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Business Wire
17 minutes ago
- Business
- Business Wire
Hexcel Reports 2025 Second Quarter Results
STAMFORD, Conn.--(BUSINESS WIRE)--Hexcel Corporation (NYSE: HXL): See Table C for reconciliation of GAAP and non-GAAP operating income, net income, earnings per share and operating cash flow to free cash flow. Free cash flow is cash from operations less capital expenditures. Hexcel Corporation (NYSE: HXL) today reported second quarter 2025 results including net sales of $490 million and adjusted diluted EPS of $0.50 per share. Chairman, CEO and President Tom Gentile said, 'Hexcel delivered sales and adjusted EPS in line with expectations for the second quarter of 2025, based on modest sequential growth in three of our four major commercial aerospace programs, with the exception being softness in the Airbus A350 as expected and previously communicated due to production rate decreases announced by Airbus and destocking of excess inventory in the supply chain. There was continued growth in the Other Commercial Aerospace market, and we were pleased to see Defense, Space and Other providing robust growth yet again with a high single digit step-up over the second quarter of 2024. Overall production levels and reduced capacity utilization, along with actions to reduce inventory meant gross margin remained subdued. The opportunity for significant margin leverage and cash flow generation remains strong, and we are encouraged by the more positive tones and progress conveyed by the commercial airframe and engine OEM's in recent months.' Mr. Gentile continued, 'We also completed the previously announced closure of our Welkenraedt, Belgium facility resulting in restructuring charges of $24.2 million. Combined with the announced strategic review of our Neumarkt, Austria facility, and our recent divestiture of our US additive printing business, we continue to streamline our operations and focus on upcoming aircraft production rate ramps. Hexcel also participated in the Paris Air Show last month where we reinforced existing relationships, announced some new relationships, and highlighted recent advances with our innovative technology. We forecast a compelling growth trajectory for the business as production rates on all commercial and military programs continue to increase. Based on this confidence, we continued to repurchase stock with another $50 million of repurchases executed in the second quarter. We have repurchased stock in five of the past six quarters and have now repurchased almost six percent of the shares outstanding since the beginning of 2024.' Markets Sales in the second quarter of 2025 were $489.9 million compared to $500.4 million in the second quarter of 2024. Beginning with the first quarter of 2025, sales are being reported for two markets, including Commercial Aerospace, unchanged from past practice, and Defense, Space & Other, which combines the previous Space & Defense market and Industrial market. Prior period sales amounts have been reclassified for comparative purposes. Commercial Aerospace Commercial Aerospace sales of $293.1 million for the second quarter of 2025 decreased 8.6% (8.9% in constant currency) compared to the second quarter of 2024. Sales decreased year over year for each of the four major programs including the Airbus A350 and A320neo and the Boeing 787 and 737 MAX. Other Commercial Aerospace increased 5.1% for the second quarter of 2025 compared to the second quarter of 2024. Defense, Space & Other Defense, Space & Other sales of $196.8 million in the second quarter of 2025 increased 9.5% (7.6% in constant currency) for the quarter as compared to the second quarter of 2024. Growth was driven by Sikorsky CH-53K, two international fighter programs and space programs including launchers, rocket motors and satellites. Consolidated Operations Gross margin for the second quarter of 2025 was 22.8% compared to 25.3% in the second quarter of 2024 as lower sales and inventory reduction actions drove unfavorable cost leverage. We are also now beginning to feel the impact of tariffs. As a percentage of sales, selling, general and administrative expenses for the second quarter of 2025 were 8.8% compared to 8.0% for the second quarter of 2024. R&T expenses as a percentage of sales were 2.9% in the second quarter of 2025, unchanged from the comparable prior year period. Adjusted operating income in the second quarter of 2025 was $54.2 million or 11.1% of sales, compared to $72.0 million, or 14.4% of sales in the second quarter of 2024. Other operating expense in the second quarter of 2025 included restructuring charges of $24.2 million