on US soil. However, at the time of writing, a new push from a House of Representatives committee is calling for harsher tariffs on DJI drones and even a de facto ban for both enterprise and consumers owners. (Source: UAS VISION/Techradar)
25 Apr 24. Kitron: Q1 2024 – Strong underlying profitability in challenging market. Kitron today reported strong underlying profitability in a challenging market. Cost initiatives are implemented to maintain operating margins in line with the company’s strategic target.
Kitron’s revenue for the first quarter was EUR 173.9m, compared to 190.6m last year. There was strong growth within the Defence/Aerospace market sector, while other market sectors showed declines.
First-quarter operating profit (EBIT) was EUR 10.6m, compared to 17.3m last year. EBITDA was EUR 15.2m, compared to 21.4m last year. Profits are impacted by restructuring charges of EUR 4.8m.
Profitability expressed as EBIT margin was 6.1 per cent, including the restructuring charges, compared to 9.1 per cent last year. Profitability adjusted for restructuring charges was 8.8 per cent.
The order backlog ended at EUR 445m, a decrease of 24 per cent compared to last year and a decrease of 10 per cent from the preceding quarter.
Peter Nilsson, Kitron’s CEO, comments: “Nordic and U.S. operations show positive momentum, mainly driven by increased demand in the Defence and Aerospace sectors. However, the broader market environment is challenging, leading us to revise our full year sales outlook. The slower than anticipated market recovery, along with extended de-stocking activities by our customers, necessitate this adjustment. These challenges are affecting our operations in Central and Eastern Europe (CEE) and to a greater extent in China. Despite these headwinds, we see signs of recovery in some market sectors as we approach the fourth quarter.
In response to these conditions, we are strategically aligning our capacity with the prevailing demand to bolster our future efficiency and competitiveness. We are implementing cost initiatives expected to reduce our annual cost base by approximately EUR12m, with the full benefits to be realized starting from the middle of the second quarter.
We remain agile and fully prepared to seize any opportunities should the market conditions improve sooner than expected.
While our commitment to our strategic targets remains steadfast, we recognize that short-term fluctuations around our 9 percent margin target may occur as we adapt our strategies responsively based on evolving market conditions.”
Profit after tax amounted to EUR 6.5m, compared to 13.3m in the same quarter the previous year. This corresponds to earnings per share of EUR 0.03, down from 0.07 last year.
Stable working capital
Operating cash flow in the first quarter was EUR 8.5m, compared to 10.5m in the first quarter of 2023.
Net working capital was EUR 196.9m, an increase of 7.1 per cent compared to the same quarter last year. Net working capital as a percentage of revenue was 28.0 per cent compared to 23.7 per cent last year.
Outlook
For 2024, Kitron has previously indicated a revenue outlook of between EUR 700 and 800m and an operating profit (EBIT) between EUR 60 and 74m. Due to the challenging market outlook, we now expect revenue to be between EUR 660 and 710m. Cost initiatives are implemented to maintain operating margins, and we expect an operating profit (EBIT) between EUR 53 and 60m, including EUR 4.8m in restructuring costs in the first quarter. (Source: Google/Yahoo!)
24 Apr 24. Boeing reports first revenue drop in 7 quarters as deliveries decline. Boeing (BA.N), on Wednesday reported its first quarterly revenue drop in seven quarters, but the U.S. planemaker beat analyst expectations that were lowered after a January mid-air blowout of a door plug prompted it to slow production of its strongest-selling jets.
After the report, Boeing CEO Dave Calhoun told CNBC that a deal to acquire its key supplier Spirit AeroSystems (SPR.N), is more than likely during the second quarter.
Issues that must be worked out include price and talks with Spirit customer Airbus (AIR.PA), Boeing’s major rival. But Calhoun told analysts Boeing can move forward without full clarity on the Airbus side.
“We’re not being held hostage,” said Calhoun who is leaving by the end of the year.
Quarterly revenue was $16.57bn, down from $17.92bn a year earlier but beating expectations of $16.23bn. Boeing and Spirit Aero shares were down about 3% in early afternoon trade.
Boeing CFO Brian West told analysts second quarter cash burn would be “sizeable” although he expected free cash usage to improve from the $3.93bn cash burn in the first quarter. That was less than the $4.49bn analysts expected following the Jan. 5 accident involving a nearly new 737 MAX 9 jet.
“Well it could have been worse. While the loss and the cash outflow are not as bad as feared, the company is still clearly facing some serious challenges,” Vertical Research Partners analyst Robert Stallard said in a note.
In the afternoon, Moody’s cut Boeing’s credit rating to the bottom of investment grade. The agency expects headwinds surrounding the company’s commercial airplanes to persist at least through 2026 when Boeing has $8 bn in debt coming due.
Multiple legal actions resulted from the Alaska Airlines accident. Boeing recorded an earnings charge of $443m, net of insurance recoveries, according to a company filing.
Since the accident, the U.S. Federal Aviation Administration (FAA) has imposed a cap on production of single-aisle 737 MAX jets and given Boeing 90 days from Feb. 28 to develop a comprehensive plan to improve quality control.
Reuters reported this month that output of Boeing’s cash-cow 737 MAX had fallen sharply as U.S. regulators stepped up factory checks. Calhoun said production will stay sporadic through the second quarter as the company devises a plan to better monitor its manufacturing system. He said production rates would not rise until the system is under control.
“So 90 days isn’t like ‘wave a magic flag, and everything is great,’ and you guys can go from 38 to 40” jets per month, Calhoun said. Boeing has engaged independent quality experts, whom Calhoun expects will stay for several years.
While Boeing has not named a successor, Calhoun told CNBC he believes commercial airplanes boss Stephanie Pope has potential to run the company.
Analysts have warned the slow pace of deliveries could delay Boeing’s financial and production goals. Boeing’s CFO said last month the company needs more time to hit a goal outlined in 2022 for an annual cash flow of about $10bn by 2025 or 2026.
That goal is seen as key as Boeing works to accelerate its recovery from an earlier crisis after two MAX jets crashed in 2018 and 2019.
Boeing delivered 13 twin-aisle 787 Dreamliner jets in the quarter. It expects production to return to five per month later this year. Calhoun attributed the slowdown to supply chain issues involving airline seats and parts used in cooling.
Yet with production constrained at Boeing and Airbus, demand remains strong, though the European planemaker has increased its lead in the narrowbody market.
Calhoun said Boeing would have “largely delivered” its inventory of 737s and 787s by the end of the year, bringing in much-needed cash. He added that its defense business, which has been losing money, “will be progressing toward more historical levels of performance.”
Operating margins at Boeing’s defense business rebounded to 2.2% in the quarter from a negative 3.2% a year ago, though it still lost $222m on certain fixed-price development programs.
Boeing delivered 67 737s in the quarter through March, down 41% from last year. Planemakers receive the bulk of the cash upon delivery of the aircraft.
Combined with compensation Boeing had to pay airlines for the temporary grounding of MAX 9 aircraft, margins at its commercial airplanes business deteriorated to negative 24.6% from negative 9.2%.
