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March 3, 2021

Aerojet Rocketdyne Holdings, Inc. (AJRD) – Solid earnings and growth and strategic merger with LMT will help stock move upward

AJRD was selected as part of Northrop Grumman’s team to develop a large solid rocket motor and the post boost propulsion system for the Ground Based Strategic Deterrent program and received the related contract award for the Engineering, Manufacturing and Development phase of the program. Highlights Valuation – Enterprise Value – CrispIdea Forecast – Economic […]

February 28, 2021

Raytheon Technologies Corporation (RTX) – Launch To New Highs Delayed Until 2023; Provided a conservative outlook for 2021

Raytheon Technologies had dealt with a difficult hand for 2020 as the pandemic greatly reduced demand for air travel as well as aircraft new orders and maintenance. The merger with Raytheon added defense customers and helped the company manage through the pandemic more easily than the old United Technologies would have. Highlights Valuation – Enterprise […]

February 25, 2021

Northrop Grumman Corporation (NOC) – The defense major’s stifled stock price shows lack of investor confidence

Northrop Grumman programs were well supported in the FY21 appropriations bill with Congress passed the 2021 National Defense Authorization and approved appropriations ~$740bn for discretionary defense spending, where the company programs are well supported in the budget. Highlights Valuation – Enterprise Value – CrispIdea Forecast – Economic Value Added Analysis – DCF Analysis – P/E […]

February 22, 2021

Lockheed Martin Corporation (LMT) – Strong momentum heading into 2021

Lockheed Martin programs were well supported in the FY ’21 appropriations bill with Congress adding funding of over $1.7bn for 17 additional F 35 aircraft and other development and integration activities for the program nad also the initiation of an 8 THAAD battery for the US Army. Highlights Valuation – Enterprise Value – CrispIdea Forecast. – […]

February 18, 2021

Hexcel Corporation (HXL) – Outlook have shifted from panic to recovery mode

Hexcel Corp. product portfolio across advanced materials like carbon fiber and specialty fabrics are used as key components in aircraft by the major manufacturers. This is a market segment particularly challenged considering the pandemic continues to limit air travel and the demand for new aircraft production. Highlights Valuation – Enterprise Value – CrispIdea Forecast – […]

February 15, 2021

AAR Corp.(AAR) – AAR Corp. Q2FY21 results highlighted better than expected EPS driven by cost controls and savings initiatives

The company has exclusive seven year partnership with Fortress Transportation and Infrastructure Investors to manage the teardown, repair, marketing and sales from its growing CFM56 engine pool which currently totals over 200 engines. Highlights Valuation – Enterprise Value – CrispIdea Forecast. – Economic Value Added Analysis – P /E Analysis – Peer Valuation – CrispIdea […]

January 19, 2021

Axon Enterprise, Inc. (AAXN – Q3FY20) – Top-line fuels Axon growing business, however bottom-line getting impacted as cost scaling up.

Recent milestones in international expansion include the Toronto Police Service’s deployment of Axon body cameras, the London Metropolitan Police’s upgrade to Axon Body 3 cameras, government approval to sell TASER 7 in the UK, and the first major agency in Ukraine purchasing TASER devices. Executive Summary Financial Statements – Income Statement and Forecast – Balance […]

January 13, 2021

Moog Inc. (MOG-A – Q4FY20) – Defense/Space exposure will provide stability and Commercial aerospace headwinds will continue in FY21.

Moog Inc. announced that it has completed the acquisition of Genesys Aerosystems Group, Inc. (Genesys) for a purchase price of approximately $77.7 million. It is headquartered in Mineral Wells, Texas and has 143 employees. The purchase includes the operating subsidiaries S-Tec Corporation and Genesys Aerosystems, Inc. Executive Summary Financial Statements – Income Statement and Forecast […]

January 8, 2021

ManTech International Corporation (MANT – Q3FY20) – Strong nine months of FY20 performance; Preserve balance sheet flexibility.

ManTech announced that it has been awarded a $265 million contract to support a Department of Defense (DoD) agency with designing, developing, fielding and supporting an operational cyber infrastructure known as the Joint Common Access Platform (JCAP). Under the 42-month hybrid award, ManTech will develop and deploy technology capabilities that enable operations, support fielded versions […]

January 6, 2021

Spirit AeroSystems Holdings, Inc. (SPR – Q3FY20) – The commercial aerospace supplier wins an upgrade as some of its headwinds begin to fade.

The Bombardier acquisition accelerates strategic transformation by securing a significant amount of Airbus work, boosting aftermarket business, and enhancing competitiveness with the addition of low-cost operations in Morocco. Executive Summary Financial Statements – Income Statement and Forecast – Balance Sheet – Cash Flow – Results Overview – Company Overview – Segment Performance – Deliveries – […]

January 4, 2021

Mercury Systems, Inc. (MRCY – Q1FY21) – Strong financial performance in Q1FY20 shows good start to the fiscal year.

Mercury Systems Inc. announced the completion of its acquisition of Physical Optics Corporation (POC). Pursuant to the terms of the definitive agreement applicable to the acquisition, Mercury acquired POC for a purchase price of $310 million, subject to net working capital and net debt adjustments. The acquisition was funded through a combination of cash on […]

December 29, 2020

L3Harris Technologies, Inc. (LHX – Q3FY20) – Reshaping portfolio to focus on high margin and high growth businesses.

L3Harris Technologies has received a $57 million competitive award for its Falcon IV® AN/PRC-163 twochannel handheld radios, along with related equipment and services, as part of the U.S. Army’s two-channel Leader radio IDIQ contract. Executive Summary Financial Statements – Income Statement and Forecast – Balance Sheet – Cash Flow – Results Overview – Company Overview […]

December 17, 2020

Kratos Defense & Security Solutions, Inc (KTOS – Q3FY20) – Q3FY20 result outperformed estimates; bagged no. of promising defense contract.

