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12 Dec 24. Solid State sees tentative signs of cyclical improvement.
Solid State LON:SOLI, the Redditch-based electronic components distribution and manufacturing company, has published its interims for the six-months to end-September.
Management for the company warned that the last six-month’s results were impacted by depressed trading conditions, with Nigel Rogers, chairman, saying: “These results reflect difficult trading conditions in the first half of the year due to a combination of factors, mostly cyclical in nature but some unforeseen. Management have taken steps to mitigate their effect, and the board is confident that ongoing investment in facilities and people will build a strong platform for strategic growth.”
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One of the significant issues was that a GBP10m order, which would have brought GBP3m of profit into the business, that was anticipated in in the current financial year was actually delivered in the last financial year ending in March, and had this been delivered post-March, revenues and profits would have hit GBP72m and GBP5.5m.
Revenues and profits behind expectations
As it was, however, Solid State reported revenues for 1H24/25 of GBP61.8m, which was down nearly 30% year-on-year from GBP88.1m. Profit-before-tax came in at GBP1.2m, again well-behind the GBP6.1m from the same period a year ago, some 80% behind. Debt fell by GBP1.9m y-o-y to GBP2m.
Rogers was hopeful that sunnier fields were ahead. He said: “Leading indicators, including the rate of design activity, suggests that the electronics market appears to have reached the bottom of the cycle, and this is reinforced by the improvement in order books since the period end. The delay in revenues from the most recent tranche of Communications products was unexpected, and there are good grounds to be optimistic that these programmes will be resumed after due process.”
Solid State recently won two significant contracts in the US worth USD5.1m (GBP3.8m) to supply battery packs to two American defence contractors, with deliveries beginning early next year, and the contracts fulfilled by the end of 2025. The company said that both programmes have the potential for multi-year framework agreements.
These deals align with Solid State’s stated strategy to develop its business through the delivery of multi-year, multi-product programmes as a valued partner to international blue-chip customers.
Solid State confident of a return to growth
Rogers explained: “[We] are confident of a return to a growth trajectory, whilst taking a cautious approach to short term earnings guidance and dividend policy to recognise some uncertainty on timing.”
(Source: https://www.thearmchairtrader.com/)
12 Dec 24. Fleet raises $150m in enormous investment round. Fleet Space Technology has cemented its position as one of Australia’s most valuable space companies after it raised a further $150m from investors. The rare ‘series D’ funding round is a dramatic increase from the $5m, $35m and $50m brought in through its A, B and C rounds, respectively. The latest cash injection was led by a Canadian teachers pension fund alongside previous investors such as such as Blackbird Ventures, Hostplus and Horizons Ventures.
“This funding is not just a testament to Fleet Space’s growth, strong investor confidence, and sustained innovation in core technologies needed to address dual challenges of climate change and mineral exploration,” said Federico Tata Nardini, Fleet’s CFO.
The company’s extraordinary rise has been led by its satellites that can detect minerals underground from space. The technology effectively allows mining companies to both speed up the hunt for minerals and reduce costs by lowering the need for invasive land surveying.
‘ExoSphere’ has led Fleet to be named one of Australia’s fastest-growing companies, boasting clients such as Rio Tinto, Barrick Gold, and Core Lithium.
It has recently expanded its global footprint to include the US, Canada, Chile, and Luxembourg and now employs more than 130 people.
“Current mineral exploration methods are inadequate for efficient discovery and production,” said Rick Prostko, from investor Teachers’ Venture Growth.
“Fleet Space addresses this with advanced 3D subsurface imaging and AI analysis tools, which have the potential to sustainably transform the industry.”
The news comes after Fleet in April blasted off a next generation Centauri-6 satellite that uses advanced sensors to scan beneath the Earth’s surface.
Fleet co-founder Flavia Tata Nardini hailed it as a “portal into a future of efficient, mass-scale satellite manufacturing”.
“Humanity’s expanding satellite infrastructure is rapidly unlocking new capabilities that can help to address some of the most pressing challenges facing our planet,” she said.
“At current rates of mineral discoveries and production, our net-zero goals and clean energy future are unattainable in the coming decades.”
Aside from mineral detecting, the firm, which specialises in nanosatellites, is also creating a device known as SPIDER that could detect minerals on the moon’s south pole.
The SPIDER project — Seismic Payload for Interplanetary Discovery, Exploration and Research — will see Fleet build a three-component seismic station that can record continuous seismic data for up to 14 days. It’s set to be deployed in 2026.