Overall adjusted loss per share narrowed to $1.13, beating expectations of loss per share of $1.76, as per LSEG data. (Source: Reuters)
24 Apr 24. Boeing burnt through almost $4bn of cash in the first quarter, reflecting slower 737 Max production and compensation to customers as the US plane maker grappled with the aftermath of the mid-air accident in January. The $3.9bn of free cash outflow is slightly lower than the $4bn-4.5bn the company had warned in March, but compares with an outflow of $786mn for the same period last year. Boeing reported a $355mn net loss in the first quarter. The company’s financial results “reflect the immediate actions we’ve taken to slow down 737 production to drive improvements in quality,” said chief executive Dave Calhoun. “We are leaving no stone unturned and are making significant progress,” Calhoun said in a memo to employees, noting Boeing is making improvements in training, tooling, inspection procedures and controlling the flow of travelled work through its 737 factory in Renton, Washington. “We are using this period, as difficult as it is, to deliberately slow the system, stabilise the supply chain, fortify our factory operations and position Boeing to deliver with the predictability and quality our customers demand,” he added. The plane maker is building fewer than 38 Maxes per month, reducing deliveries that are necessary to bring in cash in order to improve the quality of its manufacturing following the mid-air blowout of a door panel on an Alaska Airlines flight. Boeing faces investigations by aviation regulators and the US Justice Department. Though no one was killed, the explosive loss of cabin pressure injured some on board and recalled the two fatal crashes that led to the worldwide grounding of the Max for nearly two years. A preliminary report by the National Transportation Safety Board found that four bolts meant to fasten the panel to the fuselage were missing. A US Federal Aviation Administration audit of Boeing found “multiple instances” where it allegedly failed to meet manufacturing and quality control requirements. Regulators have given the company until the end of May to submit a plan to improve. The company did not issue any financial guidance for the year on Wednesday. It initially declined to issue guidance in January, with Calhoun saying “now is not the time”. The 737’s troubles have led to a shake-up in Boeing leadership. Calhoun said last month he would step down as Boeing chief executive at the end of the year, with the chair of the board Larry Kellner leaving after the annual meeting in May. Stan Deal, head of Boeing’s commercial plane division, departed immediately. (Source: FT.com)
24 Apr 24. Boeing Reports First Quarter Results.
First Quarter 2024
- Undertaking comprehensive actions in our commercial business to strengthen quality and safety
- Financial results reflect lower 737 deliveries and 737-9 grounding customer considerations
- Revenue of $16.6bn, GAAP loss per share of ($0.56) and core (non-GAAP)* loss per share of ($1.13)
- Operating cash flow of ($3.4)bn and free cash flow of ($3.9)bn (non-GAAP)*
- Total company backlog grew to $529 bn, including over 5,600 commercial airplanes
The Boeing Company [NYSE: BA] recorded first quarter revenue of $16.6 bn, GAAP loss per share of ($0.56) and core loss per share (non-GAAP)* of ($1.13). Boeing reported operating cash flow of ($3.4)bn and free cash flow of ($3.9)bn (non-GAAP)*. Results primarily reflect lower commercial delivery volume.
“Our first quarter results reflect the immediate actions we’ve taken to slow down 737 production to drive improvements in quality,” said Dave Calhoun, Boeing president and CEO. “We will take the time necessary to strengthen our quality and safety management systems and this work will position us for a stronger and more stable future.”
Operating cash flow was ($3.4)bn in the quarter reflecting lower commercial deliveries, as well as unfavorable timing of receipts and expenditures.
Cash and investments in marketable securities totaled $7.5bn, compared to $16.0bn at the beginning of the quarter reflecting debt repayment and free cash flow usage in the quarter. Debt was $47.9bn, down from $52.3bn at the beginning of the quarter due to the pay down of maturing debt. The company has access to credit facilities of $10.0bn, which remain undrawn.
Total company backlog at quarter end was $529bn.
Segment Results
Commercial Airplanes
Commercial Airplanes first quarter revenue of $4.7bn and operating margin of (24.6) percent primarily reflect lower 737 deliveries and 737-9 grounding customer considerations.
During the quarter, the 737 program slowed production below 38 per month to incorporate improvements to its quality management system and reduce traveled work within its factory and supply chain. In addition, Commercial Airplanes is implementing a comprehensive action plan to address feedback from the FAA audit of 737 production.
Commercial Airplanes booked 125 net orders, including 85 737-10 airplanes for American Airlines and 28 777X airplanes for customers including Ethiopian Airlines. Commercial Airplanes delivered 83 airplanes during the quarter and backlog included over 5,600 airplanes valued at $448 bn.
Defense, Space & Security
Defense, Space & Security first quarter revenue was $7.0 bn. First quarter operating margin increased to 2.2 percent, primarily driven by higher volume and improved performance. Results also reflect $222 m of losses on certain fixed-price development programs.
During the quarter, Defense, Space & Security captured awards for 17 P-8A Poseidon aircraft for the Royal Canadian Air Force and German Navy, secured the final new-build production contract from the U.S. Navy for 17 F/A-18 Super Hornets, and was awarded an MQ-25 cost-type contract modification from the U.S. Navy including two additional test aircraft. Backlog at Defense, Space & Security was $61 bn, of which 31 percent represents orders from customers outside the U.S.
Global Services
Global Services first quarter revenue of $5.0 bn and operating margin of 18.2 percent reflect higher commercial volume and favorable mix.
During the quarter, Global Services opened a maintenance facility in Jacksonville, Florida, supporting military customers and the U.S. Navy exercised options on a P-8 sustainment modification contract.
23 Apr 24. Lockheed Martin projects potential $1bn loss on classified program. Lockheed CFO Jay Malave said the company currently expects the program to become profitable on an annual basis around the 2028 timeframe.
Lockheed Martin took a $100m loss on a classified program inside its missiles and fire control unit and could rack up an additional $225 m in losses by the end of the year, executives said today.
Regulatory filings that will be available later today will state that the world’s largest defense contractor could incur in excess of $1 bn in potential losses on this program, Lockheed Chief Financial Officer Jay Malave told analysts during an earnings call today.
However, CEO Jim Taiclet characterized the program as a long-running franchise that will deliver a strong return on investment after going through a period of teething pains.
“For a quarter for the year, maybe for a couple of years, we’re going to absorb the loss,” but afterwards “it’s going to be significantly positive,” he said.
Malave said factors such as “technical milestone achievement through the balance of the year, discussions with our customers [and] visibility of funding” could all impact the size and timing of future losses, but that the company currently expects the program to become profitable on an annual basis around the 2028 timeframe.
The loss contributed an 18 percent decrease in profits in the company’s missiles and fire control segment compared to the same period last year, executives said. Overall, however, Lockheed’s net sales grew from $15.1bn in the first quarter of 2023 to $17.1bn this year, led by about 25 percent sales growth in missiles and fire control.
News of the classified program loss comes on the heels of a major win on the Next Generation Interceptor program by Lockheed’s space unit, which beat out Northrop Grumman. The Missile Defense Agency announced its decision about a year earlier than expected, citing budget constraints and the data it has collected from both vendors so far as the reasons for the early selection.
Taiclet attributed Lockheed’s win on the program to its ongoing digital transformation initiative, in which the company is investing about $6bn over a decade to transition Lockheed to using model-based engineering and other advanced design and manufacturing technologies.
NGI was tapped as one of the initial “pathfinders” for such technologies, which helped “accelerate the schedule and contain the cost of the development and ultimately production,” he said. “I think because of our speed and our ability to demonstrate manageable cost over time, we won and kind of won early.”
Due to the earlier-than-expected selection, Lockheed continues to develop NGI using funds from a contract previously awarded in 2021.
However, the company was required to provide pricing for several different contract structures, including both a cost-plus contract and a fixed-price incentive structure that would shift more risk to the company, Malave said.
The US government has yet to indicate which path it will choose for its future NGI contract, but neither of the options Lockheed provided were based on an aggressive bidding strategy, Malave said. “We’ve taken a middle of the road approach to our pricing and this is no different.”
Taiclet added that a fixed price approach would incur “a risk premium that’s significantly higher” than those in a cost-plus contract to mitigate the chance of future losses. (Source: Defense News Early Bird/Breaking Defense)
24 Apr 24. CACI Reports Results for Its Fiscal 2024 Third Quarter and Raises Fiscal Year Guidance.
Revenues of $1.9bn, +11% YoY
Net income of $115.4m and diluted EPS of $5.13, +18% YoY
Adjusted net income of $129.0m and adjusted diluted EPS of $5.74, +17% YoY
EBITDA margin of 11.3%, +200 basis points sequentially
Contract awards of $3.5bn representing a book-to-bill of 1.8x
Raising Fiscal Year 2024 guidance for revenue, adjusted net income, and adjusted diluted EPS
CACI International Inc (NYSE: CACI), a leading provider of expertise and technology to government customers, announced results today for its fiscal third quarter ended March 31, 2024.
“CACI’s outstanding performance reflects the continued successful execution of our strategy. We’re winning and delivering in the marketplace with differentiated capabilities, exceptional business development, and program execution,” said John Mengucci, CACI President and Chief Executive Officer. “Our third quarter results were strong across the board, including double-digit organic growth, margin expansion, $3.5bn of awards, and record backlog. Our performance enables us to again raise fiscal year 2024 revenue and earnings guidance. We remain confident in our ability to drive long-term growth, increase free cash flow, and generate value for our customers and our shareholders.”
