GLOBAL ARMAMENTS 13 MAY 25_EN

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This Week’s News

Army Recognition - U.S. DoD Awards Lockheed Martin HIMARS Rocket Launcher Contract as Global Demand for Long-Range Artillery Grows - 10/5/2025

United States Department of Defense announced the awarding of a $742,179,564 firm-fixed-price contract to American defense giant Lockheed Martin for the production of additional High Mobility Artillery Rocket Systems (HIMARS).

For the complete story see:

https://www.armyrecognition.com/news/army-news/2025/u-s-dod-awards-lockheed-martin-himars-rocket-launcher-contract-as-global-demand-for-long-range-artillery-grows

BulgarianMilitary.com - Rostec delivers new batch of upgraded BMP-3s to Russian troops - 10/5/2025

Russian state corporation Rostec, through its High-Precision Systems Holding, delivered a new batch of BMP-3 infantry fighting vehicles to the Russian Armed Forces.

For the complete story see:

https://bulgarianmilitary.com/2025/05/10/rostec-delivers-new-batch-of-upgraded-bmp-3s-to-russian-troops/

The Defense Post - France, Poland to Seal Alliance With Strategic Treaty - 9/5/2025

France and Poland signed a new strategic cooperation treaty, with Polish leader Donald Tusk insisting that a mutual security pledge will be at the heart of the agreement.

For the complete story see:

https://thedefensepost.com/2025/05/09/france-poland-seal-alliance-treaty/

Other Stories

Janes - UK resumes receipt of F-35s - 9/5/2025

Army Technology - L3Harris to supply communications systems for German armed forces - 7/5/2025

Army Recognition - Russia Deploys New A-222M Bereg Coastal Artillery to Pacific Fleet Amid Rising Tensions in Asia-Pacific - 8/5/2025

The Defense Post - Cyprus Orders Sherpa Armored Vehicles With Akeron Missile Launchers From Arquus - 8/5/2025

Army Technology - QinetiQ US, Integris partner for US Army’s FLRAA - 8/5/2025

Army Recognition - DEFEA 2025: BAE Systems Presents Amphibious Combat Vehicle Family with First Display of ACV-R recovery variant - 7/5/2025

Tech Xplore - French army hopes for combat-ready robots by 2040 - 7/5/2025

UK Defence Journal - Sub infrastructure upgrades at Devonport in build phase - 4/5/2025

Media Releases

L3Harris - L3Harris Receives $214 Million in Orders to Support German Armed Forces – 6/5/2025

Raytheon - RTX's Raytheon completes first flight test for PhantomStrike radar – 6/5/2025

Latest Research

Reinforcing European Defence Industry for Times of Great Power Conflicts - By T Csiki Varga

Overviews of Leading Companies

Airbus (XPAR: AIR)

Almez-Antey

Babcock International Group (LSE: BAB)

BAE Systems (LSE: BA)

Cobham (LSE: COB)

Cubic Corporation (NYSE : CUB)

DXC Technology (NYSE: DXC)

General Atomics; General Dynamics (NYSE : GD)

Huntington Ingalls Industries (NYSE: HII)

Lockheed Martin (NYSE: LMT)

Irkut Corp (UAC)

L3Harris Technologies (NYSE: LHX)

Naval Group (Formerly DCNS)

Raytheon Company (NYSE: RTN)

Rolls-Royce (LSE: RR)

Safran (XPAR: SAF)

SERCO (LSE: SRP)

Tactical Missiles Corporation JSC

Thales (XPAR: HO)

The Boeing Company (NYSE : BA)

United Aircraft Corporation

Uralvagonzavod

Senior Associate: Joseph Hang Ellision

News and Commentary

Army Recognition - U.S. DoD Awards Lockheed Martin HIMARS Rocket Launcher Contract as Global Demand for Long-Range Artillery Grows - 10/5/2025

For the complete story see:

https://www.armyrecognition.com/news/army-news/2025/u-s-dod-awards-lockheed-martin-himars-rocket-launcher-contract-as-global-demand-for-long-range-artillery-grows

BulgarianMilitary.com - Rostec delivers new batch of upgraded BMP-3s to Russian troops - 10/5/2025

Russian state corporation Rostec, through its High-Precision Systems Holding, delivered a new batch of BMP-3 infantry fighting vehicles to the Russian Armed Forces.

For the complete story see:

https://bulgarianmilitary.com/2025/05/10/rostec-delivers-new-batch-of-upgraded-bmp-3s-to-russian-troops/

The Defense Post - France, Poland to Seal Alliance With Strategic Treaty - 9/5/2025

France and Poland signed a new strategic cooperation treaty, with Polish leader Donald Tusk insisting that a mutual security pledge will be at the heart of the agreement.

For the complete story see:

https://thedefensepost.com/2025/05/09/france-poland-seal-alliance-treaty/

Janes - UK resumes receipt of F-35s - 9/5/2025

The United Kingdom has again begun receiving Lockheed Martin F-35B Lightning combat aircraft after a gap of over a year.

For the complete story see:

https://www.janes.com/osint-insights/defence-news/defence/uk-resumes-receipt-of-f-35s

Army Technology - L3Harris to supply communications systems for German armed forces - 7/5/2025

L3Harris Technologies has secured several contracts that are projected to reach a total of $214m as part of Germany’s Digitalization – Land Based Operations (D-LBO) initiative.

For the complete story see:

https://www.army-technology.com/news/l3harris-communications-german-armed/

Army Recognition - Russia Deploys New A-222M Bereg Coastal Artillery to Pacific Fleet Amid Rising Tensions in Asia-Pacific - 8/5/2025

Russian state media confirmed the delivery of the upgraded A-222M "Bereg" coastal artillery system to the Russian Pacific Fleet.

For the complete story see:

https://www.armyrecognition.com/news/army-news/2025/alert-russia-deploys-new-a-222m-bereg-coastal-artillery-to-pacific-fleet-amid-rising-tensions-in-asia-pacific

The Defense Post - Cyprus Orders Sherpa Armored Vehicles With Akeron Missile Launchers From Arquus - 8/5/2025

Arquus has confirmed a deal to supply Sherpa station wagon vehicles equipped with Akeron missile launchers for the Cypriot National Guard.

For the complete story see:

https://thedefensepost.com/2025/05/08/cyprus-sherpa-akeron/

Army Technology - QinetiQ US, Integris partner for US Army’s FLRAA - 8/5/2025

QinetiQ US has been selected by Integris Composites to contribute its systems engineering and integration capabilities to the US Army’s Future Long Range Assault Aircraft (FLRAA) programme.

For the complete story see:

https://www.army-technology.com/news/qinetiq-integris-armys-flraa/

Army Recognition - DEFEA 2025: BAE Systems Presents Amphibious Combat Vehicle Family with First Display of ACV-R recovery variant - 7/5/2025

BAE Systems is presenting for the first time a scale model of the Amphibious Combat Vehicle Recovery variant (ACV-R), completing the showcase of all major configurations within the U.S. Marine Corps’ Amphibious Combat Vehicle (ACV) family.

For the complete story see:

https://www.armyrecognition.com/news/army-news/2025/defea-2025-bae-systems-presents-amphibious-combat-vehicle-family-with-first-display-of-acv-r-recovery-variant

Tech Xplore - French army hopes for combat-ready robots by 2040 - 7/5/2025

France's armed forces are on schedule to develop battle-ready robots by 2040

For the complete story see:

https://techxplore.com/news/2025-05-french-army-combat-ready-robots.html

UK Defence Journal - Sub infrastructure upgrades at Devonport in build phase - 4/5/2025

The Ministry of Defence has confirmed that the Submarine Waterfront Infrastructure Future (SWIF) programme at HM Naval Base Devonport is moving from design into the construction phase.

For the complete story see:

https://ukdefencejournal.org.uk/sub-infrastructure-upgrades-at-devonport-in-build-phase/

Media Releases

L3Harris - L3Harris Receives $214 Million in Orders to Support German Armed Forces – 6/5/2025

ROCHESTER, N.Y., May 6, 2025 — L3Harris Technologies (NYSE: LHX) has received multiple orders expected to total $214 million under Germany’s Digitalization – Land Based Operations (D-LBO) program. These orders include delivery of interoperable communication systems to enhance the operational capabilities of the German armed forces.

“Resilient and immediate communication among allies is crucial for countering threats posed by aggressive adversaries,” said Sam Mehta, President, Communication Systems, L3Harris. “We are proud to support our NATO ally with our trusted communications technology, which has demonstrated its value in the field by protecting soldiers and networks at the tactical edge.”

L3Harris’ resilient communications solutions leverage battle-tested hardware and robust waveform technology, which support the D-LBO program’s objective for German armed forces to be more operationally efficient and coalition interoperable.

These orders follow other recent awards the company has received for Falcon® radios, including for the Netherlands’ FOXTROT and the U.S. Army’s HMS programs.

https://www.l3harris.com/newsroom/press-release/2025/05/l3harris-receives-214-million-orders-support-german-armed-forces

Raytheon - RTX's Raytheon completes first flight test for PhantomStrike radar – 6/5/2025

Next-generation radar provides superior threat detection

ONTARIO, Calif., May 6, 2025 /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, has successfully completed the first flight test of its PhantomStrike radar on its Multi-Program Testbed aircraft in Ontario, California. PhantomStrike successfully tracked several airborne targets and accurately mapped the terrain.

PhantomStrike is a first-of-its-kind fully air-cooled, fire-control radar that's designed to provide long-range threat detection, tracking and targeting. At nearly half the cost of a typical fire control radar, it delivers superior radar capability due to its faster, more agile digital beam, advanced target detection and resistance to jamming.

"The threat environment is evolving, and this test demonstrates how PhantomStrike can make enhanced situational awareness available to a broader set of our partners and allies – offering unparalleled performance and potential U.S. weapons integration – at an affordable price," said Bryan Rosselli, president of Advanced Products and Solutions at Raytheon. "This next-generation radar dramatically changes how we identify and respond to threats."

PhantomStrike is a gallium nitride (GaN) powered radar that enables aircrew to see farther. It's designed for a range of platforms, including uncrewed and light-attack aircraft, fighter jets, helicopters and ground-based towers. It harnesses the fire control power of a fighter in its lightest form factor ever – weighing nearly half of a modern active electronically scanned array (AESA) radar.

Production of the radars takes place in Forest, Mississippi; Tucson, Arizona; and Scotland, with support from Raytheon UK.

https://www.rtx.com/news/news-center/2025/05/06/rtxs-raytheon-completes-first-flight-test-for-phantomstrike-radar

Latest Research

Reinforcing European Defence Industry for Times of Great Power Conflicts

T Csiki Varga

Abstract

With the European security environment deteriorating and destabilising in the 2010s, European defence – particularly the European defence industry – has gained heightened attention since 2022, as evidenced by Russia’s renewed aggression towards Ukraine. European countries have since attempted to efficiently address the dilemma of short-term production and stock replenishment versus long-term research, development, and innovation to offset the unpreparedness of European armed forces to fight protracted high-intensity wars. Accordingly, this chapter aims to outline the demand–supply equation of the European defence industry leading up to the Hungarian EU Presidency in 2024, and the adoption of the first-ever European Defence Industrial Strategy. This strategy aims to identify the drivers for developing the European Defence Industrial and Technological Base (EDTIB) as a defence ecosystem by the 2030s, enabling the sustainable provision of arms that European countries may need to defend themselves on European soil and uphold their interests. The following analysis provides an overview of the trends leading up to 2024 for enhancing European defence industrial production, research and development. The chapter is structured as follows: first, it outlines the dynamics of the changing European security environment and threat perception, followed by an assessment of European capability gaps and policy responses aimed at closing these gaps, including an improved record of defence investments. The main argument is that despite the constraints of EDTIB in the early 2020s, such as the effects of three decades of underinvestment, fragmentation of production capacities, shortcomings in providing raw materials and access to cutting-edge technology.

https://real.mtak.hu/210716/1/073-108.pdf

The Industry

2/12/2024

World’s top arms producers see revenues rise on the back of wars and regional tensions

(Stockholm, 2 December 2024) Revenues from sales of arms and military services by the 100 largest companies in the industry reached $632 billion in 2023, a real-terms increase of 4.2 per cent compared with 2022, according to new data released today by the Stockholm International Peace Research Institute (SIPRI), available at www.sipri.org.

Arms revenue increases were seen in all regions, with particularly sharp rises among companies based in Russia and the Middle East. Overall, smaller producers were more efficient at responding to new demand linked to the wars in Gaza and Ukraine, growing tensions in East Asia and rearmament programmes elsewhere.

SIPRI Top 100 companies ramp up production and build workforces

In 2023 many arms producers ramped up their production in response to surging demand. The total arms revenues of the Top 100 bounced back after a dip in 2022. Almost three quarters of companies increased their arms revenues year-on-year. Notably, most of the companies that increased their revenues were in the lower half of the Top 100.

‘There was a marked rise in arms revenues in 2023, and this is likely to continue in 2024,’ said Lorenzo Scarazzato, a Researcher with the SIPRI Military Expenditure and Arms Production Programme. ‘The arms revenues of the Top 100 arms producers still did not fully reflect the scale of demand, and many companies have launched recruitment drives, suggesting they are optimistic about future sales.’

US companies’ arms revenues rise, but production challenges remain

The 41 companies in the Top 100 based in the United States recorded arms revenues of $317 billion, half the total arms revenues of the Top 100 and 2.5 per cent more than in 2022. Since 2018, the top five companies in the Top 100 have all been based in the USA.

Of the 41 US companies, 30 increased their arms revenues in 2023. However, Lockheed Martin and RTX, the world’s two largest arms producers, were among those registering a drop.

‘Larger companies like Lockheed Martin and RTX manufacturing a wide range of arms products often depend on complex, multi-tiered supply chains, which made them vulnerable to lingering supply chain challenges in 2023,’ said Dr Nan Tian, Director of SIPRI’s Military Expenditure and Arms Production Programme. ‘This was particularly the case in the aeronautics and missile sectors.’

European arms industry trails rest of world in revenue growth

The combined arms revenues of the 27 Top 100 companies based in Europe (excluding Russia) totalled $133 billion in 2023. This was only 0.2 per cent more than in 2022, the smallest increase in any world region.

However, behind the low growth figure the picture is more nuanced. European arms companies producing complex weapon systems were mostly working on older contracts during 2023 and their revenues for the year consequently do not reflect the influx of orders.

‘Complex weapon systems have longer lead times,’ said Lorenzo Scarazzato. ‘Companies that produce them are thus inherently slower in reacting to changes in demand. That explains why their arms revenues were relatively low in 2023, despite a surge in new orders.’

At the same time, a number of other European producers saw their arms revenues grow substantially, driven by demand linked to the war in Ukraine, particularly for ammunition, artillery and air defence and land systems. Notably, companies in Germany, Sweden, Ukraine, Poland, Norway and Czechia were able to tap into this demand. For instance, Germany’s Rheinmetall increased production capacity of 155-mm ammunition and its revenues were boosted by deliveries of its Leopard tanks and new orders, including through war-related ‘ring-exchange’ programmes (under which countries supply military goods to Ukraine and receive replacements from allies).

Wartime production leads to sharp rise in Russian firms’ arms revenues

The two Russian companies listed in the Top 100 saw their combined revenues increase by 40 per cent to reach an estimated $25.5 billion. This was almost entirely due to the 49 per cent increase in arms revenues recorded by Rostec, a state-owned holding company controlling many arms producers, including seven previously listed in the Top 100 for which individual revenue data could not be obtained.

‘Official data on Russian arms production is scarce and questionable but most analysts believe that the production of new military equipment increased substantially in 2023, while Russia’s existing arsenal underwent extensive refurbishment and modernization,’ said Dr Nan Tian. ‘In particular, combat aircraft, helicopters, UAVs, tanks, munitions and missiles are all thought to have been produced in greater numbers as Russia continued its offensive in Ukraine.’

South Korean and Japanese companies lead revenue growth in Asia and Oceania

The 23 companies in the Top 100 based in Asia and Oceania recorded 5.7 per cent arms revenue growth year-on-year, to reach $136 billion. The four South Korea-based companies recorded a combined 39 per cent increase in arms revenues to reach $11.0 billion. The five companies based in Japan saw their combined arms revenues rise by 35 per cent to $10.0 billion. A policy of military build-up in Japan since 2022 drove a flurry of domestic orders, with some companies seeing the value of new orders increase more than 300 per cent.

‘The sharp growth in arms revenues among South Korean and Japanese companies reflects the bigger picture of military build-ups taking place in the region in response to heightened threat perceptions,’ said Xiao Liang, a Researcher with the SIPRI Military Expenditure and Arms Production Programme. ‘South Korean firms are also trying to expand their share of the global arms market, including demand in Europe related to the war in Ukraine.’

Middle East arms producers see revenue growth linked to Gaza, Ukraine conflicts

Six of the Top 100 arms companies were based in the Middle East. Their combined arms revenues grew by 18 per cent to $19.6 billion. With the outbreak of war in Gaza, the arms revenues of the three companies based in Israel in the Top 100 reached $13.6 billion. This was the highest figure ever recorded by Israeli companies in the SIPRI Top 100. The three companies based in Türkiye saw their arms revenues grow by 24 per cent to $6.0 billion, benefiting from exports prompted by the war in Ukraine and from the Turkish government’s continued push towards self-reliance in arms production.

‘The biggest Middle Eastern arms producers in the Top 100 saw their arms revenues reach unprecedented heights in 2023 and the growth looks set to continue,’ said Dr Diego Lopes da Silva, Senior Researcher with the SIPRI Military Expenditure and Arms Production Programme. ‘In particular, as well as taking in record arms revenues in 2023, Israeli arms producers are booking many more orders as the war in Gaza rages on and spreads.’

Other notable developments

The nine companies in the Top 100 based in China saw their smallest year-on-year percentage increase in arms revenues (+0.7 per cent) since 2019 amid a slowing economy. Their total arms revenues in 2023 reached $103 billion.
The combined arms revenues of the three Indian companies in the Top 100 increased to $6.7 billion (+5.8 per cent).
NCSIST, the only Taiwan-based company in the Top 100, recorded a 27 per cent increase in its arms revenues to $3.2 billion.
Türkiye’s Baykar produces armed uncrewed aerial vehicles (UAVs) that have been widely used in the war in Ukraine. Exports accounted for around 90 per cent of its arms revenues in 2023, which increased by 25 per cent over the year to $1.9 billion.
The United Kingdom’s Atomic Weapons Establishment, which designs, manufactures and maintains nuclear warheads, recorded the largest year-on-year percentage increase in arms revenues (+16 per cent) among UK companies in the Top 100, to reach $2.2 billion.

Source: SIPRI

https://www.sipri.org/media/press-release/2024/worlds-top-arms-producers-see-revenues-rise-back-wars-and-regional-tensions#:~:text=(Stockholm%2C%202%20December%202024),Peace%20Research%20Institute%20(SIPRI)%2C

Leading Companies

Airbus (XPAR: AIR)

About Airbus

Airbus is an international reference in the aerospace sector. We design, manufacture and deliver industry-leading commercial aircraft, helicopters, military transports, satellites and launch vehicles, as well as providing data services, navigation, secure communications, urban mobility and other solutions for customers on a global scale.

With a forward-looking strategy based on cutting-edge technologies, digital and scientific excellence, we aim for a better-connected, safer and more prosperous world.

https://www.airbus.com/

Defence and Security

Airbus is a global leader in the defence sector, the largest defence supplier in Europe, and among the top 10 defence companies worldwide. It manufactures tactical and strategic airlifters, multi-role aerial tankers and advanced combat aircraft. Together, the A400M, C295, CN235, A330 MRTT and Eurofighter Typhoon make up a world-class product line operated by air forces worldwide. With decades of industrial experience behind it, Airbus consistently develops cutting-edge technologies for the most challenging missions.

In addition to designing, developing and manufacturing military aircraft, Airbus offers a broad range of services to fully support its customers.

Airbus also is the no. 3 company worldwide in secure communication platforms, delivering agile, innovative, data-driven digital services for defence and cyber security applications.

Europe’s No. 1 in defence
Among the top 10 defence companies worldwide
Number 3 worldwide in Secure Communications
World-renowned range of products including Eurofighter and A400M

https://www.airbus.com/defence.html

20/2/2025

Airbus reports Full-Year (FY) 2024 results

766 commercial aircraft delivered
Revenues € 69.2 billion; EBIT Adjusted € 5.4 billion
EBIT (reported) € 5.3 billion; EPS (reported) € 5.36
Free cash flow before customer financing € 4.5 billion
2024 guidance achieved
Dividend proposals: dividend of € 2.00 per share; special dividend of € 1.00 per share
2025 guidance issued

Amsterdam, the Netherlands, 20 February 2025 – Airbus SE (stock exchange symbol: AIR) reported consolidated Full-Year (FY) 2024 financial results and provided guidance for 2025.

“We achieved strong order intake across all businesses in 2024, with a book-to-bill well above 1, confirming the solid demand for our products and services. We delivered on our 2024 guidance in what was a testing year for Airbus,” said Guillaume Faury, Airbus Chief Executive Officer. “We refocused our efforts on key priorities, notably the production ramp-up and the transformation of Defence and Space. We continue to pursue profitable growth and our decarbonisation ambition. The 2024 financial results and the level of confidence we have in our future performance support our proposal for an increased dividend.”

Gross commercial aircraft orders totalled 878 (2023: 2,319 aircraft) with net orders of 826 aircraft after cancellations (2023: 2,094 aircraft). The order backlog amounted to 8,658 commercial aircraft at the end of December 2024. Airbus Helicopters registered 450 net orders (2023: 393 units), with a book-to-bill ratio above 1 both in units and value highlighting strong demand for the Division’s platforms. There was also good order intake for helicopter services. Airbus Defence and Space’s order intake by value increased to a record € 16.7 billion (2023: € 15.7 billion), corresponding to a book-to-bill of around 1.4. Fourth quarter orders included 25 additional Eurofighter military aircraft for Spain.

Consolidated order intake by value decreased to € 103.5 billion (2023: € 186.5 billion) with the consolidated order book valued at € 629 billion at the end of 2024 (year-end 2023: € 554 billion). The increase in the consolidated backlog value mainly reflects the Company-wide book-to-bill of above 1, and the strengthening of the US dollar.

Consolidated revenues increased 6% year-on-year to € 69.2 billion (2023: € 65.4 billion). A total of 766 commercial aircraft were delivered (2023: 735 aircraft), comprising 75 A220s, 602 A320 Family, 32 A330s and 57 A350s. Revenues generated by Airbus’ commercial aircraft activities increased 6% to € 50.6 billion, mainly reflecting the higher number of deliveries. Airbus Helicopters’ revenues increased 8% to € 7.9 billion, reflecting higher deliveries of 361 units (2023: 346 units), a solid performance across programmes as well as growth in services. Revenues at Airbus Defence and Space increased 5% year-on-year to € 12.1 billion, mainly driven by the Air Power business. Seven A400M military airlifters were delivered (2023: 8 aircraft), including the first for Kazakhstan.

Consolidated EBIT Adjusted – an alternative performance measure and key indicator capturing the underlying business margin by excluding material charges or profits caused by movements in provisions related to programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses – totalled € 5,354 million (2023: € 5,838 million).

EBIT Adjusted related to Airbus’ commercial aircraft activities increased to € 5,093 million (2023: € 4,818 million), with the positive impact from higher deliveries being partially reduced by investments for preparing the future.

The A320 Family programme continues to ramp up towards a rate of 75 aircraft per month in 2027. The Company is now stabilising monthly A330 production at around rate 4. Specific supply chain challenges, notably with Spirit AeroSystems, are currently putting pressure on the ramp up of the A350 and the A220. On the A350, the Company continues to target rate 12 in 2028 and is adjusting the entry-into-service of the A350 freighter variant which is now expected in H2 2027. On the A220, the Company continues to target a monthly production rate of 14 aircraft in 2026.

Airbus Helicopters’ EBIT Adjusted increased to € 818 million (2023: € 735 million), reflecting the higher deliveries, a solid performance across programmes and growth in services.

EBIT Adjusted at Airbus Defence and Space was € -566 million (2023: € 229 million), reflecting charges of € 1.3 billion in Space programmes, including € 0.3 billion in the fourth quarter resulting from the completion of the in-depth technical review.

On the A400M programme, an additional update of the contract estimate at completion was performed and a net charge of € 121 million recorded, reflecting mainly updated assumptions regarding the new contract amendment with the launch nations and OCCAR and risk in the production plan. In light of uncertainties regarding the level of aircraft orders, the Company continues to assess the potential impact on the programme's manufacturing activities. Risks on the qualification of technical capabilities and associated costs remain stable, with no major variation compared to 2023.

Consolidated self-financed R&D expenses were stable at € 3,250 million (2023: € 3,257 million).

Consolidated EBIT (reported) amounted to € 5,304 million (2023: € 4,603 million), including net Adjustments of € -50 million.

These Adjustments comprised:

€ +101 million impact related to the dollar working capital mismatch and balance sheet revaluation, of which € +247 million were in Q4. This mainly reflects the phasing impact arising from the difference between transaction date and delivery date;
€ -121 million related to the A400M, of which € -118 million were in Q4;
€ +51 million related to the gain on Airbus OneWeb Satellites, linked to the acquisition of the remaining 50% of the joint venture in Q1;
€ -40 million related to the recently announced termination of the Airbus Beluga Transport business;
€ -41 million of other costs including compliance and M&A, of which € -31 million were in Q4.

The financial result was € 121 million (2023: € 166 million), mainly reflecting the revaluation of certain equity investments and the evolution of the US dollar, partially offset by the interest result and the revaluation of financial instruments. Consolidated net income (1) was € 4,232 million (2023: € 3,789 million) with consolidated reported earnings per share of € 5.36 (2023: € 4.80).

Consolidated free cash flow before customer financing was € 4,463 million (2023: € 4,532 million), reflecting the strong performance in all businesses. Consolidated free cash flow totalled € 4,461 million (2023: € 4,096 million). The gross cash position stood at € 26.9 billion at the end of December 2024 (year-end 2023: € 25.3 billion), with a consolidated net cash position of € 11.8 billion (year-end 2023: € 10.7 billion).

The Board of Directors will propose the payment of a 2024 dividend of € 2.00 per share (2023: € 1.80 per share) and a special dividend of € 1.00 per share (2023: € 1.00 per share) to the 2025 Annual General Meeting taking place on 15 April 2025. The proposed payment date is 24 April 2025.