related to the previously announced closure of the Welkenraedt, Belgium facility, which is reported within the Engineered Products segment. The impact of exchange rates on operating income as a percent of sales was favorable by approximately 10 basis points in the second quarter of 2025 compared to the second quarter of 2024. Year-to-Date 2025 Results Sales for the first six months of 2025 were $946.4 million compared to $972.7 million, a 2.7% decrease from the same period in 2024. Commercial Aerospace (61% of YTD sales) Commercial Aerospace sales of $573.2 million decreased 7.5% (7.7% in constant currency) for the first six months of 2025 compared to the first six months of 2024 as sales to all four major programs were lower, led by the 787 and A350. Other Commercial Aerospace increased 6.0% for the first six months of 2025 compared to the same period in 2024. Defense, Space & Other (39% of YTD sales) Defense, Space & Other sales of $373.2 million increased 5.8% (5.2% in constant currency) for the first six months of 2025 as compared to the first six months of 2024. Growth was broad based including military helicopters, fighters and space programs. Consolidated Operations Gross margin for the first six months of 2025 was 22.6% compared to 25.2% in the prior year period. As a percentage of sales, selling, general and administrative expenses for the first six months of 2025 were 9.1%, unchanged from the comparable prior year period. R&T expenses as a percentage of sales were 3.0% in the first six months of 2025 compared to 3.1% in the first six months of 2024. Adjusted operating income for the first six months of 2025 was $99.5 million or 10.5% of sales, compared to $126.1 million or 13.0% of sales in 2024. Other operating expense for the first six months of 2025 included restructuring charges of $25.3 million related to the previously announced closure of the Belgium facility and the divestiture of the Hartford, Connecticut business. Other operating expense of $1.4 million for the first six months of 2024 included restructuring costs. The impact of exchange rates on operating income as a percent of sales was favorable by approximately 30 basis points in the first six months of 2025 compared to the first six months of 2024. Cash and other Net cash used for operating activities in the first six months of 2025 was $5.2 million, compared to net cash provided of $37.2 million for the first six months of 2024. Working capital was a cash use of $124.5 million for the first six months of 2025 and a use of $118.3 million for the comparable period in 2024. Capital expenditures on a cash basis were $41.4 million for the first six months of 2025. For the first six months of 2024, capital expenditures on a cash basis were $51.6 million. Free cash flow was ($46.6) million in the first six months of 2025 compared to ($14.4) million in the first six months of 2024. Free cash flow is defined as cash generated from operating activities less cash paid for capital expenditures. Capital expenditures on an accrual basis were $31.8 million and $41.1 million for the first six months of 2025 and 2024, respectively. The Company used $50.5 million to repurchase shares of its common stock during the second quarter of 2025 and $100.9 million during the first six months of 2025. The aggregate remaining authorization under the share repurchase program as of June 30, 2025 was approximately $134 million. As announced today, the Board of Directors declared a quarterly dividend of $0.17 per share payable to stockholders of record as of August 8, 2025, with a payment date of August 15, 2025. 2025 Guidance (Unchanged – tariff impact not included) Sales of $1.88 billion to $1.95 billion Adjusted diluted earnings per share of $1.85 to $2.05 Free cash flow of approximately $190 million Capital expenditures less than $90 million Effective tax rate of 21.0%, excluding discrete tax items and subject to final review of the OBBB (One Big Beautiful Bill) Hexcel will host a conference call at 9:00 a.m. ET, on July 25, 2025 to discuss second quarter 2025 results. The live webcast will be available on the Investor Relations section of the Hexcel website via the following link: The event can also be accessed by dialing +1 (646) 307-1963. The conference ID is 2360739. Replays of the call will be available on the website. About Hexcel Hexcel Corporation is a global leader in advanced lightweight composites technology. We propel the future of flight and transportation through excellence in advanced material lightweighting solutions that create a better world for us all. Our broad and unrivaled product range includes carbon