Third Quarter Results
Revenues in the third quarter of fiscal year 2024 increased 11 percent year-over-year, driven by 10 percent organic growth. The increase in income from operations was driven by higher revenues and gross profit. Growth in diluted earnings per share and adjusted diluted earnings per share was driven by higher income from operations and share repurchases earlier in the year, partially offset by a higher tax provision and higher interest expense. The increase in cash from operations, excluding MARPA, was driven primarily by strong working capital and capital expenditure management, and higher net income.
Third Quarter Contract Awards
Contract awards in the third quarter totaled $3.5bn, with approximately 46 percent for new business to CACI. Awards exclude ceiling values of multi-award, indefinite delivery, indefinite quantity (IDIQ) contracts. Some notable awards during the quarter were:
- A five-year task order worth a total estimated value of $1.3bn to provide communications and information technology expertise to U.S. European Command (USEUCOM) and U.S. Africa Command (USAFRICOM). This work continues and expands CACI’s current relationship with these two 4-star commands, service component commands, and associated staff elements and organizations, by providing innovative IT solutions and expertise tailored to their missions to execute global multi-domain operations with NATO, allies, and mission partners to prevent conflict and respond in crisis.
- A $638m task order to provide enterprise product support to the Department of Defense (DoD) for five years, enabling faster and more effective development and dissemination of actionable intelligence.
- A five-year DoD logistics and sustainment support task order worth up to $271m.
- A task order valued at up to $199m over five years to provide expertise to the DoD for tactical command, control, and communications support across the warfighting functions of movement and maneuver, command and control, fires, sustainment, protection, intelligence, and engagement.
- An order of counter-unmanned aircraft systems (C-UAS) by the Canadian Armed Forces that will defeat unmanned aerial vehicle threats, including small drones.
Total backlog as of March 31, 2024 was $28.6bn compared with $25.3bn a year ago, an increase of 13.0 percent. Funded backlog as of March 31, 2024 was $3.2bn compared with $3.4 bn a year ago, a decrease of 5.9 percent. The change in funded backlog was driven by normal variation in timing of funding as well as particularly strong funding in the year-ago quarter.
Additional Highlights
- Fortune magazine recognized CACI as one of the World’s Most Admired Companies in 2024, commemorating its seventh consecutive year on the list and its 13th appearance since the list’s inception. CACI received notable results in Fortune’s survey criteria for the quality of its expertise and technology, long-term investment strategy, financial soundness, and social responsibility. CACI was chosen from among approximately 1,500 global companies considered by Fortune.
- For the fourth consecutive year, CACI was named a Top Workplace USA by employee engagement technology partner Energage, LLC. This latest accolade is a result of the company’s strong culture, total rewards, and legacy spanning more than 60 years.
- Twenty one CACI employees were honored for their excellence in science, technology, engineering, and math (STEM) at the 38th annual Black Engineer of the Year Awards (BEYA) Global Competitiveness Conference held Feb. 15-17 in Baltimore, Maryland.
Fiscal Year 2024 Guidance
The table below summarizes our fiscal year 2024 guidance and represents our views as of April 24, 2024. Our revenue guidance reflects approximately $200m of higher-than-expected material purchases by our customers, split evenly between the first and second quarters of fiscal year 2024. Our guidance also reflects lower diluted weighted average shares due to the effect of share repurchases earlier in the year.
(Source: BUSINESS WIRE)
24 Apr 24. Amphenol Reports First Quarter 2024 Results and Announces New Stock Repurchase Program.
First Quarter 2024 Highlights:
- Sales of $3.26bn, up 9% in U.S. dollars and 6% organically compared to the first quarter of 2023
- GAAP Diluted EPS of $0.87, up 23% compared to prior year
- Adjusted Diluted EPS of $0.80, up 16% compared to prior year
- GAAP and Adjusted Operating Margin of 21.0%
- Operating and Free Cash Flow of $599m and $506m, respectively
- Announces a new three-year, $2bn open market stock repurchase program
Amphenol Corporation (NYSE: APH) today reported first quarter 2024 results. In addition, the Company is announcing a new three-year, $2bn stock repurchase program.
“We are pleased to have closed the first quarter of 2024 with sales and Adjusted Diluted EPS both exceeding the high end of our guidance,” said Amphenol President and Chief Executive Officer, R. Adam Norwitt. “Sales increased from prior year by 9%, driven by growth in the IT datacom, commercial air, automotive and defense markets as well as contributions from the Company’s acquisition program, partially offset by moderations in the mobile networks, broadband and industrial markets. During the quarter, we again realized strong profitability with Adjusted Operating Margin of 21.0%, a first-quarter record. We are very proud of the Company’s outstanding performance during the quarter.”
During the first quarter of 2024, Amphenol continued to deploy its financial strength in a variety of ways to increase shareholder value. During the quarter, the Company purchased 1.4m shares of its common stock for $154 m and paid dividends of $132m, resulting in total capital returned to shareholders of $286m.
New Stock Repurchase Program
In April 2024, the Company purchased the remaining authorized amount of common stock under the existing three-year, $2bn stock repurchase plan. On April 23, 2024, the Company’s Board of Directors approved a new three-year, $2 bn open market stock repurchase plan.
Second Quarter 2024 Outlook
The current economic environment remains uncertain. Assuming the continuation of current market conditions as well as constant exchange rates, for the second quarter of 2024, Amphenol expects sales to be in the range of $3.24bn to $3.30bn. This represents a 6% to 8% increase over the prior year quarter. Adjusted Diluted EPS is expected to be in the range of $0.79 to $0.81, representing a 10% to 13% increase from the second quarter of 2023.
Mr. Norwitt continued, “I am pleased with the Company’s first quarter 2024 results. The revolution in electronics continues to accelerate, with new innovations creating exciting growth opportunities for Amphenol across each of our diversified end markets. In turn, we have expanded our range of high-technology interconnect products, both through our organic innovation efforts as well as through our successful acquisition program. This expanded technology position coupled with our unique entrepreneurial culture has strengthened our competitive advantage. Our ongoing drive to leverage that competitive advantage and thereby create sustained financial strength has established an excellent base for the Company’s future performance. I am confident in the ability of our outstanding and growing entrepreneurial management team to continue to dynamically adjust to changing market conditions, to capitalize on the wide array of growth opportunities that arise in all market cycles and to continue to generate sustainable long-term value for our shareholders and other stakeholders.”
(Source: BUSINESS WIRE)
24 Apr 24. Teledyne Technologies Reports First Quarter Results.
Teledyne Technologies Incorporated (NYSE:TDY):
- Orders of $1,433.2m, an increase of 7.8% compared with last year
- Sales of $1,350.1m
- First quarter GAAP operating margin of 17.4% and record first quarter non-GAAP operating margin of 21.2%
- GAAP diluted earnings per share of $3.72 and record first quarter non-GAAP diluted earnings per share of $4.55
- Record first quarter cash from operations of $291.0m and all-time record free cash flow of $275.1m
- Revising full year 2024 GAAP diluted earnings per share outlook to $16.02 to $16.27, compared with the prior outlook of $17.15 to $17.53, and revising full year 2024 non-GAAP earnings per share outlook to $19.25 to $19.45, compared with the prior outlook of $20.35 to $20.68
- Announced pending acquisition of Adimec Holdings B.V.
- Recently completed acquisition of Valeport on April 10, 2024
- Consolidated Leverage Ratio improved to 1.7x
- Further reduction in gross debt with a $450m debt maturity payment made after quarter-end on April 1, 2024
- Planned capital deployment to include stock repurchases of approximately $250.0 to $300.0 m under the company’s new authorization
Teledyne today reported first quarter 2024 net sales of $1,350.1m, compared with net sales of $1,383.3m for the first quarter of 2023, a decrease of 2.4%. Net income attributable to Teledyne was $178.5m ($3.72 diluted earnings per share) for the first quarter of 2024, compared with $178.7m ($3.73 diluted earnings per share) for the first quarter of 2023, a decrease of 0.1%. The first quarter of 2024 included $49.4m of pretax acquired intangible asset amortization expense, $2.2m of pretax FLIR integration costs and $0.3m of acquisition related discrete income tax expense. Excluding these items, non-GAAP net income attributable to Teledyne for the first quarter of 2024 was $218.3m ($4.55 diluted earnings per share). The first quarter of 2023 included $49.7m of pretax acquired intangible asset amortization expense and $0.3m of acquisition related discrete income tax expense. Excluding these items, non-GAAP net income attributable to Teledyne for the first quarter of 2023 was $217.2 m ($4.53 diluted earnings per share). Operating margin was 17.4% for the first quarter of 2024, compared with 17.5% for the first quarter of 2023. Excluding the non-GAAP items discussed above, non-GAAP operating margin for the first quarter of 2024 was 21.2%, compared with 21.1% for the first quarter of 2023.
