FACC increases revenue in the third quarter – market environment remains challenging

• Revenue increase of 22.5% to EUR 513.9 million in the first nine months of 2023
• EBIT reaches EUR 5.0 million in the first nine months (2022: EUR 4.2 million)

The aviation industry is continuing its recovery. In the first nine months of 2023, FACC AG achieved an increase in revenue of 22.5% to EUR 513.9 million compared to the same period of the previous year. The high production rate in the aviation industry is also reflected in FACC's long-term order book, which recorded significant growth with a volume of USD 5.8 billion.

The result for Q3/2023 is impacted by seasonally lower revenues in the summer months, challenges with the procurement of materials along the supply chain, training expenses for new employees and inflation-related cost increases, particularly in the HR area.

Rate ramp-ups dominate the market

In addition to the short and medium-haul aircraft segment, FACC is also starting to see significant rate ramp-ups for long-haul aircraft (A350 and B787), which will lead to further revenue growth over the next 18 months. The company is therefore planning to increase its current headcount of 3,294 FTEs by up to 500 in the coming months.

Another positive development is the recently signed order from Pratt & Whitney Canada for the repair and overhaul of engine components. This multi-year contract is particularly important for FACC AG's Aftermarket Services division. The expansion of the new facility in Croatia, which was opened last year, was also started as planned in Q3/2023 – the new production area is scheduled to be completed by the end of Q2/2024.

Outlook

The outlook for the further course of the 2023 financial year remains unchanged: Group revenue in 2023 is expected to increase by over 12% to 16% compared to 2022. In terms of earnings, management expects a reduced but positive result for the second half of the year compared to the first half.