Kratos Defense & Security Solutions, Inc. announced that it has acquired 5-D Systems, Inc., a CMMI Level 3 Systems and Software Engineering company with facilities in the Austin, Texas area and in Huntsville, Alabama. 5-D is well-known in the defense/aerospace industry for its more than 20 years of experience as a small business designing, developing, […]

December 16, 2020

Astronics Corporation (ATRO – Q3FY20) – Commercial Aerospace, remains weak. General aviation is down but shows some signs of resilience whereas Defense and Government markets have remained strong through the pandemic.

Astronics Corporation and Xenex® Disinfection Services Inc. (“Xenex”), the world leader in UV disinfection for healthcare facilities, announced Xenex has awarded a $20 million contract to Astronics to assist in the manufacturing of Xenex’s unique LightStrike Germ-Zapping Robots. Executive Summary Financial Statements – Income Statement and Forecast – Balance Sheet – Cash Flow – Results […]

December 8, 2020

Airbus SE (AIR.PA – Q3FY20) – Though C-19 impact slowly unfolds poor results persist, in fact aircraft deliveries rebound.

Airbus Defence and Space has successfully completed a new test flight campaign for its Zephyr High Altitude Platform Station (HAPS) in Arizona, U.S.A. The 2020 flight campaign succeeded despite global slowdowns due to the Covid19 pandemic. It focused on aircraft agility, control and operations to build upon previous campaigns, which have already proven the day […]

December 3, 2020

Textron Inc. (TXT – Q3FY20) – Strong operating margins at Bell and Systems; Industrial and Aviation end-markets are set for slow recovery.

Bell Textron Inc., a Textron Inc. company, appointed Rheinland Air Service GmbH (RAS) the first German dealer for the Bell 505. Approaching 50 years of business aviation experience, RAS is a proven provider of expert aviation sales and service. Executive Summary Financial Statements – Income Statement. – Balance Sheet – Cash Flow – Results Overview […]

November 23, 2020

Ducommun Inc. (DCO – Q3FY20) – Diversification of portfolio is showing material strength, amid the pandemic and the 737 MAX grounding.

Ducommun’s defense business, showed great strength, being up 40% versus prior year, reflecting a diverse array of demand for nearly all aspects of the company’s product portfolio. The majority of the gains in defense included radar systems for Northrop Grumman, increases for new weapons systems business, Nobles Worldwide, along with Viasat, the Patriot, UAVs at […]

November 20, 2020

General Dynamics Corporation (GD – Q3FY20) – Weighed down by its Gulfstream business jet unit but defense business is holding up quite well.

The company has secured a $9.47bn deal to complete construction of the first Columbia-class ballistic missile submarine. The Columbia is expected to be the most expensive naval program in history, and the Government Accountability Office (GAO) has warned it could come in well above its estimated $115bn total construction budget. Executive Summary Financial Statements – […]

November 18, 2020

Raytheon Technologies Corp. (RTX– Q3FY20) – Raytheon’s Quarter was bleak, as commercial side affected by the pandemic while Defense stays strong.

Forcepoint, a leading provider of cybersecurity solutions that protects the critical data and networks of thousands of customers throughout the world, and Francisco Partners, a leading global investment firm that specializes in partnering with technology and technology-enabled businesses, announced that Francisco Partners has signed a definitive agreement to acquire Forcepoint from Raytheon Technologies. Executive Summary […]

November 17, 2020

Aerojet Rocketdyne Holdings, Inc. (AJRD – Q3FY20) – Cost reduction initiatives, strong solvency position & backlog drives the growth.

Aerojet Rocketdyne Holdings, Inc. long-standing relationship with the U.S. defense giants serve as a primary growth driver, given the growing demand in the rocket and missile propulsion markets. Courtesy of this increasing demand, the company continues to expand its strong legacy propulsion franchises on the Standard Missile, Patriot Advanced Capability-3 (PAC-3), Terminal High Altitude Area […]

November 9, 2020

Northrop Grumman Corporation (NOC – Q3FY20) – Strong Q3FY20 performance; $20.3bn Net Awards; backlog increases to record $81.3bn.

The U.S. Army and Northrop Grumman Corporation have deployed enhanced Joint Tactical Ground Station (JTAGS) capabilities in South Korea, advancing battlespace awareness and missile defense in the region. This deployment marks the completion of phase one of the JTAGS modernization program. The system was first fielded in tactical shelters in 1997 to provide in-theater missile […]

November 6, 2020

Lockheed Martin Corporation (LMT – Q3FY20) – Strong quarterly results; Raised 2020 outlook.

Sikorsky, a Lockheed Martin company will build six additional production CH-53K King Stallion helicopters under a new contract for the U.S. Navy. The aircraft will further support the U.S. Marine Corps in its mission to conduct expeditionary heavy-lift assault transport of armored vehicles, equipment and personnel to support distributed operations deep inland from a sea-based […]

November 5, 2020

Hexcel Corporation (HXL – Q3FY20) – Destocking And High Fixed Operating Leverage Hammer Hexcel.

True Temper Sports, leading designers and manufacturers of golf shafts, has chosen to partner with Hexcel on its latest product line, the HZRDUS Smoke Black RDX. The HZRDUS Smoke Black RDX is the first golf shaft to use Hexcel’s new HexTow® HM54 carbon fiber, which is ideal for recreational applications. Executive Summary Financial Statements – […]

November 2, 2020

AAR Corp. (AIR – Q1FY21) – Commercial side of the business was affected the most, though defense side is holding up well.

AAR subsidiary Airinmar, the top global independent provider of component repair cycle management and aircraft warranty solutions, signed a new services agreement with European low-fare carrier Wizz Air. Airinmar will provide a full suite of warranty management services covering airframe, engines and components. Executive Summary Financial Statements – Income Statement and Forecast – Balance Sheet […]

October 22, 2020

Thales Group (HO.PA – Q2FY20) – 1HFY20 results severely impacted by Covid-19 crisis; Cost saving actions saved €320mn in first half.