“The convergence of innovation in space, AI, and 3D subsurface imaging represents a foundational pillar of the core technology set that will enable humanity to build permanent research stations on the Moon, Mars, and beyond,” said Matt Pearson, Fleet’s chief exploration officer.
“The flywheel we’ve created by continuously enhancing the subsurface understanding of Earth through the global deployment of ExoSphere simultaneously drives advances in the technology needed to build highly scalable, data-driven exploration systems for new worlds.”
(Source: Space Connect)
12 Dec 24. Capital Markets Day: HENSOLDT raises medium-term EBITDA target and presents new growth strategy
- Book-to-bill ratio (ratio of order intake to revenues): forecast for 2024 specified as around 1.2x; significantly faster growth in order intake than in revenues expected in the medium term
- Revenue growth: revenues of around EUR 2,300m expected in 2024; medium-term target of 10% average annual growth
- Adjusted EBITDA margin: 18-19% in 2024 before pass-through business; medium-term target raised to ~20%
- Adjusted free cash flow: Cash conversion of adjusted EBITDA of around 50% expected for 2024 and 50-60% in the medium term
- Dividend distribution: stable at 30-40% of adjusted net income
- ‘North Star’: New corporate strategy for sustainable growth presented
The HENSOLDT Group (‘HENSOLDT’) confirmed its outlook for the 2024 financial year and raised parts of its medium-term target at its Capital Markets Day in London. While the company continues to expect an adjusted EBITDA margin before pass through business of ~18-19% in 2024, it is expected to increase to ~20% in the medium term. HENSOLDT continues to successfully convert its high order backlog into profitable revenues – this year expected to be around EUR 2.3bn. For 2025, the company is targeting a low double-digit percentage revenue growth rate, with a mid-term annual average growth rate of 10%.
Due to the tense security situation in the world, HENSOLDT expects a strong growth in defence spending in the future as well. The demand for defence electronics is likely to increase at an above-average rate in the medium term. With a market growth of around 10% in Germany and around 7% in Europe and the international markets, there is great potential for orders.
Oliver Dörre, CEO of HENSOLDT, said: “We will continue to benefit from significant and sustained market growth driven by the high demand for defence solutions in Germany, Europe and worldwide. As a technology and innovation leader in the field of defence electronics, we are strongly positioned in the market and can count on strong political support with the German government as our anchor shareholder. With our new ‘North Star’ strategic vision, we have a clear plan for transforming our company and making it fit for the future. Our goal is to achieve revenues of around 5 bn euros by 2030 – primarily through organic growth.”
Christian Ladurner, CFO of HENSOLDT, said: “I am confident that we will achieve our guidance for fiscal year 2024 and our medium-term targets. A key factor here is our excellent revenue visibility from existing orders. This gives us planning security and allows us to consistently invest in future-oriented technologies while implementing a sustainable dividend policy. The synergies from the ESG acquisition – around EUR 19 m each in costs and revenues by 2028 – are a further factor supporting our growth and profitability. With this strong financial foundation, we will continuously improve our strategic positioning in the rapidly changing defence environment.”
The forecast for the book-to-bill ratio for the 2024 financial year was already specified at around 1.2x as part of the 9M reporting in November, while the previous assumption was 1.1x-1.2x. In the mid-term, HENSOLDT expects order intake to grow significantly faster than revenues. For adjusted free cash flow, an average cash conversion of adjusted EBITDA of approx. 50% is forecast for 2024 and 50-60% in the mid-term. The company expects net debt to be lower than 2x EBITDA in 2024, with a further decline in the medium term. HENSOLDT continues to target a dividend payout ratio of 30-40% of adjusted net income, both for 2024 and in the medium term.
High revenue visibility for the next years
In the first nine months of fiscal year 2024, the order backlog amounted to EUR 6.5bn, which is equivalent to a very high level of revenue visibility. For 2025, 86% of the forecast revenues are already covered by the existing order backlog. This includes confirmed orders as well as short-cycle and aftermarket business.
