Héroux-Devtek (HRX) investor relations material

Executive summary

• Sales increased 23.7% year-over-year to $174.0 million, driven by both civil and defence segments and pricing initiatives.

• Operating income rose to $19.4 million from $7.5 million, and adjusted EBITDA reached $29.6 million (17.0% of sales).

• Net income grew to $12.5 million ($0.37 per share), with adjusted net income at $13.5 million ($0.39 per share).

• Free cash flow was $1.2 million, a significant improvement from a usage of $20.5 million last year.

• Entered into an agreement to be acquired by Platinum Equity for $32.50 per share, valuing the company at $1.35 billion.

Financial highlights

• Gross profit margin improved to 20.5% from 14.3% year-over-year, reflecting higher volume and pricing.

• Defence sales increased by $16.1 million, mainly from higher F-35 and aftermarket deliveries.

• Civil sales rose by $13.8 million, led by Boeing 777 and Embraer E2 programs.

• Adjusted EBITDA was $29.6 million, up from $16.4 million, and adjusted EPS was $0.39 versus $0.12.

• Net debt to adjusted EBITDA ratio improved to 2.0:1 from 2.3:1 sequentially.

Outlook and guidance

• Order book remains healthy, supported by strong customer relationships and robust aerospace market conditions.

• The acquisition by Platinum Equity is expected to close before March 31, 2025, pending shareholder, court, and regulatory approvals.