- Héroux-Devtek (TSX:HRX), a global manufacturer of aerospace products, reported C$20.7 million in net income for fiscal Q4 2024, bringing net income for the fiscal year to C$38.3 million
- The yearly figure is a 2.76x improvement year-over-year, and marks the company’s fourth year of eight-figure profitability out of the past five years
- Héroux-Devtek develops, manufactures and repairs aircraft landing gear, hydraulic and electromechanical actuators, custom ball screws and fracture-critical components for the aerospace market
- Héroux-Devtek stock has added 59.79 per cent year-over-year, but only 44.57 per cent over the past five years
Héroux-Devtek (TSX:HRX), a global manufacturer of aerospace products, reported C$20.7 million in net income for fiscal Q4 2024, which ended on March 31, bringing net income for the fiscal year to C$38.3 million.
The yearly figure is a 2.76x improvement year-over-year, and marks the company’s fourth year of eight-figure profitability out of the past five years, not counting a C$50 million loss in 2020 because of the COVID-19 pandemic.
Q4 highlights
- Sales for Héroux-Devtek’s fiscal Q4 2024 rose by 18 per cent year-over-year to a record C$184.1 million, driven by “actions taken to better navigate the challenges of the current environment,” according to Wednesday’s news release.
- Civil sales added 55 per cent year-over-year to C$75.8 million, driven by higher deliveries for the Boeing 777, Embraer Praetor and E2 programs. Its partner, Boeing, just announced a C$35 million research partnership with the company.
- Gross profit increased to C$39.4 million (21.4 per cent of sales) from C$22.7 million (14.6 per cent of sales) year-over-year thanks to higher volume and pricing initiatives.
- Operating income increased from C$9.9 million to C$27.6 million, representing 15 per cent of sales, while adjusted EBITDA climbed by 68.8 per cent to C$33.1 million.
- Net income jumped by more than 3x year-over-year from C$6.3 million to C$20.7 million.
- The company’s backlog reached a record C$951 million, up from C$864 million year-over-year.
Fiscal 2024 highlights
- Sales increased by 15.8 per cent to a record C$629.8 million, exceeding pre-pandemic levels thanks to growth in civil and defence markets.
- Civil sales added 42.6 per cent to C$243.4 million, thanks to increased deliveries for the Boeing 777, Embraer Praetor and E2 programs.
- Gross profit reached C$111.1 million or 17.6 per cent of sales, up from C$73.5 million or 13.5 per cent of sales year-over-year thanks to higher volume and pricing initiatives.
- Operating income was C$59.8 million or 9.5 per cent of sales, up from C$26.2 million or 4.8 per cent of sales year-over-year, while adjusted EBITDA added 50.2 per cent to C$92.2 million or 14.6 per cent of sales, up from C$61.4 million or 11.3 per cent of sales year-over-year.
- Net income skyrocketed to C$38.3 million, up from C$13.8 million year-over-year.
- As of March 31, Héroux-Devtek’s net debt stood at C$209.9 million, up from C$165 million year-over-year, primarily as a result of investments in inventory.
Leadership insights
“I am proud to announce a very strong quarter of sales and profitability,” Martin Brassard, president and chief executive officer of Héroux-Devtek, said in a statement. “These results were driven by the many measures put in place over the last two years to improve productivity through automation, the stabilization of our production systems and pricing initiatives. I am confident that this marks the beginning of a sustainable trend of improving performance propelled by our great teams, who are now better equipped to manage the persistent supply chain issues.”
“As we look ahead, the current macroeconomic environment is favourable for Héroux-Devtek, especially in the defence sector,” he added. “The demand from prime contractors around the world for our products has never been higher, which demonstrates the trust and recognition our clients place in the quality, safety and excellence of our products.”
About Héroux-Devtek
Héroux-Devtek develops, manufactures and repairs aircraft landing gear, hydraulic and electromechanical actuators, custom ball screws and fracture-critical components for the aerospace market. It is the third-largest landing gear company worldwide, catering to the defence and commercial sectors.
Héroux-Devtek Inc. stock (TSX:HRX) is up by 8.7 per cent, trading at C$22.77 per share as of 11:25 am ET. The stock has added 59.79 per cent year-over-year, but only 44.57 per cent over the past five years.
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(Top photo is sourced from Héroux-Devtek.)