Cirrus Aircraft (2507) H1 2024 earnings summary

Executive summary

• Revenue rose 11.6% year-over-year to US$475.4 million for the six months ended June 30, 2024, driven by increased aircraft deliveries, higher pricing, and a favorable mix from services.

• Net profit increased 23.6% year-over-year to US$35.6 million, reflecting operational improvements and higher-margin service revenues.

• The launch of the 7th generation SR2X Series (G7) and continued strength in Vision Jet sales contributed to a 107-unit increase in net orders year-over-year, with 287 aircraft delivered in H1 2024, up from 267 in H1 2023.

• The company maintains a global presence, with over 9,700 SR2X and 550 Vision Jet aircraft delivered since inception, and sales in over 36 countries.

Financial highlights

• Gross profit rose to US$163.4 million, with gross margin at 34.4%, slightly down from 34.9% year-over-year.

• Adjusted profit (non-IFRS) was US$37.7 million, up from US$30.6 million; adjusted EBITDA reached US$63.9 million.

• Total assets increased 7.2% to US$1,080.9 million; total liabilities rose 7.0% to US$571.9 million as of June 30, 2024.

• Cash and cash equivalents stood at US$214.6 million as of June 30, 2024, down from US$246.9 million at year-end 2023, mainly due to investing activities.

• No interim dividend was declared for the period.

Outlook and guidance

• Focus remains on product improvement, generational upgrades, expanding manufacturing capacity, and the "close-to-customer" sales model, especially in the UK and France.

• Recent manufacturing facility upgrades and FAA certification for the SR10 aircraft are expected to support future growth, targeting the pilot training market.

• Strategic priorities include monetizing the installed base, expanding flight training, advancing production, and global market expansion.