FACC achieves significant revenue and earnings growth in H1

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FACC records strong revenue growth in the first quarter of 2023
(PHOTO: FACC)

IATACompared to previous year’s period, revenue of FACC AG grew significantly from EUR 270.1 million to EUR 354.7 million in the first half of 2023 – this corresponds to an increase of 31.3%. Despite ongoing challenges along the supply chains, EBIT increased significantly from EUR 6.1 million to EUR 14.9 million. This development is attributable to the sustained recovery of the aviation industry, the rising demand for new aircraft and increasing production of all aircraft types. Revenue from new projects and development orders are also positively contributing to earnings.

The positive development of the international aviation industry also continued in the first half of 2023. As a partner of all major manufacturers in the aviation industry, FACC AG in particular will benefit strongly from this development. Within the next 12 months, a full recovery of the international aviation industry is expected, with global travel volumes already exceeding 2019 levels in some areas. This became apparent at this year’s Paris Air Show, where orders for a total of 1,300 aircraft were received. As a result, FACC’s long-term order book has recorded additional receipts of approximately EUR 400 million. In conjunction with the strong ramp-up of production now taking place, the growth of the workforce is also progressing successfully in line with forecasts: In the first half of 2023, FACC AG was able to take on a further 198 employees (FTE), notwithstanding the challenging labor market, with the headcount to be increased by a further 400 employees by mid-2024.

Expanding the global footprint
Construction measures for the further expansion of Plant 6 in Croatia, focusing on the production of lightweight components, were started this June. FACC is investing EUR 20 million in this project, and construction work will be completed by mid-2024. The number of employees at the Croatian plant will be increased from 230 at present to approximately 600 by 2025.

Urban Air Mobility
By placing a strategic focus on the field of Urban Air Mobility at an early stage, FACC AG was able to secure development and production contracts with major suppliers in this fast-growing segment. The first components for the eVTOL Midnight of the American customer Archer Aviation were delivered in June, with series production of the fuselage and wing components scheduled to start in 2024.

Strategic focus areas
The operating environment remains challenging due to ongoing disruptions in international supply chains. The focus is therefore on further stabilising the supply chains and expanding the vertical integration of assemblies (in-house production instead of external supply). The company will continue to concentrate on recruiting and training an additional 400 skilled workers. Within research & development, developing new materials and processes for carbon-neutral air travel has the highest priority. As a cross-sectional technology, FACC lightweight construction technologies are key to achieving these goals. FACC is carrying out research in eight focus areas and on more than 60 innovation projects, with the aim of making aircraft lighter, more aerodynamic and thus more efficient.

Outlook
The further outlook for the financial year 2023 remains unchanged. Group revenue in the financial year 2023 is expected to increase by between 12% and 16% compared to the financial year 2022. With regard to earnings, management expects a smaller but positive result for the second half of the year compared to the first half.

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