North Star: Strategic vision for sustainable growth
At its Capital Markets Day, HENSOLDT presented its new ‘North Star’ strategy for the first time, which will ensure continuous and robust growth and further strengthen the company’s market position as a leading provider of defence and security solutions. North Star forms the basis for the company’s transformation into HENSOLDT 2.0 and combines all of the company’s initiatives and investments. The overarching goal is to establish a robust growth model that combines innovation, operational excellence and global reach. ‘North Star’ is based on four axes:
- Grow with focus
In order to grow sustainably and purposefully, HENSOLDT is selectively expanding its international presence. The goal is to generate around 50% of revenues in Germany, 30% in Europe and 20% in strategically important global markets by 2030. This will be achieved by setting clear priorities in business development, implementing focused key account management and improving the integration of sales and business development. By investing in regional structures and partnerships, HENSOLDT will tap into new market and customer potential without neglecting its strengths in its home market.
- Deliver at scale
Another central aspect of North Star is the ability to efficiently meet increasing demand. HENSOLDT is focusing on expanding its production capacities, industrial manufacturing of core products and optimising supply chains. At the same time, the internal organisation is being made more agile and efficient, for example by introducing digital tools such as SAP S/4HANA or outsourcing more engineering services. These measures will enable the company to increase its production and delivery capacity, ensure quality and adherence to delivery dates, and guarantee strong margin development in the long term.
- Pioneer Software-defined defence (SDD)
SDD is a decisive factor for the Western alliance in countering the huge number of potential opponents on the battlefield with a new class of networked systems and consistent digitalisation. SDD decouples hardware and software, thereby allowing the rapid and cost-effective adaptation of sensor technology. In addition, SDD increases the scalability and resilience of defence systems and improves their interoperability. To achieve this, data from different platforms must be collected, processed and analysed in real time. As a sensor specialist and system integrator, HENSOLDT has unique capabilities in this area and is ideally positioned to play a key role in the development towards SDD. In doing so, the company will expand its offering to include services based on SaaS subscription fees and expand its portfolio of multi-domain solutions. This will strengthen its market position, broaden its business model and open up new revenue streams.
- Lead our team into the future
Employees are at the heart of the company and the basis for any growth strategy. In order to position HENSOLDT as the employer of choice in the defence industry, the company promotes a culture of innovation and collaboration, offers targeted training programmes and invests in modern working environments. These measures ensure that HENSOLDT will continue to have a highly qualified, motivated team that can achieve its ambitious goals.
With the clear direction of the ‘North Star’ strategy and a strong financial foundation, HENSOLDT is ideally positioned to consistently exploit the opportunities offered by a growing defence market. Through technological innovation, a strong market position and the targeted development of new business areas, the company will achieve sustainable growth and create long-term added value for customers, partners and investors. HENSOLDT remains a key player in the defence sector and a convincing partner for the security challenges of tomorrow.
The Capital Markets Day presentation in London is available on the Investor Relations website of HENSOLDT AG. The preliminary results for the full year 2024 are expected to be published on 27 February 2025.
11 Dec 24. Allient Inc. (Nasdaq: ALNT) (“Allient” or the “Company”), a global designer and manufacturer of precision and specialty Motion, Controls and Power products and solutions for targeted industries and applications, today announced the launch of its Allient Defense Solutions (ADS) Business Unit (BU). This exciting vertical market initiative underscores Allient’s commitment to expanding its presence in high-growth markets and driving long-term value for customers and stakeholders. With a newly structured, specialized sales and support team, ADS will integrate Allient’s comprehensive technology offerings to streamline processes and foster innovation.
Dick Warzala, Chairman and CEO, commented, “The launch of Allient Defense Solutions is a pivotal milestone in our vertical market strategy, highlighting our dedication to delivering compact, lightweight, high-performance system solutions to the defense industry. By strategically aligning our talent, technology, and resources, we are positioned to create transformative value across Land, Air, and Sea Defense applications. I am confident this focused approach will simplify processes for our customers while setting new performance standards in the industry.”
This marks the Company’s first vertical market-focused initiative, aligning with the rebranding and vertical market strategy announced at its 2023 Investor Day. The launch was initiated during the Association of the United States Army (AUSA) event in October 2024, where Allient introduced this new focus to industry leaders.
To support this initiative, the Company implemented an internal restructuring within its various functional units to ensure success:
- Steve Warzala has been appointed President of the Allient Defense Solutions BU and will assume the role of Corporate Vice President.
- Ken May, Allied Motion CTO and Corporate Vice President, will lead ADS systems engineering and program support services.
- Dave MacMillan, Senior Director of Business Development, will lead the expanded ADS business development efforts and the dedicated ADS sales team.
- Brandon Hunter has been named General Manager for Allient – London, Ontario (formerly FPH), Allient’s structural and lightweighting composites Technology Unit.