Thales Portugal is a partner of the Hub in Portugal together with IASA. This new program, which will use Portuguese cities as laboratories, to prove that technological innovation, combined with entrepreneurial spirit and talent, can solve real problems of cities, turning mobility more intelligent and transforming urban areas into more livable places. Executive Summary Financial […]

October 9, 2020

AeroVironment Inc. (AVAV – Q1FY21) – Persistent and profitable topline growth.

The company have successfully completed the fourth test flight of the newly named Sunglider solar HAPS in the Q1FY21. HAPS continues to represent a potentially transformational growth opportunity for AeroVironment as the company and its partner move forward toward the goal of providing commercial connectivity using networks of HAWK30 aircraft. Executive Summary Financial Statements – […]

October 8, 2020

HEICO Corporation (HEI – Q3FY20) – Weighed down by its commercial business; Defense side holding up well.

Sabena Aerospace, a BLUEBERRY Company, and Blue Aerospace, a HEICO Company, announced the award of the sale of the Belgian Defense C-130 aircraft fleet and associated equipment & inventory by the Belgian Defense Organization. This award resulted from the Belgian Defense Tender No. MRMP – A/A2 N° 19AAV01 and consists of all assets related to […]

October 5, 2020

Axon Enterprise, Inc. (AAXN – Q2FY20) – Top-line fuels Axon growing business, however bottom-line getting impacted as cost scaling up.

The company’s growing software platform like Axon Cloud services and Evidence.com etc. relatively lead to the proportionately faster increase in services revenue compared with products revenue, reflect diversified revenue model which in turn reducing the overall risk of the company. Executive Summary Financial Statements – Income Statement and Forecast – Balance Sheet – Cash Flow […]

October 1, 2020

Mercury Systems, Inc. (MRCY – Q4FY20) – Record financial performance in Q4 and FY20 while managing through C-19.

Mercury announced it received a $3.9mn multi-phase contract award from a leading defense prime contractor for the development of a highdensity system-in-package solution for radar systems utilizing its novel 2.5D chip-scale integration technology. The award has an 18- month planned performance and shipment period. Executive Summary Financial Statements – Income Statement and Forecast – Balance […]

September 28, 2020

Howmet Aerospace Inc. (HWM – Q2FY20) – Q2FY20 revenue down 31% Y/Y driven by COVID-19 and 737 Max.

Howmet Aerospace continue to expect defense aerospace to grow Y/Y, due to the strong demand for the Joint Strike Fighter on both new airplane builds and engine spares. In the second quarter, defense aerospace was up 3% Y/Y; and within the industrial and other markets, IGT was up 25% Y/Y. Executive Summary Financial Statements – […]

September 28, 2020

Spirit AeroSystems Holdings, Inc. (SPR – Q2FY20) – 737 Max uncertainty is still looming; cash problem for Spirit is getting worse.

Cash from operations in the Q2FY20 was – $228mn, down from $230mn in the same quarter last year, primarily due to negative impacts of working capital requirements and significantly lower production deliveries. Executive Summary Financial Statements – Income Statement and Forecast – Balance Sheet – Cash Flow – Results Overview – Company Overview – Segment […]

September 22, 2020

Huntington Ingalls Industries Inc. (HII – Q2FY20) – Revenues deplete, margins erode, onus on H2 2020 to recover losses.

Ingalls was awarded a $936mn contract for Arleigh Burkeclass Flight III destroyer for the US Navy, and LCS planning yard contract worth potentially $106mn. Ingalls also looks in a better position among segments as it bagged a $1.5bn contract for the construction of amphibious transport dock LPD 31. Technical Solutions bagged a crucial contract involving services […]

September 18, 2020

TransDigmGroup, Inc. (TDG – Q3FY20) – Q3FY20 results significantly driven by C-19.

TransDigm completed the divestiture of its Esterline Interface Technology (“EIT”) group of businesses to an affiliate of KPS Capital Partners, LP for ~$190mn. EIT was acquired by TransDigm as part of its acquisition of Esterline in March 2019. Executive Summary Financial Statements – Income Statement and Forecast – Balance Sheet – Cash Flow – Results […]

September 17, 2020

BWX Technologies Inc. (BWXT – Q2FY20) – Efforts toward making 2020 fertile, bags Hanford Tank and TRISO contracts.

BWXT completed the divestiture of its US-based commercial nuclear services business to Framatome in June 2020. BWXT will assume occupancy & ownership of the facility near Virginia. The company also won award for the TRISO nuclear fuel manufacturing line provided by Idaho National Laboratory. Executive Summary Financial Statements – Income Statement and Forecast – Balance […]

September 15, 2020

L3Harris Technologies, Inc. (LHX – Q2FY20) – Strong Q2FY20 performance; Reshape portfolio to focus on high margin, high growth businesses.

L3Harris Technologies has received a contract from the U.S. Navy for the Medium Unmanned Surface Vehicle (MUSV) program. This is the Navy’s first program for an unmanned surface vehicle to support the Navy’s Distributed Maritime Operations strategy. The $35 million initial award is part of a $281 million program that includes a prototype and options […]

September 12, 2020

Astronics Corporation (ATRO – Q2FY20) – Depressed revenue level; Commercial side struggling since 737 issue followed by Pandemic.

Astronics Corporation, announced a recent successful test flight employing its Ku-band tail-mounted antenna technology for the Collins Aerospace KuSAT-2000 SATCOM terminal for their LuxStream business jet connectivity solution. The KuSAT-2000 Tail-Mounted Antenna system demonstrated download speeds of up to 25 Mbps service in the United States and 15 Mbps globally utilizing SES satellites. Executive Summary […]

September 11, 2020

Airbus SE (AIR.PA – Q2FY20) – Poor results continued as the COVID-19 impact slowly unfolds.