“We achieved record first quarter non-GAAP operating margin, adjusted earnings per share and free cash flow,” said Robert Mehrabian, Executive Chairman. “While overall orders remained strong, sales were impacted by deterioration in some of our shorter cycle imaging and instrumentation markets. We had previously assumed no full year sales growth in industrial automation as well as test and measurement markets. However, those markets weakened more than planned in the first quarter, and we now forecast full year sales in those product families to decline meaningfully in 2024. Nevertheless, we believe such sales declines will be offset by our marine, aviation and certain defense businesses resulting in flat full year sales compared with 2023. Despite those anticipated sales reductions in what are among our highest margin businesses, we believe overall operating margin will remain flat. For example, driven by organic growth and strong margin improvement at Teledyne FLIR, we were able to protect first quarter operating margin in the Digital Imaging segment despite a significant year-over-year reduction in sales related to industrial automation. Finally, given our even stronger balance sheet and record free cash flow, we believe it is an opportunistic time to add stock repurchases to our capital deployment plans.”
Review of Operations
Comparisons are with the first quarter of 2023, unless noted otherwise.
Digital Imaging
The Digital Imaging segment’s first quarter 2024 net sales were $740.8m, compared with $772.5m, a decrease of 4.1%. Operating income was $113.8m for the first quarter of 2024, compared with $122.2m, a decrease of 6.9%. The first quarter of 2024 included $2.2m of pretax FLIR integration costs, and there were no comparable costs in the first quarter of 2023. Acquired intangible amortization expense for both the first quarter of 2024 and 2023 was $45.8m. Excluding these items, non-GAAP operating income for the first quarter of 2024 was $161.8m, compared with $168.0 m, a decrease of 3.7%.
The first quarter of 2024 net sales decreased primarily due to lower sales of industrial imaging cameras and micro-electro-mechanical systems (“MEMS”), partially offset by higher sales of infrared detectors and subsystems as well as unmanned systems. The decrease in operating income was primarily due to lower sales and unfavorable product mix.
Instrumentation
The Instrumentation segment’s first quarter 2024 net sales were $330.4m, compared with $333.5m, a decrease of 0.9%. Operating income was $86.0m for the first quarter of 2024, compared with $80.7m, an increase of 6.6%.
The first quarter of 2024 net sales decrease resulted from a $15.9m decrease in sales of test and measurement instrumentation as well as a $6.8m decrease in sales of environmental instrumentation, partially offset by a $19.6m increase in sales of marine instrumentation. The increase in operating income primarily reflected the impact of higher marine instrumentation sales and improved marine instrumentation product margins.
Aerospace and Defense Electronics
The Aerospace and Defense Electronics segment’s first quarter 2024 net sales were $185.7m, compared with $173.2m, an increase of 7.2%. Operating income was $51.9 m for the first quarter of 2024, compared with $47.0m, an increase of 10.4%.
The first quarter of 2024 net sales reflected higher sales of $10.1m for aerospace electronics and $2.4m for defense electronics. The increase in operating income primarily reflected the impact of a higher percentage of segment sales being aerospace electronics, which has higher product margins.
Engineered Systems
The Engineered Systems segment’s first quarter 2024 net sales were $93.2m, compared with $104.1m, a decrease of 10.5%. Operating income was $2.7m for the first quarter of 2024, compared with $10.0m, a decrease of 73.0%.
The first quarter of 2024 net sales reflected lower sales of $10.1m for engineered products and $0.8m for energy systems. The lower sales for engineered products primarily reflected decreased sales from defense and maritime programs. The decrease in operating income was primarily driven by program mix and unfavorable estimate changes related to electronic manufacturing services contracts.
Additional Financial Information
Cash Flow
Cash provided by operating activities was $291.0m for the first quarter of 2024 compared with $203.0m, with the increase driven by stronger working capital performance in the first quarter of 2024. Depreciation and amortization expense for the first quarter of 2024 was $78.0m compared with $82.1m. Stock-based compensation expense for the first quarter of 2024 was $12.0m compared with $7.9m, with the increase related to timing of grants, including certain grants that were fully expensed in the first quarter of 2024.
Capital expenditures for the first quarter of 2024 were $15.9m compared with $24.4m. Teledyne received $9.1m from the exercise of stock options in the first quarter of 2024 compared with $10.2m.
As of March 31, 2024, net debt was $2,333.9m which is calculated as total debt of $3,246.3m, net of cash and cash equivalents of $912.4m. As of December 31, 2023, net debt was $2,596.6m representing total debt of $3,244.9m, net of cash and cash equivalents of $648.3m. Subsequent to the end of the quarter, the Company made a $450m debt maturity payment.
As of March 31, 2024, $1,128.2m was available under the $1.15bn credit facility, after reductions of $21.8m in outstanding letters of credit.
Income Taxes
The effective tax rate for the first quarter of 2024 was 20.6%, compared with 20.1%. The first quarter of 2024 reflected net discrete income tax benefits of $4.4 m compared with $6.6m. Excluding the net discrete income tax items in both periods, the effective tax rates would have been 22.5% for the first quarter of 2024, compared with 23.0%.
Other
Corporate expense was $20.1m for the first quarter of 2024 compared with $17.4m, with the increase driven primarily by higher compensation cost, including higher stock-based compensation expenses. Non-service retirement benefit income was $2.7m for the first quarter of 2024 compared with $3.3m. Interest expense, net of interest income, was $12.7m for the first quarter of 2024 compared with $21.0m. The decrease was due to reduced outstanding borrowings with lower weighted average interest rates compared to the first quarter of 2023.
Outlook
Based on its current outlook, the company’s management believes that second quarter 2024 GAAP diluted earnings per share will be in the range of $3.57 to $3.70 and full year 2024 GAAP diluted earnings per share will be in the range of $16.02 to $16.27. The company’s management further believes that second quarter 2024 non-GAAP diluted earnings per share will be in the range of $4.40 to $4.50 and full year 2024 non-GAAP diluted earnings per share will be in the range of $19.25 to $19.45. The non-GAAP outlook excludes acquired intangible asset amortization for all acquisitions, further FLIR integration costs and acquisition-related tax matters. The company’s annual expected tax rate for 2024 is 22.5%, before discrete tax items. (Source: BUSINESS WIRE)
23 Apr 24. RTX beats estimates on military demand, aviation strength. Aerospace and defense major RTX (RTX.N), on Tuesday beat first-quarter earnings estimates, helped by demand for missile defense systems and strength in the commercial aftermarket business.
The aftermarket business gained as airlines had to extend the service life of aircraft to keep up with the recovery in air travel amid the limited availability of new commercial planes.
The Arlington, Virginia-based company reported revenue of $19.3bn on a per-share profit of $1.34 for the quarter.
Analysts on average had expected revenue of $18.41bn and earnings of $1.23 per share, as per LSEG data.
Pratt and Whitney, a subsidiary of RTX, reported a sales rise of 23% amid the ongoing inspection drive to check for potentially flawed components in its geared turbofan (GTF) jet engines.
The GTF engine issue relates to a powder metal used in engine parts, such as high pressure turbine disks and high-pressure compressor disks, that could result in micro-cracks and fatigue.
Following the quality crisis in some GTF engines last year, RTX estimated grounding of 350 jets annually from 2024 through 2026, outlining $6bn to $7 bn in recall cost including compensating customers for lost capacity.