fiber, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, resins, engineered core and composite structures for use in commercial aerospace, defense and space, and industrial applications. Disclaimer on Forward Looking Statements This news release contains statements that are forward looking within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the estimates and expectations based on aircraft production rates provided by Airbus, Boeing and others, and the revenues we may generate from an aircraft model or program; expectations with regard to the impact of regulatory activity related to the Boeing 737 MAX on our revenues; expectations with regard to raw material cost and availability, including any impact associated with quotas, duties, tariffs, taxes or other similar restrictions upon the import or export of materials; expectations of composite content on new commercial aircraft programs and our share of those requirements; expectations regarding revenues from space and defense applications, including whether certain programs might be curtailed or discontinued; expectations regarding sales for industrial applications; expectations regarding cash generation, working capital trends, and inventory levels; expectations as to the level of capital expenditures, capacity, including the timing of completion of capacity expansions, and qualification of new products; expectations regarding our ability to improve or maintain margins; expectations regarding our ability to attract, motivate, and retain the workforce necessary to execute our business strategy; projections regarding our tax rate; expectations with regard to the continued impact of macroeconomic factors or geopolitical issues or conflicts, including retaliatory actions taken in response to U.S. trade policy; expectations regarding our strategic initiatives, including our sustainability goals; expectations with regard to the effectiveness of cybersecurity measures; expectations regarding the outcome of legal matters or the impact of changes in laws or regulations; and our expectations of financial results for 2025 and beyond. Actual results may differ materially from the results anticipated in the forward looking statements due to a variety of factors, including but not limited to the extent of the impact of macroeconomic factors or geopolitical issues or conflicts; reductions in sales to any significant customers, particularly Airbus or Boeing, including related to regulatory activity or public scrutiny impacting the Boeing 737 MAX; our ability to effectively adjust production and inventory levels to align with customer demand; our ability to effectively motivate, retain and hire the necessary workforce; the availability and cost of raw materials, including the impact of supply disruptions, inflation and tariffs; our ability to successfully implement or realize our strategic initiatives, including our sustainability goals and any restructuring or alignment activities in which we may engage; changes in sales mix; changes in current pricing due to cost levels; changes in aerospace delivery rates; changes in government defense procurement budgets; timely new product development or introduction; our ability to install, staff and qualify necessary capacity or complete capacity expansions to meet customer demand; cybersecurity-related risks, including the potential impact of breaches or intrusions; currency exchange rate fluctuations; uncertainty related to government actions and changes in domestic and international political, social and economic conditions, including the effect of change in global trade policies, tariff rates, economic sanctions and embargoes; work stoppages or other labor disruptions; our ability to successfully complete any strategic acquisitions, investments or dispositions; compliance with environmental, health, safety and other related laws and regulations, including those related to climate change; the effects of natural disasters or other severe weather events, which may be worsened by the impact of climate change, and other severe catastrophic events, including any public health crisis; and the unexpected outcome of legal matters or impact of changes in laws or regulations. Additional risk factors are described in our filings with the Securities and Exchange Commission. We do not undertake an obligation to update our forward-looking statements to reflect future events. Hexcel Corporation and Subsidiaries Condensed Consolidated Balance Sheets Unaudited June 30, December 31, (In millions) 2025 2024 Assets Cash and cash equivalents $ 77.2 $ 125.4 Accounts receivable, net 271.4 212.0 Inventories, net 375.4 356.2 Contract assets 40.7 29.8 Prepaid