The Helicopter Company (THC), which is fully owned by the Public Investment Fund (PIF) of Saudi Arabia, announced that it has signed a purchase agreement with Airbus Helicopters to purchase 10 H125 helicopters. The deal comes as part of THC’s commitment to further expand its fleet and introduce new services that fulfill market demand and […]

September 3, 2020

Northrop Grumman Corporation (NOC – Q2FY20) – Strong Q2FY20 performance; Received significant awards totalled $22.7bn YTD.

Northrop Grumman and Seatrec, Inc. were recently winners of an Explorer Prize, which concluded the Discovery competition phase of the Powering the Blue Economy™ Ocean Observing Prize, sponsored by the Department of Energy (DOE) and the National Oceanic & Atmospheric Administration (NOAA). The competition is designed to bring innovative technology in marine renewable energy to […]

September 3, 2020

Textron Inc. (TXT – Q2FY20) – Poor Q2FY20 primarily impacted by commercial business, partially offset by defense side.

Bell Textron Inc., a Textron Inc. company, unveiled its new 140,000-square-foot Manufacturing Technology Center (MTC) in Fort Worth, Texas. The MTC is an innovative proving ground where Bell will test and refine technologies and processes—demonstrating manufacturing readiness and ability to successfully build and support Future Vertical Lift (FVL) aircraft. The facility provides capabilities that span […]

August 31, 2020

Aerojet Rocketdyne Holdings, Inc. (AJRD – Q2FY20) – Growing backlog, cost reduction initiatives & strong solvency position should bode well.

Aerojet Rocketdyne Holdings, Inc. long-standing relationship with the U.S. defense giants serve as a primary growth driver, given growing demand in the rocket and missile propulsion markets. Courtesy of this increasing demand, the company continues to expand its strong legacy propulsion franchises on the Standard Missile, Patriot Advanced Capability-3 (PAC-3), Terminal High Altitude Area Defense […]

August 25, 2020

Ducommun Inc. (DCO – Q2FY20) – Diversification of portfolio is showing material strength, amid the pandemic and the 737 MAX grounding.

Ducommun’s defense business, continues to show excellent progress, with big openings ahead. A majority of the gains in defense included increases from new weapons systems business, Nobles Worldwide, along with the F-35, Patriot missile, CH-53K Heavy-Lift, V-22 Osprey, F-15, F-16 and other industry programs. Executive Summary Financial Statements – Income Statement and Forecast – Balance […]

August 24, 2020

Kratos Defense & Security Solutions, Inc (KTOS – Q2FY20) – Q2FY20 mixed performance driven by negative impact on Commercial business.

Kratos Defense & Security Solutions, Inc., announced that Kratos Unmanned Systems Division has been awarded a five-year indefinite delivery, indefinite quantity (IDIQ) contract valued at up to $400 million for the development, integration, and prototype air vehicle delivery in support of the U.S. Air Force’s Skyborg program. Executive Summary Financial Statements – Income Statement and […]

August 20, 2020

General Dynamics Corporation (GD – Q2FY20) – Weighed down by its Gulfstream business jet unit but defense business is holding up quite well.

General Dynamics experienced solid growth at combat systems and marine systems in both the quarter and the first half along with declines in revenue at GDIT and mission systems in part caused by the divestiture of [SATCOM] business mission systems.The company delivered 32 aircraft during the quarter, up from 23 last quarter, despite continued pandemic-related […]

August 17, 2020

The Boeing Co (BA – Q2FY20) – Long path to commercial market recovery; Other businesses gaining stability.

Defense, Space & Security completed Critical Design Review for the T-7A advanced trainer, achieved first flight and delivery of the F/A-18 U.S. Navy Block III Super Hornet, and achieved first flight of the F-15 Qatar Advanced aircraft and also delivered the 100th U.S. Navy P-8A Poseidon, the 400th V-22 Osprey, and the 2,500th AH-64 Apache. Executive […]

August 17, 2020

Raytheon Technologies Corp. (RTX– Q2FY20) – Commercial side continue to get affected for couple of years, though Defense would hold up.

Raytheon Missiles & Defense, a Raytheon Technologies business, received a $2.3 billion U.S. Missile Defense Agency production contract for seven gallium nitride (GaN)-based AN/TPY-2 radars as part of the Terminal High Altitude Area Defense (THAAD) system, which is designed to protect against incoming ballistic missile threats. The contract is part of a foreign military sale […]

August 11, 2020

Moog Inc. (MOG-A – Q3FY20) – Sustains adjusted profits despite of light quarter; reinstated the dividend.

Moog Inc. and the global technology company Voith Group, both developers, manufacturers and suppliers of electric, hydraulic and hybrid drive solutions, have signed the contracts to form the joint venture HMS – Hybrid Motion Solutions GmbH based in Rutesheim on 29 April 2020. The joint venture provides for a strategic business alliance to expand the […]

August 10, 2020

Hexcel Corporation (HXL – Q2FY20) – Uncertainty deepening due to COVID-19 compounded by the issues associated with the 737 MAX.

The feature focuses on the company’s operations in Hartford, Connecticut where 3D printed parts are made for aerospace and space and defense applications. HexAM® additive manufacturing is a sophisticated merging of PEKK high-performance thermoplastic and the world’s most robust additive manufacturing technology, delivering a range of fully functional, end-use parts and components. Hexcel is fundamentally […]

August 5, 2020

AAR Corp. (AIR – Q4FY20) – Commercial side of the business was affected the most, though Govt. side is holding up well.

AAR Corp announced the formation of a joint venture with Sumitomo Corporation to provide aviation aftermarket supply chain solutions to Japanese defense and global commercial markets. This joint venture is an extension of the company’s successful, long-standing relationship with Sumitomo serving as a distributor for OEM factory-new parts to Japanese defense customers. Executive Summary Financial […]

August 3, 2020

Lockheed Martin Corporation (LMT – Q2FY20) – Achieved Record Backlog of >$150bn; Raised 2020 outlook.