Chief Financial Officer Neil Mitchill told Reuters in an interview the company’s negotiations with customers were progressing with agreements finalized with 9 customers who “represent a healthy portion of the fleet,” and 6 more in process.
More than 40 customers operate the PW 1100 engine, he said.
RTX still expects about 350 aircraft to be grounded at any time due to engine removals, “we’re essentially at the peak here in April. It will continue to be at about an average of 350 between 2024 and 2026. So, no changes to those assumptions,” Mitchill said.
Pratt’s operating profit declined as new engine deliveries offset aftermarket benefits. Engine makers often sell new units at discount to make profits over the life of the engine through aftermarket sales.
Driven by strong demand for both original equipment and aftermarket service, sales at RTX’s Collins Aerospace unit, which makes avionics and aerospace components, rose 9%.
International demand for U.S. weaponry is soaring following Russia’s invasion of Ukraine, the specter of Chinese aggression, and conflicts in the Middle East, with countries striking and negotiating new deals to buy arms and looking to speed up existing contracts.
Operating profit at RTX’s defense arm, Raytheon, jumped 74%, aided by its in-demand Patriot defense system, and gains from the divestiture of the cybersecurity, intelligence, and services business.
During the quarter, Raytheon booked a $1.2 bn order for Germany Patriot air and missile defense systems. (Source: Google/Reuters)
23 Apr 24. RTX Reports Q1 2024 Results. RTX delivers strong 12% sales growth; Q1 book-to-bill of 1.34 with an RTX record backlog of $202bn; Reaffirms full year outlook
RTX (NYSE: RTX) reported first quarter 2024 results.
First quarter 2024
- Sales of $19.3bn, up 12 percent versus prior year on a reported and organic* basis
- GAAP EPS of $1.28, up 32 percent versus prior year, which included $0.29 of acquisition accounting adjustments and a $0.23 benefit from net significant and/or non-recurring items and restructuring
- Adjusted EPS* of $1.34, up 10 percent versus prior year
- Operating cash flow of $0.3bn; Free cash outflow* of $0.1bn
- Gross proceeds of $1.3bn from the completion of the divestiture of Raytheon’s Cybersecurity, Intelligence and Services business
- Company backlog of $202bn; including $125 bn of commercial and $77bn of defense
- Realized $105m of incremental RTX gross cost synergies
Reaffirms outlook for full year 2024
- Sales of $78.0 – $79.0bn
- Adjusted EPS* of $5.25 – $5.40
- Free cash flow* of approximately $5.7bn
“RTX saw strong momentum in the first quarter, delivering 12 percent organic sales* growth and winning over $25bn in new orders across our businesses,” said RTX President and Chief Operating Officer Chris Calio. “We are making progress on our key priorities to deliver for customers and shareowners, including executing on our GTF fleet management plans, which remain on track.”
“We’re operating in one of the strongest demand periods in our history with a record $202 bn backlog and a portfolio of products and services which are fully aligned to our customers’ top priorities. Our focus on execution and driving performance and margin expansion is supported by our CORE operating system, and we continue to invest in operational modernization and production capacity, digital transformation and technological innovation to sustain our growth well into the future.”
First quarter 2024
RTX reported first quarter sales of $19.3bn, up 12 percent over the prior year. GAAP EPS of $1.28 was up 32 percent versus the prior year, and included $0.29 of acquisition accounting adjustments, a $0.21 benefit related to tax audit settlements, an $0.18 net gain related to the Cybersecurity, Intelligence and Services divestiture, a $0.13 charge associated with initiating alternative titanium sources, and $0.03 of restructuring and other net significant and/or non-recurring charges. Adjusted EPS* of $1.34 was up 10 percent versus the prior year.
The company recorded net income attributable to common shareowners in the first quarter of $1.7bn which included $389 m of acquisition accounting adjustments, a benefit of $285 m related to tax audit settlements, a net gain of $241m related to the Cybersecurity, Intelligence and Services divestiture, a $175m charge associated with initiating alternative titanium sources, and $44m of restructuring and other net significant and/or non-recurring charges. Adjusted net income* of $1.8bn was flat versus prior year as growth in adjusted segment operating profit* was more than offset by higher interest expense and lower pension income. Operating cash flow in the first quarter was $342m. Capital expenditures were $467 m, resulting in a free cash outflow* of $125m.
Summary Financial Results – Operations Attributable to Common Shareowners
Backlog and Bookings
Backlog at the end of the first quarter was $202 bn, of which $125bn was from commercial aerospace and $77bn was from defense.
Notable defense bookings during the quarter included:
- $1.6bn of classified bookings at Raytheon
- $1.2bn for Germany Patriot production at Raytheon
- $818m for NATO GEM-T production at Raytheon
- $623m for international GEM-T production at Raytheon
- $282m for Ukraine NASAMS production at Raytheon
- $251m for international GEM-T production at Raytheon
Segment Results
The company’s reportable segments are Collins Aerospace, Pratt & Whitney, and Raytheon.
Collins Aerospace
Collins Aerospace had first quarter 2024 reported sales of $6,673m, up 9 percent versus the prior year. The increase in sales was driven by a 14 percent increase in both commercial aftermarket and commercial OE, and a 1 percent increase in defense. The increase in commercial sales was driven primarily by strong demand across commercial aerospace end markets, which resulted in higher flight hours and higher OE production rates. The increase in defense sales was driven primarily by higher volume.
Collins Aerospace recorded operating profit of $849m, down 5 percent versus the prior year. Reported operating profit included $175m of charges related to unfavorable purchase commitments and an impairment charge as a result of initiating alternative titanium sources. On an adjusted basis, operating profit* of $1,048m was up 16 percent versus the prior year. The increase in adjusted operating profit* was primarily driven by drop through on higher commercial aftermarket volume, partially offset by unfavorable OE mix, higher space program costs and increased R&D expense.
Pratt & Whitney
Pratt & Whitney had first quarter 2024 reported sales of $6,456m, up 23 percent versus the prior year. The increase in sales was driven by a 64 percent increase in commercial OE, a 21 percent increase in military, and a 9 percent increase in commercial aftermarket. The increase in commercial sales was primarily due to higher GTF OE volume and favorable mix, and higher aftermarket volume. The increase in military sales was driven by higher sustainment volume across multiple platforms and higher development volume driven primarily by the F135 Engine Core Upgrade program.
Pratt & Whitney recorded operating profit of $412m, down 1 percent versus the prior year. The benefit of favorable commercial OE mix and drop through on higher commercial aftermarket volume was partially offset by headwinds from increased commercial OE deliveries, unfavorable commercial aftermarket mix, and the absence of a favorable $60 m prior year contract matter. Higher military volume and favorable mix was more than offset by higher R&D and SG&A expenses. On an adjusted basis, operating profit* of $430 m was down 1 percent versus the prior year.
Raytheon
Raytheon had first quarter 2024 reported sales of $6,659m, up 6 percent versus prior year. The increase in sales was primarily driven by higher volume on land and air defense systems, including Global Patriot, counter-UAS systems and NASAMS, and advanced technology programs.
Raytheon recorded operating profit of $996m, up 74 percent versus the prior year. The increase in operating profit was driven primarily by higher volume and improved net productivity, partially offset by unfavorable mix. Reported operating profit included a $375 m net gain on the sale of the Cybersecurity, Intelligence, and Services business. On an adjusted basis, operating profit* of $630m was up 8 percent versus the prior year. (Source: PR Newswire)
22 Apr 24. Driving Innovation: Sigma Defense Expands CJADC2 Capabilities with EWA Acquisition. Sigma Defense, a Sagewind Capital portfolio company and leading provider of advanced technology solutions for the defense sector, today announced the acquisition of EWA Inc., a prominent player in the field of Electronic Warfare (EW) headquartered in Herndon, Virginia. With over 47 years of experience in developing and delivering EW capabilities, EWA provides a comprehensive understanding of evolving threats across the electromagnetic spectrum. The acquisition of EWA will enhance Sigma Defense’s ability to deliver on the CJADC2 vision of “sense, make sense and act” delivering new capabilities to joint and coalition forces.
EWA’s long history of delivering EW technologies to the DoD and National Security stakeholders aligns with Sigma Defense’s software led approach, augmenting its CJADC2 ecosystem for collecting, analyzing, and distributing data for near real-time intelligence. This strategic move further advances Sigma Defense’s vision enabling the company to provide a comprehensive understanding of evolving threats across the electromagnetic spectrum.