expenses and other current assets 75.2 50.6 Assets held for sale 7.5 7.5 Total current assets 847.4 781.5 Property, plant and equipment 3,298.1 3,163.1 Less accumulated depreciation (1,669.1 ) (1,566.4 ) Net property, plant and equipment 1,629.0 1,596.7 Goodwill and other intangible assets, net 243.2 237.0 Investments in affiliated companies 5.0 5.0 Other assets 118.7 105.4 Total assets $ 2,843.3 $ 2,725.6 Liabilities and Stockholders' Equity Liabilities: Short-term borrowings $ - $ 0.1 Accounts payable 111.1 142.3 Accrued compensation and benefits 71.3 99.7 Accrued liabilities 128.9 107.2 Liabilities held for sale 4.2 4.2 Total current liabilities 315.5 353.5 Long-term debt 827.7 700.6 Retirement obligations 31.0 31.9 Other non-current liabilities 115.2 111.7 Total liabilities $ 1,289.4 $ 1,197.7 Stockholders' equity: Common stock, $0.01 par value, 200.0 shares authorized, 112.0 shares issued at June 30, 2025 and 111.6 shares issued at December 31, 2024 $ 1.1 $ 1.1 Additional paid-in capital 985.4 970.0 Retained earnings 2,266.4 2,251.5 Accumulated other comprehensive loss (13.6 ) (115.0 ) 3,239.3 3,107.6 Less – Treasury stock, at cost, 32.4 shares at June 30, 2025 and 30.6 shares at December 31, 2024 (1,685.4 ) (1,579.7 ) Total stockholders' equity 1,553.9 1,527.9 Total liabilities and stockholders' equity $ 2,843.3 $ 2,725.6 Expand Hexcel Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows Unaudited Six Months Ended June 30, (In millions) 2025 2024 Cash flows from operating activities Net income $ 42.4 $ 86.5 Reconciliation to net cash (used in) provided by operating activities: Depreciation and amortization 60.6 62.0 Amortization related to financing 0.1 0.2 Deferred income taxes (2.7 ) (3.0 ) Stock-based compensation 12.4 16.4 Restructuring expenses, net of payments 23.1 0.2 Debt extinguishment costs 0.4 - Loss on divestiture of assets 1.1 - Changes in assets and liabilities: Increase in accounts receivable (44.2 ) (50.4 ) Decrease (increase) in inventories 7.2 (21.8 ) Increase in prepaid expenses and other current assets (19.5 ) (28.2 ) Decrease in accounts payable/accrued liabilities (68.0 ) (17.9 ) Other - net (18.1 ) (6.8 ) Net cash (used for) provided by operating activities (a) (5.2 ) 37.2 Cash flows from investing activities Capital expenditures (b) (41.4 ) (51.6 ) Payments on divestiture of assets (1.1 ) - Net cash used for investing activities (42.5 ) (51.6 ) Cash flows from financing activities Borrowings from senior unsecured credit facilities 160.0 95.0 Repayments of senior unsecured credit facilities (30.0 ) - Redemption of 4.7% senior notes due 2025 (300.0 ) - Proceeds from issuance of 5.875% senior notes due 2035 300.0 - Repurchases of common stock (100.9 ) (201.8 ) Repayment of finance lease obligation and other debt, net (3.9 ) 0.1 Dividends paid (27.5 ) (25.0 ) Activity under stock plans (1.8 ) (4.3 ) Net cash used for financing activities (4.1 ) (136.0 ) Effect of exchange rate changes on cash and cash equivalents 3.6 (1.2 ) Net decrease in cash and cash equivalents (48.2 ) (151.6 ) Cash and cash equivalents at beginning of period 125.4 227.0 Cash and cash equivalents at end of period $ 77.2 $ 75.4 Supplemental data: Free Cash Flow (a)+(b) $ (46.6 ) $ (14.4 ) Accrual basis additions to property, plant and equipment $ 31.8 $ 41.1 Expand Hexcel Corporation and Subsidiaries Net Sales to Third-Party Customers by Market Quarters Ended June 30, 2025 and 2024 Unaudited Table A (In millions) As Reported Constant Currency (a) B/(W) FX B/(W) Market 2025 2024 % Effect (b) 2024 % Commercial Aerospace $ 293.1 $ 320.7 (8.6 ) $ 1.1 $ 321.8 (8.9 ) Defense, Space & Other 196.8 179.7 9.5 3.2 182.9 7.6 Consolidated Total $ 489.9 $ 500.4 (2.1 ) $ 4.3 $ 504.7 (2.9 ) Consolidated % of Net Sales % % % Commercial Aerospace 59.8 64.1 63.8 Defense, Space & Other 40.2 35.9 36.2 Consolidated Total 100.0 100.0 100.0 Six Months Ended June 30, 2025 and 2024 Unaudited (In millions) As Reported Constant Currency (a) B/(W) FX B/(W) Market 2025 2024 % Effect (b) 2024 % Commercial Aerospace $ 573.2 $ 620.0 (7.5 ) $ 0.8 $ 620.8 (7.7 ) Defense, Space & Other 373.2 352.7 5.8 1.9 354.6 5.2 Consolidated Total $ 946.4 $ 972.7 (2.7 ) $ 2.7 $ 975.4 (3.0 ) Consolidated % of Net Sales % % % Commercial Aerospace 60.6 63.7 63.6 Defense, Space & Other 39.4 36.3 36.4 Consolidated Total 100.0 100.0 100.0 Expand (a) To assist in the analysis of the Company's net sales trend, total net sales and sales by market for the quarter and six months ended June 30, 2024 have been estimated using the same U.S. dollar, British pound and Euro exchange rates as applied for the respective periods in 2025 and are referred to as 'constant