Compared to previous year’s half-year (H1) period, FACC AG’s revenue grew significantly, from EUR 270.1 million to EUR 354.7 million –an increase of 31.3 %. Despite ongoing challenges along the aircraft interiors supplier’s supply chains, EBIT increased significantly in the same period, from EUR 6.1 million to EUR 14.9 million.
FACC attributes this financial growth to the sustained recovery of the aviation industry, the rising demand for new aircraft, and increasing production rates of all aircraft types. The com[any says that revenue from new projects and development orders are also positively contributing to earnings.
FACC’s results announcement also notes that positive developments in the international aviation industry continued in the first half of 2023. As a partner of all major manufacturers in the aviation industry, such as Airbus and Boeing, FACC AG will benefit strongly from these developments. The company expects a full recovery of the international aviation industry will occur within the next 12 months, 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 at the company, the growth of its workforce is also progressing 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 labour market, with the headcount to be increased by a further 400 employees by mid-2024.
An expanding global footprint
Construction work is underway at FACC, with the further expansion of its ‘Plant 6’ in Croatia, which focuses on the production of lightweight components, started in 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 reports it was able to secure development and production contracts with major suppliers in this fast-growing segment. The first components for Midnight, an eVTOL developed by US-based customer Archer Aviation, were delivered in June, with series production of the fuselage and wing components scheduled to start in 2024.
Strategic focal areas
The operating environment remains challenging due to ongoing disruptions in international supply chains. The focus at FACC is therefore on further stabilising its supply chains and expanding the vertical integration of assemblies (prioritising in-house production instead of external supply).
The company will continue to concentrate on recruiting and training an additional 400 skilled workers. Within FACC’s research & development division, developing new materials and processes for carbon-neutral air travel is the highest priority. As a cross-sectional technology, FACC says its 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 fuel efficient.
Outlook
The further outlook for the financial year 2023 remains unchanged at FACC. 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, the company’s management expects a smaller but positive result for the second half of the year compared to the first half.