Matt Jones, CEO of Sigma Defense, noted the significance of the acquisition and the impact it will have to the warfighter, stating, “We are honored to continue the amazing work that Carl Guerreri, the founder of EWA, started over 4 decades ago, and has built into a world class electronic warfare systems and solutions organization. The electromagnetic spectrum is a critical source of signature data that must be collected, analyzed, distributed, and acted on with speed, the same as all other elements of CJADC2. Understanding the full impact of EW attack and countermeasures is a critical component against a near peer adversary, so the alignment between EWA and Sigma Defense was a natural fit that accelerates our ability to deliver new solutions for our customers. We are very proud to welcome the EWA team to the Sigma Defense family.”
“We started EWA in 1977 supporting the U.S Army Missile Intelligence Agency and over 47 years it has grown to provide electronic warfare solutions, testing and training, threat simulators and more across the U.S Army, Navy, Air Force, Space Force, and other U.S. National Security agencies,” said Carl Guerreri, Founder, CEO, and President of EWA. “We have continued to evolve to best serve the needs of our customers, and the Sigma Defense partnership represents the next step in our evolution as a company to respond to the ‘sense, make sense, and act capabilities’ requirements for CJADC2.”
The integration of EWA’s expertise and resources into Sigma Defense’s portfolio will enable the combined company to provide new and innovative approaches to address the evolving challenges faced by military and defense organizations worldwide. KippsDeSanto & Co. was the financial advisor to EWA.
For more information about Sigma Defense please visit www.sigmadefense.com.
About Sigma Defense
Sigma Defense Systems LLC is a leading technology company serving the Department of Defense (DoD) providing systems and services for JADC2, C5ISR and DevSecOps since 2006. The company’s software-focused approach to tactical communications accelerates information collection and sharing for faster decision making and better mission outcomes. Customers turn to Sigma Defense for engineering, program management, and data logistics services for technical solutions that encompass ground, air, and space-based systems and sensors and network and satellite communications. Sigma is headquartered in Perry, GA with satellite offices both CONUS and OCONUS.
About EWA
EWA is a technology business providing professional services and specialized products to its customers. EWA prides itself on overcoming technological challenges and delivering on-time products for its customers. For over 47 years, EWA has been specializing in a broad array of EW products and services, including analysis, simulation and training, RF threat simulators and custom instrumentation for laboratories and OARs, signal analysis software, and embedded training hardware and software. They also provide engineering products and services in cyber defense, intelligence, security, training, tactical mission planning, information operations, wireless applications, range instrumentation, spectrum, radar development, force protection and counter-UAS solutions.
About Sagewind Capital LLC
Sagewind Capital LLC is a New York-based middle-market private equity firm that partners with exceptional management teams and focuses on significant capital appreciation by helping business grow organically and through strategic acquisitions. Sagewind invests across several industries, including government services, aerospace & defense, software, information technology, healthcare, and business services. The firm is focused on long-term capital appreciation and has the flexibility to own businesses for extended periods. For more information, please visit www.sagewindcapital.com. (Source: PR Newswire)
19 Apr 24. Turkish Artificial Intelligence Defense Company RobotEye Receives Investment from ARZPortfoy at a Valuation of $12.5m.
RobotEye AI, which produces next-generation smart surveillance and reconnaissance systems, secured investment from ARZ Portfoy, known for its investments in technology-based startup companies, at a valuation of $12.5m to enhance its border security solutions. This investment marks a significant step towards addressing defense and security system demands from Western Europe, North Africa, the Arabian Peninsula, and Indo-Pacific countries facing border security challenges.
RobotEye AI made a rapid entry into the intelligence, surveillance, and reconnaissance market with its
devices specially developed for vast and challenging terrains where traditional human-based border
security systems are not effective and communication infrastructure is inadequate. These innovative and smart systems offer cost-effective and fully autonomous solutions, due to specially developed, field-proven artificial intelligence algorithms. RobotEye’s command and control software platform, “Central”, smartens up legacy devices, reduces human dependency in existing defense systems, and operates as a next-generation decision support system. RobotEye’s patented flagship product “Smart Trailcam – Solo” combines satellite connectivity and on-device edge AI to secure critical crossing points. Developed for tactical and special operations units, the “Eye” System provides situational awareness independent of any communication infrastructure in the field. The system enhances the security of
special forces operating in both domestic and cross-border sensitive areas by protecting them against infiltration and sabotage threats, thus increasing their safety.
Dr. Ferit Cakici, the CEO of RobotEye AI, stated, “This investment from ARZ Portfoy will provide strong support to our company’s technology and vision. With this investment, we will accelerate our growth, expand our technological capabilities, and enhance our capacity to respond to international security needs.”
Murat Onuk, who serves as the Board Member and CEO of ARZ Portfoy, remarked, “Defense industry ventures producing next-generation solutions that are intelligent and AI-based, requiring no human intervention, have begun to emerge worldwide. Turkish initiative RobotEye stands out in this field, filling a critical gap in border protection and surveillance with their specially designed AI-supported smart surveillance systems. We are delighted to support an innovative and visionary Turkish company like RobotEye on a global scale.” Recent security problems in various regions of the world have increased the need for AI-supported
defense technologies and highlighted the importance of companies working in this field. Companies such as Anduril Industries, Helsing, Shield AI, which attract attention with their unmanned and smart defense solutions, have already reached bn-dollar valuations. Similarly, Athens-based Lambda Automata, which operates in the same field, recently attracted attention by securing a €6M investment from European Union countries. These developments clearly show how artificial intelligence-supported defense solutions are gaining momentum worldwide. These developments clearly indicate the momentum that AI-supported defense solutions have gained globally. (Source: Defense Arabia)
23 Apr 24. Lockheed Martin beats Q1 expectations on strong demand, sees supply chain improvement. U.S. weapons maker Lockheed Martin (LMT.N), beat Wall Street expectations for first-quarter sales and profit on Tuesday, as simmering geopolitical tensions prompted some countries to boost their defense spending, driving demand for new weapons.
Sales in Lockheed’s missiles and fire control unit jumped 25.3% to nearly $3bn, boosted by strong demand for high mobility artillery rocket system (HIMARS) and guided multiple launch rocket system (GMLRS), key weapons used by Ukraine in its conflict with Russia.
“We saw strong labor and material throughput, indicative of an improving supply chain,” Lockheed CFO Jay Malave said on the post-earnings conference call on Tuesday.
Sales in the company’s aeronautics business, its biggest unit and which makes the F-35 fighter jets, rose 9.2% to $6.85bn.
“These first-quarter results reinforce our confidence in our ability to achieve the full-year financial expectations we set in January,” CEO Jim Taiclet said in a statement.
It had forecast full-year net sales of $68.5bn to $70bn and profit of $25.65 to $26.35 per share.
It started the year with a quarterly profit of $6.39 per share, well above analysts’ expectations of $5.83 per share, according to LSEG data.
The delay in resuming deliveries of its marquee F-35 jet to Pentagon due to the TR-3 software upgrade has left Lockheed with fighter jets in its inventories.
TR-3 refers to a series of enhancements to the F-35, encompassing improved displays, increased computer memory and enhanced processing capabilities.
“The test results to date support our expected timeline of delivering the first TR-3 combat training-capable aircraft in the third quarter and then transition to a fully combat-capable aircraft in 2025,” Taiclet said.
Lockheed’s first-quarter net sales rose 14% to $17.2bn, also beating analysts’ expectations of $16.02bn.
Last week, the U.S. Missile Defense Agency said Lockheed won a $17bn contract to develop the next generation of interceptors to defend the United States against an intercontinental ballistic missile attack.