Outlook

As the basis for its 2025 guidance, the Company assumes no additional disruptions to global trade or the world economy, air traffic, the supply chain, the Company’s internal operations, and its ability to deliver products and services. The guidance excludes the impact of potential new tariffs on the Company’s business. The Company’s 2025 guidance includes the impact of the integration of certain Spirit AeroSystems work packages on its EBIT Adjusted and Free Cash Flow before Customer Financing, based on preliminary estimates and a closing assumption as of 1 July 2025.

On that basis, the Company targets to achieve in 2025:

Around 820 commercial aircraft deliveries;
EBIT Adjusted of around € 7.0 billion;
Free Cash Flow before Customer Financing of around € 4.5 billion.

Preliminary assumptions of the impact of the integration of certain Spirit AeroSystems work packages:

EBIT Adjusted: broadly neutral;
Free Cash Flow before Customer Financing: mid triple digit negative; Net cash broadly neutral as the compensation to be received from Spirit AeroSystems will offset the FCF negative impact.

https://www.airbus.com/en/newsroom/press-releases/2025-02-airbus-reports-full-year-fy-2024-results

Almez-Antey

History

Established in 2002 under the Presidential Decree and the Decree of the Government of the Russian Federation, the Almaz-Antey Corporation united dozens of enterprises, engaged in development and production of anti-aircraft missile systems of small, medium and long ranges, and main types of radar reconnaissance and automated control systems, including factories, research and production associations, design bureaus and research institutes. Later, in 2007, the Corporation underwent enlargement, and as of today, more than sixty enterprises from eighteen regions of the country are consolidated in its structure.

The Corporation became the first large holding created within the framework of the "Defense Industrial Complex Reformation and Development (2002-2006)" Federal Target Program. On its share fell a pioneer function of solving problems of corporate management system and equity capital formation.

The Board of Directors of the new integrated structure was headed by the Assistant to the President of the Russian Federation V. P. Ivanov until 2008, by the Deputy Head of the Administration of the President of the Russian Federation A. D. Beglov from 2008 to 2011, by V. F. Medovnikov from 2011 to 2014, and by the Chief Executive Manager of the State Corporation "Rostec" S.V. Chemezov from 2014 to 2016.

In November 2016, M.E. Fradkov was elected Chairman of the Board of Directors.

On February 5, 2015, the President of the Russian Federation Vladimir Putin signed a decree on renaming the Almaz-Antey Air Defense Corporation to the Almaz-Antey Air and Space Defense Corporation. The same Decree approved the increase of the charter capital of the Corporation.

The Director General of the Corporation since March 2014 – J.V. Novikov.

http://www.almaz-antey.ru/en/istoriya/

About the Department

About the Department for civil production development of JSC "Air and Space Defence Corporation "Almaz-Antey"

Department’s main goal

The main goal of the Department is to increase the volume of civil and dual-purpose goods by arranging their production at the Corporation's enterprises, and organizing promotion and sale.

Main goals

The main goal of the Department is accomplished by solving the following tasks:

managing a portfolio of projects for production of civil and dual-use goods;
managing projects for development and machining of civil and dual-use goods;
arranging promotion of civil and dual-use goods.

http://www.almaz-antey.ru/en/diversification/about-the-department/

Corporation’s mission and main objectives

In accordance with the Military Doctrine of the Russian Federation, the main task of developing the defence-industrial complex is to ensure its effective functioning as a high-tech, diversified sector of the country's economy capable of meeting the needs of the Armed Forces of the Russian Federation in modern armaments, military and special equipment and to ensure the strategic presence of the Russian Federation in world markets of high-tech products and services.

The Corporation sees itself as the leading Corporation of the Russian defence-industry complex, a vertically integrated structure that is the leader in the segment of aerospace defence systems in the Russian Federation, actively developing and increasing its presence in international markets for military products and related markets for dual-use and civilian products.

http://www.almaz-antey.ru/en/strategiya/

Military-technical cooperation

The Corporation carries out military-technical cooperation in two areas:

delivery of final military products to foreign customers through Rosoboronexport JSC;
as an independent subject of military-technical cooperation in accordance with the Certificate of right to carry out foreign trade activities in respect of military products No. 2016245238 of January 18, 2016.

When carrying out independent foreign trade activities, the Corporation has the right to provide the following types of works and services when operating previously supplied military products:

supply of spare parts, assembly units, devices, components, special, training and auxiliary equipment, technical documentation;
carrying out works on examination, standardization, prolongation of service life, maintenance, repair (including modernization involving R&D), disposal and other works providing overall end-to-end service;
training foreign specialists to perform the abovementioned works;
participation in creation of joint ventures with foreign customers (organizations) engaged in maintenance, repair and disposal of military products, creation and upgrading of facilities, based in the territory of foreign countries that provide comprehensive service.

The geography of the military-technical cooperation of the Corporation is extensive; the number of countries possessing military equipment developed and manufactured by the Corporation's enterprises exceeds 50. The Corporation is connected with many foreign customers by a fruitful, long-term, mutually beneficial cooperation.

The Corporation offers its foreign customers not only individual types of weapons and military equipment, but also comprehensive solutions to create national defence systems for land, air and sea lines.

Considering current trends, the Corporation shows its readiness to develop direct military-technical cooperation with other countries in improving one’s repair capacities to perform repairs and improvements for the design specifications of the Corporation's approved military products, including the creation of multifunctional centers for maintenance and repair of various weapons, military and special equipment.

The most important source for building the orders portfolio is participation in the work of intergovernmental commissions on military-technical cooperation with various countries. Note that in 2016 alone, representatives of the Corporation took part in preparation of materials and direct work of 36 meetings of working groups/subgroups, such as the IGC consisting of 15 states.

Annually the Corporation takes an active part in various international exhibitions of arms and military equipment both in the Russian Federation and abroad. Among such exhibitions, in which the Corporation traditionally participates, we should note: Russian – “MAKS” air and space salon, military-technical forum "Army", naval salon "IMDS"; Foreign – “Aero India” and “DefExpo India” (India), “Idex” (UAE), Airshow China (China), KADEX (Kazakhstan), LIMA (Malaysia).

Based on the results of foreign trade activity, the Corporation traditionally ranks among the world's largest suppliers of military products, while in Russia it is the leader in terms of exports volume. According to the estimates of international experts, in terms of military sales, in 2013-2016 the Corporation steadily occupied the 11th-14th place among the 100 largest companies of the world military-industrial complex.

Strategic areas of improvement of the Corporation's work on promotion of approved military products to foreign markets:

improving the quality of informational and analytical work to assess the current state and prospects for the development of foreign markets for military products related to the Corporation;
improving advertising and exhibition work, actively communicating with potential external customers about the Corporation, its modern products and opportunities to develop mutually beneficial cooperation with foreign partners;
establishing direct cooperation with foreign countries to ensure effective after-sales service of the military equipment of the Corporation's manufacturing list;
improving the mechanism for processing requests from foreign customers for supply of military products through increased efficiency of contractual work and the use of automated systems;
developing and offering foreign customers projects to modernize previously supplied military products;
training foreign specialists to subsequently ably operate, maintain and repair the machinery of the Corporation's nomenclature;
strengthening the Corporation’s position on international level by creating representative offices, joint ventures for repair and servicing of supplied military equipment and active participation in work of intergovernmental commissions for military-technical cooperation.

http://www.almaz-antey.ru/en/voenno-tekhnicheskoe-sotrudnichestvo/

Babcock International Group (LSE: BAB)

About Babcock

Babcock is a leading provider of critical, complex engineering services which support national defence, save lives and protect communities.

We focus on three highly regulated markets – defence, emergency services and civil nuclear – delivering vital services and managing complex assets in the UK and internationally. We are a trusted partner who understands the key roles that our technology, our expertise, our infrastructure and our assets play in ensuring our customers can deliver. We share risk with them in delivering innovation, and we share the benefits.

Our Sectors

We deliver our services through our four sectors: Marine, Nuclear, Land and Aviation

Marine

We ensure the UK Royal Navy goes to sea safely by supporting their ships and crew around the world
We support navies around the world through the delivery of complex ship and submarine sustainment programmes
We deliver marine technology solutions to improve our customers complex,safety-critical operations

Nuclear

In defence, we sustain the entirety of the UK’s submarine fleet, including delivering through-life support and life extension of Vanguard, Trafalgar and Astute Classes. We also manage and operate two of the three UK Naval Bases (HMNB Clyde and HMNB Devonport).

We have supported the continuous at sea deterrent for 50 years
We sustain the entirety of the UK’s submarine fleet
We take a leading role in all civil nuclear: from new build, training and operational support to decommissioning

Land

We ensure the British Army can focus on their missions safely by supporting all of their vehicles
We enable the British Army to do their job with our technical training programmes
Our people support the British Army by contributing to front line support and joining reserve forces

Aviation

We save lives with our aerial emergency medical and search and rescue services
We protect communities with our firefighting operations
We support the defence of nations by supporting air forces in the UK and overseas

https://www.babcockinternational.com/what-we-do/

13/11/2024

Half year results for the six months ended 30 September 2024

13 November 2024

Successfully delivering performance and growth

Statutory results	30 September 2024	30 September 2023
Revenue	£2,408.9m	£2,177.0m
Operating profit	£183.8m	£144.2m
Basic earnings per share	25.7p	20.4p
Cash generated from operations	£181.3m	£163.2m

Underlying results 1	30 September 2024	30 September 2023
Contract backlog	£9.5bn	£9.6bn
Underlying operating profit	£168.8m	£154.4m
Underlying operating margin	7.0%	7.1%
Underlying basic earnings per share	23.5p	20.6p
Interim dividend per share	2.0p	1.7p

Underlying free cash flow	£94.7m	£67.2m
Net debt	£(385.6)m	£(492.5)m
Net debt excluding leases	£(145.8)m	£(287.8)m
Net debt/EBITDA (covenant basis)	0.6x	1.1x

David Lockwood, Chief Executive Officer, said:

“This is another strong set of results, with continued positive momentum across the Group. Our operational and financial performance in the first half of the year underpins my confidence that we will deliver our expectations for the full year, as we progress towards our medium-term guidance.

We continue to focus on driving performance and sustainable growth. Working closely with our customers, we are consistently delivering key programmes and contracts, with enhanced standards of execution. Meanwhile, a backdrop of geopolitical instability means demand for what we do continues to increase, resulting in an expanding and attractive long-term opportunity set. We are selecting the right opportunities and are being disciplined in how we deploy capital to deliver growth which maximises shareholder value.”

Financial highlights

Contract backlog £9.5 billion flat vs HY24, or down 8% vs FY24 driven by execution on long-term contracts. Key contracts expected in H2
Revenue of £2,409 million increased 11% on an organic basis, driven by strong growth in Nuclear and Land
Underlying operating profit up 10% (at constant FX) to £169 million, driven by growth and margin improvement in Nuclear and Land
Underlying operating margin was 7.0% (HY24: 7.1%). The prior period included high margin AH140 frigate license sales
Underlying EPS up 14% to 23.5 pence
Underlying operating cash conversion was 80% (HY24: 82%)
Underlying free cash flow increased 41% to £95 million reflecting the profit performance and working capital timing
Net debt to EBITDA reduced to 0.6x on a covenant basis. Net debt excluding leases reduced to £146 million
Interim dividend of 2.0 pence per share (HY24: 1.7 pence)

Outlook

Our expectations for FY25 remain unchanged, noting that full year underlying free cash flow will be significantly H1 weighted.
With around 90% of FY25 expected revenue under contract at 1 October 2024, we commence the second half with good momentum and are confident of making further progress against our medium-term guidance: to deliver mid-single digit average annual revenue growth and achieve underlying operating margins of at least 8% and underlying operating cash conversion of at least 80%.

Strategic highlights

Launched H&B Defence, a JV with HII to support AUKUS focusing on building Australia’s sovereign nuclear capabilities
Opened a new Engineering and Nuclear Skills building at City College Plymouth to enhance our workforce’s nuclear capabilities
Partnered with ST Engineering to launch a 120mm Ground Deployed Advanced Mortar System
Launched the General Logistics Vehicle (GLV) medium wheelbase variant targeted at UK and international opportunities
DSG contract extension under negotiation following notification of UK MOD of its intention to exercise up to five option years

Operational highlights

Marine

Awarded contract extension in Poland to support Miecznik frigate programme for three ships to 2031
Type 31 – good progress with ship 1 superstructure largely complete, ship 2 progressing, ship 3 steel cut
First six months of in-service delivery of the Skynet contract to manage the UK’s military satellite and space operations
LGE record intake of more than £300 million
Completed successful docking period for the HMS Queen Elizabeth aircraft carrier

Nuclear

Reopened our Devonport 9-Dock, following a significant regeneration project, critical for the future support of the UK’s CASD
Significant ramp up at Hinkley Point C as we begin to install mechanical and electrical services

Land

Strong operational performance on DSG contract
Awarded an additional contract to build 53 High Mobility Transporter Jackal 3 six-wheeled ‘Extendas’ for the British Army
Awarded several UK military training contract extensions during the period
Launched the new Babcock Immersive Training Experience (BITE) to support individual and collective training
Successfully delivered the transition phases of two new French military land contracts

Aviation

Preferred bidder on MENTOR2, a c.€800 million 15-year contract to provide initial pilot training to the French Air Force, Navy and Army
Commenced the 12-year contract to deliver the in-service support of 48 Sécurité Civile and police EC145C2 helicopters
RAF Hades contract extended by two years to provide technical airbase support services across the Armed Forces
Partnered with the RAF to deliver Elementary Flying Training to the Ukrainian Pilot Force as it prepares to fly F-16 jets
Awarded a 10-year renewal with UK Midlands Air Ambulance Charity

CEO REVIEW

Continued positive momentum

Positive momentum has continued across the Group over the period. Financial and operational performance has been strong, which underpins our expectations for the year, and we have made strategic progress, supporting medium-term ambitions of delivering mid- single digit organic growth, at least 8% operating margin and average operating cash conversion of at least 80%.

The complex geopolitical backdrop means that demand for our specialist capabilities remains high, driving increased, higher quality growth opportunities. Our strategy is focused on delivering sustained, profitable and cash generative growth which we enhance through selectively deploying capital on those opportunities with the right commercial and technical risk profiles to maximise long- term shareholder value.

Strong underlying HY25 results

We have delivered another encouraging set of financial results with year-on-year increase in revenue, underlying operating profit, underlying earnings and underlying free cash flow.

Group revenue increased 11% on an organic basis to £2,409 million with good growth in our three largest sectors, which represent over 90% of our operational business. Nuclear, our largest sector by revenue, representing 36% of the Group, continued its strong trajectory, up 22% in the first half, with Land and Marine up by 9% and 6% respectively. Aviation revenue declined slightly, as expected, due to the completion of aircraft delivery phases within a French defence contract.

The 10% organic increase in underlying operating profit to £169 million reflects the strong revenue performance, more than offsetting the prior year receipt of high margin AH140 frigate licence fees associated with the Polish Miecznik programme. As a result, underlying operating margin was flat at 7.0% (HY24: 7.1%).

Strong operating cash conversion of 80% and lower pension deficit payments following the long-term funding agreements reached earlier this year drove a 41% increase in underlying free cash flow to £95 million, further strengthening our balance sheet. Net debt excluding leases reduced to £146 million and our gearing ratio at the end of the period had reduced to 0.6x, below our target leverage range of 1.0x – 2.0x.

Well positioned in a supportive market

Geopolitical instability is driving growth in defence budgets. However, the pace and extent of budget growth is insufficient to match the growth in demand for military spend, making Babcock’s ability to affordably add value, essential. Additionally, there is a timing mismatch between the present threats that governments face and the new product development programmes which typically take years to deliver. Therefore, Babcock’s ability to deliver increased availability and capability from existing assets has become critically important, further reinforcing our value to customers.

Our people have a deep understanding of our customers’ needs, their assets and the environment in which they operate, creating high barriers to entry. As a through-life capability partner, we not only support assets but deliver capability and system upgrades and apply our own product development capabilities to deliver through-life engineering.

The new UK Government is committed to spending on defence. In the 2024 Autumn budget, it reiterated its commitment to a defence budget of 2.5% of GDP and a £2.9 billion increase to defence spending for 2026. It also confirmed the additional £3 billion annually to support Ukraine. The Government is currently undertaking a Strategic Defence Review (SDR) which is expected to conclude in the first half of 2025. The SDR is intended to determine how UK defence will meet the challenges, threats and opportunities of the twenty- first century, whilst taking account of the commitment to increase defence spend.

As the sole-source provider of complex, through-life support and sustainment, Babcock is critical to the delivery of the UK’s nuclear deterrent, which has been confirmed as a national security priority. The Government’ is committed to building four new Dreadnought Class submarines to replace the Vanguard Class and ensuring the Continuous At Sea Deterrent (CASD), with one submarine always at sea. Alongside the Government as our customer, we continue to invest in the nuclear submarine infrastructure required for the transition to the Dreadnought Class and next generation AUKUS attack submarines and the delivery of through-life support and availability of the UK’s entire nuclear submarine fleet over future decades.

Sustainable growth

We have a clear strategy to deliver sustainable growth across the Group by leveraging our technical capability, developing our people and building strategic partnerships, whilst remaining a responsible corporate citizen. Current market dynamics, in particular the growth in defence budgets driven by the need to recapitalise, re-equip and modernise militaries, have resulted in a broadening opportunity set as outlined at our Capital Markets Day and FY24 full year results. Our five strategic growth priorities are as follows:

- Optimise our UK position - grow our current UK positions and grow market share in our areas of expertise

- Selective new programmes in the UK - target quality opportunities with the right commercial and technical risk profiles

- Expansion in focus countries - new work and scope in Canada, France, Australia, New Zealand and South Africa

- Direct exports – of new and existing products and services from our focus countries into new territories and markets

- Strategic partnerships - work with leading global industry players with particular local market strengths to deliver high-value, low- risk and faster routes to effective market entry

We are focused on aligning our growing opportunity set, both in the UK and internationally, with our core capabilities, through leveraging our strong balance sheet and the disciplined deployment of capital. During the period, we have made good progress on a number of strategic growth initiatives.

Optimise our UK position

The ongoing recapitalisation of our Devonport facility, the Major Infrastructure Programme (MIP), continues at pace and will enable delivery of the UK’s future nuclear submarine support capability over the next 50+ years. During the period, we completed an extensive regeneration of 9-Dock, the dry dock facility to support the ongoing life extension programme for the Vanguard Class submarines which is critical for the future support of the Continuous At Sea Deterrent (CASD). We also marked a significant milestone to fully dismantle a nuclear-powered submarine at Rosyth, with our award of a recycling contract to KDC Veolia Decommissioning Services.

The Type 31 Inspiration Class frigate programme continues to make good progress, with three ships now in simultaneous construction following first steel cut of HMS Formidable in October 2024. We have increased the industrial workforce to over 900 people, with further recruitment planned. Through the Type 31 programme and other AH140 programmes, we are building a world class shipbuilding capability that will position us for future global naval opportunities. We are already seeing such opportunities emerge, through strategic partnerships such as with Saab, which in May 2024 led to the first contract to support the development of the Swedish Navy’s new Lulea Class Surface Combatant, and with PGZ, the Polish Armaments Group, in support of the Polish Miecznik Class frigate programme, where we were awarded an extension to support delivery of three ships.

Strong operational delivery of the DSG defence vehicle support contract in Land has further de-risked the final phase of the ten-year contract, which completes March 2025, contributing to the improved profit performance in the sector. We continue to progress commercial discussions with the UK MOD as we transition to a new contract extension for up to five years. This asset support model forms the basis of our approach to other emerging asset support opportunities both in the UK and internationally.

Selective new programmes in the UK

The Skynet contract, won in 2023 with an initial value of more than £400 million, to upgrade and operate the UK Government’s military satellite and space operations has significantly broadened our secure communications capability and strengthened our leading position in digital defence. In the period, we successfully completed the first six months of in-service delivery. We believe that the successful implementation of the critical service will create opportunities for further growth.

In partnership with Supacat, we have been awarded a contract to build 53 modular four to six-wheeled ‘Extendas’ variants of the High Mobility Transporter Jackal 3 for the British Army. This is in addition to the 70 Jackal 3 (HMT 400 series) vehicles which we began producing at our new facility within the freeport of Devonport earlier this year. Production is ramping up and we see opportunity to provide further vehicles to the British Army, whilst also pursuing international opportunities with Supacat.

Following a comprehensive evaluation of the tender and its commercial terms, Babcock and its partners in Team Crucible made the decision to exit the bid to become the Strategic Training Partner for the Army Collective Training System (ACTS), demonstrating our disciplined approach to only target opportunities that have the right commercial and technical risk profile. Our growth strategy is predicated on selecting the right opportunities and only bidding for contracts where the risk-reward profile is appropriate and manageable.

Expansion in focus countries

As a provider of first-generation military outsourcing, we are targeting emerging opportunities in France based on our proven track record of delivery in the country. Following the success of the military fighter pilot training programme, the French Air Force is outsourcing further training support opportunities. This week, we were selected as preferred bidder by the French Direction générale de l'armement (DGA) to deliver MENTOR2, a c.€800 million 15-year contract to provide initial pilot training to the French Air Force, Navy and Army. The new contract, due to be awarded before the end of FY25, will involve the deployment of over 100 employees at the Salon de Provence air force base. We are also in the final bidding stages of an opportunity to support fighter pilot training for the Belgian Air Force from France.

Direct exports

During the period we signed a contract extension with PGZ to continue our support to Poland’s Miecznik three-ship frigate programme until 2031, providing engineering services, supply chain support, transfer of knowledge and project management. We see further opportunities to add value to our partner’s programme and, through our developing relationship, we are exploring potential opportunities in land asset support, again using our expertise and strong track record as a reference.

Babcock is fully committed to providing critical support to Ukraine’s military operations. In May 2024, we established a facility in Ukraine to deliver engineering support, including the repair and overhaul of military vehicles, to be delivered in partnership with UDI, Ukraine’s state-owned defence industry. In July 2024, we were awarded an extension, with further options to extend, to our initial one- year contract to support urgent operational requirements for Ukraine’s UK-gifted military land assets.

Strategic partnerships

Our ability to form partnerships with leading global industry players with particular local market strengths is a key part of our growth strategy. Working with a strong local partner often presents the highest-value, lowest-risk and fastest route to market entry. In the period we launched H&B Defence, a JV with Huntington Ingalls Industries (HII) to support and accelerate the AUKUS endeavour, focusing on building Australia’s sovereign capabilities in nuclear infrastructure, workforce and skills development, submarine sustainment and decommissioning.

In September 2024, we unveiled our 120mm Ground Deployed Advanced Mortar System, based on world-leading technology from our partner, ST Engineering. The vehicle-mounted, digitised mortar system is designed to meet the urgent requirements of the British Army and NATO nations. We are also working with Denmark’s OMT to develop a new product concept, SMARTHatch, which allows the at-sea launch and recovery of manned and unmanned systems, amongst other defence applications.

Developing our people to support long term growth

Our c.27,000 people are fundamental to the successful delivery of sustained growth. With their deep engineering expertise, operational asset knowledge and strong customer relationships, we are focused on building this valuable resource for the future.

We are a key industrial partner on the UK’s Nuclear Skills Taskforce, taking a leading role in helping to secure the critical nuclear skills needed across the defence and civil nuclear enterprise. In September the UK Minister for Defence Procurement Maria Eagle opened the Babcock Engineering & Nuclear Skills building at City College Plymouth where we will grow our workforce’s capabilities, focusing initially on building a pipeline of talent and upskilling the existing workforce on the complex skills required to perform deep submarine maintenance. This marks the next phase of our own Babcock Skills Academy, which is initially focused on addressing the current and future nuclear skills demand for our defence programmes. We also delivered the second skills-based Work Academy Programme at our Devonport facility.

In the period we welcomed our largest ever early careers intake in the UK, launched a pre-apprenticeship programme at Devonport and participated in an international apprentice exchange programme with our Polish partner PGZ. We were pleased to be named one of the UK’s top 10 employers in 2024 by industry publication The Engineer.

Capital allocation – to support long term growth

We have built a strong platform from which to drive long-term growth in our core defence and civil markets, which we address through leveraging the strength of our balance sheet and disciplined allocation of capital under our capital allocation policy to maximise shareholder value. Our principal priorities remain organic investment, maintaining financial strength and ordinary dividend returns. We will also consider options for inorganic growth in areas aligned with our core capabilities, and further accelerating the reduction in our pension scheme liabilities, where we believe we can create shareholder value. We continually assess our capital requirements and will consider additional shareholder returns should we determine that we have surplus capital.

Outlook

Our expectations for FY25 remain unchanged, noting that full year underlying free cash flow will be significantly H1 weighted. With c.90% of FY25 expected revenue under contract at 1 October 2024, we enter the second half of the year strongly positioned with good momentum and are confident of making further progress against our medium-term guidance: to deliver mid-single digit average annual revenue growth and achieve underlying operating margins of at least 8% and underlying operating cash conversion of at least 80%.

David Lockwood OBE Chief Executive

https://www.babcockinternational.com/wp-content/uploads/2024/11/Babcock-HY25-half-year-results-statement-13.11.24.pdf

BAE Systems (LSE: BA)

About BAE Systems

At BAE Systems, our advanced defence technology protects people and national security, and keeps critical information and infrastructure secure. We search for new ways to provide our customers with a competitive edge across the air, maritime, land and cyber domains. We employ a skilled workforce of 85,800 people in more than 40 countries, and work closely with local partners to support economic development by transferring knowledge, skills and technology.

https://www.baesystems.com/en/our-company/about-us

Our Business

Our businesses cover everything from electronic warfare systems to intelligence gathering to armoured vehicles.

Air sector

Today, we operate across the globe, in multiple markets to support our customers - wherever, whenever and whatever their challenges may be. We support them across the whole life cycle of the air sector - from design, development and production, through to provision of aircraft, training, support and maintenance.

BAE Systems Applied Intelligence

Our Applied Intelligence division delivers solutions which help our clients to protect and enhance their critical assets in the intelligence age. These solutions combine large-scale data exploitation, 'intelligence-grade' security and complex services and solutions integration

BAE Systems Australia

A leading supplier of communications, electronic warfare systems, military air support, air defence, mission support systems and intelligence, surveillance and reconnaissance to the Australian Defence Force.