currency' sales. (b) FX effect is the estimated impact on 'as reported' net sales due to changes in foreign currency exchange rates. Expand Hexcel Corporation and Subsidiaries Segment Information Unaudited Table B (In millions) Composite Materials Engineered Products Corporate & Other (a) Total Second Quarter 2025 Net sales to external customers $ 393.2 $ 96.7 $ - $ 489.9 Intersegment sales 19.4 0.4 (19.8 ) - Total sales 412.6 97.1 (19.8 ) 489.9 Other operating expense - 24.2 - 24.2 Operating income (loss) 58.3 (13.6 ) (14.7 ) 30.0 % Operating margin 14.1 % (14.0 )% 6.1 % Depreciation and amortization 27.5 3.3 - 30.8 Stock-based compensation expense 0.9 0.2 1.6 2.7 Accrual based additions to capital expenditures 13.1 1.6 - 14.7 Second Quarter 2024 Net sales to external customers $ 408.6 $ 91.8 $ - $ 500.4 Intersegment sales 23.9 0.6 (24.5 ) - Total sales 432.5 92.4 (24.5 ) 500.4 Other operating expense - 0.2 - 0.2 Operating income (loss) 74.3 13.0 (15.5 ) 71.8 % Operating margin 17.2 % 14.1 % 14.3 % Depreciation and amortization 27.3 3.7 - 31.0 Stock-based compensation expense 1.1 0.3 1.9 3.3 Accrual based additions to capital expenditures 18.6 3.9 - 22.5 First Six Months 2025 Net sales to external customers $ 758.5 $ 187.9 $ - $ 946.4 Intersegment sales 39.5 0.7 (40.2 ) - Total sales 798.0 188.6 (40.2 ) 946.4 Other operating expense - 25.3 - 25.3 Operating income (loss) 112.9 (8.5 ) (30.2 ) 74.2 % Operating margin 14.1 % (4.5 )% 7.8 % Depreciation and amortization 54.1 6.5 - 60.6 Stock-based compensation expense 3.9 1.0 7.5 12.4 Accrual based additions to capital expenditures 28.6 3.2 - 31.8 First Six Months 2024 Net sales to external customers $ 788.1 $ 184.6 $ - $ 972.7 Intersegment sales 47.2 0.9 (48.1 ) - Total sales 835.3 185.5 (48.1 ) 972.7 Other operating expense 0.8 0.6 - 1.4 Operating income (loss) 138.0 25.9 (39.2 ) 124.7 % Operating margin 16.5 % 14.0 % 12.8 % Depreciation and amortization 54.5 7.5 - 62.0 Stock-based compensation expense 4.2 1.1 11.1 16.4 Accrual based additions to capital expenditures 35.3 5.8 - 41.1 Expand (a) Hexcel does not allocate corporate expenses to the operating segments. Expand Unaudited Quarters Ended June 30, 2025 2024 (In millions, except per diluted share data) Net Income EPS Net Income EPS GAAP $ 13.5 $ 0.17 $ 50.0 $ 0.60 Other operating expense, net of tax (a) 24.2 0.30 0.2 - Other income, net of tax (b) (0.7 ) (0.01 ) - - Tax expense (c) 3.4 0.04 - - Non-GAAP $ 40.4 $ 0.50 $ 50.2 $ 0.60 Expand Unaudited Six Months Ended June 30, 2025 2024 (In millions, except per diluted share data) Net Income EPS Net Income EPS GAAP $ 42.4 $ 0.52 $ 86.5 $ 1.03 Other operating expense, net of tax (a) 25.1 0.31 1.1 0.01 Other income, net of tax (b) (0.4 ) - - - Tax expense (c) 3.4 0.04 - - Non-GAAP $ 70.5 $ 0.87 $ 87.6 $ 1.04 Expand Unaudited Six Months Ended June 30 (In millions) 2025 2024 Net cash provided by operating activities $ (5.2 ) $ 37.2 Less: Capital expenditures (41.4 ) (51.6 ) Free cash flow (non-GAAP) $ (46.6 ) $ (14.4 ) Expand (a) The quarter and six months ended June 30, 2025 included restructuring charges of $24.2 million related to the closure of the Welkenraedt facility in Belgium. The six months ended June 30, 2025 also included a loss of $1.1 million for the divestiture of the Hartford, Connecticut business. The quarter and six months ended June 30, 2024 included restructuring costs. (b) The quarter and six months ended June 30, 2025 included a gain of $0.9 million related to a lump-sum pension settlement. The six months ended June 30, 2025 also included debt extinguishment costs. (c) The quarter and six months ended June 30, 2025 included a tax charge of $3.4 million for a valuation allowance related to the closure of the Welkenraedt facility. Expand NOTE: Management believes that adjusted operating income, adjusted net income, adjusted diluted net income per share and free cash flow, which are non-GAAP measures, are meaningful to investors because they provide a view of Hexcel with respect to the underlying operating results excluding special items. Special items represent significant charges or credits that are important to an understanding of Hexcel's overall operating results in the periods presented. Non-GAAP measurements are not recognized in accordance with generally accepted accounting principles and should not be viewed as an alternative to GAAP measures of performance. Expand Hexcel Corporation and Subsidiaries Schedule of Total Debt, Net of Cash Table D Unaudited June 30, December 31, June 30, (In millions) 2025 2024 2024 Current portion finance lease $ - $ 0.1 $ 0.1 Total current debt - 0.1 0.1 Senior unsecured credit facility 130.0 - 95.0 4.7% senior notes due 2025 - 300.0 300.0 3.95% senior notes due 2027 400.0 400.0 400.0 5.875% senior notes due 2035 300.0 - - Senior notes original issue discounts (0.3 ) (0.4 ) (0.5 ) Senior notes deferred financing costs (4.3 ) (0.9 ) (1.2 ) Other debt 2.3 1.9 1.6 Total long-term debt 827.7 700.6 794.9 Total Debt 827.7 700.7 795.0 Less: Cash and cash equivalents (77.2 ) (125.4 ) (75.4 ) Total debt, net of cash $ 750.5 $ 575.3 $ 719.6 Expand
