Aerojet Rocketdyne Hldgs Inc Stock Price, News & Analysis

Aerojet Rocketdyne has achieved a significant milestone in hypersonic flight technology through a collaboration with DARPA, AFRL, and Lockheed Martin. The recent flight test of the Hypersonic Air-breathing Weapon Concept (HAWC) successfully exceeded Mach 5 and flew over 300 nautical miles at altitudes above 60,000 feet, meeting all primary objectives. This test enhances data for scramjet-powered vehicles, which are crucial for developing an effective air-launched hypersonic cruise missile. CEO Eileen Drake highlighted the importance of this achievement for national defense and the company's ongoing commitment to improve scramjet performance and affordability.

Aerojet Rocketdyne Holdings reported record fourth quarter sales of $648 million and full year sales of $2.238 billion, marking increases of 9.9% and 2.3% respectively from the previous year.

However, net income fell to $16.1 million in Q4 and $74 million for the year, down from $41 million and $146.6 million in 2021. Adjusted net income was $25.2 million for Q4.

Despite a backlog of $6.8 billion, expenses related to merger activities and litigation weighed heavily on profit margins, with adjusted EBITDAP margins declining to 8.1% for the quarter.

The Defense Advanced Research Projects Agency (DARPA), in collaboration with Lockheed Martin (NYSE: LMT) and Aerojet Rocketdyne (NYSE: AJRD), successfully completed the second flight test of the Hypersonic Air-breathing Weapon Concept (HAWC) on January 30, 2023. The HAWC system, launched from a B-52, reached speeds exceeding Mach 5, traveling over 300 nautical miles at altitudes above 60,000 feet. This test demonstrated advanced manufacturing techniques aimed at improving affordability and reliability for future hypersonic solutions. The collaboration underscores Lockheed Martin's long-standing investment in hypersonic technologies, crucial for national defense.

L3Harris Technologies (NYSE: LHX) has announced a definitive agreement to acquire Aerojet Rocketdyne Holdings, Inc. (NYSE: AJRD) for $58 per share, totaling approximately $4.7 billion including net debt. This acquisition aims to enhance L3Harris's defense capabilities and foster innovation in missile technologies and hypersonics. With Aerojet generating about $2.3 billion in annual revenue, the merger is expected to close in 2023, pending regulatory approvals. L3Harris intends to leverage synergies between the two firms to deliver superior solutions for the Department of Defense and strengthen the defense industrial base.

NASA's Artemis I mission successfully concluded with the splashdown and recovery of the Orion spacecraft after nearly 26 days, during which it traveled over 1.4 million miles. This uncrewed mission tested hardware and technology essential for future human Moon missions. The Artemis program employs over 60,000 workers and 3,800 suppliers across the U.S., contributing to high-tech job creation. Industry partners applauded the successful launch, which sets the stage for Artemis II, the first crewed Moon mission, and Artemis III, aiming to land the first woman and person of color on the Moon.

Aerojet Rocketdyne has secured a $98.5 million contract from the Naval Aviation Systems Consortium to develop motors and sleds for the Joint Economical Sled Track Rockets (JESTR) program. This award underscores Aerojet Rocketdyne's experience in producing solid rocket sled motors, previously achieving a land speed record in 2003. The sleds, which simulate flight conditions, will aid in testing hypersonic systems. The company will support testing facilities including the Air Force’s Holloman High Speed Test Track, which is known for its record-breaking capabilities.

Aerojet Rocketdyne played a significant role in NASA's Artemis I mission, launching the Space Launch System (SLS) rocket successfully. The company supplied 39 propulsion elements, including 38 liquid engines and a solid rocket motor, essential for the rocket's operations. CEO Eileen P. Drake praised the performance of these engines during the launch. Artemis I aims to pave the way for future human missions to the Moon and Mars, marking a new era in space exploration.

Aerojet Rocketdyne Holdings, Inc. (AJRD) reported Q3 2022 net sales of $549.8 million, a slight increase from $545.3 million in Q3 2021. However, net income dropped to $13.7 million, down from $42.5 million, reflecting a decline in profitability with a net income margin of 2.5%. Adjusted EPS decreased to $0.45 from $0.58 year-over-year. The company’s backlog stood at $6.7 billion, with expected sales recognition of approximately $2.3 billion in the next 12 months. Supply chain delays impacted operations, yet management remains focused on enhancing shareholder value.