- Jesse Dowd is the new General Manager for Allient – Rochester (formerly Ormec), the Technology Unit responsible for leading Servo Control Solutions development for all markets and Custom Critical Solutions development for the Aerospace & Defense markets.
The restructuring includes Allient’s Global Engineering Team (GET), led by Ken May, to accelerate decision making and product development efforts and ensure they are more closely aligned with Allient’s customers and markets. GET resources will be redeployed and aligned with ADS or other Allient BUs. A streamlined Corporate GET Team will uphold the discipline of using common development tools, processes, training, standards, and quality control measures, fostering a cohesive, “One Team” approach throughout the Company.
About Allient Inc.
Allient (Nasdaq: ALNT) is a global engineering and manufacturing enterprise that develops solutions to drive the future of market-moving industries, including medical, life sciences, aerospace and defense, industrial automation, robotics, semi-conductor, transportation, agriculture, construction and facility infrastructure. A family of globally responsible companies, Allient takes a One-Team approach to “Connect What Matters” and provides the most robust, reliable, and high-value products and systems by utilizing its core Motion, Controls, and Power technologies and platforms.
Headquartered in Buffalo, N.Y., Allient employs more than 2,500 team members around the world. To learn more, visit www.allient.com. (Source: BUSINESS WIRE)
10 Dec 24. J.F. Lehman & Company Raises $2.2bn for Oversubscribed Fund VI. J.F. Lehman & Company (“JFLCO”), a leading middle-market private equity firm focused exclusively on the aerospace, defense, maritime, government and environmental sectors, today announced the successful closing of its latest flagship fund, JFL Equity Investors VI, L.P. and affiliated investments vehicles (“Fund VI”). At $2.23bn, the offering marks the largest in the firm’s 33-year history and was meaningfully oversubscribed relative to its $1.6bn target. Fund VI will enable JFLCO to continue to execute its long-standing investment strategy leveraging over three decades of specialized industry knowledge and demonstrated operational capabilities to help companies reach their full potential. The new fund increases the firm’s total assets under management to $7bn as of November 30, 2024.
“The highly successful outcome of this marketing effort reflects our demonstrated ability to source intrinsically valuable companies, drive tangible improvements across our portfolio and the substantial confidence placed in our team,” said Louis N. Mintz, Partner. “We are determined to continue to generate attractive risk-adjusted returns as we continue to deploy and manage Fund VI.”
“We are grateful for the support from our longstanding partners, many of which endorsed our efforts early in the process with increased conviction,” added Karina Perelmuter, Managing Director, Investor Relations & Marketing. “We are equally appreciative of the trust and confidence placed in our team by the many new partners backing our sector-focused strategy.”
UBS Securities LLC acted as placement agent for Fund VI and Davis Polk & Wardwell LLP served as legal adviser.
10 Dec 24. COHORT PLC Announces half Year Results. Record first half performance; strong growth in adjusted* operating
Cohort plc, the independent technology group, today announces its half year results for the six months ended 31 October 2024.
Financial highlights
- Revenue, adjusted* operating profit and net funds all ahead of recent guidance.
- Revenue up 25% to £118.2m (2023: £94.3m).
- Adjusted* operating profit up 69% to £10.1m (2023: £6.0m). A net margin of 8.5% (2023: 6.4%).
- Adjusted* earnings per share of 20.00 pence (2023: 10.36 pence) reflecting the marked improvement in performance.
- Order intake of £139.2m (2023: £119.1m), 1.2x the period’s revenue (2023: 1.3x).
- Record closing order book of £541.1m (30 April 2024: £518.7m).
- Interim dividend increased by over 10% to 5.25 pence per share (2023: 4.70 pence per share) continuing the Group’s long standing track record of progressive dividend growth.
- Net funds of £37.9m at 31 October 2024 (31 October 2023: £13.3m net funds; 30 April 2024: £23.1m net funds), well ahead of expectations due to working capital flows that included strong customer advances.
Operational highlights
- Increased revenue was driven by higher UK MOD sales within both divisions but particularly from within the Communications and Intelligence division.
- Both divisions achieved strong growth in adjusted* operating profit with the Sensors and Effectors division more than doubling last year’s reported result.
- Order intake benefited from a strong performance within the Communications and Intelligence division, with significant orders being received at EID.