(Source: Reuters)
23 Apr 24. Lockheed Martin Reports First Quarter 2024 Financial Results.
- Net sales of $17.2bn
- Net earnings of $1.5bn, or $6.39 per share
- Cash from operations of $1.6bn and free cash flow of $1.3bn
- $1.8bn of cash returned to shareholders through dividends and share repurchases
- Reaffirms 2024 financial outlook
Lockheed Martin Corporation [NYSE: LMT] today reported first quarter 2024 net sales of $17.2bn, compared to $15.1bn in the first quarter of 2023. Net earnings in the first quarter of 2024 were $1.5bn, or $6.39 per share, compared to $1.7bn or $6.61 per share, in the first quarter of 2023. Cash from operations was $1.6bn in both the first quarters of 2024 and 2023. Free cash flow was $1.3bn in both the first quarters of 2024 and 2023. First quarter 2024 results included 13 weeks compared to 12 weeks for first quarter 2023.
“Our strong start to 2024 demonstrates our continued success designing, developing and delivering 21st Century Security solutions in support of integrated deterrence for customers around the world. These first quarter results reinforce our confidence in our ability to achieve the full year financial expectations we set in January,” said Lockheed Martin Chairman, President and CEO Jim Taiclet. “First quarter sales increased significantly year-over-year and we generated robust free cash flow of nearly $1.3bn, while taking assertive actions to further strengthen production capacity. In addition, we continued our disciplined and dynamic capital deployment by investing over $700m into R&D and capital projects and returned significant capital to shareholders through dividends and share repurchases as we remain committed to delivering meaningful free cash flow per share growth over the long-term.
“Our $159bn backlog includes several large National Security Space awards in the quarter and attests to the breadth of our portfolio, depth of our technical expertise, and understanding of our customers’ needs. These capabilities uniquely position us to lead the realization of joint all domain operations, including reliable battle management and command and control systems integrated across multiple domains, military services, and allied forces. We remain exceptionally focused on the execution of the F-35 program, working with our customers and suppliers to implement TR-3 capabilities, and are encouraged by the progress towards delivery of the first TR-3 configured aircraft. The innovation and open architecture solutions across our portfolio enable customers worldwide to stay prepared and agile amidst an ever-changing threat environment.”
Cash Flows and Capital Deployment Activities
Cash from operations in the first quarter of 2024 was $1.6bn and capital expenditures were $378m, resulting in free cash flow of $1.3bn. The operating and free cash flows for the first quarter of 2024 were comparable to the same period in 2023.
The company’s cash activities in the quarter ended March 31, 2024, included the following:
- paying cash dividends of $780m;
- paying $1.0bn to repurchase 2.3m shares; and
- receiving net proceeds of $2bn from a debt issuance of senior unsecured notes, consisting of $650m aggregate principal amount of 4.50% Notes due 2029, $600m aggregate principal amount of 4.80% Notes due 2034 and $750m aggregate principal amount of 5.20% Notes due 2064.
Segment Results
The company operates in four business segments organized based on the nature of products and services offered: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. The following table presents summary operating results of the company’s business segments and reconciles these amounts to the company’s consolidated financial results.
Net sales and operating profit of the company’s business segments exclude intersegment sales, cost of sales, and profit as these activities are eliminated in consolidation and not included in management’s evaluation of performance of each segment. Business segment operating profit includes the company’s share of earnings or losses from equity method investees as the operating activities of the equity method investees are closely aligned with the operations of the company’s business segments.
Business segment operating profit excludes the FAS/CAS pension operating adjustment, a portion of corporate costs not considered allowable or allocable to contracts with the U.S. Government under the applicable U.S. Government cost accounting standards (CAS) or federal acquisition regulations (FAR), and other items not considered part of management’s evaluation of segment operating performance such as a portion of management and administration costs, legal fees and settlements, environmental costs, stock-based compensation expense, retiree benefits, significant severance actions, significant asset impairments, gains or losses from divestitures, intangible asset amortization expense, and other miscellaneous corporate activities. Excluded items are included in the reconciling item “Unallocated items” between operating profit from the company’s business segments and its consolidated operating profit.
Changes in net sales and operating profit generally are expressed in terms of volume, contract mix, and/or performance (referred to as profit adjustments). Changes in volume refer to increases or decreases in sales or operating profit resulting from varying production activity levels, deliveries or service levels on individual contracts. Volume changes in segment operating profit are typically based on the current profit booking rate for a particular contract. Contract mix refers to changes in the ratio of contract type or life cycle (e.g., cost-type, fixed-price, development, production and/or sustainment). In addition, comparability of the company’s segment sales, operating profit and operating margin may be impacted favorably or unfavorably by changes in profit booking rates on the company’s contracts. Increases in profit booking rates, typically referred to as favorable profit adjustments, usually relate to revisions in the estimated total costs to fulfill the performance obligations that reflect improved conditions on a particular contract. Conversely, conditions on a particular contract may deteriorate, resulting in an increase in the estimated total costs to fulfill the performance obligations and a reduction in the profit booking rate and are typically referred to as unfavorable profit adjustments. Increases or decreases in profit booking rates are recognized in the period they are determined and reflect the inception-to-date effect of such changes.
The company’s consolidated net favorable profit booking rate adjustments represented approximately 11% and 25% of total segment operating profit in the quarters ended March 31, 2024 and March 26, 2023. The decrease in the net favorable profit booking rate adjustments was driven by a $100 m reach-forward loss recognized on a classified program at MFC after updating the company’s assessment of the likelihood that the options may be exercised and concluded that an option would be exercised based on progress made on the program and discussions with the customer. In addition to this reach-forward loss, net favorable profit booking rate adjustments were lower by $120 m, see the discussion below.
Aeronautics
Aeronautics’ net sales in the first quarter of 2024 increased $576 m, or 9%, compared to the same period in 2023. The increase was primarily attributable to higher net sales of $305m on the F-35 program due to higher volume on production, development and sustainment contracts; $155m on classified programs driven by higher volume; and $60m on the F-16 program due to the ramp up on production.
Aeronautics’ operating profit in the first quarter of 2024 was comparable to the same period in 2023. Operating profit increased $50m on the F-16 program as operating profit for the first quarter of 2023 reflects the impact of unfavorable profit adjustments on a production contract and sustainment contracts as a result of schedule delays related to software and technical specification risks that did not recur in the first quarter of 2024. This increase was partially offset by lower operating profit of $30m on the F-35 program primarily due to lower net profit adjustments on production contracts as a result of higher than anticipated material costs, partially offset by higher volume described above. Total net profit booking rate adjustments were $40m lower in the first quarter of 2024 compared to the same period in 2023.
Missiles and Fire Control
MFC’s net sales in the first quarter of 2024 increased $605 m, or 25% compared to the same period in 2023. The increase was primarily attributable to higher net sales of $460 m for tactical and strike missile programs due to production ramp up on Guided Multiple Launch Rocket Systems (GMLRS), High Mobility Artillery Rocket System (HIMARS), Joint Air-to-Surface Standoff Missile (JASSM) and Long Range Anti-Ship Missile (LRASM) programs; and $100m for integrated air and missile defense programs primarily due to higher volume on PAC-3 and Terminal High Altitude Area Defense (THAAD).
MFC’s operating profit in the first quarter of 2024 decreased $66 m, or 18%, compared to the same period in 2023. The decrease was primarily attributable to lower operating profit for tactical and strike missile programs due to a $100 m reach-forward loss recognized for an option on a classified program and an unfavorable profit adjustment on HELLFIRE as a result of additional costs expected to be incurred associated with a contract claim, partially offset by the production ramp up described above. Total net profit booking rate adjustments, inclusive of the $100 m loss described above, were $120m lower in the first quarter of 2024 compared to the same period in 2023.
Rotary and Mission Systems
RMS’ net sales in the first quarter of 2024 increased $578 m, or 16% compared to the same period in 2023. The increase was primarily attributable to higher net sales of $295 m on integrated warfare systems and sensors (IWSS) programs due to new program ramp up within the laser systems portfolio and higher volume on the Aegis and radar programs; $150m for various C6ISR (command, control, communications, computers, cyber, combat systems, intelligence, surveillance, and reconnaissance) programs due to higher volume; and $100m for Sikorsky helicopter programs due to higher volume on Seahawk and CH-53K programs.
RMS’ operating profit in the first quarter of 2024 increased $80m, or 23%, compared to the same period in 2023. The increase was primarily attributable to higher operating profit of $40m on IWSS programs due to higher volume described above and a favorable profit rate adjustment as a result of the delivery of a ground-based radar which retired the technical risk; and $25m on Sikorsky helicopter programs due to higher volume described above and higher margins due to contract mix, partially offset by unfavorable profit adjustments on Seahawk programs. Total net profit booking rate adjustments were $30m lower in the first quarter of 2024 compared to the same period in 2023.