Mint
11 hours ago
- Business
- Mint
Air India, despite mounting losses, sees FY25 revenue inching closer to Indigo's
Mumbai: Air India has inched closer to India's largest airline, IndiGo, in the three years since the Tata Group brought the nationalised carrier back into its fold. Air India's revenue in 2024-25 jumped 15% to ₹ 78,636 crore from ₹ 66,556.21 crore in FY24, after combining the finances of Air India, Tata SIA Airlines Ltd, Talace Pvt. Ltd—making the airline among the largest contributors to Tata Group's ₹ 15.3 trillion topline in FY25. Indigo, operated by Interglobe Aviation", saw its revenue rise to ₹ 84,098.2 crore in FY25 from ₹ 68,904.3 crore in the year before. However, Air India was the largest lossmaker for Tata Group in FY25, with its loss widening to ₹ 10,859 crore from a combined loss of ₹ 7,356.3 crore for the three related entities in FY24, according to Tata Sons' latest annual report. Talace and Tata SIA, or Vistara, were merged under the Air India banner in FY25. Talace was a wholly owned Tata Group subsidiary created for the purpose of acquiring Air India from the Indian government. After buying back the airline in 2022, Tata Sons chair N. Chandrasekaran hired former Singapore Airlines executive Campbell Wilson to lead Air India. Wilson's 5-year revival strategy, started in September 2022, includes refitting old planes, buying new planes, increasing Air India's domestic market share to at least 30%, and expanding its international routes. Air India currently has a domestic market share of 26-27%, behind IndiGo, which dominates with a 64-65% market share. Apart from a $400 million refit programme for upgrading 67 legacy aircraft, Air India, at the 2023 Paris Air Show, signed deals worth $70 billion to buy 470 aircraft from Airbus and Boeing. In December 2024, Air India placed an additional order for 100 Airbus planes, taking itstotalnumber of aircraft ordered to 570. Deliveries from these orders are expected to be completed by 2030. However, last month's crash of Air India's AI-171 Boeing flight, which killed all but one of the 242 people on board and 19 others, may have pushed back the airline's revival plans. India's aviation trends: Bengaluru beats Mumbai, IndiGo pulls ahead and more Meanwhile, India's aviation industry is expected to post a net loss of ₹ 2,000-3,000 crore in FY26, according to rating agencyICRA. Domestic air passenger traffic, however, is projected to grow by 7-10% to 175-181 million this financial year, after growing at 7.6% to 165.4 million in FY25. ICRA maintained a stable outlook for India's aviation industry in its May report. However, it warned of potential risks due to rising crude oilprices, closure of Iranian and Pakistani airspace for Indian carriers, and a possible increase in insurance premiums after the Air India crash. Operating costs of domestic airlines are also likely to have increased in recent months due to flight cancellations and other disruptions following the India-Pakistan tensions, but overall passenger traffic and ticket prices have remained steady so far, according to the rating agency.
Axios
a day ago
- Business
- Axios
Archer and Anduril are "deep in the work" on secretive VTOL aircraft
Archer Aviation and Anduril Industries are "deep in the work, building stuff," for their hybrid-power vertical takeoff and landing aircraft, the former's CEO, Adam Goldstein, told Axios. Why it matters: Very little has been shared about the project, which was initially described as targeting a potential Pentagon program. What they're saying: "I think the U.S. and its allies have an increasing demand for autonomous and attritable assets, especially big flying things," Goldstein said in an interview on the sidelines of the Reindustrialize conference in Detroit. "The need is very near-term for this stuff. The question is: How much of it can you build?" Catch up quick: The companies announced their exclusive partnership in December. At the time, Goldstein told Axios: "You can imagine things that helicopters do are the things that we're building toward." Flashback: Archer most recently raised $850 million. It disclosed the funding ahead of the Paris Air Show, where it displayed its Midnight aircraft.