Lockheed Martin received a $226 million contract from the U.S. Army to recapitalize an additional 44 Multiple Launch Rocket System (MLRS) M270 launchers. This award follows an initial contract, issued in 2019, calling for the refurbishment of 50 U.S. Army MLRS launchers. The U.S. Army’s MLRS recapitalization effort will eventually upgrade its existing fleet of […]

July 31, 2020

Compendium of Aerospace & Defense sector Performance – Q2FY20

After a strong year in 2018, the global aerospace and defense (A&D) industry has experienced a minor decline in 2019, primarily due to the sluggishness in commercial aircraft production, and a complete disruption in 2020 as the COVID-19 pandemic deepens and widens. Defense, however, remained strong on account of robust defense spending in the United […]

July 20, 2020

Howmet Aerospace Inc. (HWM – Q1FY20) – All set to become a new entity focused on aerospace and transportation industries.

Howmet Aerospace launches as a leader in advanced engineered solutions after the separation of Arconic Inc. into two standalone companies – Howmet Aerospace Inc. and Arconic Corporation. In 2019, the businesses comprising Howmet Aerospace generated more than $7 billion in revenue, up five percent from the prior year, with more than 70 percent of Howmet’s […]

July 17, 2020

AAR Corp. (AIR – Q3FY20) – Controlling operating cost to get back to normalcy post C-19 in FY21.

AAR’s Mobility Systems division, a leading global supplier of rapid deployment equipment, has been awarded a firm-fixed-price (FFP) contract from the US Army to produce three variants of Lightweight Multipurpose Shelters (LMS). These shelters will be manufactured at AAR Mobility Systems in Cadillac, Michigan. The firm-fixed-price (FFP) contract with AAR Mobility Systems is for five […]

July 13, 2020

AeroVironment Inc. (AVAV – Q4FY20) – Delivered 3rd consecutive year of double digit profit margin & topline growth.

AeroVironment announced the United States Army exercised the first of three options under the sole source Flight Control Systems (FCS) domain of the Army’s multi-year small UAS contract .The value of the initial contract option is $21,058,643 and includes avionics and data link upgrade packages to modify radio frequencies employed by the Army’s existing fleet […]

July 10, 2020

Kratos Defense & Security Solutions, Inc(KTOS – Q1FY20) – Technology engines are expected to be very large future market.

Kratos Defense & Security Solutions, Inc., a leading National Security Solutions provider, announced that it has completed its acquisition of CPI ASC Signal Division Inc. (ASC) from Communications & Power Industries LLC (CPI) following the receipt of regulatory approval from all required government authorities and completion of other closing items. Executive Summary Financial Statements – […]

July 6, 2020

L3Harris Technologies, Inc. (LHX – Q1FY20) – Strong Q1FY20 performance; COVID—19 pandemic didn’t have a material impact on business.

The company entered into a definitive agreement to sell the EOTech business for $42mn, subject to customary purchase price adjustments and customary closing conditions as set forth in the definitive agreement. The EOTech business, which is reported as part of the Communications Systems segment, manufactures holographic sighting systems, magnified field optics and accessories for military, […]

June 26, 2020

Raytheon Technologies Corp. (RTX– Q1FY20) – Mixed Q1FY20 performance; Uncertainty remains related to the COVID-19 Pandemic.

Raytheon Technologies successfully completed the separation of Otis and Carrier and the merger with Raytheon Company. Following these transactions,Raytheon Technologies had a cash balance of ~$8.5bn and a net debt position of ~$25bn. Executive Summary Financial Statements – Income Statement and Forecast – Balance Sheet – Cash Flow – Results Overview – Segment Performance. – […]

June 22, 2020

HEICO Corporation (HEI – Q2FY20) – Weighed down by its commercial business; Defense side holding up well.

HEICO Corporation announced that its Buc, France-based 3D PLUS subsidiary supplied numerous missioncritical and high-reliability components on the Solar Orbiter space mission, which successfully launched from Cape Canaveral, FL overnight. 3D PLUS is part of HEICO’s Electronic Technologies Group. Executive Summary Financial Statements – Income Statement and Forecast – Balance Sheet – Cash Flow – […]

June 17, 2020

Axon Enterprise, Inc. (AAXN – Q1FY20) – Top-line fuels Axon growing business, however XSPP was a toll on bottom-line.

Axon, announced the industry’s first real-time mobile application that allows law enforcement to use a mobile device to remotely view live streamed Axon Body 3 camera or Axon Air drone footage. The Axon Aware app is bundled with and available at zero additional cost for all OSP7+ subscription plan customers, as well as all a […]

June 15, 2020

Astronics Corporation (ATRO – Q1FY20) – Depressed revenue level; Commercial side of the business struggling since 737 issue followed by Pandemic.

Astronics Corporation, a leading provider of advanced technologies for global aerospace, defense, and other mission critical industries, announced the Freedom R8200 Communications System Analyzer, a nextgeneration land mobile radio (LMR) test instrument for public safety, maritime, commercial, and critical infrastructure communications systems. The new service monitor is the first test instrument that combines comprehensive digital […]

June 11, 2020

Spirit AeroSystems Holdings, Inc. (SPR – Q1FY20) – 737 Max uncertainty is still looming; cash flow problem in 2020 is getting worse.

Spirit AeroSystems announced it will reduce employment at sites supporting commercial programs as a result of lower demand for commercial airplanes. Spirit is a supplier to Airbus and Boeing, both of which announced lower production rates for commercial aircraft due to the impact of COVID-19 on the aviation industry. Executive Summary Financial Statements – Income […]

June 10, 2020

TransDigm Group, Inc. (TDG – Q2FY20) – Great 1st half, however the remainder year operations expected to be severely impacted due to Pandemic.