BAE Systems India

We are a first mover amongst international companies to make a direct investment in local manufacturing in partnership with Indian industry.

BAE Systems Saudi Arabia

Supporting customers in the air, land, command and control and naval sectors, and supplies solutions in mechanical engineering, electronics repair and manufacturing, IT, logistics and manpower development.

Electronic Systems

Offer a broad portfolio from flight and engine controls to electronic warfare and night vision systems, surveillance and reconnaissance sensors, secure networked communications equipment, and power and energy management systems.

Intelligence & Security

Intelligence & Security delivers a broad range of solutions and services enabling militaries and governments to successfully carry out their missions. The company provides large-scale systems engineering, integration, and sustainment services across air, land, sea, space, and cyber domains.

Platforms & Services

Platforms & Services is a leading provider of tracked and wheeled armored combat vehicles, naval guns, naval ship repair and modernization, artillery and missile launching systems, advanced precision strike munitions and ordnance, and other technologies for U.S. and international customers.

Maritime

We design and manufacture naval ships and submarines, as well as their combat systems and equipment.

Regional Aircraft

A leading provider of regional aircraft and support services to regional airlines throughout the world.

Shared Services

Provide shared capabilities and support services, principally to BAE Systems internal customers. Shared technology and professional capabilities are knowledge-based, tailored to customer needs and focus on adding value.

https://www.baesystems.com/en/our-company/our-businesses

The Company had provided the following update to the market:

Highlights:

Operational and financial performance underpin Group full-year guidance, in line with upgrade at half year
Solid order intake sustained, with around £25bn booked year-to-date
Integration of the Space & Mission Systems (SMS) business is progressing as planned with sales accelerating in the second half of the year at Group accretive margins
Strong visibility in the order backlog and pipeline of incumbent positions supports our long-term growth outlook

Our operational and financial performance so far in 2024 reaffirms our confidence in achieving the upgraded full year guidance we issued at the half year. Focusing on operational excellence, contracting discipline and growing our workforce is enabling us to consistently deliver critical capabilities and technologies for our customers worldwide. At the same time, we continue to invest in our business for the long term, which together with our broad geographic and domain diversity, positions us well for continued growth in the years ahead.Charles Woodburn, Chief Executive

Guidance

The full year 2024 guidance across all metrics is unchanged from the upgraded guidance we provided at the half year results in August.

Sales	+12-14% (2023: £25,284m)
Underlying EBIT	+12-14% (2023: £2,682m)
Underlying EPS	+7-9% (2023: £63.2p)
2024 Free Cash Flow (FCF)	>£1.5bn

Guidance is provided on a constant currency basis using an exchange rate of $1.24:£1, which is in line with the actual 2023 exchange rate. The Group operates in a number of currencies, the most significant of which is the US dollar, which is running at an average of approximately $1.29:£1 for the year. As a guide, a 5 cent movement in the £/$ exchange rate impacts sales by c.£500m, underlying EBIT by c.£70m and underlying earnings per share by c.1.3p.

The weighted average number of ordinary shares to calculate full year underlying earnings per share is expected to be 3.01bn.

Order flow

The order intake reflects our government customers’ confidence in our ability to deliver important capabilities to help protect their countries and citizens, with around £25bn of orders secured in the year to date. Notable contract awards in the second half of the year so far include:

M109 Self-Propelled Howitzers and M992A3 Ammunition Carriers – $493m to continue production, with delivery expected from the second half of 2025 to mid-2026
Armored Multi-Purpose Vehicles – $184m contract award for 48 additional vehicles for the US Army
Bradley Fighting Vehicles – contract modification in excess of $440m for additional production, including more than 200 A4 variants
Multi-mode Aviation Radio Set – five year IDIQ contract with a ceiling value of $460m for US Army rotary aircraft
USS Halsey modernisation – $178m award for sustainment work on the Arleigh Burke-class guided-missile destroyer in our San Diego shipyard
Guided weapon components – A$270m to boost production in Australia
Order intake of around €2.5bn from the Group’s share of our MBDA joint venture

Delivering for our customers

We have maintained our focus on operational performance, with our highly skilled employees continuing to work with partners to deliver critical equipment and services. Maritime and Platforms & Services have continued to account for a higher proportion of growth relative to the other areas of the business. Key milestones in the second half of the year so far include:

The successful launch of NASA’s Europa Clipper spacecraft, which will orbit Jupiter and conduct detailed observations of one of its moons using the Europa Thermal Emission Imaging System (E-THEMIS) instrument the SMS team helped to develop
Testing completed on the primary scientific instrument for the Nancy Grace Roman Space Telescope shipped to NASA’s Goddard Space Flight Center
Substantial progress made with our Japanese and Italian industry partners towards reaching an agreement on a proposed joint venture to deliver the Global Combat Air Programme (GCAP)
The sixth Astute Class submarine for the Royal Navy, Agamemnon, launched from our submarines site in Barrow-in-Furness, Cumbria
A prototype of the European Common Radar System Mark 2 (ECRS Mk) flown on a UK Typhoon aircraft for the first time, supported by our partner Leonardo UK
The second Type 26 frigate for the Royal Navy, HMS Cardiff, entering the water for the first time in Glasgow

Increasing exposure to major defence growth markets

Defence spending in our major markets remains supportive of our existing programmes and provides a robust pipeline of opportunities across all our sectors. We continue to support our government customers in addressing increasingly varied and complex threats.

Our global footprint, diverse product portfolio, incumbent positions and strong opportunity pipelines on strategically important international programmes, like AUKUS and GCAP, are key competitive advantages.

In the UK, the newly elected government has clearly stated its commitment to strengthening the armed forces and increasing defence spending to 2.5% of GDP. We are actively engaged with the Government on its ongoing Strategic Defence Review, which is due to make recommendations on the nation’s future defence plan in the first half of next year. It has also identified defence as one of eight growth-driving sectors in its upcoming industrial strategy.

In the US, we continue to see bipartisan support for defence and national security. Our portfolio remains well-aligned with the key priorities outlined in the US National Defense Strategy and US Intelligence Strategy and we continue to see growth opportunities in this market across the medium term.

Beyond the US and UK, our geographic footprint is a differentiator as we support government customers across Europe, the Middle East and Asia Pacific. Our key markets in these regions are poised for higher defence spending which will provide a platform for diversified growth into the future for the Group.

SMS integration and performance

We have made excellent progress in integrating the SMS business into our US operations. The business is realising cost synergies, meeting scheduled workforce integration milestones, and holding a series of “synergy summits” which have identified numerous areas for collaboration to drive future revenue opportunities.

SMS second half sales are progressing in line with our expectations as set out at the half year. The business is delivering group-accretive margins and the order backlog and pipeline support achieving our target of 10% annual sales growth in the medium term.

Investing in our business for the long term

In support of our growth outlook, and to help our customers stay ahead of evolving threats, we continue to invest in our people, facilities and technology.

By the end of October 2024, our global workforce increased by approximately 7,500 employees, including 1,260 apprentices and 1,000 graduates and undergraduates recruited in the UK, together with more than 5,000 employees who joined the Group as a result of the Ball Aerospace acquisition.

We expect self-funded Research & Development to increase compared to 2023 and have acquired UK cyber and electromagnetic activities company, Kirintec, since the half year, as we continue to complement our portfolio to deliver technology-enabled products to meet our customers’ current and emerging operational challenges.

In Glasgow, our new Applied Shipbuilding Academy has opened to develop and train our Maritime workforce, and the new Janet Harvey shipbuild assembly hall is on schedule to be fully operational in 2025.

We have also announced our intention to invest £220m to establish a new state-of-the-art advanced technology factory in Rochester, UK, which will increase the capacity of our Electronic Systems business and create 300 new jobs over the next five years.

Balance sheet and capital allocation

The Group’s balance sheet remains strong. The 2024 interim dividend of 12.4 pence per share will be paid on 2 December 2024 and we are maintaining a good cadence on the up to £1.5bn share buyback programme announced in August 2023, which commenced on 25 July 2024. Total cash returned to shareholders this year (including the 2023 final dividend) is expected to be c.£1.4bn.

2024 Preliminary Results

BAE Systems will announce its preliminary results for the year ending 31 December 2024 on 19 February 2025.

https://www.baesystems.com/en/article/market-update-nov-2024

Cobham (LSE: COB)

About Cobham

Cobham offers an innovative range of technologies and services to solve challenging problems in commercial, defence and security markets, from deep space to the depths of the ocean.

We employ around 10,000 people primarily in the USA, UK, Europe and Australia, and have customers and partners in over 100 countries, with market leading positions in: wireless, audio, video and data communications, including satellite communications; defence electronics; air-to-air refuelling; aviation services; life support and mission equipment.

Our Businesses

Advanced Electronic Solutions

We provide critical solutions on land, at sea, and in the air and space, by moving data through off-the-shelf and customised products including RF, microwave, and high reliability microelectronics, antenna subsystems and motion control solutions.

Aviation Services

We deliver outsourced aviation services for military and civil customers worldwide through military training, special mission flight operations, outsourced commercial aviation and aircraft engineering.

Communications and Connectivity

We are recognised as a world leading supplier of robust, high performance equipment and solutions that enable reliable connectivity anywhere, anytime, in the most demanding environments. Our solutions give our customers a competitive edge in aerospace, avionics, satellite and radio, wireless and mobile connectivity markets.

Mission Systems

The most capable critical control solutions for extreme environments.

As the world's leading supplier of critical control solutions, we help our customers to increase the safety and mission capabilities of their personnel and equipment in extreme environments.

Our proven and trusted solutions in air-to-air refuelling, life support, weapons carriage and unmanned systems, deliver assured performance and class-leading through-life costs that enable our customers to bring complex projects to market quickly, and with minimal risk.

https://www.cobham.com/

Update for the six months ended 30 June 2024

Introduction

AI Convoy (Luxembourg) S.à r.l. (the Company) presents this half-year update in relation to the operations of the Company and its subsidiaries (the Group).

The update covers some of the highlights of the first half of 2024 including details of the Group’s performance and other major developments across the Group.

Performance update

On an overall basis, the Group’s performance in H1 2024 was consistent with last year, with resilient end-markets across defence, space and commercial aerospace. The growth outlook continues to be supported by good customer relationships, strong operational track records across the business and robust demand for our products. Our CAES advanced radio frequency business saw double digit growth in H1 in both revenue and EBITDA and maintains its strong outlook for growth with an excellent pipeline.

Our Cobham Satcom business underperformed budget in H1 due to headwinds in key Maritime product sales.

Investments in net working capital as a result of programme and delivery phasing meant that operating cash generation in the first half of 2024 was negative, but this is typical in the aerospace and defence industries. Cash generation plans through Q3 and Q4 2023 have been secured in order to optimise cash flow through to the end of the year. Meanwhile, the Group has continued to secure its long-term future through investment in R&D and high-tech manufacturing assets.

Business highlights

Corporate transactions

Business disposals

As reported previously, the Group entered into a memorandum of understanding on 12 July 2023 with Thales SA (“Thales”) to sell Cobham Aerospace Communications to Thales for approximately USD 1.1bn. Completion of the transaction occurred on 2 April 2024.

On 19 June 2024 the Group entered into an agreement with Honeywell International Inc (“Honeywell”) to sell the CAES business to Honeywell for approximately USD 1.9bn. The closing of the transaction took place on 30 August 2024.

https://www.cobham.com/wp-content/uploads/Cobham-half-year-update-2024.pdf

Cubic Corporation (NYSE : CUB)

About Cubic

Cubic is a technology-driven, market-leading provider of integrated solutions that increase situational understanding for transportation, defense C4ISR and training customers worldwide to decrease urban congestion and improve the militaries’ effectiveness and operational readiness. Our teams innovate to make a positive difference in people’s lives. We simplify their daily journeys. We promote mission success and safety for those who serve their nation.

https://www.cubic.com/

Businesses

Our businesses provide innovative technologies and an integrated approach to systems and services for government and commercial customers around the globe. This integration ensures our customers receive streamlined operations and strategy, cost-efficiency and speed to market.

Enabling a Safer World

At Cubic Global Defense, we develop innovative and realistic training solutions for the United States and allied forces in more than 35 nations. Leveraging decades of experience and cutting-edge technologies, we help our customers effectively equip and train warfighters and law enforcement personnel, in turn making the world a safer place.

https://www.cubic.com/about/businesses#paragraph-tab-5566%20%E2%80%93%20about

C4ISR

Reliability for mission critical situations.

We provide networked Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) capabilities for defense, intelligence, security and commercial missions.

Our C4ISR solutions provide information capture, assessment, exploitation and dissemination in a secure network-centric environment. Enabled by six decades of success, Cubic’s commitment to continuous innovation ensures our customers are prepared for their next mission.

https://www.cubic.com/solutions/c4isr

Transportation

Improving mobility in the world's greatest cities.

At Cubic Transportation Systems, we believe that to take the right path, you sometimes have to create it. That’s why, even though we helped revolutionize the transportation industry, we’re dedicated to reinventing it.

We are the leading integrator of payment and information solutions and related services for intelligent travel applications in the transportation industry. We deliver integrated systems for transportation and traffic management, providing tools for travelers to choose the smartest and easiest way to travel and pay for their journeys, while enabling transportation authorities and agencies to manage demand across the entire transportation network – all in real-time.

https://www.cubic.com/solutions/transportation

Training

Accelerating Combat Readiness.

Training proficiency is essential for warfighters and law enforcement who must be prepared to face new threats daily or emerging threats. Cubic's NextTraining™ provides innovative solutions for improved performance-based training, scalable training architectures, air combat training, and high-fidelity combat training centers.

These solutions deliver critical warfighting skills necessary to achieve mission success in combat under the most unforgiving conditions and against the most determined adversary.

https://www.cubic.com/solutions/training

Cubic Reports Second Quarter Fiscal Year 2021 Results

SAN DIEGO – May 5, 2021 – Cubic Corporation (NYSE: CUB) (“Cubic” or the “Company”) today announced its financial results for the second fiscal quarter ended March 31, 2021.

In light of the pending acquisition of Cubic by Veritas Capital and Evergreen Coast Capital Corporation, the Company will not be hosting a conference call to discuss its financial results. The pending acquisition remains subject to the receipt of certain regulatory approvals and the satisfaction of other closing conditions. Cubic currently anticipates that the pending acquisition will be completed during the second calendar quarter of 2021.

Second Quarter Fiscal 2021 Highlights

Sales of $343.4 million, increased 7% year-over-year
Net loss from continuing operations attributable to Cubic of $36.0 million, or $1.14 per share, compared to $39.3 million, or $1.25 per share, in the second quarter of the fiscal year ended September 30, 2020 (“fiscal 2020”)
Adjusted earnings per share (“EPS”) of $0.15, compared to a loss of $0.12 per share in the second quarter of fiscal 2020
Adjusted EBITDA of $22.7 million, compared to $4.5 million in the second quarter of fiscal 2020

“We delivered solid growth in Sales, Adjusted EBITDA and Adjusted EPS in the second quarter of fiscal 2021,” said Bradley H. Feldmann, chairman, president and chief executive officer of Cubic. “We continue to make great progress on our NextCUBIC strategy, which is driving innovation and sustainable value for our customers, employees and communities.”

Consolidated Second Quarter Fiscal 2021 Results

(all metrics compared to Second Quarter Fiscal 2020 unless otherwise noted)

Sales increased 7% as reported (4% on a constant currency basis) to $343.4 million, compared to $321.5 million in the prior year period, driven by strong growth in Transportation Systems.

Operating loss was $25.6 million, compared to $29.9 million in the prior year period. Results benefited from an increase in operating income in Transportation Systems and a decrease in operating loss in Mission and Performance Solutions. Unallocated corporate and other costs increased to $36.3 million compared to $16.8 million in the prior year period driven by costs incurred in connection with our evaluation of proposals to acquire Cubic and higher restructuring costs in connection with NextCUBIC transformation and cost optimization initiatives.

Adjusted EBITDA increased to $22.7 million, compared to $4.5 million in the prior year period. Adjusted EBITDA margin increased approximately 520 basis points to 6.6%.

Net loss from continuing operations attributable to Cubic was $36.0 million, or $1.14 per share, compared to $39.3 million, or $1.25 per share, in the prior year period. Adjusted net income was $4.8 million, or $0.15 per share, compared to a loss of $3.9 million, or $0.12 per share, in the prior year period.

Net cash used by continuing operations was $36.4 million, including the impact of consolidating the Company’s Boston variable interest entity (“VIE”), compared to $26.5 million in the prior year period. Adjusted Free Cash Flow was negative $33.9 million, compared to negative $37.0 million in the prior year period.

Cubic Transportation Systems (“CTS”)

CTS sales increased 10% as reported (6% on a constant currency basis) to $217.4 million, compared to $197.6 million in the prior year period, driven by U.S. system development contracts.

CTS Adjusted EBITDA increased 59% to $38.4 million, compared to $24.2 million in the prior year period. Adjusted EBITDA margin of 17.7% increased 550 basis points, compared to the prior year period, reflecting strong project execution and the impact of NextCUBIC cost savings initiatives.

Cubic Mission and Performance Solutions (“CMPS”)

CMPS sales increased 2% as reported (flat on a constant currency basis) to $126.0 million, compared to $123.9 million in the prior year period. Sales reflected an increase in sales generated by C2ISR and expeditionary satellite communications products (GATR), primarily offset by lower sales from the live, virtual and constructive (LVC) training business.

CMPS Adjusted EBITDA improved to negative $4.8 million, compared to negative $8.7 million in the prior year period. Adjusted EBITDA margin improved to negative 3.8%, compared to negative 7.0% in the prior year period, reflecting sales mix as well as lower selling, general and administrative expense as a result of cost savings initiatives, partially offset by higher research and development expense.

Backlog

Backlog decreased by $40.6 million from September 30, 2020 to March 31, 2021. Foreign currency had a favorable impact of $71.8 million during the period.

Key Orders: Second Quarter Fiscal 2021

CTS

$23 million to provide road tunnel outstation maintenance for Transport for London
$13 million to provide IT network and infrastructure upgrades for the Port Authority Trans-Hudson (PATH)
$10 million to provide next-generation readers to Bay Area Rapid Transit (BART) and Muni Clipper 2.0

CMPS

$57 million in combined orders to provide expeditionary satellite communications products for the United States Army
$32 million Unified Video Dissemination System enterprise license renewal with government customer
$26 million first delivery order under Cubic’s sole vendor Sailor 2025 Ready Relevant Learning indefinite delivery/indefinite quantity contacts
Cubic Nuvotronics awarded a contract worth more than $10 million to support Department of Defense “5G to Next G” program

Balance Sheet

Cubic’s bank net leverage ratio, as defined in the Company’s credit agreement, was 3.5x at the end of the second quarter of our fiscal year ended March 31,2021. The credit agreement allows for net leverage of up to 4.0x.

About Cubic Corporation

https://www.cubic.com/news-events/news/cubic-reports-second-quarter-fiscal-year-2021-results

DXC Technology (NYSE: DXC)

COMPANY OVERVIEW

DXC Technology helps clients harness the power of innovation to thrive on change. For more than 60 years, we have successfully guided the world’s largest enterprises and government agencies through successful change cycles.

We take pride in our technology independence and our role as a trusted advisor. Our deep experience gives us a clear and confident vision to help clients navigate the future.

As the world’s leading independent, end-to- end IT services company, we are uniquely positioned to lead digital transformations — creating greater value for clients, partners and shareholders, and presenting growth opportunities for our people. We are among the world’s best corporate citizens.

We have 170,000 employees in more than 70 countries, serving some 6,000 clients. We tap into global talent, powerful next-generation IT solutions and extensive partner relationships to help clients transform digitally and seize opportunities.

Our extensive partner network helps us drive collaboration and leverage technology independence. We have established more than 250 industry-leading global Partner Network relationships, including 14 strategic partners: Amazon Web Services, AT&T, Dell/EMC, HCL, HPE, HP, IBM, Lenovo, Micro Focus, Microsoft, Oracle, PwC, SAP and ServiceNow.

https://dxc.com/us/en/about-us

DXC Technology Reports Third Quarter Fiscal Year 2025 Results

February 4, 2025

Total revenue of $3.23 billion, down 5.1% (down 4.2% on an organic basis) (1)
EBIT margin of 4.5%, and adjusted EBIT (2) margin of 8.9%
Diluted earnings per share was $0.31 vs. $0.81 in the prior year quarter; Non-GAAP diluted earnings per share (3) was $0.92, up 7.0% YoY
Book to bill of 1.33x
Increased full year adjusted EBIT (2) margin guidance to ~7.9%
Increased full-year non-GAAP diluted EPS (3) guidance to ~$3.35
Increased full year free cash flow (4) guidance to ~$625 million

ASHBURN, Va.--(BUSINESS WIRE)-- DXC Technology (NYSE: DXC) today reported results for the third quarter of fiscal year 2025.

“I am pleased with our third quarter performance. Our operating model changes and focus on disciplined execution is reflected in our third quarter financial results, which were ahead of guidance. The go to market changes we have made are starting to take hold, driving a meaningful improvement in bookings performance,” said DXC Technology President and CEO, Raul Fernandez. "Reflecting on my first year as CEO, I'm very confident that we are on the right path to building a business with profitable and sustainable revenue growth."

Financial Highlights - Third Quarter Fiscal Year 2025

Total revenue was $3.23 billion, down 5.1% year-over-year (down 4.2% on an organic basis) (1) .
EBIT was $146 million, down 37.6% year-over-year with a corresponding margin of 4.5%. Adjusted EBIT (2) was $286 million, up 11.7% year-over-year, with a corresponding margin (2) of 8.9%.
Diluted earnings per share was $0.31, down 61.7% year-over-year. Non-GAAP diluted earnings per share (3) was $0.92, up 7.0% year-over-year.
Cash generated from operations was $650 million, down 7.9% year-over-year. Free cash flow (4) was $483 million in the third quarter of fiscal year 2025, compared to $585 million in the third quarter of fiscal year 2024.
Book to Bill ratio of 1.33x, compared to 0.99x in the third quarter of fiscal year 2024.

Segment Highlights - Third Quarter Fiscal Year 2025

Global Business Services ("GBS")

Revenue was $1.67 billion, down 1.8% year-over-year (down 0.5% on an organic basis). (1)
Segment profit was $224 million, up 10.9% year-over-year, with a corresponding margin of 13.4%.
Book to Bill ratio of 1.23x, compared to 1.26x during the third quarter of fiscal 2024.

Global Infrastructure Services ("GIS")

Revenue was $1.56 billion, down 8.5% year-over-year (down 7.8% on an organic basis). (1)
Segment profit was $101 million, down 15.1% year-over-year, with a corresponding margin of 6.5%.
Book to Bill ratio of 1.44x, compared to 0.73x during the third quarter of fiscal 2024.

Full Year Fiscal 2025 and Fourth Quarter Fiscal Year 2025 Guidance

Full Year Fiscal 2025

Total revenue in the range of $12.80 billion and $12.83 billion, a decline of 4.9% to 4.7% on an organic basis (1) compared to the prior guidance of a decline of 5.5% to 4.5%.
Adjusted EBIT margin (2) ~7.9%, compared to the prior guidance of 7.0% to 7.5%.
Non-GAAP diluted EPS (3) of ~$3.35, compared to the prior guidance of $3.00 to $3.25.
Free Cash Flow (4) of ~$625 million, up from the prior guidance of approximately $550 million.

Fourth Quarter Fiscal 2025

Total revenue in the range of $3.10 billion and $3.13 billion, a decline of 5.5% to 4.5% year-over-year on an organic basis. (1)
Adjusted EBIT margin (2) ~7.0%.
Non-GAAP Diluted EPS (3) of ~$0.75.

(1)	Revenue growth on an organic basis is a non-GAAP measure and is calculated by restating current-period activity using the prior fiscal period's foreign currency exchange rates, adjusted for the impact of acquisitions and divestitures. A reconciliation of GAAP to non-GAAP measure are attached to this release .
(2)	Adjusted EBIT and Adjusted EBIT margin are non-GAAP measures. Reconciliations of GAAP Net Income to such measures are attached to this release .
(3)	Non-GAAP diluted earnings per share is a non-GAAP measure. A reconciliation of GAAP diluted earnings per share to non-GAAP diluted per share is attached to this release .
(4)	Free cash flow is a non-GAAP measure. Free cash flow is calculated by subtracting capital expenditures (Purchase of Property, Plant & Equipment, Transition and Transformation Contract Costs and Software Purchased or Developed) from cash flow from operations. Free cash flow for the third quarter of fiscal year 2025 is calculated by subtracting capital expenditures of $167 million from cash flow from operations of $650 million. Free cash flow for the third quarter of fiscal year 2024 is calculated by subtracting capital expenditures of $121 million from cash flow from operations of $706 million.

https://investors.dxc.com/investor-news/news-details/2025/DXC-Technology-Reports-Third-Quarter-Fiscal-Year-2025-Results/default.aspx

General Atomics; General Dynamics (NYSE : GD)

About General Dynamics

General Dynamics is a global aerospace and defense company. From Gulfstream business jets and combat vehicles to nuclear-powered submarines and communications systems, people around the world depend on our products and services for their safety and security.

OUR BUSINESSES

Our portfolio spans the realm of the world's most technologically advanced business jets, wheeled combat vehicles, command and control systems and nuclear submarines. We offer these through our five business groups: Aerospace, Combat Systems, Information Technology, Mission Systems and Marine Systems.

AEROSPACE
Gulfstream produces the world's most technologically advanced business aircraft and offers unmatched global product support and service.
Jet Aviation provides comprehensive business aviation services, custom completions and a global network of facilities to aircraft owners and operators.
COMBAT SYSTEMS

COMBAT SYSTEMS IS A GLOBAL LEADER IN DESIGNING, MANUFACTURING AND INTEGRATING SOME OF THE WORLD’S BEST-PERFORMING LAND COMBAT MACHINES

Our facilities around the world produce wheeled and tracked combat vehicles, to include the Stryker family of vehicles and the Abrams main battle tank. This platform portfolio is supported by a broad range of high-performance weapons systems and munitions.
European Land Systems is a global leader in the design and manufacture of wheeled and tracked vehicles and bridge systems.
Land Systems delivers powerful military vehicles, including the Abrams tank, Stryker combat vehicles, LAVs and AJAX armoured fighting vehicles.
Ordnance and Tactical Systems provides weapons systems for naval, air and ground forces applications across all calibers and weapons platforms.
INFORMATION TECHNOLOGY

Information Technology creates large-scale, secure IT networks and systems and professional services for U.S. defense and intelligence, state and local government and commercial customers.