Business Insider
5 days ago
- Business Insider
Supersonic flight is on its way back. I went on board the first Concorde, where it all began.
At the 2025 Paris Air Show, I came across a conference hall with a plane in the middle of it. This hall is actually part of the Musée de l'Air et de l'Espace, which is part of Paris's Le Bourget Airport and can be visited year-round. After a bit of walking around, I found the line to tour a Concorde. As a journalist, I was able to get a ticket for free. Usually, a "boarding pass" ticket for the museum costs between 6 euros and 17 euros ($7 to $20), depending on your age. I was amazed to find out this was actually the very first Concorde. Concorde 001, with the tail number F-WTSS, was the first prototype built and made its first flight in 1969. It was retired to the museum four years later. It was a bit disappointing that the interior had been stripped, but there was still a lot to learn. Information boards shared more about the history of this momentous airplane. For example, it was used to carry out scientific experiments during a 1973 eclipse, with cameras and windows installed in the roof. There were several flight instruments behind glass, and a chance to glimpse the historic flight deck. Concorde was the first airliner to use fly-by-wire controls, which means electronic signals are sent to a computer that processes the pilots' inputs. It was previously only used on military aircraft, but is commonplace today. The technology helped the A320 become Airbus's first major success. Concorde's cockpit also included a third seat for a flight engineer, and controls for the "droopsnoot" — a lengthy, pointed nose. Used to add aerodynamic efficiency, the nose could be drooped 10° for more visibility during takeoff and landing. Leaving the first Concorde, it was great to see the original colorful livery with the names of the manufacturers. The British Aviation Corporation and France's Sud Aviation jointly built and developed Concorde. (Mergers and acquisitions over the years saw the former become part of BAE Systems, and the latter part of Airbus.) Concorde was a symbol not just of national pride for the UK and France but also of international cooperation between them. Indeed, the jet's name comes from the French for "agreement" or "union." Meanwhile, work on the Boeing 2707, a larger and faster supersonic airliner, was scrapped in 1971. I crossed a bridge onto Concorde 213, the 17th one to be built. Just three more Concordes were made after this one. It flew from 1978 to 2003. Even though Concorde is a relic of the past, I liked how the differing logos showed how it lasted for decades, from the meticulous font of the 1960s to the bold and minimalist Air France logo of the early noughties. This plane was actually once painted in a Pepsi livery for an advertising campaign. Pepsi spent $500 million on a huge rebranding effort in 1996, adopting its blue color scheme. Sierra Delta, as it is known for the last two letters of its registration, was painted blue for two weeks in April of that year. The wings were kept white due to concerns over the fuel temperature. Air France needed special permission because the Concorde was only certified to be painted white, as darker colors tend to retain more heat. This time, there were plenty of seats on board to have a look at. They were behind glass, so I couldn't sit down and test one out. I already knew Concorde was relatively small inside, with its four-abreast layout, but I was still surprised that these seats wouldn't look out of place on one of today's regional airliners. Concorde could carry between 92 and 128 passengers, depending on the layout. Details like the exit signs and bathrooms were still visible as well. Walking through, I was again slightly taken aback by the low ceiling. Concorde's cabin height was just 6 feet 5 inches — an inch shorter than an Embraer E175 and 10 inches shorter than a Boeing 737. British Airways and Air France made up for the small cabin with top service. Seeing the full rows of seats, glassed off under dim lighting, felt eerie and almost somber. There was only one fatal accident involving Concorde, but it was hugely damaging. In July 2000, a Concorde crashed shortly after takeoff when it ran over debris on the runway, and tyre fragments ruptured a fuel tank. All 109 people on board were killed, as well as four people in the hotel it crashed into. As the investigation went on, all Concordes were grounded until November 2001. Concorde was ungrounded, but the plane's economics remained a concern. Concorde only stayed in service for another two years, with British Airways retiring its final one in October 2003. While the crash damaged the plane's image, Concorde's ultimate undoing was its huge operating costs. Its four engines burned huge amounts of fuel. Plus, its routes were limited by opposition to noisy sonic booms. The economics have since become notorious in the aviation industry. For example, after postponing its plans for a hydrogen-powered plane, Airbus CEO Guillaume Faury said in April that it wouldn't be competitive enough with other jets and hence risked becoming "a Concorde of hydrogen." However, supersonic airliners are on their way back. Denver-based Boom Supersonic has been developing a new supersonic jet called Overture. It's smaller than Concorde, expected to carry between 60 and 80 passengers, and would fly slightly slower at Mach 1.7. China's state-owned planemaker, Comac, is also developing a supersonic airliner called the C949, although few details are available. Boom's XB-1 prototype went supersonic for the first time in January — and made another major breakthrough. Boom announced in February that the flight didn't produce a sonic boom that was audible from the ground. It dubbed this "Boomless Cruise" and is thanks to a physics term called Mach cutoff. Esssentially, if the sound barrier is broken at a high enough altitude, the sound waves can essentially U-turn in the atmosphere before reaching the ground. Then, in June, President Donald Trump issued an executive order directing the Federal Aviation Administration to repeal a 52-year-old law that limited flight speeds over land, so long as there's no sonic boom audible from the ground. Overture has received 130 orders and pre-orders from customers like United Airlines, American Airlines, and Japan Airlines.