TransDigm Group Incorporated announced that its wholly-owned subsidiary, TransDigm Inc., has successfully completed the previously announced private offering of $1.1 billion aggregate principal amount of 8.00% Senior Secured Notes due 2025 (the “Notes”). TransDigm Group intends to use the net proceeds from the offering of the Notes for general corporate purposes, including increasing its liquidity. […]

June 8, 2020

Textron Inc. (TXT – Q1FY20) – Poor Q1FY20 performance due to the COVID-19 Pandemic.

Textron Aviation Inc., a Textron Inc. company, was awarded a contract for two additional Beechcraft King Air 350CER turboprop aircraft for the U.S. Customs and Border Protection (CBP) Air and Marine Operations (AMO). After mission modifications by Sierra Nevada Corporation, these two Multi-role Enforcement Aircraft (MEA) aircraft will join a fleet of 23 other King […]

June 3, 2020

BWX Technologies Inc. (BWXT – Q1FY20) – Record quarter pushes BWXT business, wins contracts, guidance unchanged.

BWX Technologies has been awarded the contact for tank closure at the US Department of Energy Hanford Site. The DOE announced the award of the contract, which has an estimated value of $13 billion over a 10-year period, to Hanford Works Restoration, LLC, a JV between BWXT and Fluor Corporation. HWR has been selected to […]

June 3, 2020

Ducommun Inc. (DCO – Q1FY20) – Leveraging more on Defense side as Commercial side of the business is weighing down.

Ducommun is leveraging more within the defensemarkets and have improved revenue, despite of not only the impact from the virus in March, but also over $25mn of 737 MAX headwinds from last year, which for the size of the company’s P&L is impressive. Executive Summary Financial Statements – Income Statement and Forecast – Balance Sheet […]

May 29, 2020

General Dynamics Corporation (GD – Q1FY20) – Weighed down by its Gulfstream business jet unit but Defense business is holding up well .

General Dynamics Information Technology (GDIT) announced it was awarded a new contract by the U.S. Department of State (DOS) Bureau of International Narcotics and Law Enforcement Affairs (INL) to support its Western Hemisphere Program (WHP). In partnership with INL WHP, GDIT will strengthen international counternarcotic, anti-crime and foreign partner law enforcement capabilities. The indefinite delivery […]

May 28, 2020

Airbus SE (AIR.PA – Q1FY20) – Q1FY20 sales plunged by 15.3%, reflecting the difficult market ahead, due to lockdown.

Airbus Defence and Space’s order intake of €1.7bn included military aircraftrelated services, new contract wins in telecommunications and in connected intelligence. Also included is the Phase 1A demonstrator contract for Europe’s Future Combat Air Systems programme. Executive Summary Financial Statements – Income Statement and Forecast – Balance Sheet – Cash Flow – Results Overview – […]

May 27, 2020

The Boeing Co (BA – Q1FY20) – C-19 added fuel to the fire for BA; already struggling to rise from MAX 737 downfall.

Commercial Airplanes captured an order for 12 787 aircraft for All Nippon Airways, and produced the 1000th 787 at Boeing South Carolina.During the Q1FY20, Defense, Space & Security received an award for 18 P-8A Poseidon maritime patrol aircraft, as well as a contract to develop a SB>1 DEFIANT™ prototype for the U.S. Army’s Future Long […]

May 22, 2020

Northrop Grumman Corporation (NOC – Q1FY20) – Mixed Q1FY20 performance; C19 effects were not seen much in Q1.

Northrop Grumman Corporation has expanded its Next Generation Jammer Low Band (NGJ-LB) Capability Block 1 (CB-1) solution team with the addition of proven structure supplier CPI Aero, Inc. based in Edgewood, New York. Following the proposal submittal for NGJ-LB in January, Northrop Grumman is moving forward with CB-1 execution by selecting CPI Aero, Inc. to […]

May 21, 2020

Mercury Systems, Inc. (MRCY – Q3FY20) – Strong Q3 results; Raised guidance; Q3 was unaffected by COVID—19.

Mercury announced it received a $24mn order from a leading defense prime contractor for SWaP-optimized radio frequency modules ready for integration into an advanced electronic warfare system. The order was booked in the Company’s fiscal 2020 second quarter and is expected to be shipped over the next several quarters. Executive Summary Financial Statements – Income […]

May 20, 2020

Aerojet Rocketdyne Holdings, Inc. (AJRD – Q1FY20) – Due to C19, material impact on the business has not been affected in Q1.

Aerojet Rocketdyne recently completed a successful static-fire test of an advanced large solid rocket motor, called the Missile Components Advanced Technologies Demonstration Motor (MCAT Demo), under contract to the Air Force Research Laboratory (AFRL). The company’s MCAT Demo large solid rocket motor design incorporates numerous advanced technologies and materials. The program’s primary goal is to […]

May 18, 2020

Lockheed Martin Corporation (LMT – Q1FY20) – Off to a strong start of FY20; COVID—19 has no material impact on business in Q1.

Lockheed Martin Skunk Works® continues to evolve the U-2 Dragon Lady to support future battlespace needs under a recent contract award from the U.S. Air Force valued at $50 million. Under this contract, Lockheed Martin will lead the design, integration and test of the new advanced aircraft components, which will enable the U-2 to be […]

May 14, 2020

Hexcel Corporation (HXL – Q1FY20) – Uncertainty deepening due to COVID-19 compounded by the issues associated with the 737 MAX.

Hexcel Corporation is collaborating with NaCa Systems, a Tier 1 supplier of natural fiber composite automotive interior parts, on the development of a lightweight carbon fiber prepreg and wood fiber composite sports car seat back using a rapid press molding process. This innovation validates a short-cycle time production process for CFRP and wood fiber composite […]

May 7, 2020

Coverage on Industrials (A&D sector) COVID-19 Impact – YTD Performance of stocks under our coverage in Aerospace & Defense (OEM) and A&D Ancillaries during COVID-19 outbreak.