ENTERPRISE IT INFRASTRUCTURE, NETWORK OPERATIONS AND MAINTENANCE

We support the full enterprise IT lifecycle, designing, integrating, operating, maintaining and modernizing complex data, voice and multimedia networks. Working closely with customers, we ensure their network infrastructures are secure, efficient, scalable and cost-effective.

LARGE-SCALE DATA CENTER OPTIMIZATION AND MODERNIZATION

We have extensive experience consolidating, building and operating data centers. We are at the forefront of agile development, big data analytics and cloud and virtualization technologies and services, offering solutions that meet multiple federal government and military compliance requirements.

HEALTH IT

We are a leading provider of Medicare-related IT systems and professional services for CMS, playing a pivotal role in every major Medicare initiative. We offer program management support for projects such as the Defense Health Information Management System's (DHIMS) EHR program, which develops, deploys and maintains the systems that make up the military's EHR, the world's largest.

PROFESSIONAL AND TECHNICAL SUPPORT SERVICES

GDIT offers a comprehensive range of professional and technical services to meet technology, operational, critical planning and staffing needs. We provide these services to the U.S. Department of Homeland Security, U.S. Special Operations Command, and intelligence and defense customers, as well as to federal civilian agencies.

TRAINING SYSTEMS AND SERVICES

We offer advanced training strategies and technologies for military operations, range support, simulation and professional development. Our state-of-the-art integrated live, virtual and constructive training work is backed by longstanding experience in all areas of training combined with preeminent system integration capabilities.

MISSION SYSTEMS

MISSION SYSTEMS IS A LEADING INTEGRATOR OF C4ISR SOLUTIONS FOR LAND, SEA, AIR, SPACE AND CYBER DEFENSE

We have an established global presence in secure communications systems, command-and-control systems, sensors and cyber products.

COMMUNICATIONS SYSTEMS

We are a leading manufacturer and integrator of tactical, secure communications systems, including fixed and mobile radio and satellite communications systems and antenna technologies and broadband networking. We are delivering the U.S. Army’s backbone mobile communications network, providing tactical voice and data communications to soldiers anywhere on the battlefield. For the Canadian Department of National Defence, we developed, deployed and continue to modernize and support the Canadian Army’s fully integrated, secure combat voice and data network. We leveraged this experience to deliver the U.K. MoD’s Bowman tactical communication system for which we provide ongoing support and capability upgrades.

COMMAND AND CONTROL SYSTEMS

We deliver the systems that help our customers plan, execute and manage their missions. Mission Systems has a 50-year legacy of providing advanced fire-control systems for U.S. Navy submarine programs and we are developing and integrating commercial off-the-shelf software and hardware upgrades to improve the tactical control capabilities for several submarine classes. We developed the combat and seaframe control systems and we are the lead systems integrator for the Navy’s Independence-variant Littoral Combat Ship (LCS) and the electronic systems for the Navy’s Joint High Speed Vessel (JHSV).

CYBER SECURITY SOLUTIONS AND PRODUCTS

We deliver comprehensive cyber security-related products and services to help customers defend and protect their networks from the persistent and growing cyber threat. For more than 45 years we have developed information assurance technologies integral to defending critical information. We defend networks against dynamic threats by developing, deploying and sustaining encryption products, systems and services. Mission Systems builds, integrates and optimizes networks, providing resilient end-to-end solutions.

IMAGERY, SIGNALS INTELLIGENCE AND MULTI-INTELLIGENCE SOLUTIONS

We design, build, deploy and support ISR solutions including signals and information collection, processing and distribution systems and imagery sensors. We deliver multi-intelligence ground systems and large-scale, high-performance data and signal processing. Our high-reliability, long-life sensors and payloads are designed to perform in the most extreme environments, including space payloads and undersea sensor and power systems.

MARINE SYSTEMS

THE MARINE SYSTEMS GROUP DESIGNS, BUILDS AND REPAIRS COMPLEX SHIPS

Our shipyards design, build and repair nuclear-powered submarines, surface combatants, auxiliary and combat-logistics ships and commercial Jones Act ships. With locations on both U.S. coasts, we have a long history as one of the primary shipbuilders for the U.S. Navy, constructing, delivering and maintaining the next generation of platforms.

Bath Iron Works has delivered the world's most formidable ships, like the Arleigh Burke- and Zumwalt-class vessels, to naval and commercial fleets since 1884.

Electric Boat is a premier submarine builder. We have delivered 15 of the U.S. Navy's 19 classes of nuclear submarines.

NASSCO specializes in the design and construction of auxiliary and support ships, oil tankers and dry cargo carriers. It is also a major provider of repair services for the U.S.

https://www.gd.com/en

General Dynamics Reports Fourth-Quarter and Full-Year 2024 Financial Results

January 29, 2025 Press Release

Fourth-quarter net earnings of $1.1 billion, diluted EPS of $4.15, on $13.3 billion in revenue
Full-year net earnings of $3.8 billion, diluted EPS of $13.63, on $47.7 billion in revenue
$2.2 billion net cash provided by operating activities in the quarter, 188% of net earnings
Ended the year with $90.6 billion in backlog

RESTON, Va. – General Dynamics (NYSE: GD) today reported quarterly net earnings of $1.1 billion, up 14.2% from the year-ago quarter, on revenue of $13.3 billion, up 14.3% over the year-ago quarter. Diluted earnings per share (EPS) was $4.15, up 14% from the year-ago quarter.

For the full year, net earnings were $3.8 billion, up 14.1% from 2023, on revenue of $47.7 billion, up 12.9% from 2023. Diluted EPS for the full year was $13.63, up 13.4% from 2023.

“We had a solid fourth quarter, capping off a year that saw steady growth in revenue and earnings across all four segments,” said Phebe N. Novakovic, chairman and chief executive officer. “Order activity continued to be very strong, with 1-to-1 book-to-bill for the year, even as revenue grew by 13%, positioning us well for continued growth.”

Gulfstream delivered 47 aircraft in the quarter, of which 42 were large-cabin aircraft. The company delivered a total of 136 aircraft during the year, of which 118 were large-cabin aircraft.

Cash

Net cash provided by operating activities in the quarter totaled $2.2 billion, or 188% of net earnings. For the year, net cash provided by operating activities totaled $4.1 billion, or 109% of net earnings.

During the year, the company invested $916 million in capital expenditures, made tax payments of $560 million, repaid fixed rate notes of $500 million, and returned $3 billion to shareholders through dividends and share repurchases, ending 2024 with $1.7 billion in cash and equivalents on hand.

Backlog

Orders remained strong across the company with a consolidated book-to-bill ratio, defined as orders divided by revenue, of 0.9- to-1 for the quarter and 1-to-1 for the year. The company ended the year with backlog of $90.6 billion and estimated potential contract value, representing management’s estimate of additional value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, of $53.4 billion. Total estimated contract value, the sum of all backlog components, was $144 billion at year end, up 9.1% from a year earlier.

In the Aerospace segment, orders in the quarter totaled $3.8 billion. Backlog at the end of the year was $19.7 billion. Aerospace book-to-bill was 1-to-1 for the quarter and the year.

In the three defense segments, significant awards in the quarter include a U.S. Air Force contract with maximum potential value of $5.6 billion to modernize, integrate and operate the Department of Defense’s Mission Partner Environments (MPEs); a U.S. Space Force contract with maximum potential value of $2.2 billion to provide sustainment services for the Mobile User Objective System (MUOS) satellite communications system; $1.9 billion from the U.S. Navy for multiple contracts to provide services, materials and parts for Virginia-class submarines; $370 million from the U.S. Army for the production of 155mm artillery projectile metal parts; contracts for various munitions and ordnance with maximum potential value of $820 million; and several key contracts for classified customers with maximum potential value of $1.4 billion.

https://www.gd.com/Articles/2025/01/29/general-dynamics-reports-fourth-quarter-and-full-year-2024-financial-results

Huntington Ingalls Industries (NYSE: HII)

About Huntington Ingalls

Huntington Ingalls Industries is America’s largest military shipbuilding company and a provider of professional services to partners in government and industry. For more than a century, HII’s Newport News and Ingalls shipbuilding divisions in Virginia and Mississippi have built more ships in more ship classes than any other U.S. naval shipbuilder. HII’s Technical Solutions division provides a wide range of professional services through its Fleet Support , Mission Driven Innovative Solutions , Nuclear & Environmental , and Oil & Gas groups. Headquartered in Newport News, Virginia, HII employs more than 41,000 people operating both domestically and internationally.

Builder of the most complex ships in the world for 133 years at Newport News , and 81 years at Ingalls .
Sole builder of U.S. Navy aircraft carriers , the world’s largest warships, and one of two builders constructing nuclear-powered submarines .
Exclusive provider of refueling services for nuclear-powered aircraft carriers, at the forefront of new ship technologies, specialized manufacturing capabilities and nuclear facility management.
Largest industrial employer in Virginia and Mississippi, and an employer in Louisiana and Alabama.
Largest supplier of U.S. Navy surface combatants—has built more than 70 percent of Navy fleet of warships.
Builder-of-record for 41 DDG 51 class Aegis guided missile destroyers .
Builder of record for the LHA 6 class large-deck amphibious ships and the sole builder of the Navy’s newest fleet of the San Antonio (LPD 17) class amphibious assault ships .
Builder-of-record for the flagship of the U.S. Coast Guard – the National Security Cutter.
Provider of a wide variety of products and services to the nuclear energy, oil and gas markets, including Department of Energy
Provider of mission critical and practical solutions to a wide variety of government and commercial customers worldwide through Technical Solutions .
Unrivalled experience in modular engineering and construction with innovative new solutions for upstream, midstream and downstream energy infrastructure.
Employs approximately 5,000 engineers and designers.

https://www.huntingtoningalls.com/who-we-are/

Huntington Ingalls - Huntington Ingalls Industries Completes Acquisition of Alion Science and Technology - 19/8/2021

NEWPORT NEWS, Va., (Aug. 19, 2021) -- Huntington Ingalls Industries (NYSE:HII) announced today that it has completed the acquisition of Alion Science and Technology, a technology-driven solutions provider located in McLean, Virginia, from Veritas Capital, a leading investor in companies operating at the intersection of technology and government.

Alion provides advanced engineering and R&D services in the areas of ISR, military training and simulation, cyber and data analytics and other next-generation technology based solutions to the global defense marketplace. Alion has more than 3,200 employees with over 80% of employees maintaining security clearances.

“Alion greatly expands our ability to provide leading-edge solutions to the nation’s most complex national security challenges,” said Andy Green, HII executive vice president and president of HII’s Technical Solutions division. “Alion is a perfect complement to our existing capabilities in the technology-driven defense and federal solutions space. The services and products they provide are directly in line with the strategic focus that we have articulated for Technical Solutions. Most importantly, we are excited to welcome such a widely respected group of experts to our team.”

https://newsroom.huntingtoningalls.com/releases/huntington-ingalls-industries-completes-acquisition-ofalion-science-and-technology

HII Reports Fourth Quarter and Full Year 2024 Results

NEWPORT NEWS, Va. (February 6, 2025) — HII (NYSE: HII) reported fourth quarter 2024 revenues of $3.0 billion compared to $3.2 billion in the fourth quarter of 2023. The decrease was driven by lower volume at all segments compared to the prior year.

Highlights

Revenues were $3.0 billion in the fourth quarter, $11.5 billion in 2024
Diluted earnings per share was $3.15 in the fourth quarter, $13.96 in 2024
Backlog of $48.7 billion at year-end
Achieved critical shipbuilding milestones in 2024, including delivery of Virginia -class submarine New Jersey (SSN 796) and amphibious transport dock Richard M. McCool Jr. (LPD 29)
Mission Technologies secured awards with total contract value of over $12 billion in 2024

NEWPORT NEWS, Va. (February 6, 2025) - HII (NYSE:HII) reported fourth quarter 2024 revenues of $3.0 billion compared to $3.2 billion in the fourth quarter of 2023. The decrease was driven by lower volume at all segments compared to the prior year.

Segment operating income2 in the fourth quarter of 2024 was $103 million and segment operating margin was 3.4%, compared to $330 million and 10.4%, respectively, in the fourth quarter of 2023. The decreases were driven by lower performance at Newport News Shipbuilding, as well as prior year results that included the benefit of both the sale of a favorable court judgment in Ingalls Shipbuilding results and the favorable settlement of an insurance claim in Mission Technologies results.

Fourth quarter 2024 operating income of $110 million and operating margin of 3.7%, compared to $312 million and 9.8%, respectively, in the fourth quarter of 2023.

Diluted earnings per share in the quarter was $3.15, compared to $6.90 in the fourth quarter of 2023.

For the full year, revenues of $11.5 billion increased less than 1% over 2023, due to higher volumes at Mission Technologies and Ingalls Shipbuilding, largely offset by lower volumes at Newport News Shipbuilding.

Segment operating income2 in 2024 was $573 million and segment operating margin2 was 5.0%, compared to $842 million and 7.4%, respectively, in 2023, the decrease was primarily driven by lower performance at Newport News Shipbuilding, as well as prior year results that included the benefit of both the sale of a favorable court judgment in Ingalls Shipbuilding results and the favorable settlement of an insurance claim in Mission Technologies results.

Operating income in 2024 was $535 million and operating margin was 4.6%, compared to $781 million and 6.8%, respectively, in 2023.

Diluted earnings per share for the full year was $13.96, compared to $17.07 in 2023.

Net cash provided by operating activities in 2024 was $393 million and free cash flow2 was $40 million, compared to $970 million and $692 million, respectively, in 2023.

New contract awards in 2024 were approximately $12.1 billion, bringing total backlog to approximately $48.7 billion as of December 31, 2024.

Chris Kastner, HII’s president and CEO, said, “We continue to make progress on ships put under contract pre-COVID, and are working diligently with our customers to put over $50 billion of new work under contract. Mission Technologies continued its strong track record of top line growth and margin expansion and secured an impressive $12 billion in total future contract value during 2024. We enter 2025 focused on our mission to deliver the world’s most powerful ships and alldomain solutions in service of the nation.”

https://hii.com/news/hii-reports-fourth-quarter-and-full-year-2024-results/

Lockheed Martin (NYSE: LMT)

About Lockheed Martin

Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 105,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

Organization

Lockheed Martin's operating units are organized into broad business areas.

Aeronautics , with approximately $21.2 billion in 2018 sales which includes tactical aircraft, airlift, and aeronautical research and development lines of business.

Missiles and Fire Control , with approximately $8.5 billion in 2018 sales that includes the Terminal High Altitude Area Defense System and PAC-3 Missiles as some of its high-profile programs.

Rotary and Mission Systems , with approximately $14.3 billion in 2018 sales, which includes Sikorsky military and commercial helicopters, naval systems, platform integration, and simulation and training lines of business.

Space , with approximately $9.8 billion in 2018 sales which includes space launch, commercial satellites, government satellites, and strategic missiles lines of business.

Financial Performance

2018 Sales: $53.8 billion

Backlog: $130.5 billion

Cash Flow from Operations: $3.1 billion (after annual pension contributions of $5.0 billion)

Stock Ticker Symbol: LMT, on the New York Stock Exchange. Ranked 59th on the 2018 Fortune 500 list of largest industrial corporations

Where We Are

Employees: Approximately 105,000 employees in the United States and internationally

Operations: 375+ facilities and 16,000 active suppliers, including suppliers in every U.S. state and more than 1,000 suppliers in over 50 countries outside the U.S.

https://lockheedmartin.com/en-us/who-we-are.html

Lockheed Martin Reports Fourth Quarter and Full Year 2024 Financial Results

2024 net sales increased 5% to $71.0 billion
Recorded pre-tax losses of $1.7 billion and $2.0 billion associated with classified programs in the fourth quarter and full year, which impacted earnings per share by $5.45 and $6.16
Earnings per share of $2.22 in the fourth quarter and $22.31 in 2024, including impact of classified programs losses
Cash from operations of $7.0 billion and free cash flow of $5.3 billion in 2024 after a pension contribution of $990 million
Returned $6.8 billion of cash to shareholders through dividends and share repurchases in 2024
Record backlog of $176.0 billion at end of 2024
2025 financial outlook provided

BETHESDA, Md., Jan. 28, 2025 /PRNewswire/ -- Lockheed Martin Corporation [NYSE: LMT] today reported fourth quarter 2024 net sales of $18.6 billion, compared to $18.9 billion in the fourth quarter of 2023. Net earnings in the fourth quarter of 2024 were $527 million, or $2.22 per share, including $1.7 billion ($1.3 billion, or $5.45 per share, after-tax) of losses for classified programs, compared to $1.9 billion, or $7.58 per share, in the fourth quarter of 2023. Cash from operations was $1.0 billion in the fourth quarter of 2024, after a pension contribution of $990 million, compared to $2.4 billion in the fourth quarter of 2023. Free cash flow was $441 million in the fourth quarter of 2024, after a pension contribution of $990 million, compared to $1.7 billion in the fourth quarter of 2023. Fourth quarter 2024 results included 13 weeks, compared to 14 weeks for fourth quarter 2023, which had an unfavorable impact on sales volume across the company.

Net sales in 2024 were $71.0 billion, compared to $67.6 billion in 2023. Net earnings in 2024 were $5.3 billion, or $22.31 per share, including $2.0 billion ($1.5 billion, or $6.16 per share, after-tax) of losses for classified programs, compared to $6.9 billion, or $27.55 per share, in 2023. Cash from operations was $7.0 billion in 2024, after a pension contribution of $990 million, compared to $7.9 billion in 2023. Free cash flow was $5.3 billion in 2024, after a pension contribution of $990 million, compared to $6.2 billion in 2023.

"2024 was another successful and productive year for Lockheed Martin. Our 5% sales growth and record year-end backlog of $176 billion demonstrate the enduring global demand for our advanced defense technology and systems," said Jim Taiclet, Lockheed Martin's Chairman, President and CEO. "In the year, we invested over $3 billion in advancing our nation's security through research and development and capital investment to support our customers' missions, drive innovation and transform our operations with the latest digital and manufacturing technologies. Our strong and consistent performance also enabled us to again return greater than 100% of free cash flow to our shareholders in 2024."

"We also continue to drive collaboration across government and all sectors of American industry to accelerate innovation, improve resilience and integrate emerging technologies to deter, and if necessary to win any potential armed conflict," continued Taiclet.

"Lockheed Martin is committed to developing and delivering the best military capabilities in the world, better than any potential adversary can hope to have. One of our most critical investments in 2024 was in ensuring continued air superiority for the United States and its allies. We are fully committed to developing a combined air power solution set that integrates new 6th generation with current 5th generation and 4th generation aircraft using wingman drones, AI, advanced sensors in space and in the air, and 5G-level, cyber-hardened data links. Our leading technical and manufacturing capabilities, the innovative spirit that originated in our Skunk Works® operation, our incredibly capable workforce, along with the derisking actions we executed in the fourth quarter, position us well for strong performance in 2025. We look forward to working with the incoming administration to best serve our customers with highly reliable, theater-level mission solutions that can win wars while delivering compelling results to our shareholders."

Earnings Impacts of Classified Program Losses and Other Items

During the fourth quarter of 2024, the company recognized losses associated with existing classified programs at its Aeronautics and Missiles and Fire Control (MFC) business segments.

The company's Aeronautics business segment has an existing classified fixed-price incentive fee contract that involves highly complex design and systems integration. The program includes a base contract for the initial phase of the program and multiple options for additional phases. The company previously disclosed it continues to monitor the technical requirements and its performance, the remaining work and any future changes in scope or schedule, and estimated costs to complete the program, and it may have to record additional losses in future periods if further performance issues, increases in scope, or cost growth occur. As a result of performance trends experienced in the fourth quarter 2024 and in contemplation of near-term program milestones, the company performed a comprehensive review of the program requirements, technical complexities, schedule, and risks. Based on that review, the company has identified higher projected costs in engineering and integration activities that are necessary to achieve those forthcoming milestones and recognized losses across the program phases of $410 million in the fourth quarter of 2024. As of December 31, 2024, losses for the year were approximately $555 million, including the fourth quarter loss.

The company's MFC business segment has an existing classified contract, which includes a cost-reimbursable base contract for the initial phase of the program and multiple fixed-price options for additional phases. The company previously disclosed the options may be exercised over the next several years and if performed expects they would each be at a loss. During the first quarter of 2024, the company concluded it was probable that the first option would be exercised and recognized a loss of approximately $100 million. During the fourth quarter of 2024, the company again assessed the likelihood that additional options may be exercised and now believe it is probable that all options will be exercised based on performance to date, future requirements of the program, discussions with the customer and suppliers, and anticipated customer funding, among other factors, resulting in the recognition of additional losses of approximately $1.3 billion, which is consistent with the amount the company previously disclosed. For the year ended Dec. 31, 2024, MFC recognized losses of $1.4 billion for this program, including the fourth quarter loss.

https://news.lockheedmartin.com/2025-01-28-Lockheed-Martin-Reports-Fourth-Quarter-and-Full-Year-2024-Financial-Results

Irkut Corp (UAC)

About Irkut

Irkut Corporation Joint-Stock Company, a UAC member, provides complete solutions in military and civil aircraft design, testing, manufacture, marketing, sales, and after-sales support.

Irkut Corporation was created in 2002 on the basis of Irkutsk Aviation Production Association. A.S. Yakovlev Design Bureau JSC was established in 1927 and in 2004 was integrated into the corporate structure of Irkut Corporation. Today traditions of this outstanding Bureau are continued by the Yakovlev Engineering Center, the main R&D unit of Irkut Corporation.

Series production and development of prototypes is carried out by the Irkutsk Aviation Plant (IAP), an affiliate of Irkut Corporation, which has been manufacturing various types of aircraft since 1934.

Irkut Corporation has increased its revenue four-folds since its inception, and ranks the highest among all United Aircraft Corporation (UAC) enterprises in terms of cost-effectiveness.

Irkut Corporation as the leading contractor delivers Su-30SM and Yak-130 aircraft to Russian Federation’s Ministry of Defence.

For export Irkut Corporation offers Su-30MK, Su-30SM and Yak-130 aircraft in cooperation with the Russian Federal Service for Military-Technical Cooperation and Rosoboronexport JSC.

Irkut Corporation was awarded with title of «The best exporter» in the aircraft manufacturing category by the Russia’s Ministry for Industry and Trade six years in a row, since 2009.

Additionally, Corporation participates in international industrial cooperation while manufacturing components for the Airbus A320 airliner family.

Pursuing the diversification strategy, Irkut Corporation develops and manufactures the МС-21 short/mid range airliner family.

The Corporation’s quality management system is certified according to the EN/AS 9100:2009 standards which is applicable to the main processes, organizational units and suppliers thus guaranteeing quality at all stages of the product life cycle.

In terms of flight safety, Irkut Corporation meets the requirements of Annex 19 of the Convention on International Civil Aviation Flight Safety Management and the Air Code of the Russian Federation.

Irkut Corporation owes its achievements to a competent staff totaling more than 14,000 employees.

http://eng.irkut.com/about/irkut-today/

Irkut Corporation publishes financial IFRS statements for 2016

25 April 2017

On April 24 Irkut Corporation (UAC member) issued consolidated financial statements according to International Financial Reporting Standards (IFRS) for 2016.

In the reporting year, Irkut Corporation's revenue increased by 17%, reaching almost 1.624 bln US$ against 1.386 bln US$ in 2015.
The growth was achieved mainly due to 62% increase in export proceeds. The gross margin in 2016 was 28% compared to 16% in 2015.
The profit from operating activities in 2016 exceeded 121 mln US$, which completely covered the Corporation's borrowing costs.
The net profit of the Corporation by the results of 2016 amounted to 18.219 mln US$.
The net profit for 2016 exceeded 1.1%.

Irkut Corporation carries out serial production of Su-30SM and Su-30MK multirole fighters, developing Yak-130 combat-trainer, testing new Yak-152 primary trainer aircraft. Being the prime contractor, Irkut Corporation develops the family of МС-21 commercial short/mid range airliners.

http://eng.irkut.com/press-centre/news/2211/

L3Harris Technologies (NYSE: LHX)

L3Harris Technologies is an agile global aerospace and defense technology innovator, delivering end-to-end solutions that meet customers’ mission-critical needs. We provide advanced defense and commercial technologies across air, land, sea, space and cyber domains. We bring speed, innovation and flawless execution together with our commitment to make the world safer and more secure.

https://www.l3harris.com/who-we-are

L3Harris Technologies Reports Fourth Quarter and Full-Year 2024 Results, Initiates 2025 Guidance

Highlights*

2024 orders of $24.2 billion; book-to-bill of 1.14x
2024 revenue of $21.3 billion, up 10%, and 4% organically
2024 cash from operations of $2.6 billion, adjusted free cash flow of $2.3 billion
4Q24 revenue of $5.5 billion, up 3%, and 4% organically
4Q24 operating margin of 10.3% and 9.0% for 2024
4Q24 adjusted segment operating margin of 15.3% and 15.4% for 2024
4Q24 diluted earnings per share (EPS) of $2.37 and $7.87 for 2024
4Q24 non-GAAP diluted EPS of $3.47 and $13.101 for 2024

MELBOURNE, Fla., January 30, 2025 — L3Harris Technologies (NYSE: LHX) reported fourth quarter 2024 diluted EPS of $2.37 on fourth quarter 2024 revenue of $5.5 billion. Fourth quarter 2024 non-GAAP diluted EPS was $3.47. Fourth quarter results reflect growth in the business and continued operational efficiencies driving margin improvement. Reconciliations of non-GAAP results are detailed in tables beginning on page 13.

"2024 was a year of significant accomplishments as we delivered on our financial commitments, underscoring our agility and position as the defense industry’s Trusted Disruptor, and achieved a record backlog of $34 billion. These results reflect our alignment with customer priorities, driving strong demand across all domains. Through our LHX NeXt initiative, we exceeded our cost-savings target for 2024, achieving $800 million, and are raising our overall cost-savings goal to $1.2 billion by the end of 2025, a year ahead of schedule," said Christopher E. Kubasik, Chair and CEO.