Morocco World
6 days ago
- Business
- Morocco World
Boeing, Alphavest Capital to Establish Five Aerospace Centers in Morocco
Marrakech – Moroccan asset management firm Alphavest Capital and aircraft manufacturer Boeing have signed a memorandum of understanding (MoU) to collaborate on creating five aerospace excellence centers in Morocco. The agreement, announced on Friday, aims to strengthen the North African country's position in the global aerospace industry. According to the MoU terms, the two companies will work together to develop logistics capabilities and establish specialized centers in five key areas. The five aerospace excellence centers will focus on engineering; tubes, ducts, hoses and fittings; complex mechanical parts and sheet metal activities; secondary structures, particularly composite parts; and metal and raw materials processing and distribution. Majid Benmlih, President and CEO of Alphavest Capital, stressed the significance of the partnership. 'This historic agreement with Boeing marks Morocco's arrival on the global aerospace scene, confirming the Kingdom's position as an aerospace destination offering the best value for money, particularly in terms of risk, quality, cost and time,' he remarked. He noted that the agreement builds on years of collaboration between Alphavest Capital and Boeing, notably through the creation and development of TDM Aerospace. Ihssane Mounir, Senior Vice President of Global Supply Chain and Fabrication at Boeing Commercial Airplanes, expressed pride in the partnership. 'We are proud to partner with Alphavest Capital to continue developing Moroccan aerospace supply chain capabilities and fostering a highly skilled and high-performing workforce,' he declared. 'This agreement reinforces our commitment to the Kingdom's vision of positioning Morocco as a key player in the global aerospace industry,' Mounir concluded. Alphavest Capital is among the thematic and sectoral fund management companies selected by the Mohammed VI Investment Fund to support the aerospace sector. The company mobilizes Moroccan and international capital in two key transformation areas: Industrial Innovation through the Aerospace Fund (MAIC OPCC), and Technological Disruption via the Tech I Fund 'Startup Nation Morocco.' This Boeing-Alphavest alliance emerges as Morocco's aerospace sector gains substantial momentum. In a separate development last month, French group Figeac Aéro entered a strategic partnership with Boeing on June 16 during the Paris Air Show, to manufacture machined parts for the 737 Max in Morocco. Speaking at the same event, Minister of Industry and Commerce Ryad Mezzour revealed that Morocco's aerospace sector now encompasses 150 companies generating €2.5 billion (approximately $2.5 billion) in annual revenue while employing 26,000 people full-time. He outlined ambitious growth plans including expansion into cabin fittings and landing gear manufacturing. 'Within ten years, we think we can offer a final assembly line for commercial aircraft,' Mezzour projected, expressing confidence in doubling the sector's turnover by 2030. He stressed Morocco's competitive advantage with production costs at €25 per hour compared to €100-120 in Europe or the US, supported by 23,000 engineering graduates annually, of whom 400 enter the aerospace field. According to recent data from the Exchange Office, Morocco's aerospace sector exports exceeded MAD 9.5 billion (approximately $950 million) by the end of April, marking a 14% increase compared to the same period last year. Additionally, Royal Air Maroc (RAM) is reportedly preparing a major aircraft order from Boeing, potentially including about two dozen 787 long-haul aircraft and up to 50 737 medium-haul planes, deepening the strategic aerospace relationship between Rabat and the American manufacturer. Tags: aerospace industry in moroccoBoeing