Looking forward
- The order book of £541.1m includes over £120m of revenue deliverable in the second half:
o Taking into account revenue recognised in the first half, this covers over 99% of consensus forecast revenue for the full financial year.
o Revenue deliverable in future years from committed orders continues to grow, with the duration of the order book extending to the mid-2030’s.
- The current year outlook for the Group remains unchanged:
o In line with previous experience, we anticipate a stronger Group performance in the second half.
o Increased delivery in the Sensors and Effectors division is expected to drive the expected full-year growth in Group profit performance.
- We continue to see a positive outlook for organic growth in the medium term.
* Adjusted figures exclude the effects of marking forward exchange contracts to market value (£100k charge; 2023: £6k charge), amortisation of other intangible assets (£1.0m; 2023: £1.6m) and acquisition costs (£199k; 2023: £nil).
Acquisitions
- The Group announced the conditional agreement to acquire the entire issued share capital of EM Solutions Pty Ltd on 21 November 2024, post reporting date. This acquisition is expected to complete shortly and be materially accretive to adjusted EPS in the first full financial year of ownership (2025/26) and thereafter.
- The Group also completed the acquisition of Interactive Technical Solutions Limited which has been integrated within the C&I division where it will continue to provide technical support and services both externally and to other members of the Group.
Commenting on the results, Nick Prest CBE, Chairman of Cohort, said: “Cohort delivered a much stronger performance in the first half compared to the same period last year, with growth in both revenue and adjusted operating profit. Continued strong order intake has driven a record closing order book which underpins most of the second half of this financial year. In line with previous experience we anticipate a stronger performance in the second half and we remain on track to achieve our expectations for the full year. The continued expansion of the order book is a strong indicator that we are offering competitive products in a growing market. On-order revenue is now deliverable out to the mid-2030’s. The pipeline of order opportunities for the remainder of the year also looks strong. Demand for our solutions and services continues to be driven by heightened international tensions in the Asia-Pacific region as well as conflict in Europe and the Middle East. This backdrop is driving increased spending on defence and security. Overall, we continue to see a positive outlook for organic growth in the years ahead.”
11 Dec 24. Cohort continues to impress. The defence and security specialist’s prospects have been boosted further by a material acquisition. There have been some recent jitters amongst defence stocks after US president-elect Donald Trump called for an “immediate ceasefire” in Ukraine. But the war has highlighted long-term underinvestment in defence and security in Europe, as has the incoming US administration’s more antagonistic view of Nato. Aim-traded mini-defence conglomerate Cohort (CHRT) is navigating this demand context well, and is benefiting from heightened tensions in the Asia-Pacific and Middle East, evidenced by the company’s disclosure of a record order book and revenue growth of a quarter in its first half.
Sales to the UK Ministry of Defence (MOD), which contributed an increased 56 per cent of total revenue in the half, drove the revenue and profit performance. Both the communications and intelligence and sensors and effectors units delivered robust adjusted operating profit growth, as profit jumped 69 per cent to £10.1m. The net margin improved from 6.4 per cent to 8.5 per cent, with progress being made towards management’s medium-term mid-teen target.
Encouragingly, management expects its Portuguese communications systems business EID, which has been loss-making over the past couple of years, to return to profit over the full year on the back of “long-awaited” naval orders.
The order book sat at £541m at the period-end, up from £519m in April. and representing an order cover of 99 per cent of the analyst consensus for annual revenue. Order intake of £139m was 1.2 times revenue in the half.
Meanwhile, the £74m acquisition of high-margin naval defence communications business EM Solutions (the transaction is expected to complete imminently) provides a tasty long-term opportunity. Clients include the Australian navy, Norwegian navy and Dutch defence department. The deal was part-funded through a £41mn share placing and retail offer.
Chief executive Andy Thomas said the company was in discussions with more “big potential customers” for EM Solutions.
Net funds improved by £15m to £37.9m, although a net cash outflow is anticipated in the second half, given capex, working capital movements and the EM Solutions purchase.
Cohort trades on 20 times forward consensus earnings, a higher rating than at Chemring (CHG), as well as bigger sector beasts BAE Systems (BA.) and Lockheed Martin (US:LMT). The share price has more than doubled over the past year. But, as analysts at Shore Capital argued, Cohort is “visibly becoming a strategic supplier with clients, justifying a premium valuation”, and there is an expectation of “strong news flow continuing for shareholders”. We remain bullish on the outlook. Buy. Last IC view: Buy, 860p, 17 Jul 2024. (Source: Investors Chronicle)
09 Dec 24. Raytheon Launches New Business Segment for Capturing Sustainment Defense Contracts. Raytheon has launched a team dedicated to providing sustainment services to defense programs. The new Aftermarket Sustainment and Services group will capture business opportunities within the aftermarket segment, RTX said Thursday.