Kubasik added, "As we move into 2025, our momentum remains strong, driven by strong bookings, a robust pipeline, expanding international opportunities, and continued transformation and operational improvements. We are on track to achieve our 2026 financial framework and remain committed to returning excess cash to shareholders. We are confident in our ability to sustain profitable growth and drive long-term value for our stakeholders. We are the agile defense player that is able to rapidly adapt to changing industry dynamics to deliver mission-critical capabilities for our customers."

https://www.l3harris.com/newsroom/press-release/2025/01/l3harris-technologies-reports-fourth-quarter-full-year-2024-results

Naval Group (formerly DCNS)

About Naval group

NAVAL GROUP IS THE EUROPEAN LEADER IN NAVAL DEFENCE.

As an international high-tech company, Naval Group uses its extraordinary know-how, unique industrial resources and capacity to arrange innovative strategic partnerships to meet its clients’ requirements.

The group designs, produces and supports submarines and surface ships. The group also provides services for naval shipyards and bases. In addition, the group offers a wide range of marine renewable energy solutions.

Aware of its corporate social responsibilities, Naval Group is a member of the United Nations Global Compact. The group reports revenues of €3.6 billion and has a workforce of 14,670employees (data for 2018).

https://www.naval-group.com/en/group/en-profil/presentation/

Naval Group Achieves a Record Level of Orders In 2019

21.02.2020

3 billion euros of order intake (+44% vs 2018), including 3 billion internationally, taking the order book to 15 billion euros
Sales of 3.7 billion euros (+3% vs 2018)
EBITA up to 282 million euros, taking operating profitability up to 7.6%
Robust outlook for 2020

Naval Group’s Board of Directors met on 20 February 2020 to review the financial statements for the 2019 reporting period closed on December 31 st .

Main consolidated data

(in millions of euros, IFRS standards)	2019	2018	Variation
Order intake	5,306	3,686	+44%
Order book	15,062	13,830	+9%
Sales	3,712	3,608	+3%
EBITA [1] Operating profit (EBITA/sales) in %	282.0 7.6%	265.9 7.4%	+6% +0.2 pt
Consolidated net income – group share	188.2	178.2	+6%

[1] Earnings before interest, tax and amortisation

Commenting on these results, Hervé Guillou, Chairman and CEO of Naval Group, declared: “Naval Group once again confirms the soundness of its strategic position as an industrial prime contractor, designer and integrator of whole warships and combat systems, as well as the good progress of its development plan. The operational milestones, both in France and internationally, have all been met. Among the most striking illustrations, we are proud to have launched the Suffren, the first next-generation SSN, and to have cut the first metal sheet for the defence and intervention frigate (FDI), a digital frigate intended for the French Navy. Internationally, we have delivered the Khanderi to the Indian Navy but also signed the design contract for the Australian Future Submarine program. We are benefiting from a dynamic market situation and, despite increasingly fierce competition, we won bids for more than twenty ships in five new countries. We also play a pivotal role in European alliances and have set up Naviris, a joint company with Fincantieri, our long-standing Italian partner. Our operational and financial performance enables us to guarantee our ability to finance the future long-term growth of the company.”

Frank Le Rebeller, Senior Executive Vice President Finance, Legal, Purchasing and Real Estate, added: “Order intake in 2019 reached record levels. The results for the 2019 reporting period (produced according to IFRS standards and in particular the IFRS 15 standard since 2018), for the fifth consecutive year, show progress in sales, which stand at 3.7 billion euros, along with an improvement of operating profitability, which has shown a steady increase since 2015 and this year reached 7.6%. Consolidated net income (group share) amounts to nearly 190 million euros, thus raising our equity to 1.2 billion euros. These results are slightly over than our targets. They reflect a solid financial situation, more particularly characterised by levels of profitability in line with our targets and a robust level of equity that has been reconstituted over the past four years. We continued our overall investment efforts, which increased to nearly 480 million euros, in particular in innovation, R&D and digitisation. Our development is creating significant need for recruitment and in 2019 we welcomed 1,500 new colleagues.”

Order intake: 5.3 billion euros (+44% vs 2018), including 3 billion internationally, raising the order book to 15 billion euros

The order intake over the 2019 reporting period amounts to 5.3 billion euros, boosting the order book which now stands at 15 billion euros. Orders recorded in France and overseas for the 2019 reporting period benefited all sectors. In France, in new construction, the main notifications concerned the sixth nuclear-powered attack submarines (SSN) for the Barracuda program. The main contract awarded for new constructions internationally is the program for twelve minehunters and their toolboxes for the Belgian and Dutch navies. Finally, regarding services, several multi-year availability contracts were notified, notably the routine maintenance contract for the ballistic-missile submarines (SSBN) for 2020-2025, as well as the maintenance contract for the Egyptian Navy.

For the year 2019, the book-to-bill ratio (order intake divided by sales), which measures the order book’s renewal rate, stands at 1.4, and at 1.2 for the past three years.

Activity: increased sales

The consolidated sales amount to 3,712 million euros. Its 3% increase over 2018 was driven by the major national programs, mainly the Barracuda program, the multimission frigates program and the defence and intervention frigates program. The Australian program also contributed to Naval Group sales. Finally, services represented a key component, with a 41% share. For France, they include in-service support for first rank surface ships and nuclear submarines of the French Navy. Internationally, they include the periodic docking for maintenance of the Malaysian submarines, as well as the adaptation and modernisation of the Bouchard corvette for the Argentinian Navy, delivered two months ahead of schedule.

Profitability: significant growth of EBITA and operating profit

EBITA (earnings before interest, tax and amortisation) totalled 282 million euros. Its progress compared to 2018 drives an increase in operating profitability, which has risen from 7.4% in 2018 to 7.6% in 2019, placing Naval Group as the leader of the naval defence sector in Europe.

This progression shows the operational improvement of all naval programs and the effectiveness of the improvement plans undertaken for over five years.

Group net income is 188.2 million euros, up by almost 10 million euros compared to 2018. This result increases the group’s consolidated equity to 1.2 billion euros.

Strong prospects for 2020

In 2019, Naval Group hired more than 1,500 new staff, taking the group’s total workforce to more than 15,000, presenting an increase of nearly 10% compared to 2018 levels. This trend will continue thanks in particular to numerous initiatives such as the opening of the arrangement designer school on the Cherbourg site and the Naval Industries Campus, which has been launched last November by the French Minister for Education.

Naval Group is also accelerating its investments, worth nearly 480 million euros, specifically targeting open and collaborative innovation, the development of international activities and trade relations, as well as industrial and IT equipment.

Lastly, thanks to its increased capacity to invest, Naval Group will pursue the internationalisation of its activity. This deployment will more specifically be driven by Naviris, its joint-venture with Fincantieri, which will allow a joint response to some calls for tender and sharing of R&D activities for surface ships.

The prospects for 2020 are robust, with expected sales growth of about 5% and a rise in consolidated net income (group share) of about 10%.

https://www.naval-group.com/en/news/naval-group-achieves-a-record-level-of-orders-in-2019/

Raytheon Company (NYSE: RTN)

About Raytheon

Raytheon Company is a technology and innovation leader specializing in defense, civil government and cybersecurity solutions. Founded in 1922, Raytheon provides state-of-the-art electronics, mission systems integration, C5I ™ products and services, sensing, effects and mission support services. Raytheon is headquartered in Waltham, Massachusetts.

On June 9, 2019, Raytheon and United Technologies entered into an agreement to combine in an all-stock merger of equals. The combined company will offer expanded technology and R&D capabilities to deliver innovative and cost-effective solutions aligned with customer priorities. The merger is expected close in the first half of 2020.

https://www.raytheon.com/ourcompany

Businesses

Raytheon is an international aerospace and defense company headquartered in Waltham, Massachusetts. Our four businesses work together to craft solutions for a wide variety of government and commercial customers.

INTEGRATED DEFENSE SYSTEMS

Integrated Defense Systems specializes in air and missile defense, large land- and sea-based radars and systems for managing command, control, communications, computers, cyber, intelligence, surveillance and reconnaissance. It also produces sonars, torpedoes and electronic systems for ships.

Capabilities include:

Missile Defense
Command and Control
Sensors and Imaging
Electronic Warfare
Precision Weapons

INTELLIGENCE, INFORMATION AND SERVICES

Intelligence, Information and Services provides cybersecurity products and services. It also offers a full range of training, space, logistics and engineering solutions for government and civilian customers.

Capabilities include:

Cyber
Command and Control
Sensors and Imaging
Mission Support
Training and Services

MISSILE SYSTEMS

Missile Systems is the world's premier missile maker, providing defensive and offensive weapons for air, land, sea and space, including interceptors for U.S. ballistic missile defense. The business also builds net-enabled battlefield sensors and includes Raytheon UK.

Capabilities include:

Precision Weapons
Missile Defense
Command and Control
Sensors and Imaging
Electronic Warfare

SPACE AND AIRBORNE SYSTEMS

Space and Airborne Systems builds radars and other sensors for aircraft, spacecraft and ships. The business also provides communications and electronic warfare solutions and performs research in areas ranging from linguistics to quantum computing.

Capabilities include:

Electronic Warfare
Command and Control
Sensors and Imaging
Missile Defense
Training and Services

GLOBAL BUSINESS SERVICES

Raytheon Global Business Services (GBS) group provides innovative, high technology services and solutions to Raytheon’s businesses and functional organizations. GBS is led from Raytheon’s corporate headquarters in Waltham, Mass. and has employees at major Raytheon sites across the U.S. as well as some smaller domestic and international locations.

https://www.raytheon.com/ourcompany/businesses

RTX Reports 2024 Results and Announces 2025 Outlook

January 28, 2025

RTX exceeds 2024 sales and EPS expectations*; Expects continued sales, earnings, and cash flow growth in 2025

ARLINGTON, Va., Jan. 28, 2025 /PRNewswire/ -- RTX (NYSE: RTX) reports fourth quarter 2024 results and announces 2025 outlook.

Fourth quarter 2024

Sales of $21.6 billion, up 9 percent versus prior year, and up 11 percent organically* excluding divestitures
GAAP EPS was $1.10 and included $0.30 of acquisition accounting adjustments and $0.14 of restructuring and other net significant and/or non-recurring charges
Adjusted EPS* of $1.54, up 19 percent versus prior year
Operating cash flow of $1.6 billion; free cash flow* of $0.5 billion
Company backlog of $218 billion; including $125 billion of commercial and $93 billion of defense
Returned $852 million of capital to shareowners

Full year 2024

Reported sales of $80.7 billion
Adjusted sales* of $80.8 billion, up 9 percent versus prior year, and up 11 percent organically* excluding divestitures
GAAP EPS was $3.55 and included $1.20 of acquisition accounting adjustments and $0.98 of restructuring and other net significant and/or non-recurring charges
Adjusted EPS* of $5.73, up 13 percent versus prior year
Operating cash flow of $7.2 billion; free cash flow* of $4.5 billion
Returned $3.7 billion of capital to shareowners, returning over $33 billion since the merger

Outlook for full year 2025

Adjusted sales* of $83.0 - $84.0 billion, including 4 to 6 percent organic growth*
Adjusted EPS* of $6.00 - $6.15
Free cash flow* of $7.0 - $7.5 billion

"RTX delivered a very strong year of performance in 2024 with 11 percent organic sales growth* and 13 percent adjusted EPS growth*, including segment margin expansion* in all three businesses," said RTX President and CEO Chris Calio.

"We have strong momentum heading into 2025 with a $218 billion backlog and unprecedented demand for our products and solutions. We remain focused on advancing our strategic priorities of executing on our commitments, innovating for growth and harnessing the breadth and scale of RTX, giving us confidence in our 2025 financial outlook."

Fourth quarter 2024 RTX reported fourth quarter sales of $21.6 billion, up 9 percent over the prior year. GAAP EPS of $1.10 included $0.30 of acquisition accounting adjustments, $0.05 of restructuring, and $0.09 of other net significant and/or non-recurring charges. Adjusted EPS* of $1.54 was up 19 percent versus the prior year.

The company reported net income attributable to common shareowners in the fourth quarter of $1.5 billion which included $408 million of acquisition accounting adjustments, $61 million of restructuring, and $120 million of other net significant and/or non-recurring charges. Adjusted net income* of $2.1 billion was up 18 percent versus the prior year driven by growth in adjusted segment operating profit*, partially offset by higher taxes and lower pension income. Operating cash flow in the fourth quarter was $1.6 billion. Capital expenditures were $1.1 billion, resulting in free cash flow* of $0.5 billion.

Summary Financial Results – Operations Attributable to Common Shareowners

	4th Quarter			Twelve Months
($ in millions, except EPS)	2024	2023	% Change	2024	2023	% Change
Reported
Sales	$ 21,623	$ 19,927	9 %	$ 80,738	$ 68,920	17 %
Net Income	$ 1,482	$ 1,426	4 %	$ 4,774	$ 3,195	49 %
EPS	$ 1.10	$ 1.05	5 %	$ 3.55	$ 2.23	59 %

Adjusted*
Sales	$ 21,623	$ 19,824	9 %	$ 80,808	$ 74,305	9 %
Net Income	$ 2,071	$ 1,753	18 %	$ 7,705	$ 7,263	6 %
EPS	$ 1.54	$ 1.29	19 %	$ 5.73	$ 5.06	13 %

Operating Cash Flow	$ 1,561	$ 4,711	(67) %	$ 7,159	$ 7,883	(9) %
Free Cash Flow*	$ 492	$ 3,906	(87) %	$ 4,534	$ 5,468	(17) %

Segment Results

Collins Aerospace

Collins Aerospace had fourth quarter 2024 reported sales of $7,537 million, up 6 percent versus the prior year. The increase in sales was driven by a 13 percent increase in defense and a 12 percent increase in commercial aftermarket, partially offset by a 6 percent decrease in commercial OE. The increase in defense sales was driven by higher volume across multiple programs and platforms, including new programs awarded in 2024. The increase in commercial aftermarket sales was driven by continued growth in commercial air traffic, and the decrease in commercial OE sales was driven by lower narrow-body volume. Adjusted sales* of $7,537 million, were up 8 percent versus the prior year.

Collins Aerospace reported operating profit of $1,106 million, down 2 percent versus the prior year. This included a $155 million charge related to the impairment of contract fulfillment costs which was partially offset by a $99 million gain on the sale of the Hoist & Winch business. Q4 2023 included a benefit of $112 million from a customer settlement. On an adjusted basis, operating profit* of $1,207 million was up 17 percent versus the prior year. Operationally, the increase was driven by drop through on higher commercial aftermarket and defense volume, which was partially offset by lower commercial OE volume and unfavorable commercial OE mix.

Pratt & Whitney

	4th Quarter				Twelve Months
($ in millions)	2024	2023	% Change		2024	2023	% Change
Reported
Sales	$ 7,569	$ 6,439	18 %		$ 28,066	$ 18,296	NM
Operating Profit (loss)	$ 504	$ 382	32 %		$ 2,015	$ (1,455)	NM
ROS	6.7 %	5.9 %	80	bps	7.2 %	(8.0) %	NM

Adjusted*
Sales	$ 7,569	$ 6,439	18 %		$ 28,066	$ 23,697	18 %
Operating Profit	$ 717	$ 405	77 %		$ 2,281	$ 1,688	35 %
ROS	9.5 %	6.3 %	320	bps	8.1 %	7.1 %	100	bps
NM = Not Meaningful

Pratt & Whitney had fourth quarter 2024 reported and adjusted sales of $7,569 million, up 18 percent versus the prior year. The increase was driven by a 31 percent increase in commercial OE, a 17 percent increase in commercial aftermarket, and an 8 percent increase in military. The increase in commercial sales was driven by increased deliveries and favorable OE mix in Large Commercial Engines, and higher commercial aftermarket volume. The increase in military sales was driven by higher volume on F135 production, the F135 Engine Core Upgrade program, and F135 sustainment, which was partially offset by lower sustainment volume across legacy platforms, including the F100 and F117.

Pratt & Whitney reported operating profit of $504 million, up 32 percent versus the prior year. The increase was driven by favorable volume and mix in Large Commercial Engines OE, favorable mix in Pratt Canada aftermarket, and drop through on higher commercial aftermarket and military volume. Pratt & Whitney also benefited from an approximately $70 million insurance recovery. Reported operating profit included a $157 million charge related to a customer bankruptcy. On an adjusted basis, operating profit* of $717 million, was up 77 percent versus the prior year.

Raytheon

	4th Quarter				Twelve Months
($ in millions)	2024	2023	% Change		2024	2023	% Change
Reported
Sales	$ 7,157	$ 6,886	4 %		$ 26,713	$ 26,350	1 %
Operating Profit	$ 824	$ 604	36 %		$ 2,594	$ 2,379	9 %
ROS	11.5 %	8.8 %	270	bps	9.7 %	9.0 %	70	bps

Adjusted*
Sales	$ 7,157	$ 6,886	4 %		$ 26,783	$ 26,350	2 %
Operating Profit	$ 728	$ 618	18 %		$ 2,728	$ 2,434	12 %
ROS	10.2 %	9.0 %	120	bps	10.2 %	9.2 %	100	bps

Raytheon had fourth quarter 2024 reported and adjusted sales of $7,157 million, up 4 percent versus the prior year. The increase in sales was driven by higher volume on land and air defense systems, including Global Patriot, NASAMS and counter-UAS programs, as well as higher volume from the restart of contracts with a Middle East customer. This was partially offset by the impact from the divestiture of the Cybersecurity, Intelligence and Services business completed in the first quarter of 2024 and lower volume on air and space defense systems. Excluding the impact of the divestiture, sales were up 10 percent versus the prior year*.

Raytheon reported operating profit of $824 million, up 36 percent versus the prior year. The increase was driven by drop through on higher volume, improved net productivity, and favorable mix which was partially offset by the impact from the divestiture of the Cybersecurity, Intelligence and Services business. Reported operating profit included a $102 million benefit related to reserve adjustments associated with the restart of contracts with a Middle East customer. On an adjusted basis, operating profit* of $728 million was up 18 percent versus the prior year.

https://www.rtx.com/news/news-center/2025/01/28/rtx-reports-2024-results-and-announces-2025-outlook

Rolls-Royce (LSE: RR)

About Rolls-Royce

Rolls-Royce Holdings plc is a British multinational public holding company that through its subsidiaries, designs, manufactures and distributes power systems. For more than a hundred years Rolls-Royce has provided power for aircraft, ships and land applications. Rolls-Royce is best known for its aero engines but it produces also low–emission power systems for ships, power systems for a wide array of land vehicles: ranging from trains to combine harvesters, and builds engines which can generate electricity. Approximately half of Rolls-Royce’s revenues come from servicing power systems.

Rolls-Royce remains the second largest provider of defence aero-engine products and services globally with 16,000 engines in the service of 160 customers in 103 countries. Rolls-Royce engines power aircraft in every major sector including: transport; combat; patrol; trainers; helicopters; and unmanned aerial vehicles (UAVs).

Rolls-Royce has customers in over 150 countries and operates in more than 50 countries worldwide.

https://www.rolls-royce.com/

We are one of the world’s leading industrial technology companies.

Throughout our history, we have set out to achieve extraordinary goals.

Along the way, we have developed ground-breaking technologies, established new standards and shaped the world we live in. This quest has taken us from our founding expertise in internal combustion engines to providing the world’s most powerful and efficient aero-engines.

Civil Aerospace

Civil Aerospace is a major manufacturer of aero engines for the large commercial aircraft, regional jet and business aviation markets.

The business uses its engineering expertise, in-depth knowledge and capabilities to provide through-life support solutions for its customers.

35 Type of commercial aircraft powered by us
13,000 Engines in service around the world
47% Of total employees

Defence

Defence is the second largest provider of military aero-engine products and services globally, a major provider of maritime systems in the naval sector, as well as the technical authority for the nuclear steam raising plant powering the UK’s nuclear submarine fleet.

150 Customers in over 100 countries
16,000 engines in service around the world
19% Of total employees

Power Systems

Power Systems is a leading provider of high-speed reciprocating engines, complete propulsion systems, distributed energy solutions, and safety-critical systems for nuclear plants around the world.

1,200 Development, service product, and dealership location
20,000 Reciprocating engines sold per year
19% Of total employees

https://www.rolls-royce.com/about.aspx

Rolls-Royce Holdings Plc 2024 Full Year Results

Strong 2024 results; Mid-term Guidance upgraded; £1bn share buyback in 2025

Significant transformation progress as we expand the earnings and cash flow potential of the Group
Underlying operating profit of £2.5bn with a margin of 13.8%, reflecting the impact of our strategic initiatives, commercial optimisation and cost efficiency benefits
Free cash flow of £2.4bn driven by strong operating profit and continued LTSA balance growth supporting a net cash balance of £475m at the end of the year
Dividend of 6.0p per share in respect of the full year 2024, based on a 30% payout ratio of underlying profit after tax 1,2
2025 guidance of £2.7bn-2.9bn underlying operating profit and £2.7bn-2.9bn free cash flow; delivering our Capital Markets Day mid-term targets two years earlier than planned
£1bn share buyback to commence immediately for completion through 2025
Upgraded mid-term targets of £3.6bn-£3.9bn underlying operating profit, 15%-17% operating margin, £4.2bn-£4.5bn free cash flow, and 18%-21% return on capital based on a 2028 timeframe

Tufan Erginbilgic, CEO said: “Strong 2024 results build on our progress last year, as we transform Rolls-Royce into a high-performing, competitive, resilient, and growing business. All core divisions delivered significantly improved performance, despite a supply chain environment that remains challenging.

We are moving with pace and intensity. Based on our 2025 guidance, we now expect to deliver underlying operating profit and free cash flow within the target ranges set at our Capital Markets Day, two years earlier than planned. Significantly improved performance and a stronger balance sheet gives us confidence to reinstate shareholder dividends and announce a £1bn share buyback in 2025.

Our upgraded mid-term targets include underlying operating profit of £3.6bn-£3.9bn and free cash flow of £4.2bn-£4.5bn. These mid-term targets are a milestone, not a destination, and we see strong growth prospects beyond the mid-term.”

Full year 2024 performance summary

Strategic delivery: 2024 has been another year of strong strategic and financial delivery, building on our 2023 performance. Across these two years we have driven significantly improved performance: underlying operating profit has increased by £1.8bn to £2.5bn, operating margin by 8.7pts to 13.8%, free cash flow by £1.9bn to £2.4bn and return on capital has improved by 8.9pts to 13.8%.
Significantly growing operating margins: Underlying operating profit rose from £1.6bn in 2023 to £2.5bn in 2024, a 57% increase compared to the prior year, driven by our strategic initiatives including commercial optimisation and cost efficiency benefits across the Group. This was achieved despite ongoing supply chain challenges. Civil Aerospace’s operating margin rose to 16.6% (2023: 11.6%), driven by higher widebody aftermarket profit, stronger performance in business aviation and net contractual margin improvements. Defence delivered an operating margin of 14.2% (2023: 13.8%), with higher operating profit driven by stronger aftermarket performance alongside submarines growth. Power Systems delivered an operating margin of 13.1% (2023: 10.4%), primarily driven by stronger performance in power generation, supported by our business interventions. Delivery across all divisions has been supported by our cost efficiency actions.
Growing and sustainable cash flows: Strong free cash flow of £2.4bn (2023: £1.3bn) was achieved despite a challenging supply chain environment. This was driven by strong operating profit and continued net long-term service agreement (LTSA) balance growth, alongside a working capital release and higher net investments in the year. Civil Aerospace LTSA balance growth net of risk and revenue sharing arrangements (RRSAs) of £0.7bn (2023: £1.1bn) was supported by higher large engine flying hours (EFH) at 103% of 2019 levels (2023: 88%) and an improved EFH rate, partly offset by higher shop visits. Working capital was an inflow of £280m, compared to an outflow of £356m in the prior year. Since 2022, we have increased our net investments by £0.5bn and our working capital programme has helped to drive more than a 45 day improvement in inventory days and a 14 day improvement in days sales outstanding with more than a 40% decrease in overdue debt.
Strengthening our balance sheet and building resilience: Net cash stood at £475m at the end of 2024. This compares to a £2.0bn net debt position at the end of 2023. Gross debt was reduced by repaying a €550 million bond, and the remaining £1bn UK Export Finance (UKEF) supported undrawn loan facility was cancelled, both enabled by our growing and more resilient cash delivery. Liquidity remained robust at £8.1bn on 31 December 2024 (2023: £7.2bn). Our efforts to strengthen the balance sheet were recognised by all three credit ratings agencies, who rate us at investment grade with a positive outlook. In addition, the operating resilience of the Group has been improved. Total underlying cash costs as a proportion of underlying gross margin (TCC/GM) at year end was a best-in-class ratio of 0.47x (2023: 0.59x). We are creating a more robust and less volatile free cash flow delivery that is more resilient to the external environment.
Shareholder distributions: In line with our capital framework, now that the balance sheet is being strengthened, we are reinstating shareholder dividends in respect of the full year 2024. The cash dividend of 6p per share represents a 30% pay-out ratio of underlying profit after tax and will be paid subject to shareholder approval at our annual general meeting on 1 May 2025 1 . We are also pleased to announce a £1bn share buyback to be completed over the course of 2025.

1 The dividend will be paid on 16 June 2025 to ordinary shareholders on the register on 22 April 2025. In addition to the cash dividend, shareholders will be offered a dividend reinvestment plan

Transformation programme and strategic initiatives 2022 – 2024

The success of our transformation programme and strategic initiatives is evident in our financial performance over the past two years. We have made good progress, and there is still more to do. Our strategy framework is founded on four pillars.

