Woodward Announces Five-Year Maintenance, Repair and Overhaul Agreement with Lufthansa Technik
Rhea-AI Summary
Woodward, Inc. (NASDAQ:WWD) has announced a five-year Maintenance, Repair, and Overhaul (MRO) Services agreement with Lufthansa Technik. This agreement extends their 25-year relationship, with Woodward continuing to provide MRO work for Lufthansa Technik's critical fuel system components at facilities in Rockford, IL, and Prestwick, UK. The collaboration covers Woodward-manufactured components for widebody and narrowbody engine types. John Di Silvestro, Woodward's Senior VP of Sales, Marketing & Services, emphasized the long-standing partnership, while Thomas Böttger, VP of Corporate Procurement at Lufthansa Technik, expressed readiness to expand the collaboration to other aircraft and engine types.
Positive
- Secured a five-year MRO agreement with Lufthansa Technik
- Continuation of a 25-year business relationship
- Potential for expansion to other aircraft and engine types
Negative
- None.
Insights
This five-year MRO agreement between Woodward and Lufthansa Technik is a positive development for Woodward's aerospace business. The deal solidifies a long-standing relationship and potentially expands Woodward's market share in the global MRO sector.
Key points to consider:
- The agreement covers critical fuel system components for various commercial airlines, indicating a stable revenue stream for Woodward.
- Work will be performed at Woodward's facilities in Rockford, IL and Prestwick, UK, potentially boosting operational efficiency and utilization of these sites.
- The possibility of expanding collaboration to other aircraft and engine types suggests room for future growth and increased market penetration.
For investors, this agreement represents a positive long-term outlook for Woodward's aerospace segment, potentially leading to increased revenue stability and growth opportunities in the MRO market.
While specific financial terms aren't disclosed, this agreement likely has a positive impact on Woodward's financial outlook. Here's why:
- A five-year contract provides revenue visibility and stability, which is valuable in the cyclical aerospace industry.
- The deal with a major player like Lufthansa Technik could lead to increased market share and potentially higher profit margins in the MRO segment.
- Utilizing existing facilities in Rockford and Prestwick suggests efficient use of resources without significant new capital expenditures.
Investors should monitor Woodward's upcoming financial reports for signs of revenue growth and margin improvement in the aerospace segment. The potential for expansion to other aircraft and engine types also presents a growth catalyst that could positively impact Woodward's long-term financial performance.
Work on aircraft engine components will be provided at Woodward’s Rockford, IL, and Prestwick, UK, locations
FORT COLLINS, Colo., Aug. 08, 2024 (GLOBE NEWSWIRE) -- Woodward, Inc. (NASDAQ:WWD), a global leader in energy control solutions for aerospace and industrial applications, announced today that it has entered a five-year Maintenance, Repair, and Overhaul (MRO) Services agreement with Lufthansa Technik. Lufthansa Technik is a provider of regular maintenance and repair of critical fuel system components operating within fleets of various commercial airlines.
Woodward will continue to provide MRO work for Lufthansa Technik relating to certain Woodward-manufactured components. The work will be done at the company’s Rockford, IL, and Prestwick, UK, locations.
“This agreement reinforces the long-standing relationship between Lufthansa Technik and Woodward that has spanned more than 25 years,” said John Di Silvestro, Woodward’s Senior Vice-President of Sales, Marketing & Services. “We look forward to working with Lufthansa Technik in the global MRO market to provide component support services across all Woodward widebody and narrowbody engine components.”
“We see great value in working closer with Woodward as one of the leading OEMs for engine related components,” said Thomas Böttger, Vice President of Corporate Procurement at Lufthansa Technik. “We are ready to expand the collaboration to other aircraft and engine types to further provide best in class MRO service on Woodward components.”
About Woodward, Inc.
Woodward is the global leader in the design, manufacture, and service of energy conversion and control solutions for the aerospace and industrial equipment markets. Together with our customers, we are enabling the path to a cleaner, decarbonized world. Our innovative fluid, combustion, electrical, propulsion and motion control systems perform in some of the world’s harshest environments. Woodward is a global company headquartered in Fort Collins, Colorado, USA. Visit our website at www.woodward.com.
About Lufthansa Technik
The Lufthansa Technik Group is one of the leading providers of technical aircraft services in the world. Certified internationally as maintenance, production and design organization, the company employs more than 23,000 people in dozens of locations around the globe. Lufthansa Technik offers the full range of services for commercial, VIP and special mission aircraft. The portfolio includes maintenance, repair, overhaul and modification of airframes, engines, components and landing gears, as well as the manufacture of innovative cabin products and digital fleet support.
For additional information, visit the website: www.lufthansa-technik.com
CONTACT:
Jennifer Regina
970-559-8840
jennifer.regina@woodward.com
FAQ
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