Raytheon Giving More Attention to Sustainment
In an RTX press release, Joe DeAntona, vice president of requirements and capabilities for land and air defense systems at Raytheon, pointed out that sustainment is often an afterthought among customers. He also noted that customers do not allot the same funding to sustainment compared to acquisition.
However, the executive explained that sustainment is critical, especially in times of conflict.
“It is the biggest discriminator on the battlefield,” DeAntona commented. “The force that sustains on the battlefield will win.”
Tony Walters, director of sales and business development for land and air defense systems at the Arlington, Virginia-headquartered company, gave the company’s work on the National Advanced Surface-to-Air Missile System, which is being used by Ukrainian forces against Russian troops. According to him, a Raytheon team has previously provided tele-maintenance support to Ukraine’s NASAMS system.
The air defense platform is equipped with technologies developed by Raytheon and Norway’s Kongsberg Defence & Aerospace.
Raytheon’s Sustainment Market Prediction
Although sustainment contracts are often worth less than procurement for new technology, RTX expects the new Aftermarket Sustainment and Services segment to deliver steady revenue.
Kevin McCarthy, associate director of sales and business development for land and air defense systems at Raytheon, shared that the team’s goal is to provide additional value to customers.
He stated that sustainment has the potential to increase customer satisfaction and even boost the defense contractor’s chances of winning future projects. (Source: Google/https://executivebiz.com/)
09 Dec 24. EDGE Group Marks Five Years of Innovation, Growth and Global Success. EDGE Group marks its five-year anniversary, celebrating its emergence as a global powerhouse in advanced technology and defence. Since its establishment in November 2019, EDGE has charted a transformative path defined by unprecedented growth, strategic partnerships, and breakthrough innovations. The group has redefined the landscape of advanced technologies and sovereign defence capabilities, establishing the UAE as a driving force for innovation and technological excellence.
Since its inception in 2019, EDGE has expanded its product portfolio from 30 to 201 cutting-edge solutions across air, land, sea, and cyber domains – a rapid growth of more than 550% in just five years. During this time, EDGE has also significantly scaled its global footprint, with its solutions now reaching customers in 91 countries. International orders have surged from USD 18.5 m in 2019 to over USD 2.1 bn in 2024, underscoring the group’s expanding influence in global markets. Additionally, annual revenue has reached USD 4.9 bn in 2024, reflecting the remarkable financial growth driven by its strategic investments and innovation.
H.E Faisal Al Bannai, EDGE Group Chairman, said: “In a constantly evolving and highly competitive international defence landscape, it was almost inconceivable that a new disruptor from the UAE could, in just five years, rise so rapidly to become a global industry player punching way above its weight across multiple domains. This is a testament to the vision and tenacity of the UAE Government, and is largely thanks to our highly skilled and diverse workforce, whose dedication and drive for excellence has ensured that EDGE is in a position to move boldly into a new era of international growth.
“This remarkable progress, driven by multi-bn-dollar investments in research and development, has resulted in ground-breaking advancements covering the spheres of air, land, sea, cyber, and space, with a focus on autonomous solutions, smart systems, and electronic warfare – all areas where we have an ambition to lead. EDGE continues to set new benchmarks, to forge mutually beneficial partnerships worldwide, and to build upon the progress we have made as a national vanguard of future technologies.”
EDGE’s swift ascent has been underscored by a series of landmark contracts. As of September 2024, EDGE Group-managed companies have secured contracts with an order backlog totalling USD 12.8 bn, ensuring sustained future revenue growth through the delivery of strategic defence solutions to end-users. In 2023, the group secured over 200 major contracts, with 25% of these representing international agreements. By September 2024, international contracts accounted for 42% of its order intake. Among its notable achievements, EDGE secured a EUR 1 bn contract to supply corvette vessels to the Angolan Navy, marking a significant milestone in its naval capabilities. Strategic agreements with the UAE Armed Forces include USD 1.62 bn for DESERT STING precision-guided munitions and USD 582 m for THUNDER, illustrating its pivotal role in addressing the unique needs of both local and international clients. EDGE’s leadership in precision-guided munitions was further acknowledged by JANES in 2024, naming EDGE among the top three global manufacturers in this field.