The novel coronavirus (COVID-19) has wreaked havoc on people and markets around the world. The coronavirus outbreak is causing widespread concern and economic hardship for consumers, businesses and communities all across the globe. The situation is fast moving with wide impacts. The global aerospace and defense (A&D) sector has seen clear and immediate consequences. With […]

April 29, 2020

Boeing vs Airbus – Relative Performance of the Two Aerospace Behemoths.

Boeing and Airbus are the two biggest Aircraft manufacturers across the world. The commercial aircraft market, which is a major revenue driver for aerospace companies, is fully dominated by Boeing and Airbus, which together hold ~90% market share and has been characterised as a duopoly in the large jet airliner market since the 1990s. This […]

April 21, 2020

Spirit AeroSystems Holdings, Inc. (SPR – Q4FY19 & FY19) – 737 Max uncertainty is still looming; cash flow problems in 2020 is quite certain.

Spirit AeroSystems announced it has opened a new composite manufacturing facility at its site in Prestwick, Scotland. This facility leverages advanced composite technology from Spirit’s research and development portfolio and brings new work to the site in the form of the Airbus A320 family spoiler. The Rt Hon. Nicola Sturgeon MSP, first minister of Scotland, […]

April 15, 2020

Moog Inc. (MOG.A – Q1FY20) – A strong start but lowers FY20 EPS guidance.

Moog Australia Pty. Ltd., a wholly owned Australian subsidiary of Moog Inc., announced that the company has entered into a strategic agreement with Madrid-headquartered Escribano Mechanical and Engineering (Escribano or EM&E) to provide enhanced defence offerings in Australia and the Asia-Pacific markets. This strategic relationship aligns Moog’s core competencies in precision motion control for defence […]

April 14, 2020

TransDigm Group, Inc. (TDG – Q1FY20) -Off to a strong start, with the combination of organic and inorganic growth.

TransDigm Group Incorporated, announced that it has completed the divestiture of Souriau-Sunbank Connection Technologies (Souriau-Sunbank) to Eaton Corporation plc in a transaction valued at ~$920 million. Souriau-Sunbank was acquired by TransDigm in March 2019 as part of the Esterline Technologies acquisition and is a leading global supplier of highly-engineered interconnect solutions for harsh environments serving […]

April 9, 2020

BWX Technologies Inc. (BWXT – Q4FY19 & FY19) – Good quarter and annual results, BWX hopeful of decent business growth in 2020.

BWXT has announced to enter into an amendment to its May 24, 2018 credit agreement with Wells Fargo Bank, N.A. and other lenders that increases its borrowing capacity along with lower rates for the company. Among other things, the agreement increases Revolving Credit Facility from $500 million to $750 million, extending the maturity date by […]

April 8, 2020

Astronics Corporation (ATRO – Q4FY19 & FY19) – Sales, profits and margins deteriorated in FY19; Restructured Business to drive earnings in future.

Astronics Corporation, a leading provider of advanced technologies for global aerospace, defense, and other mission critical industries, announced a new cooperation with China National Machinery Import and Export Corporation (CMC). The collaboration between Astronics and CMC will create a channel for Astronics to provide Chinese airlines, OEMs and service providers with state-of-the-art inflight entertainment and […]

April 6, 2020

AeroVironment Inc. (AVAV – Q3FY20) – Mixed Q3FY20 performance; continued strong funded backlog.

AeroVironment, Inc., a global leader in unmanned aircraft systems (UAS), announced it received a $8,584,734 firm-fixed-price U.S. Department of Defense Foreign Military Sales contract. The contract was awarded on December 17, 2019 to provide Puma™ 3 AE unmanned aircraft systems, training and support to an allied nation. Delivery is anticipated by June 2020. Executive Summary […]

March 31, 2020

Aerojet Rocketdyne Holdings, Inc. (AJRD – Q4FY19 & FY19) – Robust revenue growth for FY21, backed by strong backlog.

Aerojet Rocketdyne, the nation’s leading provider of space propulsion and power systems, has made arrangements with the INFINITY Science Center to have the world’s most powerful hydrogen-fueled rocket engine, the RS-68, on display for public viewing. Aerojet Rocketdyne is providing the engine to the INFINITY Science Center under a long-term loan agreement. Executive Summary Financial […]

March 30, 2020

Airbus SE (AIR.PA – Q4FY19 & FY19) – Bottom-line impacted hard due to penalties & A400M charge; COVID-19 measures announced.

Airbus and IQ have agreed to acquire Bombardier’s remaining stake in ACLP. This brings their holdings to 75% and 25% respectively. As part of this transaction, Airbus, via its wholly owned subsidiary Stelia Aerospace, has also acquired the A220 and A330 work package production capabilities from Bombardier in Ville Saint-Laurent, Quebec. Airbus will pay a […]

March 30, 2020

Axon Enterprise, Inc. (AAXN – Q4FY19 & FY19) – Top-line fuels Axon growing business, however XSPP is a huge toll on its bottom-line in FY19.

Axon, announced that more than 1,000 Axon Body 3 cameras are now deployed in Cincinnati as part of a previously announced order of the Officer Safety Plan 7+. The plan includes several products on the Axon network including TASER 7, Axon Body 3, unlimited Axon Evidence (Evidence.com), the new advanced AIpowered tool, Redaction Assistant, and […]

March 23, 2020

Ducommun Inc. (DCO – Q4FY19 & FY19) – Strong operational performance; Leveraging on broader customer base as 737 Max is still glued.