Portfolio choices & partnerships

Rolls-Royce SMR was named the preferred supplier for the construction of Small Modular Reactors (SMRs) by the Government of the Czech Republic and the Czech State utility, ČEZ Group in late 2024. This is enabled by a strategic investment by ČEZ and an exclusive commitment to deploy up to 3GW of electricity in Czechia.
In Civil Aerospace, we successfully tested our UltraFan demonstrator and are developing the next design of the engine that will position us strongly for a new generation of narrow and widebody aircraft.
We have invested to grow capacity in Derby, Dahlewitz, and Singapore. This will allow us to deliver more new engines and, by the end of this year, perform an additional 50% more shop visits compared to 2023 to support rising aftermarket volumes. We also received the first Trent 1000 to our MRO facility in Dahlewitz.
In business aviation, we certified and delivered Pearl 700 engines that will power the Gulfstream G700, which entered service in April 2024, and will also power the forthcoming G800. Our commercial optimisation actions mean that business aviation engine deliveries are now profitable.
In Defence, we are expanding our submarines facilities in Raynesway, Derby, to support growth driven by the AUKUS programme.
In Power Systems, we are investing in a next generation engine that will enter the market in 2028. This engine will offer best-in-class fuel efficiency and power density. We also expanded our JV in China with Yuchai to address the fast-growing Chinese market.
We completed the disposals of our direct air capture assets, the lower power range engines business in Power Systems and agreed to sell our naval propulsors & handling business in Defence.
We made the decision to close our advanced air mobility activities, alongside our electrolyser and fuel cells activities.

Strategic initiatives

In Civil Aerospace, we have made strong progress renegotiating original equipment (OE) and aftermarket contracts that will deliver a significant benefit to underlying operating profit and cash flows to the mid-term and beyond. Our efforts to improve the commercial terms of our large engine LTSA aftermarket contracts supported a significant increase in total contract margins for our in-production engines over the last two years.
At our CMD we set a mid-term target to improve the time on wing of our modern engines by an average of 40%. As a result of further initiatives, we now expect to improve this by an average of more than 80%. A significant portion of this will be delivered by the end of 2025.
- On the Trent 1000 TEN, we successfully completed flight testing of the new HPT blade in January 2025. This blade, which we expect to be certified in the coming months, will more than double the time on wing of the engine. We have introduced the new blade into our production engines and expect to roll out the improvement across the existing fleet over the next two years.
- In addition, we completed the design phase of further improvements for the Trent 1000 and Trent 7000 that will deliver an incremental 30% time on wing benefit by the end of 2025. Engine testing of the modification commences in April.
- We certified the Trent XWB-84 EP, which further improves fuel efficiency and durability of the engine, and introduced a new coating for the Trent XWB-97 to improve its durability in harsh environments.
- On the Trent XWB-84, a compressor blade modification to the engine combined with improved analysis of millions of hours of operating data will allow us to systematically raise the cycle limit of critical parts.
Our market share of the widebody installed fleet has grown from 32% at the end of 2022 to 36% at the end of 2024, supported by our market share of more than 50% of new engine deliveries over the past two years.
In business aviation, where we have almost a 70% market share on large cabin jets, operating profit has more than doubled over the last two years, with improvements across OE and aftermarket supported by commercial optimisation and cost efficiencies.
In Defence, we won an eight year submarines contract worth c.£9bn with the UK Ministry of Defence, the Survivable Airborne Operations Center (SAOC) contract to deliver a replacement for the United States Air Force’s current fleet of E-4B “Nightwatch” led by prime contractor SNC, and the TACAMO contract for Northrop Grumman.
In Power Systems, we have restructured our Power Generation business model, which has resulted in a significant increase in profitability to capture strong profitable growth from the data centre market.

Efficiency & simplification

In total, our efficiency & simplification programme delivered over £350m of savings by the end of 2024. We now expect to deliver benefits of over £500m in 2025, above our CMD target of £0.4-£0.5bn in 2027, and two years earlier than planned. Within this, we also remain on track to deliver c.£200m per annum of organisational design benefits by the end of 2025. Supporting our efficiency & simplification programme is the roll-out of zero-based budgeting across the Group. Pilots were completed in Civil Aerospace that demonstrated savings of 10-15% in third-party costs in the selected areas.
We delivered more than £550m of cumulative gross third-party cost savings by the end of 2024 and now expect to deliver in excess of £1bn by the end of 2025 helping to offset inflationary pressures. This is also two years earlier than our previous CMD target of £1bn in 2027.
We are executing on our new Group Business Services strategy, with a new centre opening in Poland and the expansion of our India centre, which will drive further efficiencies in the mid-term.
TCC/GM improved to a best-in-class ratio of 0.47x in 2024 (2023: 0.59x).

Lower carbon & digitally enabled businesses

Rolls-Royce SMR was shortlisted as one of four potential SMR providers by the UK Government and as one of two potential SMR providers in Sweden by Vattenfall. We remain the only SMR company in Step 3 of the UK’s Generic Design Assessment, significantly ahead of the competition in the regulatory process.
In Power Systems, we won major battery energy storage systems (BESS) contracts, including a contract with Latvia to install one of the largest BESS in the EU, and our BESS activities remain on track to break even in the near-term. We sold over 500 HVO (Hydrotreated Vegetable Oil) powered mtu generators to the data centre sector, representing nearly 1.3 gigawatt of standby power capacity.
Across the Group, we are investing in our sales and operating planning systems, as well as upgrading the current engineering mainframe system.
We are pioneering new tools and techniques in Civil Aerospace. For example, we have introduced machine learning and advanced imaging technologies to assist with the inspection of turbine blades, which we believe will extend time on wing.

We are working at pace on our Transformation Programme to further embed a high-performance culture across the Group. Our workforce is excited and energised by our Transformation and the progress we are making.

Outlook and 2025 guidance

Our guidance for underlying operating profit and free cash flow for the full year 2025 demonstrates continued strong strategic progress. Our 2025 guidance sees us delivering the Capital Markets Day targets for 2027 two years earlier than planned.

https://www.rolls-royce.com/media/press-releases/2025/27-02-2025-rr-holdings-plc-2024-full-year-results.aspx

SAFRAN (XPAR: SAF)

About Safran

Safran is an international high-technology group, operating in the aviation (propulsion, equipment and interiors), defense and space markets. Safran has a global presence, with more than 92,000 employees and sales of 21 billion euros in 2018. Working alone or in partnership, Safran holds world or European leadership positions in its core markets. Safran undertakes Research & Development programs to meet fast-changing market requirements, with total R&D expenditures of around 1.5 billion euros in 2018.

Aviation

Active on the engines, aircraft interiors and equipment markets, Safran offers a comprehensive range of solutions to civil and military airframers as well as airlines.

Aircraft engines and nacelles
Aerosystems
Aircraft Interiors
Engine equipment
Landing systems
Electrical systems
Avionics
Engineering

Space

For more than 50 years, Safran has been facilitating access to space, a strategic sector for State sovereignty.

Satellite propulsion and equipment
Launch vehicles
Space Optics

Defense

Through a wide range of products, Safran caters to the needs of air, land and sea armed forces in numerous countries worldwide.

Navigation systems
Missile propulsion
Guidance
Optronics
Warfighter modernization programs
Drones
Avionics

https://www.safran-group.com/group-0

14/2/2025

Safran reports its full-year 2024 results

Record levels reached for revenues, profits and free cash flow 2025 outlook revised upwards: profits and free cash flow raised

Paris, February 14, 2025

FY 2024 adjusted data

Revenue: €27,317 million (+17.8%)
Recurring operating income: €4,119 million (+30.1%), 15.1% of sales
Free cash flow: €3,189 million
Dividend per share €2.90, subject to shareholders’ approval

FY 2024 consolidated data

Revenue: €27,716 million
Recurring operating income: €4,186 million
Free cash flow: €3,189 million

FY 2025 outlook (vs preliminary outlook given on Dec. 5th)

Revenue: up ~10%
Recurring operating income: €4.8 - €4.9 billion (vs. €4.7 - €4.8 billion)
Free cash flow: €3.0 - €3.2 billion (vs. €2.8 - €3.0 billion)

The Board of Directors of Safran (Euronext Paris: SAF), under the Chairmanship of Ross McInnes, at their meeting in Paris on February 13, 2025, adopted and authorized the publication of Safran’s financial statements and adjusted income statement for the full-year period ended December 31, 2024.

Foreword

All figures in this press release represent adjusted data, except where noted. Please refer to the definitions and reconciliation between full-year 2024 consolidated income statement and adjusted income statement. Please refer to the definitions contained in the footnotes and in the Notes on page 10 of this press statement.
Organic variations exclude changes in scope and currency impacts for the period.

CEO Olivier Andriès said: “Thanks to the efforts of our teams and despite persistent supply chain difficulties as well as residual inflationary pressures, Safran delivered another remarkable year with revenues, profits and cash flows reaching record levels. The operating margin grew by 150 basis points to 15.1% of sales, driven especially by strong aftermarket activity across the board, a relentless focus on operational excellence and the return to profitability of Aircraft Interiors. In 2025, meeting our airframer and airline customers’ requirements and improving industrial performance in both original equipment and MRO remain our priorities to continue our profitable growth. In terms of capital deployment, we expect to close the Collins' actuation and flight control activity by mid-year, propose to our forthcoming shareholder’s Annual Meeting a €2.90 dividend per share, and initiate the execution of our €5 billion share buyback program.”

Full-year 2024 results

Revenue

2024 revenue stood at €27,317 million, up by 17.8% compared to 2023 (+17.1% on an organic basis). Change in scope was €136 million 1 . Currency impact was €12 million, with an average €/$ spot rate of 1.08 in 2024 (stable compared to 2023). €/$ hedge rate in 2024 stood at 1.12 (1.13 in 2023).

As for organic revenue per division:

Propulsion was up by 15.0% driven by civil aftermarket. Supported by strong air traffic momentum, civil aftermarket (in $) increased by 24.9% (21.1% in Q4 2024). Referring to our new civil engines aftermarket indicators, Services (in $) were up by 38.0% led by LEAP rate per flight hour (RPFH) contracts and Spare parts (in $) were up by 16.5%, with growth mainly attributable to CFM56 and high-thrust engines. 1,407 LEAP engines were delivered compared to 1,570 in 2023, down (10)% with 378 units delivered in Q4 2024. Lower volume was more than offset by customer mix and price. On December 9, the FAA and EASA certified the High Pressure Turbine hardware durability kit for the LEAP-1A engines that power A320neo. Military engine revenue increased year-over-year, reflecting a higher level of services and a favorable OE customer mix, while M88 deliveries remained stable, with 40 deliveries compared to 42 in 2023. Finally, helicopter engine revenue growth was led by higher turbine deliveries (notably Arriel) and service by the hour contracts.
Equipment & Defense was up 17.7%, supported by all businesses. Driven by increased air traffic notably in the widebody market, aftermarket services rose by 16.8% with growth across the board, particularly in landing systems, support for defense and avionics activities, and electrical & power systems. OE sales grew 18.3%, boosted by higher volumes in nacelles (G700 entry into service in H1, A320neo) and electrical systems (787 and A320neo). In defense activities, the substantial growth was primarily led by guidance systems, optronics and onboard systems.
Aircraft Interiors saw a solid 25.2% growth, although still 5% below 2019 levels. This growth reflects the recovery of the widebody market and airlines' eagerness for cabin retrofitting. Aftermarket activities grew by 26.3% driven by both Cabin and Seats (mainly spare parts). OE sales growth of 24.5% is primarily attributed to Seats, with a significant increase in Business class seat deliveries (2,482 units in 2024 vs 983 in 2023).

Research & Development

Total R&D, including R&D sold to customers, reached €1,980 million, compared with €1,818 million in 2023.

Research & Technology (R&T) self-funded expenses at €671 million (€598 million in 2023) mainly geared towards decarbonization through notably the RISE (Revolutionary Innovation for Sustainable Engines) technology development program;
Development expenses at €677 million (€618 million in 2023).

The impact on recurring operating income of expensed R&D was €1,128 million (€993 million in 2023), with both higher capitalized R&D and related amortization, and representing 4.1% of sales (4.3% of sales in 2023).

Recurring operating income

In 2024, recurring operating income reached €4,119 million, representing a substantial increase of +30.1% (+27.0% organic). This robust performance was mainly due to growth in services across the board and a relentless focus on operational excellence. It includes scope changes of €15 million and a favorable currency impact of €82 million. Operating margin stood at 15.1% of sales, up 150bps (13.6% in 2023).

Per division:

Propulsion recurring operating income reached €2,819 million. Operating margin stood at 20.6% of sales, up by 0.5pt, supported by strong civil aftermarket activity benefitting from higher spare parts sales for CFM56. The share of LEAP RPFH contracts increased in 2024 with no margin recognition. As announced during the CMD’24, Safran will start recognizing profit for the LEAP-1A in 2025. Growth in military services and in both OE and services for helicopter engines also contributed to the overall performance.
Equipment & Defense recurring operating income stood at €1,298 million. At 12.2% of sales, operating margin increased by 1.0pt driven by increased OE volumes, particularly in nacelles and Defense activities, as well as growth in services, notably landing gear and carbon brakes. Both OE and services for Aerosystems contributed positively, thanks to Fluid and Fuel systems and Safety systems.
Aircraft Interiors posted a positive recurring operating income of €27 million, representing a substantial improvement of €143 million from 2023. Cabin’s profitability was supported by a strong level of activity in services notably for galleys as well as Water & Waste activities, and by impact of past restructuring. Seats strongly improved in 2024 reaching breakeven thanks to both services and OE volume. Continued efforts in the industrialization and engineering process are bearing fruits. Additionally, Safran Passenger Innovations made a positive contribution to recurring operating income, largely due to in-flight entertainment (IFE) products.

Net income

In 2024, one-off items were €6 million including capital gain on asset disposal (Roxel), impairment charges for certain programs as well as other costs such as restructuring and integration expenses.

Net income (Group share) was up by 51% at €3,068 million in 2024 (basic EPS of €7.37 and diluted EPS of €7.29), compared with €2,028 million in 2023 (basic EPS of €4.85 and diluted EPS of €4.70).

This includes:

Financial income of €23 million, including positive net financial interest of €157 million (returns on cash investments exceed cost of debt) and €(106) million exchange revaluation of positions in the balance sheet;
Tax expense of €(987) million (23.8% apparent tax rate).

The reconciliation between 2024 consolidated income statement and adjusted income statement is provided and commented in the Notes on page 11.

Free cash flow

Free cash flow of €3,189 million was driven by the increase in cash flow from operations, higher capital expenditures of €(1,543) million (€(1,325) million in 2023) directed notably towards MRO production capacity and low carbon initiatives.

The slight favorable working capital change (€7 million) reflects higher customer advance payments (notably Rafale) and deferred income, offset by inventory level build-up in line with revenue growth.

Net debt and financing

As of December 31, 2024, Safran’s balance sheet exhibits a €1,738 million net cash position (vs. €374 million as at December 31, 2023), as a result of a strong free cash flow generation, partially offset by dividend payment (of which €911 million to shareholders of the parent company) and €1,320 million of share repurchases including €750 million for cancellation.

Cash and cash equivalent stood at €6,514 million (vs €6,676 million as at December 31, 2023). Gross debt stood at €4,776 million (vs €6,302 million as at December 31, 2023). During the year, Safran reimbursed $505 million of USPP, €200 million of Euro Private Placement and proceeded with the early redemption of its bonds convertible into shares initially due 15 May 2027 (2027 OCEANEs), resulting in a net debt positive impact of €961 million and no dilution impact for existing shareholders.

Consolidated data (IFRS)

Consolidated revenue for 2024 was €27,716 million compared with €23,651 million in 2023. In 2024, the difference between consolidated revenue and adjusted revenue reflects a €399 million positive impact resulting from foreign currency hedging transactions.

Consolidated recurring operating income for 2024 was €4,186 million compared with €3,309 million in 2023.

The difference between consolidated recurring operating income and adjusted recurring operating income reflects:

Amortization charged against intangible assets measured when allocating the purchase price for business combinations, representing €327 million;
A €394 million positive impact resulting from foreign currency hedging transactions.

Consolidated net income for 2024 was €(667) million (€3,444 million in 2023). It includes changes in the fair value of instruments hedging future cash flows that will be recognized in profit or loss in future periods of €(4,670) million (excluding tax). Consolidated basic EPS for 2024 was €(1.60) (diluted EPS of €(1.60) compared with €8.24 in 2023 (diluted EPS of €8.07).

Currency hedges

The hedge book amounts to $54.7 billion in December 2024 ($54.0 billion in September 2024).

2024 hedge rate of $1.12, for a net exposure of $12.4 billion.
2025 to 2027 are fully hedged: targeted hedge rate of $1.12, for an estimated net annual exposure of $14.0 billion.
2028 is partially hedged: $12.7 billion hedged, at a targeted hedge rate of $1.12, out of an estimated net exposure of $14.0 billion.

Dividend

For fiscal year 2024, a dividend 2 payment of €2.90 per share will be proposed to the shareholders’ vote at the Annual General Meeting on May 22, 2025. It represents an increase of 32% over the prior year dividend (€2.20) and 40% payout ratio on the adjusted net income. It demonstrates Safran’s confidence and commitment to regular shareholder returns.

Share repurchase programmes

2024

In 2024, Safran purchased c.€1.3 billion worth of its own shares in several tranches (6.5 million shares):

Hedging of the 2028 OCEANEs: 2.1 million shares (out of c.4 million), completing the hedging of the potential dilution relating to the 2028 OCEANE.
Performance shares & free shares grant: 0.7 million shares.
Share buyback for cancellation: 3.6 million shares (representing €750 million), all cancelled on December 12, 2024. The cancellation of these shares resulted in a 0.86% accretion of equity ownership percentages.

At December 31, 2024, Safran’s share capital comprises 423,632,587 shares of which 6,857,467 treasury shares (1.6% of capital).

2025 onwards

During its Capital Markets Day held on December 5, 2024, Safran announced a new €5 billion share buyback for cancellation from 2025 to 2028 3 .

In that context, on January 9, 2025, Safran launched a first tranche for a maximum amount of €350 million to be carried out from January 10, 2025 and no later than April 14, 2025.

Portfolio management

Divestment of Safran’s 50% share of Roxel to MBDA on December 19, 2024.
Agreement signed on December 20, 2024 with Woodward for the divestment of Safran’s electromechanical actuation business based in the United States, Mexico and Canada. The transaction is another important milestone towards the closing of the acquisition by Safran of Collins Aerospace’s actuation and flight control activities. It is expected to be closed in mid-2025, once all customary terms and conditions of the agreement are met and regulatory requirements are fulfilled, and subject to concomitant completion of Collins Aerospace’s actuation and flight control activities acquisition by obtaining associated merger control approvals.
As part of the Collins Aerospace’s actuation and flight control activities acquisition process, following the approval by the Committee on Foreign Investment in the United States (CFIUS) of the acquisition project by decision on January 16, 2025, all approvals related to foreign investments have been obtained (including in Italy and United Kingdom).The completion of Collins Aerospace’s actuation and flight control activities acquisition remains subject to obtaining the required merger control approvals.
On January 19, 2025, Safran closed the acquisition of the US Company CRT (Component Repair Technologies), a world leader in the repair of aircraft engine parts, based in Ohio, USA. This acquisition reflects Safran’s plan to strengthen its maintenance, repair and overhaul (MRO) capabilities in the Americas.

Full-year 2025 outlook

Safran raises its outlook and now expects to achieve for full-year 2025 (at constant scope, i.e. excluding the contemplated acquisition of Collins Aerospace’s actuation & flight controls business):

Revenue growth: around 10%;
Recurring operating income: €4.8 - €4.9 billion (versus €4.7 - €4.8 billion previously);
Free Cash Flow €3.0 - €3.2 billion (versus €2.8 - €3.0 billion previously), of which €(380) - €(400) million estimated impact from the French corporate surtax (versus €(320) - €(340) million) and subject to payment schedule of some advance payments and the rhythm of payments by state-clients..

This outlook is based notably, but not exclusively, on the following assumptions:

LEAP engine deliveries: up 15% to 20% compared to 2024;
“Spare parts” revenue (in USD): up HSD+ 4 (versus up MSD-HSD 5 );
“Services” revenue (in USD): up mid-teens;
€/$ spot rate of 1.10;
€/$ hedge rate of 1.12.

The main risk factor is the supply chain production capability. In addition, this 2025 outlook excludes any potential impact of new tariffs implementation.

https://www.safran-group.com/pressroom/safran-reports-its-full-year-2024-results-2025-02-14

TACTICAL MISSILES CORPORATION JSC

Tactical Missiles Corporation joint stock company (JSC) was established in accordance with Federal Target Program such as “Restructuring and development of Defense Industry Complex” (2002-2006 years) and Presidential Decree № 84 dated 24 January 2002.

The Corporation as an integrated structure was formed on the basis of a reorganized federal state unitary enterprise “State research and production centre “Zvezda-Strela” (Korolev) in “Tactical Missiles Corporation”JSC. During such reorganization process the Corporation received shares from enterprises included in Defense Industry Complex. Establishment registration of the Corporation was finished in March 2003.

Strategic targets which lead to the Corporation establishment consisted in keeping and developing of missilery’s research and production capacity, supplying national defense capability, resource mobilization needed for highly effective guided missiles and air-based, ground-based, sea-based weapon systems production, also in strengthening military positions of Russia in world armament market.

Presidential Decrees № 591 dated 9 May 2004, № 930 dated 20 July 2007, № 1443 dated 27 October 2012, № 167 dated 31 March 2015 and № 63 dated 10 February 2018 greatly enlarged the Corporation and now it includes the following enterprises:

"Vympel" State Engineering Design Bureau JSC named after I.I. Toropov (Moscow);
"Raduga" State Engineering Design Bureau JSC named after A.Y. Bereznyak (Dubna, Moscow region);
"Region" Scientific & Production Enterprise JSC (Moscow);
"Azov Optomechanical Plant" JSC (Azov, Rostov region);
"Detal" Ural Design Bureau JSC (Kamensk-Uralsky, Sverdlovsk region);
"Iskra" Engineering Design Bureau JSC named after I.I. Kartukov (Moscow);
"Krasny Gidropress" JSC (Taganrog, Rostov region);
"Engineering Design Bureau" JSC (Moscow);
"Smolensk aircraft plant" JSC (Smolensk);
"Salyut" JSC (Samara);
"Soyuz" Turaevo Engineering Design Bureau JSC (Lytkarino, Moscow region);
"Scientific Research Center for Automated Systems Design" JSC (Moscow);
"Temp-Avia" Arzamas Research & Production Association JSC (Arzamas, Nizhniy Novgorod region);
"Scientific Research Institute for Mechanical Engineering" JSC in the name of V.V. Bahirev (Dzerzhinsk, Nizhniy Novgorod region);
"Globus" Ryazan Design Bureau JSC (Ryazan);
"Central Design Bureau for Automatics Engineering" JSC (Omsk);
"TRV-engineering" LLC (Korolev, Moscow region);
"711 Aircraft Repair Plant" JSC (Borisoglebsk, Voronezh region);
"Military Industrial Corporation NPO Mashinostroenia" JSC (Reutov, Moscow region);
"Strela" Production Association JSC (Orenburg);
"Mashinostroitel" Perm Factory JSC (Perm);
"Avangard" JSC (Safonovo, Smolensk region);
"Scientific & Production Association of Electromechanics" JSC (Miass, Chelyabinsk region);
"Ural Research Institute of Composite Materials" JSC (Perm);
"Concern "Sea Underwater Weapon - Gidropribor" JSC;
"Zavod "Dvigatel" JSC (Saint Petersburg);
"Verhneufaleysky zavod "Uralelement" JSC (Verkhny Ufaley, Chelyabinsk region);
"Research & Design Institute "Morteplotekhnika" JSC (Lomonosov, Saint Petersburg);
"Zavod "Dagdizel" JSC (Kaspiysk, Republic of Dagestan);
"Electrotyaga" JSC (Saint Petersburg);
"Concern "Granit-Electron" JSC (Saint Petersburg);
"Rawenstvo" SC (Saint Petersburg);
"Severniy press" JSC (Saint Petersburg);
"Saratovski radiopribornyi zavod" JSC (Saratov);
"Zavod Kulakova" (Saint Petersburg);
"Rawenstvo-Service" (Saint Petersburg);
"Petrovsky electromechanical zavod "Molot" (Petrovsk, Saratov region).

The Director General of the Tactical Missiles Corporation JSC is Boris Viktorovich Obnosov

http://eng.ktrv.ru/about/

SERCO (LSE: SRP)

About Serco

SERCO’s customers are national and local governments and leading companies. SERCO has more than 50 years' experience operating in the areas of transport, employment, healthcare, protecting borders and supporting the armed forces.

Reimagining public services

Serco Group plc's roots go back to 1929, becoming Serco Limited in 1987 and in 1988 was listed on the London Stock Exchange. Now, Serco is a FTSE top 250 company managing over 500 contracts worldwide. Employing over 50,000 people, we operate internationally across four geographies: UK & Europe, North America, Asia Pacific and the Middle East and across five sectors: Defence, Justice & Immigration, Transport, Health and Citizen Services.

A world of experience

Our broad cross sector and international experience means we can transfer emerging best practice, share new service innovations and improve the performance of the public services we manage.

A strong public sector ethos runs through our organisation which is why you will always find our people are motivated to make a positive difference. We constantly evaluate our performance and the efficiency of our operations, as well as the outcomes we achieve for citizens.

https://www.serco.com/about

Acquisition of leading US defence business - 16/2/2021

Serco Group plc (‘Serco’ or ‘the Group’) has agreed to acquire Whitney, Bradley & Brown Inc (WBB), a leading provider of advisory, engineering and technical services to the US Military, for $295m from an affiliate of H.I.G. Capital. The acquisition will increase the scale, breadth and capability of Serco’s North American defence business and will give Serco a strong platform from which to address all major segments of the US defence services market. The acquisition will be immediately accretive to earnings and will be funded through existing debt facilities; it is expected to complete in the second quarter of 2021, subject to regulatory approvals.

Financial details

In calendar year 2021 WBB is expected to generate revenue of around $230m (£168m), EBITDA of $29m (£21m) and UTP of $28m (£20m), before exceptional transaction and integration costs.
We expect WBB to be immediately accretive to earnings following completion and to enhance Underlying EPS by around 10% in 2022, the first full year of ownership. The return on invested capital is expected to exceed our weighted average cost of capital in the third full year of ownership.
Cost synergies of $4m per year, a large part of which are property-related, expected by 2023; significant opportunities for cross-selling services across both existing Serco and WBB customers.
Prospective 2021 acquisition multiples: 10.2x EBITDA and 10.5x UTP.
The consideration will be paid in cash funded through existing debt facilities.This acquisition will increase our Adjusted Net Debt to EBITDA multiple by around 0.9x. Including the effect of this transaction, as well as the acquisition of Facilities First Australia and the share purchases announced in December, we expect our leverage to be around 1.6x at H1 2021, and decrease thereafter. Leverage of 1.6x is comfortably within our target range of 1-2x.