EDGE’s footprint is reinforced by a total of 13 international acquisitions and strategic investments, including stakes in key companies such as Estonia’s MILREM Robotics, Swiss unmanned helicopter manufacturer ANAVIA, Brazil’s non-lethal tech leader Condor, and Brazil’s smart weapons specialist SIATT. These acquisitions, along with nine others, have enhanced EDGE’s capabilities across land, sea, air, and cyber domains, unlocking opportunities in cutting-edge sectors and strengthening its competitive edge globally.
Established a strong network of 23 joint ventures has also played a central role in the group’s success, enhancing its expertise and extending its competitive edge across key domains. In May 2024, EDGE and shipbuilding giant Fincantieri formalised the launch of MAESTRAL, a strategic shipbuilding joint venture in Abu Dhabi. In the same month, EDGE signed an agreement to launch a joint venture with Spain’s Indra Sistemas to develop and manufacture radar systems within the UAE, reinforcing EDGE’s market presence and technological strength.
A hugely significant strategic partnership has flourished with Brazil, marking EDGE’s expansion in South America. In April 2023, EDGE opened a regional office in Brasília and soon after signed an agreement with the Brazilian Navy to co-develop MANSUP anti-ship and supersonic missiles. This collaboration was followed by a broader strategic partnership that positions EDGE as a long-term partner to the Brazilian Navy, co-investing in advanced solutions, including UAE-developed anti-jamming technology. Most recently, EDGE and the Brazilian Navy agreed to cooperate on anti-drone systems, fostering an even stronger relationship.
EDGE’s success would not have been possible without a focus on attracting and retaining local and global talent. With over 14,100 employees representing 95 nationalities, the group has made significant investments in developing a highly skilled workforce. Emiratisation remains a key priority, with UAE nationals making up 23.5% of the workforce. The EDGE Learning & Innovation Factory, launched in 2022, has been pivotal in upskilling employees and fostering a culture of innovation. To date, over 3,600 EDGE employees have received advanced training, positioning the group as a leader in the adoption of 4IR technologies.
EDGE is recognised as a Great Place to Work®, earning certification in 2024 for its outstanding workplace culture and employee engagement. This accolade complements its excellence in innovation and operational efficiency, exemplified by the ROI-EFESO INDUSTRIE 4.0 Award received in November 2022 in Munich, Germany, for ‘SMART WORKFORCE’ leadership in Industry 4.0 solutions. Further bolstering its reputation, EDGE was honoured with the ‘Treasury Transformation’ award at the ACT Middle East 2024, highlighting its achievements in financial innovation and strategic management.
As EDGE enters its sixth year, the group remains firmly committed to its founding mission: to be agile, bold, and disruptive in the pursuit of technological excellence. Through its relentless focus on partnerships, innovation, and talent, EDGE is poised to continue blazing a trail in shaping the future of advanced technologies, both in the UAE and globally. (Source: Defense Arabia)
01 Dec 24. Mitsubishi Electric’s ME Innovation Fund + Global Brain + ANA Holdings invest in Zenno Astronautics Ltd. Mitsubishi Electric Corporation (TOKYO: 6503) has revealed that the firm’s ME Innovation Fund has invested in Zenno Astronautics Ltd., a New Zealand-based startup company that develops superconducting technology for space applications — this is the ninth investment that the fund has made to date. As satellites have become smaller and less expensive and the number of satellite launches is increasing rapidly, the importance of attitude control, a vital technology for the operation of artificial satellites, has also increased. Attitude control plays a crucial role in the success of a satellite’s mission, such as communication, observation, and data collection by adjusting and maintaining the satellite’s attitude, allowing for precise positioning of communication antennas, cameras, and sensors. Zenno Astronautics, led by a CEO who has been studying space applications of superconducting technology for many years, is a developer of an innovative satellite attitude control component that uses superconducting technology to efficiently generate a magnetic field with small energy loss. In addition to being smaller than conventional components, this component has advantages in many areas including generation of high-efficiency torque with lower power consumption. By investing in Zenno Astronautics, the goal of Mitsubishi Electric is to boost the company’s competitiveness in the space business by studying and evaluating the technology of Zenno Astronautics’ satellite attitude control component with the vision of applying it to the company’s satellites. (Source: Satnews)
01 Dec 24. SatVu secures £20m cash injection to expand high-resolution thermal imaging. SatVu has secured £20m in strategic funding, comprising a £10 m landmark equity round co-led by European venture capital firm Adara Ventures and existing investor Molten Ventures, and an insurance payout. This investment is the first from the newly established Adara Ventures Energy Fund, which is committed to fueling groundbreaking technologies that drive the energy transition across Europe. SatVu’s thermal imaging capabilities have already made waves in the EO sector. The company’s HotSat constellation, led by the launch of HotSat-1 in June of 2023, has redefined how Earth is monitored by capturing 3.5 meter resolution thermal data, unlocking new levels of insight into global carbon emissions and energy activity. The £20m injection will accelerate the build and launch of HotSat-2 and HotSat-3, both of which are expected to ship for launch in 2025. These satellites will provide critical, near real-time thermal data, essential for understanding energy transition, monitoring infrastructure and economic activity, and driving targeted action towards climate mitigation and resilience, contributing to vital decision-making as the world progresses toward net-zero. The funding will empower SatVu to continue pushing boundaries, with applications ranging from economic activity monitoring and national security to urban heat mapping and climate resilience. SatVu’s infrared technology provides a new dimension of data, enhancing our understanding of the world and driving urgent action toward a more sustainable future.
