Latest news with #Aerostructures
Reuters
18-07-2025
- Business
- Reuters
UK's Senior Plc to sell Aerostructures business, shares soar
July 18 (Reuters) - British engineer Senior Plc (SNR.L), opens new tab will sell its Aerostructures business to private equity investor Sullivan Street Partners for up to 200 million pounds ($269 million), it said on Friday, sending shares 19% higher. Senior, which supplies to Boeing (BA.N), opens new tab and Airbus ( opens new tab, said it would use part of the sale proceeds to cut debt and fund a share buyback worth about 40 million pounds. "You're likely to see our progressive dividend continue to increase," CEO David Squires told Reuters, adding that the company may explore more accretive M&A opportunities in the future. Shares rose to their highest level since 2019. Loss-making Aerostructures, part of the Senior's mainstay aerospace business, manufactures airframe and aero engine components for commercial aerospace and the defence sectors. Senior expects the division to turn profitable this year. Following the sale, Senior will focus on its business that provides fluid conveyance and thermal management solutions to the aerospace and land vehicle and power industries. "The group's equity story will now also be able to evolve/progress, with the market able to focus on 'remainco' and the upside potential that exists and the scope for considerable shareholder returns," Jefferies analysts said in a note. After a tough 2024, which saw profits fall roughly 14%, Senior has seen demand grow from civil aerospace customers and expects the group to grow this year. Squires said that the company is well positioned to benefit from increased global defence spending and continues to see opportunities under military aircraft procurement programs. As part of the deal, Senior will receive an initial consideration of 150 million pounds and may receive up to an additional 50 million pounds in the first half of 2026, depending on Aerostructures' performance in 2025. ($1 = 0.7447 pounds)
Yahoo
21-02-2025
- Business
- Yahoo
Leonardo SpA (FINMF) Q4 2024 Earnings Call Highlights: Strong Financial Performance and ...
New Orders: EUR20.9 billion, up 12.2% from the previous year. Order Backlog: Exceeds EUR44 billion. Revenue: EUR17.8 billion, an increase of over 11% from the previous year. EBITA: EUR1.52 billion, up 12.9% from EUR1.35 billion in 2023. Return on Sales: Increased by 0.1 percentage point to 8.6%. Free Operating Cash Flow: EUR826 million, up 26.7% from the guidance of EUR770 million. Net Debt: Reduced to EUR1.8 billion from EUR2.3 billion, a reduction of approximately 22.7%. Efficiency Savings: EUR191 million, exceeding the target of EUR150 million. Helicopters Revenue: EUR5.2 billion, up 11%. Defense Electronics Revenue: EUR4.8 billion, up 9.4%. DRS Revenue: $3.2 billion, up 14%. Cyber and Security Solutions Revenue: EUR648 million, up 9%. Aircraft Revenue: EUR2.9 billion, stable compared to the previous year. Aerostructures Revenue: EUR746 million, higher than the previous year. Space Revenue: EUR906 million, with a growth of about 30%. Warning! GuruFocus has detected 5 Warning Signs with NMAKF. Release Date: February 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Leonardo SpA (FINMF) reported a significant increase in new orders, reaching EUR20.9 billion, a 12.2% increase from the previous year. The company achieved a substantial revenue growth of 11%, increasing from EUR16 billion to EUR17.8 billion. EBITA increased by 12.9% to EUR1.52 billion, indicating improved operational efficiency. Free operating cash flow rose by 26.7% to EUR826 million, surpassing the guidance of EUR770 million. Net debt was reduced by approximately 22.7%, from EUR2.3 billion to EUR1.8 billion, demonstrating strong financial management. The Aerostructures division continues to face challenges due to the Boeing crisis, impacting profitability. The SatCom business, connected to the space alliance with Thales, also experienced difficulties, affecting overall performance. Despite improvements, the delivery rate for the B787 fuselage remains lower than expected, affecting the Aerostructures division. The Space division's performance was impacted by challenges in the telco satellite segment, leading to lower EBITA. The company faces ongoing external challenges in the B787 program and the Space telco segment, which could affect future performance. Q: Can you provide more details on the ongoing negotiations regarding Aerostructures? Are you considering multiple partners to diversify from the 787 program? A: Roberto Cingolani, CEO: We have identified a potential co-investor involved in aerospace and defense, and negotiations are ongoing. I cannot disclose more details at this moment, but we are committed to finding a solution soon. Regarding the 787, we have received a new delivery schedule from Boeing, but the delivery rate is currently lower than expected. Q: How is the geopolitical situation in Europe affecting Leonardo's order intake, and what is the outlook for defense spending? A: Roberto Cingolani, CEO: The geopolitical situation has highlighted the need for increased defense spending in Europe, potentially exceeding 2% of GDP. This could lead to significant investments in defense, benefiting Leonardo as a major operator in the sector. However, the timeline for order intake to translate into revenues depends on the type of procurement. Q: Have you seen an acceleration in orders from EU countries due to increased defense spending plans? A: Roberto Cingolani, CEO: We have not yet seen an acceleration in orders from the EU, as countries are still strategizing to address the geopolitical scenario. However, we expect demand to grow soon, especially from countries near Russia's border. Q: Can you update us on the progress of potential acquisitions and whether you are considering larger acquisitions? A: Roberto Cingolani, CEO: We have been working on several due diligences, primarily in cybersecurity and space. While we initially focused on smaller acquisitions, our financial capability has grown, allowing us to consider larger opportunities. We are currently pursuing five non-binding offers. Q: Will the updated industrial plan on March 11 include assumptions of Europe spending above 2% of GDP on defense? A: Roberto Cingolani, CEO: The updated plan will be based on existing conditions without assuming increased defense spending. It will reflect our current order book, efficiencies, and joint ventures. Any increase in defense investment would be additional to our presented data. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