Strategic logic for the acquisition

Highly complementary business: like Serco, WBB is a leading provider to the US Department of Defense of Systems Engineering and Technical Assistance (SETA) services focusing in the fields of Acquisition and Programme Management, Systems Design and Engineering, Through-Lifecycle Asset Management and Mission Performance.
Adds scale, breadth and capability to Serco’s North American defence business creating a platform for future growth:
- Scale: adds 20% to Serco’s existing $0.9bn of North American defence revenues, and about 1,000 skilled people, reinforcing our position as a significant supplier in the US defence services market, with credible positions in all arms of the Department of Defense.
- Breadth: to our strong position in the US Navy, the acquisition of WBB adds new market segments and reach within US defence. It will approximately double Serco’s revenues across both the US Army and Air Force/Space Force, giving us ~$100m businesses in each. It will give us immediate access to markets that are difficult to enter organically including Air Force programme offices, the Missile Defense Agency, Space and Missile Defense Command, the Office of the Secretary of Defense, security agencies and others.
- Capability: WBB brings significant new areas of capability to Serco’s global defence business, including Advanced Data Analytics, Organisation Design, Cyber, AI & Machine Learning, Natural Language Processing, Wargaming, Modelling, and technologies related to geo-location. Among its 1,000 employees, 80% of whom have security clearances, it has around 200 “Subject Matter Experts” many of whom are former senior US military officers who are recognised experts in their fields. We believe we can offer these services to our existing customers in US defence and elsewhere.

Commenting on the acquisition, Rupert Soames, Serco Group Chief Executive, said: “Growing the scale, reach and capability of Serco in the largest defence market in the world is one of our strategic objectives, and the acquisition of WBB significantly advances that strategy. Following the acquisition of the Naval Systems Business Unit of Alion in 2019, which increased the size of our US Navy business by 70%, WBB takes our North American defence revenues to around $1.1bn and gives us credible positions in other parts of the market including Air Force, Space Force, Army, the Missile Defense Agency and the Office of the Secretary of Defense. It creates a powerful platform for future growth and brings us impressive new capabilities in areas such as Advanced Data Analytics, AI & Machine Learning and Precision Navigation and Timing, along with a team of renowned Subject Matter Experts covering a wide range of disciplines that can be deployed across our business. I greatly look forward to welcoming the WBB management team led by their CEO Robert Olsen along with 1,000 skilled WBB people to Serco and working with them and other colleagues as we build a strong global defence business.

The acquisition will be immediately accretive to our margins and to our earnings per share, and the recent strong cash performance allows us to execute this acquisition within our existing debt facilities whilst staying well within our target leverage ratio.”

Notes

Historic financial data: In 2019, the last full year of audited accounts, revenue of WBB was $114m, EBITDA $9m, UTP $9m and gross assets were $170m. There were two acquisitions made in the final quarter of 2019, with the income statement including a contribution only for the period of ownership. In 2020, revenue was $212m, EBITDA $29m and UTP $28m.

https://www.serco.com/media-and-news/2021/acquisition-of-leading-us-defence-business

Serco Group plc full year results 2024

27 February 2025

Strong performance in 2024, good momentum into 2025.

Strong performance in 2024

Revenue: £4.8bn in 2024, in line with guidance; improving organic trend as we moved through the year led by our North American Defence business.

Underlying operating profit: £274m, up 10% in the full year, and an increase of 30% in the second half compared to the same period in 2023.
Margin: 60 basis point increase in full year underlying operating profit margin to 5.7% with progress in all regions, reflecting ongoing focus on efficiency and productivity.
Reported operating profit: ~£130m, reduction due to an exceptional £115m non-cash goodwill impairment charge in Asia Pacific.
Order intake: +7% to £4.9bn, book-to-bill of 102%, order book of £13.3bn.
Cash flow: Very strong free cash flow at £228m, ahead of guidance of ~£170m, trading cash conversion has averaged more than 100% since 2019, ahead of our medium-term guidance of 80%+.
Strong financial position: adjusted net debt £100m, £45m lower than prior guidance, leverage c.0.3x net debt to EBITDA, and pro-forma net leverage of 1.2x including proposed acquisition of MT&S. The Board will review the capital position again at the half year.
Attractive shareholder returns: £140m share buyback in 2024, taking the total amount returned to shareholders through buybacks to £340m since 2021, recommended final dividend of 2.82 pence per share, +24% year on year.

Good momentum into 2025

Dynamic global backdrop driving demand: Mounting fiscal challenges and geopolitical complexity mean we are able to leverage our capabilities, expertise, and value proposition to deliver critical services for our government customers better, faster, and more efficiently.
Record pipeline: Entered year with highest level of potential new work in more than a decade at £11.2bn, 11% higher than prior year end.
High visibility: Robust order book combined with low level of rebids or extensions in 2025 and only one contract above 2% of Group revenue due for rebid before 2028.
Good momentum in early 2025: Order intake of more than £1bn including the landmark UK Armed Forces Recruitment Service contract.
MT&S acquisition strategically and financially compelling: US$327m acquisition of leading US Defence business from Northrop Grumman agreed and expected to complete in mid-2025, resulting in a US$2bn North America business delivering 10% margins, and a £2bn Defence business across the Group.
Guidance for 2025: Revenue in line with 2024, organic growth across other parts of business offsetting expected reduction from immigration in Australia and UK of c.7%; ongoing focus on efficiency and productivity will largely compensate for known headwinds on underlying operating profit.

Mark Irwin, Serco Group Chief Executive, said:

“Our 2024 results reflect another year of strong operational and financial delivery across the Group.

We accelerated trading momentum through the second half of the year, which allowed us to achieve full year revenue in line with guidance, underlying operating profit up 10%, a 60 basis point increase in margins and deliver significantly more free cash flow than initially expected. We had excellent order intake of £4.9bn resulting in a robust £13bn order book, and we ended the year with a strong pipeline of qualified new business opportunities exceeding £11bn to underpin future growth.

Our strong balance sheet has enabled delivery against all our capital allocation priorities by investing in organic business development, increasing our dividend by 22% and completing the planned share buyback of £140m; and, as announced in January, we have agreed the strategically important and financially compelling acquisition of MT&S from Northrup Grumman, which we expect to complete in mid-2025. MT&S will transform our capabilities in the critical areas of technology-enabled military training and satellite ground network software services. The combination of Serco and MT&S further enhances the growth potential of our US platform and our international defence business.

Our people have always been at the heart of our business, and we are pleased that colleague engagement improved from already high levels, attrition rates are markedly reduced and importantly, we have achieved significant improvement in safety outcomes across the business. I am immensely proud of the commitment of all my Serco colleagues around the world and remain deeply grateful for their contribution to our success.

In a global environment of continuous change and increasing complexity, Serco’s purpose to impact a better future by enabling more efficiency and greater agility in the delivery of critical services for governments has never been more relevant. We enter 2025 with confidence that we will continue to deliver profitable growth and make further progress in executing our strategy to create value for customers and shareholders.”

Guidance for 2025

Our focus in 2025 remains steadfast on reinforcing our market positioning by concentrating on growth, operational excellence and competitiveness. The outlook for 2025 anticipates revenue will be similar to 2024 with underlying organic growth of 7% offsetting reductions in the UK and Australian immigration contracts. Underlying operating profit will reduce only slightly despite previously advised headwinds from immigration and higher UK national insurance contributions. The conversion of profit to cash will continue to be strong at over 80%, contributing to a strong balance sheet.

As we look ahead to 2025, we have the highest level of potential new work in our pipeline in more than a decade at £11.2bn. Post the period end we were awarded a landmark UK Armed Forces Recruitment Service contract with an estimated value of £1.0bn over the initial seven-year term and up to £1.5bn should the Ministry of Defence elect to exercise all three one-year extension options beyond the initial term.

The acquisition of MT&S is expected to complete in mid-2025, subject to regulatory approvals, and will be included in guidance at that point.

https://www.serco.com/media-and-news/2025/serco-group-plc-full-year-results-2024

THALES (XPAR: HO)

About Thales

Thales (Euronext Paris: HO) is a global technology leader shaping the world of tomorrow today. The Group provides solutions, services and products to customers in the aeronautics, space, transport, digital identity and security, and defence markets. With 80,000 employees in 68 countries, Thales generated sales of €19 billion in 2018 (on a pro forma basis including Gemalto).

Thales is investing in particular in digital innovations — connectivity, Big Data, artificial intelligence and cybersecurity — technologies that support businesses, organisations and governments in their decisive moments.

Defence and Security

The people we all rely on to make the world go round – they rely on Thales.

In a world full of opportunity and unpredictability we help those with big ambitions, think faster and act smarter. From the bottom of the ocean to the depths of space and cyberspace, our architects combine unique and diverse expertise to allow our customers to confidently master every decisive moment along the way.

In Defence and security, armed forces, governments and global organisations entrust Thales with helping them achieve and maintain security, tactical superiority and strategic independence in the face of any type of threat. In an increasingly unpredictable world, governments rely on our expertise to protect their citizens and make the world safer, from designing smart sensors and connecting soldiers on the digital battlefield to delivering solutions that protect states, cities and critical infrastructures.

Defence

A solid reputation in defence built on trust.

We have forged a solid reputation in the defence industry as a result of our high-performance solutions and strong investment in key research areas. Over 50 countries rely on Thales’ solutions to protect their populations. We are also the leading supplier of C4ISTAR systems to NATO .

Operational efficiency to ensure highest levels of defence.

We excel in supplying air , land , naval and joint forces with an unrivalled depth of capability in the following five areas:

Communications, command and control systems
Mission services and support
Protection and mission / combat systems
Surveillance, detection and intelligence systems
Training & Simulation

Using our expertise in these areas, we develop top-tier tools for:

Controlling engagements,
Detecting, identifying and neutralising threats,
Distributing information,
Supporting command decisions,
Training defence forces.

Simplifying joint operations in defence

The overarching goal of our defence solutions is to simplify and harmonise joint operations. We specialise in interoperable systems that make missions more efficient and help our customers get the most value out of their investment. Allowing our systems to interact seamlessly with others means that our customers have the upper hand when it comes to decision-making.

Our offer includes:

Thales COMMANDER, an open architecture information system
Signals Intelligence and Communication Intelligence and Electronic Warfare
Joint systems infrastructure and satellite networks
Collaborative combat systems

Digital Identity and Security

OVERVIEW

Businesses and governments rely on Thales to bring trust to the billions of digital interactions they have with people. Our identity management and data protection technologies help banks exchange funds, people cross borders, energy become smarter and much more. More than 30,000 organizations already rely on Thales solutions to verify the identities of people and things, grant access to digital services, analyze vast quantities of information and encrypt data.

In early 2019, we acquired the international security company, Gemalto and have combined it with our existing digital assets to create a new leader in digital security. Every organization around the world is in the midst of a digital transformation and stand to benefit from our joint innovations.

As the world becomes more connected, Thales makes it more secure.

Aerospace

Decisive moments in Aerospace

In Aerospace, governments, airports, airlines, pilots, crews and passengers rely on Thales to make flight safer, easier and more efficient.

We do this by designing, delivering and supporting the systems that keep our skies running. From air traffic management, training and simulation solutions, nose-to-tail aircraft connectivity and in-flight services, we enable and connect all parts of the aerospace ecosystem in the air, on the ground, and in between.

Space

SPACE FOR LIFE

Governments, institutions and companies rely on Thales Alenia Space to design, operate and deliver satellite-based systems that help them position and connect anyone or anything, everywhere, help observe our planet, help optimize the use of our planet's – and our solar system’s – resources. Thales Alenia Space believes in space as humankind’s new horizon, which will enable to build a better, more sustainable life on Earth.

Transport

BY YOUR SIDE

Countries, cities and transport operators rely on Thales’ ground transportation solutions to adapt to rapid urbanisation and meet new mobility demands – locally, between cities and across national frontiers.

Our expertise in signalling, communications, fare collection and cybersecurity gives people and goods the connected journey they need to move safely and efficiently.

And no matter how challenging the project, we stay by your side, committed to helping you creating the digital railways of the future.

Market-specific solutions

Thales provides solutions for a variety of specialized markets and applications including radiology, radio frequency, microwave sources, training and simulation solutions, lasers and microelectronics solutions for science, industry, space, defence, automotive, railways and energy conversion platforms.

https://www.thalesgroup.com/en/worldwide/activities

Thales reports its 2024 full-year results

Order intake: €25.3 billion, up 9% (+6% on an organic basis 1 )
Sales: €20.6 billion, up 11.7% (+8.3% on an organic basis)
Adjusted EBIT 2 : €2,419 million, up 13.4% (+5.7% on an organic basis)
Adjusted net income, Group share 2 : €1,900 million, up 7%
Consolidated net income, Group share: €1,420 million, up sharply by 39%
Free operating cash flow from continuing operations 2,3 : €2,142 million, up 9%
Free operating cash flow 2 : €2,027 million, stable against 2023
Dividend 4 of €3.70 per share, representing 40% of Adjusted net income, Group share
Non-financial performance: steady progress towards medium to long-term targets
2025 objectives:
- Book-to-bill 5 above 1
- Organic sales growth of between +5% and +6%, corresponding to sales between €21.7 billion and €21.9 billion
- Adjusted EBIT margin between 12.2% and 12.4%

Thales’s Board of Directors (Euronext Paris: HO) met on March 3, 2025 to review the 2024 financial statements

“2024 was once again a year of strong profitable growth for Thales. Thales, a world leader in advanced technologies in Defence, Aerospace, Cybersecurity and Digital, maintained excellent sales momentum throughout the year, achieving a record order intake of more than €25 billion. The record order book provides unprecedented visibility for all our activities.

Sales exceeded the €20 billion mark with organic growth of 8.3%, above expectations. Defence activities, underpinned by an ongoing increase in the Group's production capacity, the technological excellence of our products and the commitment from all our colleagues, contributed in particular to this performance.

Thales also demonstrated once again its ability to generate profitable growth, with an increase in EBIT in absolute terms and as a percentage, reflecting the strength of its operating leverage.

Thanks to its unique business model based on world-class products, systems and services, Thales generated free operating cash flow of more than €2 billion.

Non-financial performance was also remarkable in 2024. The validity of our CSR strategy was acknowledged as Thales joined the CAC 40 ESG index in 2024.

This historic performance is the result of the unfailing commitment of our 83,000 employees, and I would like to thank them sincerely for their dedication to our clients. We are starting 2025 with confidence and determination and a positive outlook for the vast majority of our activities. Thales presented its new strategic roadmap in November 2024. By drawing on its unique leadership positions serving growing markets and its ability to innovate and anticipate technological breakthroughs, the Group affirms its ambition to deliver accelerated, profitable and sustainable growth over the coming years, starting in 2025.” Patrice Caine, Chairman & Chief Executive Officer

Key Figures

Order intake for the 2024 financial year increased by 9% compared with 2023 at €25,289 million and by +6% on an organic basis (i.e. at constant scope and exchange rates). Commercial performance was once again supported by strong demand in the Defence segment and by continued sustained momentum in the Aerospace segment. As at 31 December 2024, the consolidated order book amounted to nearly €51 billion, a record level, up by nearly €5.4 billion compared with the end of 2023.
Sales totaled €20,577 million, up 11.7% from 2023 (+8.3% in organic growth). This robust growth reflects in particular the solid performance of the Defence business throughout the year.
Adjusted EBIT 7 stood at €2,419 million in 2024 (11.8% of sales), compared with €2,132 million (11.6% of sales) in 2023, an increase of 13.4% (+5.7% organic change).
At €1,900 million, Adjusted net income, Group share 7 was up +7% compared to 2023.
Consolidated net income, Group share, stood at €1,420 million, up sharply by +39% from 2023. This increase can be explained notably by the recognition in 2023 of a non-current and non-recurring expense linked to the implementation of insurance coverage for the Group's commitments under the Thales UK Pension Scheme. These commitments were transferred to Rothesay at the end of 2023.
Free operating cash flow from continuing operations 7,9 amounted to €2,142 million, compared with €1,968 million in 2023. Including the contribution of discontinued operations, free operating cash flow 7 amounted to €2,027 million, compared with €2,026 million in 2023. Calculated on the basis of the scope of continuing operations, the cash conversion ratio of Adjusted net income, Group share, into operating free cash flow was 114%. This once again exceptional performance, which saw the cash conversion ratio exceed 100% for the fifth consecutive year, reflects the excellent momentum of new orders, the phasing effects on cash inflows related to contracts’ execution and the continued Group's mobilization of its CA$H! plan aimed at optimizing this conversion ratio.
In this context, the Board of Directors decided to propose the payment of a dividend of €3.70 per share, corresponding to a payout ratio of 40% of the Adjusted net income, Group share. An interim dividend of €0.85 per share was paid on December 5, 2024. The balance of €2.85 will be paid on May 22, 2025.

Order intake

Order intake for the 2024 financial year totaled €25,289 million, up 9% from 2023 in total change and up +6% at constant scope and exchange rates 11 . For the fourth consecutive year, the order intake was more than 20% higher than sales (book-to-bill). Thebook-to-bill ratio was 1.23, flat against 2023, and 1.28 excluding the Cyber & Digital business, where the order intake is structurally very close to sales.

In 2024, Thales signed 35 large orders with a unit value of over €100 million, representing a total of €8,674 million:

Four large orders booked in Q1 2024:
- The entry into force of the third phase of the order placed by Indonesia in 2022 for the purchase of 42 Rafale aircraft (18 aircraft and support services);
- Phased contract with the French Defence Procurement Agency (DGA) to develop the next generation of sonars to equip French nuclear-powered ballistic-missile submarines (SSBN);
- Order of an aerial surveillance system for a military customer in the Middle East;
- Second tranche of the contract signed in 2023 between France and Italy for the production of 400 ASTER B1NT ground-to-air missiles.
Eight large orders booked in Q2 2024:
- Order for a next generation cloud native “FLYTEDGE” InFlight Entertainment System for a major worldwide airline;
- Order by SKY Perfect JSAT to Thales Alenia Space of JSAT-31, a new generation of satellite reconfigurable in orbit using Space INSPIRE technology;
- Exomars 2028, a contract signed between industrial prime contractor Thales Alenia Space and the European Space Agency (ESA) to relaunch the European space mission dedicated to the exploration of the Red Planet;
- Order of two new F126 frigates by the German Navy. This additional contract brings the number of F126 frigates acquired by the German Navy to six in the past four years;
- Order by the Dutch Ministry of Defence of seven additional Ground Master 200 multi-mission compact radars;
- Service contract for the maintenance of the Royal Australian Navy fleet;
- Order by an Asian customer of latest-generation Ground Master 400 Alpha long-range air surveillance radars;
- Order by France’s Joint Munitions Command (SiMu) of tens of thousands of 120mm rifled ammunition.
Seven major orders recorded in Q3 2024:
- Notification by the DGA of the second tranche of the development of the future RBE2 XG radar for the Rafale F5;
- Order for the supply of anti-submarine warfare systems for the first phase of the construction of six HUNTER-class frigates for the Royal Australian Navy;
- Order for the renovation of an air traffic management system;
- Order from the UK Ministry of Defence for the supply of Lightweight Multi-role Missiles (LMM) to strengthen Ukraine's air defence capabilities;
- Order of LMM for the British armed forces;
- Order for the supply of Ground Fire multifunction radar and engagement modules following France’s acquisition of seven SAMP/T NG air defence systems;
- Order for the supply of communications, vetronics, navigation and optronics equipment for vehicles in the French Army's SCORPION program.
Sixteen large orders booked in Q4 2024:
- Order for the supply of a satellite for the European Space Agency’s EnVision scientific mission to understand the planet Venus;
- Contract amendment signed with OHB System for the payload of the third satellite of the European CO2M mission focused on CO ₂ emissions generated by human activity;
- Amendment to the contract with the European Space Agency for the development of the ESPRIT communications and refueling module for the future lunar space station, Gateway;
- Order for the development of the world’s first quantum key distribution (QKD) system from geostationary orbit, in collaboration with Hispasat;
- Contract with the Mohammed Bin Rashid Space Centre to develop the Emirates Airlock Module on board the future lunar space station Gateway;
- Entry into force of the contract for the supply of 12 Rafale to Serbia;
- Order from Naval Group for the supply of equipment for the submarine delivery contract in the Netherlands;
- Order under the AJISS contract to provide In-Service Support to Royal Canadian Navy ships;
- Order for the development and production of 430 new-generation MICA-NG interception, combat and self-defence missile seekers;
- Order from the UK Ministry of Defence for the development and preparation of large-scale production of STARStreak HVMs (High Velocity Missiles) for the armed forces;
- Order from the French Air Navigation Services Directorate (DSNA) aimed at improving the 4-Flight air traffic management system;
- Amendment to the CONTACT contract with the DGA providing the armed forces with a range of software-defined radios designed for collaborative combat;
- Order from the UK Ministry of Defence to ensure the permanence and maneuverability of the Royal Navy’s operational communications;
- Order from the DGA as part of the SYRACUSE IV program to equip the French army's SCORPION vehicles with Thales' secure satellite communications solution;
- Order from the DGA for the design, delivery and maintenance of a resilient communication system;
- Order from the DGA to produce an encryption key management and distribution system and key injector for the Ministry of the Armed Forces.

With a total amount of €16,615 million, order intake with a unit value of less than €100 million continued to record favorable momentum.

Geographically 12 , order intake in mature markets amounted to €19,010 million, very close to that recorded in 2023, which though included the £1.8 billion MSET contract in the United Kingdom. Sales momentum elsewhere was also solid, particularly in the rest of Europe (up by 16% on an organic basis) and in Australia and New Zealand (up by 13% on an organic basis). Order intake in emerging markets was up sharply in 2024, amounting to €6,279 million (+39% at constant scope and exchange rates) thanks to continued strong momentum in the Near and Middle East (with an organic increase of 80%).

Order intake in the Aerospace segment totaled €6,434 million compared to €5,606 million in 2023 (+14% at constant scope and exchange rates). This solid growth reflects several trends.

The different segments of the Avionics market continued to record sustained demand in 2024;
The Space business posted sustained growth in order intake, including five orders with a unit value of more than €100 million recorded in the fourth quarter, four of which in OEN (Observation, Exploration & Science and Navigation) activities.
At December 31, 2024, the segment’s order book stood at €10.5 billion, up 13% from 2023.

At €14,723 million compared to €13,944 million in 2023, order intake in the Defence segment set a new record (+5% at constant scope and exchange rates). The book-to-bill ratio was 1.34, above 1.2 for the sixth consecutive year. This high level is explained by continued strong demand in all activities, with twenty-seven contracts with a unit value of more than €100 million recorded in 2024. The segment’s order book reached a new record at €39.2 billion (up 12%), corresponding to 3.6 years of sales, offering strong visibility for the years ahead.

At 4,032 million, order intake in the Cyber & Digital segment was structurally very close to sales as most business lines in this segment operate on short sales cycles. The order book is therefore not significant.

Sales

Sales for the 2024 financial year totaled €20,577 million, compared to €18,428 million in 2023, up 11.7% in total change and 8.3% in organic terms (at constant scope and exchange rates 14 ), driven in particular by the robust performance of the Defence segment.

Geographically 15 , sales recorded solid growth in both mature markets (+7.9% in organic terms) and emerging markets (+9.6% in organic terms), driven by double-digit growth in Asia.

Sales in the Aerospace segment totaled €5,471 million, up 4.8% from 2023 (+2.9% at constant scope and exchange rates). Momentum in this segment reflects contrasting trends:

The Avionics business posted mid-single digit organic growth in 2024, notably driven by strong momentum in both original equipment activities and aftermarket services, with a return to pre-Covid levels in air traffic. However, as expected, the fourth quarter was impacted by delays in aircraft deliveries to airlines, which postponed in-flight entertainment (IFE) sales;
As expected, sales were almost flat in the Space business. The telecommunications segment continued to be impacted by structurally lower demand in the geostationary satellite market. Conversely, trends remain positive for OEN activities.

Sales in the Defence segment totaled €10,969 million, up 13.9% from 2023 (+13.3% at constant scope and exchange rates). This strong growth came against a backdrop of steady growth in the Group’s production capacity, enabling it to meet high demand in all product lines. Growth was notably driven by land and air systems, such as tactical vehicles and systems or surface radars. The fourth quarter of 2024 also benefited from favorable cut-off effects.

At €4,024 million, sales in the Cyber & Digital segment increased by 1.4% at constant scope and exchange rates (and +14.8% in total change including the positive scope effect of the acquisitions of Imperva and Tesserent). This moderate organic sales growth reflects different trends depending on the activities:

Strong momentum continued for cyber businesses, including a strong performance from Imperva;
Against a high comparison basis in 2023, payment services sales were impacted by destocking by our customers in North America;
Lastly, the digitalization of secure connectivity solutions maintained its strong growth. Sales generated in fully digital connectivity solutions (including eSIMs and on-demand connectivity platforms) recorded double-digit organic growth and accounted for more than half of sales of this secure connectivity solutions business in 2024.

Results

The Aerospace segment recorded Adjusted EBIT of €391 million (7.2% of sales), compared with €369 million (7.1% of sales) in 2023. The segment's Adjusted EBIT margin is driven by the Avionics business, which posted a double-digit margin and improving, including the contribution of Cobham AeroComms. However, Space activities weighed on the segment's margin, recording as expected a negative Adjusted EBIT margin in 2024 resulting from several factors: an expected increase in R&D spending, restructuring costs linked to the adaptation plan announced in March 2024 and the impact of inflation not reflected on past contracts.

Adjusted EBIT for the Defence segment amounted to €1,432 million, compared with €1,270 million in 2023 (an increase of +13.0% at constant scope and exchange rates). The margin for this segment was stable at 13.1%, compared to 13.2% in 2023.

At €585 million (14.5% of sales), Adjusted EBIT in the Cyber & Digital segment recorded solid growth in both value and margin. The improvement in profitability was notably due to the successful integration of Imperva and the robust margin on payment services and secure connectivity solutions for mobile networks in highly competitive markets.

Naval Group's contribution to the Group's Adjusted EBIT amounted to €93 million in 2024, compared with €91 million in 2023.

