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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 […]