Space
Space’s net sales in the first quarter of 2024 increased $310m, or 10%, compared to the same period in 2023. The increase was primarily attributable to higher net sales of $140m for strategic and missile defense programs due to higher volume on Fleet Ballistic Missile (FBM) and ramp up in the hypersonic and Next Generation Interceptor (NGI) development programs; and higher net sales of $115m for national security space programs due to higher volume on Transport Layer and GPS III programs and ramp up on the Tracking Layer program.
Space’s operating profit in the first quarter of 2024 increased $45m, or 16%, compared to the same period in 2023. The increase was primarily attributable to $30m of higher equity earnings from the company’s investment in United Launch Alliance (ULA) due to higher launch volume, and higher operating profit of $20m on strategic and missile defense programs due to the higher volume described above. These increases were partially offset by lower operating profit of $25 m for national security space programs due to the impact of lower net favorable profit adjustments on Next Gen OPIR as a result of the timing of the award and incentive fee assessments. Total net profit booking rate adjustments were $30m lower in the first quarter of 2024 compared to the same period in 2023.
Total equity earnings/(losses) (primarily ULA) represented approximately $15m or 5% in the first quarter of 2024, compared to approximately $(15)m or (5)% for the same period in 2023.
23 Apr 24. PLD Space achieves 120m euros in funding.
- The company has obtained 78m in funding, in addition to the 42m awarded by the Plan for Recovery and Transformation (PERTE) for the Spanish space launcher.
- The funds will mainly be allocated to create the first Spanish factory producing space rockets in series, located in Elche (Spain), as well as to expand the team in the areas of production, supply chain and quality.
- Furthermore, the company will be multiplying by five its capacity to test integrated engines and launchers, thereby boasting the biggest private infrastructure in Europe for designing, manufacturing, testing and launching space rockets.
- PLD Space is continuing to work with the French Space Agency CNES to build the MIURA 5 launch base in French Guiana this year.
The Spanish company PLD Space has attained 120m euros in funding to date, thus ensuring it can meet its upcoming technological and corporate milestones, culminating in the launch of the MIURA 5 mission at the end of 2025.
The company, which made history in October 2023 with the successful flight of MIURA 1, has today received 78 m euros for investment from shareholders who have placed their trust in its proven technological programme and solid business model. In addition to this sum, there are 42 m euros from the PERTE backed by the Government of Spain for a Spanish space launcher, which it was awarded at the end of January 2024.
PLD Space’s investor profile is industrial and qualified institutional, such as Aciturri or the Centre for the Development of Industrial Technology (CDTI) through its Innvierte programme, which provides both financing and strategic know-how.
“The funding for our work has been one of the most difficult tasks in developing our MIURA family of rockets. Despite this, the successful launch of MIURA 1 has bolstered our position as leaders in the industry, an achievement acknowledged by investors and clients,” says the CBDO and co-founder of PLD Space, Raúl Verdú. “PLD Space is a company that delivers what it promises, and we are working hard to achieve the first orbital launch of MIURA 5, which would not be possible without the trust of our shareholders, clients, team and suppliers.”
Infrastructure and corporate expansion
The funds attained will mainly be earmarked to ensure the expansion of PLD Space’s infrastructure, as well as its corporate structure. Specifically, the firm will be multiplying the size of its facilities by five, growing from 169,000 to 834,000 square metres.
Within this industrial expansion plan, the company intends to inaugurate the first serial space rocket factory in Spain in mid-2024. The facilities will also enable vertical integration of the launchers. The industrial site, whose building work is already underway, will house the factory for the first MIURA 5 units as well as the company’s head offices. In total, PLD Space will be able to count on 18,400 square metres of industrial facilities in Elche (Alicante).
The Spanish company’s plan for growth also includes the next phase to extend its test facilities, which will grow from 154,000 to 800,000 square metres. PLD Space is thus bolstering one of its competitive strengths by possessing its own facilities, thereby lending flexibility in carrying out its testing campaigns, as well as in cutting development times and improving cost effectiveness.
Also scheduled for 2024, construction work is to begin on the launch base at the European CSG spaceport in Kourou (French Guiana), which belongs to CNES. This site, covering over 15,700 square meters, will host MIURA 5’s first launches.
Together, these industrial facilities mean that PLD Space will own the largest private infrastructure in Europe for designing, manufacturing, testing and launching space rockets.
On the corporate side, the company plans to expand its workforce to 300 employees by the end of the year, a goal that is progressing at a good pace. Whereas 2024 began with 161 people in the team, today there are now 194 professionals. This growth has taken place most notably in the areas of production, the supply chain and quality.
Throughout 2025, the focus will be on testing and launching the first MIURA 5 unit on its maiden flight. The company is expected to begin commercial activity in 2026 with the ultimate goal of exceeding 30 launches a year by 2030.
About PLD Space
PLD Space is a pioneering Spanish aerospace company and a benchmark reference in Europe for developing reusable rockets. With a solid reputation and steadfast commitment, the company has produced MIURA launcher family. These innovations position Spain among the select few nations capable of successfully deploying small satellites into space.
PLD Space was founded in 2011 by Raúl Torres and Raúl Verdú with the aim of facilitating access to space. The company, based in Elche (Alicante) and with technical facilities in Teruel, Huelva and French Guiana, has a team of more than 190 professionals.
15 Apr 24. Aerospacelab acquires AMOS. Aerospacelab has acquired AMOS, known for their opto-mechanical systems that are widely used in space, astronomy and other industries. With a unique approach to vertical integration, this acquisition will reinforce Aerospacelab and AMOS’ market reach and product offerings throughout the access to a wider range of solutions to meet the diverse needs of customers across various sectors including telecommunications, Earth Observation (EO), navigation, astronomy, scientific research and industry.
“This strategic acquisition represents a pivotal moment for both organizations as we combine our expertise, resources, and talents to accelerate technological advancements in satellite manufacturing and deployment,” said Benoit Deper, CEO of Aerospacelab. “Together, we aim to foster a culture of innovation that will drive the development of cutting-edge space technologies, ensuring we remain at the forefront of the industry. By leveraging the talent and resources of the AMOS team alongside Aerospacelab’s extensive products portfolio including turnkey satellites, satellite platforms, avionics and subsystems, the ultimate objective is to establish a path towards efficient and affordable access to space.”
“This new chapter of growth and innovation reaffirms our commitment to adaptability and embracing change in order to thrive in the dynamic business landscape,” said Damien Kaivers, CEO of AMOS. “We bring 40 years of deep expertise in a wide variety of critical optical technologies for space and ground applications. Together, we will explore clear synergies to craft innovative solutions to meet our customers’ needs and continue to strengthen the legacy business of AMOS such as professional astronomy, institutional space and test facilities.”
About Aerospacelab
Founded in 2018, Aerospacelab is an emerging figure in the aerospace sector, showcasing a remarkable achievement of 8 satellites successfully deployed in orbit. We pride ourselves on our dedication to vertical integration and TRL9 implementation, solidifying our commitment to driving innovation in the space industry. With our operations strategically placed in various locations, including the US, Aerospacelab remains steadfast in its mission to deliver pioneering solutions for our diverse customer community.
About AMOS
For more than 40 years, AMOS has been designing and building solutions in the fields of professional astronomy, space-based Earth Observation and scientific exploration, test systems and opto-mechanical solutions for laboratories and industry. Its main achievements are professional telescopes, space optical instruments, test equipment for space sensors, thermal-vacuum chambers, complex optomechanical and high-precision mechanical ground support equipment. It employs today about 100 employees highly skilled in advanced technologies. The company has a worldwide reputation for its professional telescopes, its optics manufacturing capabilities, and the performance of its optical systems. Next to its large customer base in Europe, United States, India or Chile, AMOS continues to expand its activities in other geographies such as Turkey to name but a few. (Source: Satnews)
———————————————————————————————————————————————————————————————————————————————————————————————————————————————
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
——————————————————————————————————————————————————————————————————————————————————————————————————————————————-