At -€166 million, compared with €2 million in 2023, net financial interest increased sharply, as expected. This increase was mainly linked to the substantial rise in debt following the acquisitions made in 2023. Other adjusted financial income 16 stood at €35 million in 2024 versus -€37 million in 2023, reflecting the exceptional positive impact of dividends on non-consolidated affiliates and foreign exchange gains. The adjusted financial expense on pensions and other long-term employee benefits 16 improved significantly (-€49 million compared with -€76 million in 2023), reflecting the removal of the interest expense following the transfer of UK pension obligations in December 2023.

At €21 million, compared with €105 million in 2023, the Adjusted net income, Group share, from discontinued operations 16 was in line with trends in the Transport business, which was sold on May 31, 2024.

As a result, Adjusted net income, Group share 16 was €1,900 million, compared to €1,768 million in 2023, after an adjusted income tax charge 16 of -€427 million, compared to -€370 million in 2023. At 20.4% in 2024 compared to 20.1% in 2023, the effective tax rate was stable.

The Adjusted net income, Group share, per share 16 amounted to €9.24, up 9% from 2023 (€8.48).

Consolidated net income, Group share, stood at €1,420 million, up 39% from 2023. This increase can be explained notably by the recognition in 2023 of a non-current and non-recurring expense linked to the implementation of insurance coverage for the Group's commitments under the Thales UK Pension Scheme.

Financial position at December 31, 2024

Free operating cash flow 17 amounted to €2,027 million compared to €2,026 million in 2023. It included a contribution of €2,142 million from continuing operations and -€116 million from discontinued operations. For continuing operations, the cash conversion ratio of Adjusted net income, Group share, into free operating cash flow was 114%.

The net balance of acquisitions and disposals of subsidiaries and affiliates amounted to €359 million. Under its acquisition strategy, the Group completed two major operations in 2024:

The acquisition (on April 2, 2024) of Cobham Aerospace Communications, a leading supplier of cutting-edge technologies enabling flexible, integrated and more-autonomous avionics systems, based primarily in the United States and generating sales of approximately $200 million in 2023 (see press releases dated July 12, 2023 and April 2, 2024);
The sale (on 31 May 2024) to Hitachi Rail of the Transport business, a global leader in rail signaling and train control systems, telecommunications and supervision systems, and fare collection solutions (see press releases dated August 4, 2021 and May 31, 2024). This business generated sales of €1,822 million in 2023.

As part of the share buyback program covering a maximum of 3.5% of the capital announced in March 2022 and completed in March 2024, 1,245,757 shares were repurchased during 2024, representing 0.6% of the share capital, for €176 million. The Group repurchased a total of 7,469,396 shares under this program, 3.5% of the share capital.

At December 31, 2024, net debt amounted to €3,044 million compared with €4,190 million at December 31, 2023. This decrease reflects the impact of free operating cash flow generation, acquisitions and disposals for -€359 million (€3,464 million in 2023), the payment of €708 million in dividends (€634 million in 2023), new lease liabilities for €143 million (€166 million in 2023) and the share buyback program.

Equity, Group share amounted to €7,515 million, compared with €6,830 million at December 31, 2023. This increase reflects the positive contribution of consolidated net income, Group share (€1,420 million) less the dividend payout (-€708 million) and share buybacks (-€176 million).

Non-financial performance

In line with its corporate purpose of “Building a future we can all trust”, Thales has set itself the ambition in terms of Corporate Social Responsibility (CSR): to contribute to a safer, greener and more inclusive world. First, the Group will seek to maximize the contribution of its portfolio of solutions to the planet and society. Secondly, Thales has set itself ambitious targets on three main priorities:

The fight against global warming;
Strengthening gender diversity at all levels;
The implementation of the best standards in terms of ethics and compliance.

In terms of the fight against global warming, scope 1 & 2 CO ₂ emissions fell by 56.8% in 2024 compared to 2018 and scope 3 emissions fell by 24.7% compared to 2018. The Group has thus achieved its 2030 targets ahead of schedule for the second consecutive year. The absolute value reduction targets for carbon footprint remain relevant for 2030 given the Group's growth prospects. To raise employee awareness to climate change and its impacts on society and on the Group, a voluntary training named "Thales Climate Passport" was deployed in 2024 with the aim of training 50% of managers. Over 67.4% of managers, representing around 35,000 employees, completed this training course in 2024, demonstrating the great success of this training.

With regard to strengthening diversity, Thales has set itself an ambitious target for 2026 to have 75% of management committees with at least 4 women. Thus, at the end of 2024, 61.5% of the Group's management committees had at least 4 women, compared to 52.6% at the end of 2023. The highest levels of responsibility comprised 21.1% women at the end of 2024 [1] ; a performance in line with the Group's trajectory to reach the set goal of 22.5% by 2026 (compared to 20.4% at the end of 2023 and 16.6% at the end of 2018).

In the area of ethics and compliance, 100% of employees concerned by the 2024 anti-corruption training campaign have been trained, demonstrating the Group's continuous commitment to train all employees potentially exposed to risk situations. In 2024, the ISO 37001 certification "Anti-bribery management systems" was renewed for 3 years and extended to Germany, Australia, and New Zealand after Canada and the United States in 2023, and the United Kingdom and the Netherlands in 2022. Thus, in 2024, the revenue generated by certified entities represents 64% of the Group's revenue (vs. 58% in 2023).

Proposed dividend

The Board of Directors decided to propose to the shareholders, who will convene at the Annual General Meeting on May 16, 2025, the payment of a dividend of €3.70 per share. This corresponds to a payout ratio of 40% of the Adjusted net income, Group share, per share.

If approved, the ex-dividend date will be May 20, 2025, and the payment date will be May 22 2025. This dividend will be paid fully in cash and will amount to €2.85 per share, after deducting the interim dividend of €0.85 per share paid in December 2024.

Outlook

Thales is embarking on 2025 with confidence, bolstered by good visibility in the vast majority of its activities.

In 2025, the Avionics business will be driven by both the original equipment and aftermarket services activities, the continued growth of the Cobham AeroComms business, and the gradual recovery of the IFE business. In the Space business, the outlook remains positive, particularly in the Observation, Exploration & Science, Navigation and military telecommunications activities. However, the structural weakness of demand in the geostationary satellite market will dampen the growth of this activity. Thales will continue to implement its cost adaptation plan, with the objective of an

Adjusted EBIT margin of 7%+ in the Space business in 2028.

The Defence segment, which enjoys a record order book, will be further supported by strong demand in 2025, against a backdrop of increasing military spending, particularly in the geographical areas where the Group operates. With the increase in its production capacity over the past several years and a portfolio of premium solutions incorporating differentiating leading technologies, Thales is ideally positioned to meet its customers' needs.

Lastly, the Cyber and Digital segment will benefit from positive momentum in 2025, supported by Thales’ unique positioning and leadership. The continued development of Imperva will strengthen the differentiating value proposition in cybersecurity activities in order to take advantage of the buoyant environment. The payment services business is also expected to gradually return to growth.

The Group expects net investment expenses to slightly exceed €700 million in 2025 (after €617 million in 2024) to meet the need to increase production capacity, particularly in the Defence business.

As a result, Thales sets the following targets for 2025:

A book-to-bill ratio above 1;
Organic sales growth of between +5% and +6%, corresponding to sales in the range of €21.7 billion to €21.9 billion;
An Adjusted EBIT 18 margin between 12.2% and 12.4%, up 40 to 60 basis points from 2024.

The Group also expects to maintain a high cash conversion ratio of between 95% and 100% in 2025.

Note: assuming no new major disruptions of macroeconomic and geopolitical context; including tariff increase.

Impact of new tax measures in France

Following the adoption of the 2025 budget, which introduces various tax changes, the impacts for the Thales Group are as follows:

An additional tax expense of ~€80 million related to the temporary additional corporate tax charge, giving rise to an additional tax of 41.2% in 2025, resulting in an overall tax rate of 36.13% (instead of the current rate of 25.83%);
~€8 million in taxes payable on share cancellations made in October 2024 as part of the share buyback program.

The temporary additional contribution to corporate tax for Naval Group could have a negative impact of around €8 million on Thales' Adjusted EBIT in 2025.

These different impacts will represent an equivalent cash outflow in 2025.

https://www.thalesgroup.com/en/group/investors/press_release/thales-reports-its-2024-full-year-results

The Boeing Company (NYSE : BA)

Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. As America’s biggest manufacturing exporter, the company supports airlines and U.S. and allied government customers in more than 150 countries. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training.

Boeing has a long tradition of aerospace leadership and innovation. The company continues to expand its product line and services to meet emerging customer needs. Its broad range of capabilities includes creating new, more efficient members of its commercial airplane family; designing, building and integrating military platforms and defense systems; creating advanced technology solutions; and arranging innovative customer-financing options.

With corporate offices in Chicago, Boeing employs approximately 160,000 people across the United States and in more than 65 countries. This represents one of the most diverse, talented and innovative workforces anywhere. Our enterprise also leverages the talents of hundreds of thousands more skilled people working for Boeing suppliers worldwide.

Boeing is organized into two business units: Commercial Airplanes and Defense, Space & Security. Supporting these units are Boeing Capital Corporation, a global provider of financing solutions; Shared Services Group, which provides a broad range of services to Boeing worldwide; and Boeing Engineering, Operations & Technology, which helps develop, acquire, apply and protect innovative technologies and processes.

Commercial Airplanes

Boeing has been the premier manufacturer of commercial jetliners for decades. Today, the company manufactures the 737, 747, 767, 777 and 787 families of airplanes and the Boeing Business Jet range. New product development efforts include the Boeing 787-10 Dreamliner, the 737 MAX, and the 777X. More than 10,000 Boeing-built commercial jetliners are in service worldwide, which is almost half the world fleet. The company also offers the most complete family of freighters, and about 90 percent of the world’s cargo is carried onboard Boeing planes.

Through its Commercial Aviation Services business, the company provides unsurpassed, around-the-clock services and support to enable airlines and leasing companies to increase operational efficiency. Commercial Aviation Services offers a full range of customer support, aftermarket parts, engineering, modification, logistics and information services to its global customer base, which includes the world's passenger and cargo airlines, as well as maintenance, repair and overhaul facilities.

Defense, Space & Security

Defense, Space & Security (BDS) is a diversified, global organization providing leading solutions for the design, production, modification and support of military fixed-wing aircraft, rotorcraft, weapons, and satellite systems, among others. It helps customers address a host of requirements through a broad portfolio that includes the 702 family of satellites; AH-64 Apache helicopter; cyber security; EA-18G electronic attack aircraft; KC-46 aerial refueling aircraft, which is based on the Boeing 767 commercial airplane; and the P-8 anti-submarine/anti-surface warfare aircraft, which is based on the 737 commercial jet. Driven by its ability to provide customers with the right solutions, at the right time, and at the right cost, BDS is seeking ways to better leverage information technologies and continues to invest in the research and development of enhanced capabilities and platforms.

Boeing Capital Corporation

Boeing Capital Corporation (BCC) is a global provider of financing solutions for Boeing customers. Working closely with Commercial Airplanes and Defense, Space & Security, BCC ensures customers have the financing needed to buy and take delivery of their Boeing products. With a year-end 2015 portfolio value at approximately $3.4 billion, BCC combines Boeing's financial strength and global reach, detailed knowledge of Boeing customers and equipment and the expertise of a seasoned group of financial professionals.

Shared Services

The Shared Services organization provides Boeing's business units and corporate offices with common internal services that support the company's global operations. These services involve everything from maintaining and protecting Boeing's worldwide sites; managing the sale and acquisition of all leased and owned property; purchasing the company's non-production equipment and supplies; delivering a variety of human resources-related services to current and former employees; recruiting and hiring for the enterprise; managing the company's finance, business / accounting, travel and expense services; and delivering creative communication services.

http://www.boeing.com/company/general-info/index.page#/overview

Boeing Reports Fourth Quarter Results

ARLINGTON, Va., Jan. 28, 2025

Fourth Quarter 2024

Finalized the International Association of Machinists and Aerospace Workers (IAM) agreement and resumed production across the 737, 767 and 777/777X programs
Financials reflect previously announced impacts of the IAM work stoppage and agreement, charges for certain defense programs, and costs associated with workforce reductions announced last year
Revenue of $15.2 billion, GAAP loss per share of ($5.46) and core (non-GAAP)* loss per share of ($5.90)
Operating cash flow of ($3.5) billion; cash and marketable securities of $26.3 billion

Full Year 2024

Delivered 348 commercial airplanes and recorded 279 net orders
Total company backlog grew to $521 billion, including over 5,500 commercial airplanes

The Boeing Company [NYSE: BA] recorded fourth quarter revenue of $15.2 billion, GAAP loss per share of ($5.46) and core loss per share (non-GAAP)* of ($5.90) (Table 1) primarily reflecting previously announced impacts of the IAM work stoppage and agreement, charges for certain defense programs, and costs associated with workforce reductions announced last year. Boeing reported operating cash flow of ($3.5) billion and free cash flow of ($4.1) billion (non-GAAP)*.

"We made progress on key areas to stabilize our operations during the quarter and continued to strengthen important aspects of our safety and quality plan," said Kelly Ortberg, Boeing president and chief executive officer. "My team and I are focused on making the fundamental changes needed to fully recover our company's performance and restore trust with our customers, employees, suppliers, investors, regulators and all others who are counting on us."


Table 2. Cash Flow	Fourth Quarter		Full Year
(Millions)	2024	2023	2024	2023
Operating cash flow	($3,450)	$3,381	($12,080)	$5,960
Less additions to property, plant & equipment	($648)	($431)	($2,230)	($1,527)
Free cash flow*	($4,098)	$2,950	($14,310)	$4,433

*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures."

Operating cash flow was ($3.5) billion in the quarter reflecting lower commercial deliveries, as well as unfavorable working capital timing, primarily driven by the IAM work stoppage (Table 2).


Table 3. Cash, Marketable Securities and Debt Balances	Quarter End
(Billions)	4Q 2024	3Q 2024
Cash	$13.8	$10.0
Marketable securities1	$12.5	$0.5
Total	$26.3	$10.5

Consolidated debt	$53.9	$57.7

1 Marketable securities consist primarily of time deposits due within one year classified as "short-term investments."

Cash and investments in marketable securities totaled $26.3 billion, compared to $10.5 billion at the beginning of the quarter, primarily driven by a $24 billion capital raise partially offset by free cash flow usage and debt repayment in the quarter (Table 3). Debt was $53.9 billion, down from $57.7 billion at the beginning of the quarter, driven by the early repayment of a $3.5 billion bond originally maturing in 2025. The company maintains access to credit facilities of $10.0 billion, which remain undrawn.

Total company backlog at quarter end was $521 billion.

Segment Results

Commercial Airplanes

Commercial Airplanes fourth quarter revenue of $4.8 billion and operating margin of (43.9) percent reflect the previously announced impacts associated with the IAM work stoppage and agreement including lower deliveries and pre-tax charges of $1.1 billion on the 777X and 767 programs (Table 4).

The 737 program resumed production in the quarter and plans to gradually increase production rate. The 787 program exited the year at a production rate of five per month and recently announced plans to expand South Carolina operations. In January, the 777X program resumed FAA certification flight testing, and the company still anticipates first delivery of the 777-9 in 2026.

Commercial Airplanes booked 204 net orders in the quarter, including 100 737-10 airplanes for Pegasus Airlines and 30 787-9 airplanes for flydubai. Commercial Airplanes delivered 57 airplanes during the quarter and backlog included over 5,500 airplanes valued at $435 billion.

Defense, Space & Security

Defense, Space & Security fourth quarter revenue of $5.4 billion and operating margin of (41.9) percent reflect the previously announced pre-tax charges of $1.7 billion on the KC-46A, T-7A, Commercial Crew, VC-25B and MQ-25 programs.

In January, the U.S. Air Force announced an updated acquisition approach for the T-7A Red Hawk that allows the company to provide a production-ready configuration to the customer prior to low-rate initial production, which better supports the operational needs of the customer and reduces future production risk.

During the quarter, Defense, Space & Security captured an award from the U.S. Air Force for 15 KC-46A Tankers, secured an order for seven P-8A Poseidon aircraft from the U.S. Navy, and delivered the final T-7A Red Hawk engineering and manufacturing development aircraft to the U.S. Air Force. Backlog at Defense, Space & Security was $64 billion, of which 29 percent represents orders from customers outside the U.S.

Global Services

Global Services fourth quarter revenue of $5.1 billion and operating margin of 19.5 percent reflect higher commercial volume and mix.

During the quarter, Global Services secured awards for C-17 sustainment and a contract for F-15 Japan Super Interceptor upgrade services from the U.S. Air Force.

Additional Financial Information


Table 7. Additional Financial Information	Fourth Quarter				Full Year
(Dollars in Millions)	2024		2023		2024		2023
Revenues
Unallocated items, eliminations and other	($50)		($58)		($216)		($167)
Loss from operations
Unallocated items, eliminations and other	($683)		($692)		($2,047)		($1,759)
FAS/CAS service cost adjustment	$272		$193		$1,104		$1,056
Other income, net	$432		$308		$1,222		$1,227
Interest and debt expense	($755)		($600)		($2,725)		($2,459)
Effective tax rate	5.7	%	(233.3)	%	3.1	%	(11.8)	%

Unallocated items, eliminations and other primarily reflects timing of allocations.

https://boeing.mediaroom.com/2025-01-28-Boeing-Reports-Fourth-Quarter-Results

United Aircraft Corporation

The Public Joint Stock Company United Aircraft Corporation (PJSC UAC) was established pursuant to a Russian President’s Decree dated February 20th, 2006 (its former name, before 2015,was OJSC UAC).

The priority activity areas of PJSC UAC and its member companies are: development, production, sales, operational support, warranty and servicing, modernization, repair, and disposal of civil and military aircraft.

https://www.uacrussia.ru/en/corporation/

History

PJSC UAC was established in accordance with RF Presidential Decree No. 140 dated February 20, 2006 "On Joint-Stock Company United Aircraft Corporation" for the protection and development of the scientific and industrial potential of the Russian aircraft industry, the security and defense of the state, and the concentration of intellectual, industrial, and financial resources to implement long-term aviation programs.

At present, UAC encompasses about 30 enterprises and is one of the largest players on the global aviation market. Companies within the structure of the Corporation hold rights to such world-famous brands as "Sukhoi," "MiG," "IL," "Tu," "Yak," "Beriev," as well as the new SSJ 100 and MS-21 brands.

Priority activity areas of the Corporation are the design, production, testing, operation, warranty and service maintenance of aircraft for civil and military purposes. UAC companies work in the spheres of the modernization, repair and disposal of aircraft, as well as the training and qualification-upgrading of flight crews.

To date, the largest share in the production structure consists of military products both for the RF Ministry of Defense and foreign customers. From 2013 onwards, the bulk of military-equipment deliveries are bound for the domestic market.

In 2013, nine aircraft repair plants of the RF Ministry of Defense were transferred to UAC. As a result, in 2014, the serviceability of the RF Air Force fleet increased from 40% to 65%.

UAC seeks to increase the proportion of civil aviation in its sales structure, primarily by ramping-up SSJ100 serial production and launching the production of its prospective MS-21aircraft family. A significant backlog of orders for both these products ensures uninterrupted utilization of UAC’s production capacities in the mid-term.

The Corporation’s assets are located in various regions of Russia, and there are joint ventures with foreign partners operating in India and Italy. In total, UAC’s enterprises employ more than 98,000 people.

According to UAC’s long-term development strategy through 2025, it is planned to quadruple revenue to RUB 900 bln, reaching a sales-profitability level in terms of net profit of no less than 10%.

UAC’s priorities include the top-quality, timely execution of contracts under State Defense Order, development of effective, full-scope international cooperation with foreign aviation companies, as well as formation of technology advancements for the promotion of domestic products on the world market.

In April 2015, the Company changed its full name to Public Joint-Stock Company "United Aircraft Corporation" (PJSC UAC).

https://www.uacrussia.ru/en/corporation/history/

Consolidated Financial Statements 31 December 2016

3 April 2017

https://www.uacrussia.ru/upload/iblock/e72/e72b4c35b8e6c3ac6f39c84343d0feb7.pdf

Uralvagonzavod

Joint-Stock Company Uralvagonzavod Scientific Industrial Corporation named after F.E. Dzerzhinsky

JSC Uralvagonzavod Scientific Industrial Corporation is an integrated structure uniting industrial enterprises, research institutes and design bureaus. These are well-known developers and manufacturers of artillery, armored vehicles, rolling stock, light rail vehicles, road construction and other equipment. The corporation has powerful technical and intellectual potential.

The integrated structure is headed by Uralvagonzavod (Nizhny Tagil). For many years, the company has been a leader in domestic freight railway engineering. Known in the world as a manufacturer of armored vehicles.

The birthday of Uralvagonzavod is considered October 11, 1936, when the first freight gondola cars rolled off its assembly line. Today, one of the largest research and production complexes in Russia includes metallurgical, car assembly, mechanical assembly, mechanical repair, tool and other industries that allow for a closed production cycle. Four design bureaus, including the head one in the freight car building industry, and two institutes enable the corporation to master modern technologies, successfully develop and introduce new models of vehicles and special equipment into serial production.

In the ongoing full-scale reconstruction of production, the corporation cooperates with leading domestic and world companies. For these purposes, from one and a half to two billion rubles of own and borrowed funds are invested annually. Dynamically developing, the Uralvagonzavod achieved stability, which also allows it to successfully follow the planned course in times of crisis.

The general partners of Uralvagonzavod are the largest domestic transportation companies, as well as the Ministry of Defense of the Russian Federation and OJSC Rosobornexport.

According to the American edition of Defense News, the Uralvagonzavod is one of the hundred largest military-industrial complexes in the world.

Every year, one or two new models of freight rolling stock are put on the conveyor. Among the latest developments of the corporation is a new generation gondola car model 12-196-01 with an axle load of 25 t / s per axle.

The mission of the company is to improve the quality of life of factory workers. To achieve this, working conditions are actively improving in all structural divisions, and the social sphere is developing - palaces of culture, water and ice sports, a stadium, medical facilities, and recreation facilities.

At the Uralvagonzavod, a number of socially significant programs are being implemented, covering all aspects of workers' lives. These are the prevention and treatment of diseases, rehabilitation and recreation, including for children, the development of physical education and sports, leisure activities, support for veterans and youth.

http://uralvagonzavod.ru/company

History

Largest in the world

The unique research and production complex of Russia, the largest in the world in terms of production volumes and technological areas, UVZ has always been at the forefront of Russian industry. “The first in the world, unique, unique ...” - these words for decades determined the biography of the enterprise.

The construction of the Uralvagonzavod began in 1931 in the system of the Ural-Kuzbass military-industrial center.

On October 11, 1936, the first heavy-duty wagons rolled off the assembly line. This day is considered the birthday of the company. In the prewar period alone, the Uralvagonzavod manufactured 35,400 platforms, open wagons (gondolas), and covered wagons. This is twice as much as that of all USSR car building enterprises during the years of the first and second five-year plans.

In August 1941, by decision of the State Defense Committee, the Ural Tank Plant No. 183 named after Uralvagonzavod and 12 evacuated enterprises was established Comintern. In just 2 months, production was rebuilt to produce military products. Almost every third tank that took part in the hostilities came off the assembly line of the Ural Tank Plant. In total, during the years of the war, 25 thousand combat vehicles were assembled in the UTZ areas. This is more than at all German factories (23 thousand tanks) combined.

For the contribution to the victory, the team of UTZ No. 183 named after The Comintern was awarded the orders of the Red Banner of Labor (1942), the Red Banner (1943), and World War 1 degree (1945). In 1944, the tank design bureau was awarded the Order of Lenin.

With the T-34 tank, the domestic tank design school actually began which developed and gained strength within the walls of the Uralvagonzavod. Post-war tanks from T-44 to T-62 preserved the fighting traditions of the “thirty-four”. Fire, armor, maneuver are embodied in the most massive tank of our time, the T-72, which forms the basis of ground forces in many countries of the world. For its creation and organization of production, Uralvagonzavod was awarded the Orders of Lenin (1970) and the October Revolution (1976).

The new generation of Russian tanks - the T-90S rocket-cannon tank with reactive armor and an optoelectronic fire suppression system in terms of the combination of combat and technical characteristics, not only does not concede to the best tanks of other countries, but surpasses them in many respects.

The continuation of the design ideas of the tank builders was the technical support equipment for engineering weapons, which are used not only for the military, but also for peaceful purposes: they help in eliminating the consequences of accidents, catastrophes, earthquakes.

About 100 thousand units of armored vehicles were produced by UVZ, starting in 1941, and this is an unconditional world record in tank building.

Today, UVZ is a diversified engineering association that produces about 200 types of products.

The company also developed in the 1990s. the most modern models of highly efficient road-building and municipal vehicles were introduced into serial production.

In accordance with the objectives of the priority national project "Agrarian and Industrial Complex", UVZ specialists developed and put into mass production the universal cultivating tractor RTM-160. Despite his young age, he already has awards from prestigious exhibitions, and most importantly - he has established himself in the fields of the country.

UVZ is the largest Russian developer and manufacturer of various types of freight cars, gondola cars, freight carts, and tank containers. They are his calling card. Since 1979, the company switched to the production of all-metal gondola cars. In total, about a million cars for various purposes rolled off the assembly line.

Cistern construction began with the cryogenic production of the association (created in 1954). UVZ made a significant contribution to the design and manufacture of systems and equipment for launching artificial Earth satellites (starting with the launch of the first on October 4, 1957), and manned orbiting ships, the reusable space system Energia-Buran, and also participated in the international program Marine start".

Powerful intellectual and technological potential helps to carry out large-scale projects. A strong scientific school was formed at UVZ, represented by the Ural Design Bureau of Carriage Engineering, the Ural Design Bureau of Transport Engineering, the Ural Scientific and Technological Complex, the Center for Research and Testing of Materials, and other experimental design departments of the all-Russian level.

UVZ is an enterprise with a high production culture based on established technological and intellectual traditions.

Today, Uralvagonzavod heads an integrated structure uniting about 40 industrial enterprises, research institutes and design bureaus in five federal districts of Russia and abroad.

http://uralvagonzavod.ru/company/history/

ACQ_REF: IS/49513/20250513/XXX/0/1

ACQ_AUTHOR: Senior Associate/Joseph Hang Ellision

Word count: 37217

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GLOBAL ARMAMENTS 13 MAY 25_EN

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