Ducommun Incorporated announced that its Lightning Diversion Systems (LDS) brand, a global leader in the design and manufacture of segmented lightning diverter strips and protection devices for aerospace and defense markets, has signed an exclusive licensing agreement with Wichita State University (WSU) for advanced lightning strike protection technology to be used on wind turbines. Executive […]

March 20, 2020

Hexcel Corporation (HXL – Q4FY19) – Despite of growing margins and solid FCF generation; Uncertainty prevails due to 737 max.

Hexcel is collaborating with Madshus, a leading innovator in the world of cross-country skiing, on the engineering of a range of next-generation dry carbon fiber tapes for Madshus’ acclaimed cross-country racing skies. Hexcel’s new HiTape® Dry Carbon Tapes improve the performance, manufacturing efficiency and surface finish of Madshus Skis. Hexcel supplies Madshus with three different […]

March 16, 2020

Raytheon Company (RTN – Q4FY19 & FY19) – Strong FY19 performance; Set for upcoming Collin Aerospace merger.

Raytheon Comp. and United Technologies Corp. have entered into an agreement to combine in an all-stock merger of equals, with combined market value of close to $166bn and the combination will have annual revenue of $74bn, making it the second-largest aerospace & defense company in the U.S. by revenue. Executive Summary Financial Statements – Income […]

March 13, 2020

Northrop Grumman Corporation (NOC – Q4FY19) – Mixed FY19 performance; Strong order pipeline primarily driven by higher U.S. defence budget.

Northrop Grumman Corporation and the company’s wholly-owned subsidiary, SpaceLogistics LLC, have successfully completed the first docking of the Mission Extension Vehicle-1 (MEV-1) to the Intelsat 901 (IS- 901) spacecraft in order to provide life-extension services. This historic accomplishment marks the first time two commercial satellites have docked in orbit and the first time that mission […]

March 11, 2020

General Dynamics Corporation (GD – Q4FY19 &FY19) – Robust growth expected due to strong order book backed by solid backlog.

General Dynamics Mission Systems announced it was awarded a contract for the Army Consolidated Product Line Management Plus (CPM Plus) Program from the Army Contracting Command in Orlando, Florida. CPM Plus is an eight year, single-award, indefinite-delivery, indefinite-quantity, cost-plus fixed-fee/firm-fixed price contract with a ceiling of $883 million. Executing the contract will improve the Army’s […]

March 5, 2020

The Boeing Co (BA – Q4FY19 & FY19)- 737 Max – The Uncertainty Prevails

Boeing the commercial & defense aircraft manufacturer, reported worst than expected Q4FY19 results and incurred its first annual loss in over 22 years, admitting the grounding of its 737 Max plane could end up costing $18.6bn. At Defense, Space & Security, the industry environment is positive as the Defense Appropriations Bill in place.The long-term outlook […]

February 26, 2020

Mercury Systems, Inc. (MRCY – Q2FY20)- Favorable growth environment; Robust M&A pipeline; Raised guidance

Mercury Systems M&A pipeline is robust and seeing interesting opportunities of varying sizes that are consistent with its strategy. The company used M&A strategically in three ways; to expand its capability set, gain access to adjacent markets, and then to penetrate those markets over time. Executive Summary Financial Statements – Income Statement and Forecast – […]

February 14, 2020

United Technologies Corporation (UTX – Q4FY19 & FY19)- Overall strong FY19 results; UTC is set to split into 3 independent companies in early Q2FY20

United Technologies emerged with strong fourth quarter and annual results in FY19. In a year of unprecedented change, UTC delivered record sales, adjusted EPS and FCF in 2019 on continued aerospace strength and a return to profit growth at Otis. Collins Aerospace continued to deliver strong performance and achieved ~$300mn in cost synergies during the […]

February 10, 2020

Axon Enterprise, Inc. (AAXN – Q3FY19)-Top-line fuels Axon growing business, but operating expenses is a huge toll on its bottom-line

Drivers of revenue growth were primarily higher TASER 7 unit shipments, international demand for Axon Cloud services, increased demand for the legacy TASER devices, and growth of Axon Fleet in-car video systems. Executive Summary Financial Statements – Income Statement and Forecast – Balance Sheet – Cash Flow – Results Overview – Company Overview – Segment […]

January 27, 2020

Huntington Ingalls Industries Inc. (HII – Q3FY19)-Backlog and new contracts help Huntington sail, despite turbulent quarterly margins

Global military shipbuilding and submarines industry caught pace in the recent past after easing of pressure in defence spending in the United States and European markets. Last five years saw the industry grow annually at 2.1% and capture total revenue of $65bn in 2019. The Department of Navy was allocated a budget of $194bn for […]

January 27, 2020

Aerojet Rocketdyne Holdings, Inc. (AJRD – Q3FY19)-Robust revenue growth for FY20, backed by strong backlog and improving Operational efficiency

AR Holdings, Inc. develops and manufactures propulsion systems for defense and space applications, as well as armaments for precision tactical and long-range weapon systems applications. ~95% of the company’s revenue is directly or indirectly attributable to the sales made to the US government. In addition to the services provided to the US government, the company […]

January 17, 2020

BWX Technologies Inc. (BWXT – Q3FY19)-Q3FY19 consolidated revenue was 506mn, topline growth was up by 18.9%

BWX Technologies posted a record Q3FY19 result with consolidated revenue of $506mn, 18.9% up from Q3FY19 revenue of $435mn. Non-GAAP earnings per share stood at $0.79 which nearly doubled the same period figure of the last year. The management has increased its EPS guidance to $2.55 (from a previous EPS of $2.5) for FY19. Executive […]

July 3, 2019

The Boeing Co. (BA) – Focused on 737 MAX safe return to service, although fundamentals remain strong

737 Max is a cash cow for Boeing that accounts for a third of its profit and has since delivered about 370 737 Max from a backlog of more than 5,000 orders. The greater risk is to the reputation and future sales that was just establishing its bona fides with airlines. Number of pages – 52 […]