Anthony Baker, CEO & Co-founder, SatVu, said, “With the invaluable new support from Adara Ventures, alongside the continued backing of our existing investor network, we’re accelerating our mission to deliver unparalleled thermal insights that empower industries and governments to take decisive climate action. The launch of HotSat-2 and HotSat-3 will bring us closer to a net-zero future by providing the data needed to address the most pressing environmental and energy challenges of our time.”
“We are thrilled to embark on this journey with CEO Anthony Baker and the SatVu team,” said Alberto Gómez, Founding Partner at Adara Ventures. “By harnessing high-resolution thermal imaging technology to unlock previously inaccessible data, we believe SatVu is well-positioned to fuel a new generation of data applications across multiple use cases that monitor energy efficiency, economic activity, renewable generation, and beyond.”
Patrick McCall, Venture Partner, Seraphim, said, “At Seraphim, we’re proud to support SatVu as they redefine Earth observation with their groundbreaking thermal imaging technology. Building upon the insights gained from HotSat-1, the launches of HotSat-2 and HotSat-3 will offer extraordinary high-resolution thermal data. This advancement will redefine our understanding of energy production, infrastructure activity, and emission dynamics – informing critical decisions as the world strives towards net-zero. To achieve transformative climate action, we must be guided by the data. SatVu’s technology provides the essential intelligence our planet requires, paving the way for a sustainable future.” (Source: Satnews)
09 Dec 24. Thoma Bravo selling CyberArk stake for $370m. The US investment firm became a party-at-interest in the Israeli cybersecurity company earlier this year when it sold Venfai to it for $1.54bn in a cash and share deal. The share price of CyberArk (Nasdaq: CYBR) fell 1.3% on Friday after US investment fund Thoma Bravo put over 1.14m shares up for sale. Thoma Bravo became a party-at-interest in the Israeli cybersecurity company earlier this year when it sold Venfai to it for $1.54bn in a cash and share deal. At CyberArk’s current share price, Thoma Bravo is selling shares for $370m. Bank of America is acting as underwriter in the offering. CyberArk, led by CEO Matt Cohen, was founded by executive chairman Udi Mokady and Alon Cohen in 1999, and held its Nasdaq IPO in 2014. The company manages privileged accounts and identity management in organizations, and expanded the market in which it operates through the recent acquisition of Venafi, which is engaged in machine identity management. CyberArk’s share price has risen 47.6% in 2024 giving a market cap of $14.1bn, making it the fourth most valuable Israeli company traded on Wall Street after Check Point, Teva, and monday.com. (Source: News Now/en.globes.co.i)
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SPX CommTech, part of SPX Technologies Inc, innovates specialised technologies within the Radio Frequency (RF) spectrum to ensure a smarter, more secure future for all. Formed by TCI and ECS, SPX CommTech’s Battlespace portfolio enables defence and security teams to detect, defeat and exploit RF signals to enhance communications intelligence (COMINT) and counter unmanned aerial systems (Counter-UAS). Additionally, its Tactical Data Link portfolio allows intelligence gathering agencies, special forces, emergency response, and security teams to securely and reliably transfer video and data between enabled-aircraft and ground teams over long distances for airborne Intelligence, Surveillance, Reconnaissance (ISR).
For more information visit www.tcibr.com and www.enterprisecontrol.co.uk
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