Hutchinson PFW Aerospace’s Post

We initiated in March a position in Dassault Aviation. The French aerospace group currently enjoys a record backlog of close to 8 years in sales providing the company good visibility on future sales with record new export orders on its Rafale fighter. Alone, its 26.5% stake in the defence electronics and electronics group Thales is currently worth 8 bn EUR in the stock market. When we add the 3 bn EUR in proprietary cash we already explain 78% of the current market cap. The civil and military aerospace business is therefore only worth 3 bn EUR, which we find unreasonable in today’s environment. Needless to say that the stock scores high in our proprietary quality-value framework. #ecplu #valueinvesting #equities

UPDATE: Airbus has reaffirmed its pledge to open Britain’s first new helicopter factory in decades, creating hundreds of jobs and generating billions of pounds of export revenue, if the MoD chooses it to build a new generation of helicopters to replace the UK’s ageing fleet of Pumas. The European aerospace manufacturer is competing with the Italian group Leonardo and the American multinational Lockheed Martin to win a £1.1 billion deal to build at least 25 Puma replacements. If successful with its tender, Airbus plans to build a new helicopter production line at its vast wing manufacturing plant in Broughton which would become the sole Airbus site for production of H175M military helicopters around the world, taking work away from its existing helicopter manufacturing site at Marignane in the south of France. Leonardo is pitching to build its AW149 to replace the Puma at its Yeovil factory. Lockheed Martin, one of the world’s largest aerospace companies, is offering its Black Hawk helicopter, a mainstay of the American military, but it has made no commitment to assemble them in the UK. It was announced at the International Military Helicopter conference in London earlier today that the Invitation to Negotiate has been released, meaning the three NMH candidate suppliers - Airbus, Leonardo and Lockheed Martin - will now compile their bids to be evaluated by the MoD to determine the winner. #UKmfg

In a notable advancement for Noida's development, Dassault Aviation's MRO facility is set to be established near the upcoming Jewar International Airport. This initiative marks a significant boost for India's Make-in-India campaign, as the French aerospace giant, Dassault Aviation SA, secures land for setting up a Maintenance, Repair, and Overhaul (MRO) facility for Mirage 2000 and Rafale fighters. The French government, under President Emmanuel Macron, along with Dassault, has proposed to manufacture Rafale jets with components sourced locally within India. With India's existing base maintenance depots, repair facilities, and simulators already in place, the country's defense infrastructure is poised to support this expansion. This strategic development not only bolsters India's defense capabilities but also paves the way for export opportunities, further solidifying the robust ties between India and France. #noida #anothemilestone

Great start to #ILA24 with Chancellor Olaf Scholz announcing the intention of Germany to order 20 more Eurofighter aircraft before the end of this legislative session. This builds upon the 38 Quadriga Aircraft contracted in 2020, Spain’s 20 Halcon Aircraft programme, contracted here at ILA in 2022, and the new Spanish requirement for 25 Aircraft - Halcon 2 programme. Looking forward for further orders. These announcements underpin the strategic importance, both in the battlefield and from a socio-economic perspective, of the Eurofighter Programme for the Core Nations. Airbus BAE Systems Leonardo

Happy to have had the opportunity to participate to Boeing's Conference on Supply Chain, Innovation and Sustainability in occasion of the Aerospace & Defense Supplier Summit Seattle 2024. The air traffic is witnessing an incredible recovery following the COVID pandemic with Revenue Passenger Kilometers (RPKs), i.e. the number of kilometers traveled by paying passengers, already bouncing back to the long-term trend predicted before the inception of the pandemic. As a result, the #Aerospace & #Defense industry is being pushed by an unprecedented backlog of orders for new commercial aircraft in order to support the newly-started exponential increase in air traffic in terms of production volumes and sustainable impact on our lives for the next decades. More than ever, the pressure is on the major OEMs in the sector and their Supply Chains to support the above surge in backlog by delivering their products against these three key words: first-pass #quality, #ontime, #stability. Definitely interesting and challenging times ahead to be working within the sector :)

As a partner of the world’s leading commercial aircraft manufacturers, Leonardo Aerostructures specialises in the production and assembly of major structural composite and metallic components for commercial and military aircraft, helicopters and uncrewed aircraft. Leonardo participates in the most prominent programmes in the sector, such as the Boeing 787 Dreamliner, the Airbus A220 and A321, and the best-selling regional turboprops produced by ATR. Aerosud visited their facility in June to engage with their Supply Chain Division for opportunities for potential subcontracted work, given we have been granted access to their supplier portal, we have collaborated to secure RFPs to match our capabilities. We have subsequently received RFPs for machining work and composites for the A321 & ATR products – which we will support with responses, and trust we will be able to secure future work. #advancedmanufacturing #aerospaceindustry #composites #production #future #work #grateful #trust

Dassault Aviation announced the creation of a new company, Dassault Aviation MRO India (DAMROI), dedicated exclusively to the maintenance, repair, and overhaul (MRO) of its military aircraft. Based in Noida, Uttar Pradesh, DAMROI will support the Indian Air Force’s Mirage 2000 fleet and other Dassault aircraft. The move aligns with India's "Atmanirbhar Bharat" initiative, aimed at boosting self-reliance in defense. In addition to offering tailored MRO services, DAMROI will contribute to India’s aerospace ecosystem under the "Make in India" and "Skill India" policies, focusing on training and industrial collaboration. Parent: THE GEOSTRATA #DassaultAviation #MROIndia #IndianAirForce #AtmanirbharBharat #MakeInIndia #AerospaceIndustry #SkillIndia #DefenseIndustry

The helicopter sales market be a diverse and competitive industry that offers opportunities for growth and expansion. By taking different approaches to the market, companies like Airbus and Boeing have been able to carve out their own niches and establish themselves as leaders in the industry. Whether focusing on private helicopters for personal use or military contracts, both companies have shown that there are multiple paths to success in the helicopter sales industry.

Airbus Defence has found itself in a precarious position in securing India’s upcoming bid for six preowned aerial tankers, despite previously being considered a favourite for the A330 Multi Role Tanker Transport (MRTT). Concerns have emerged over Airbus’ trustworthiness following a procurement hiccup where costs for converting six preowned Air India A321s into airborne warning systems escalated unexpectedly post-Request for Proposal. This has strained relationships, with Indian officials potentially wary of future dealings, sources have claimed. The competition could heat up as Hindustan Aeronautics Ltd (HAL), in partnership with Israel Aerospace Industries (IAI), has emerged as a contender ready to leverage experience in converting B-767s to aerial refuellers. This development underscores a broader shift towards self-reliance in Indian defence procurement, which could disadvantage traditional players like Airbus in favour of collaborations that align with India’s geopolitical and strategic interests. With Airbus needing to align its offerings and costs more transparently, the race remains open, highlighted by ongoing discussions with other major defence contractors including Boeing. https://bit.ly/3QpCM6v #DefenceProcurement #AerialTankers #AirbusDefence #HAL #IndianAirForce #DefenceIndustry

🇪🇺✈️ Airbus financial results for the fourth quarter: - Revenue: €22.89 billion (forecast €22.46 billion).    Forecast for 2024: - Approximately 800 aircraft are expected to be delivered (826 aircraft are projected). - Airbus increased its 2023 profit and recommended a special dividend. #AIR #Report #ElectronicTechnology #Aerospace #Defense