FACC sees 23% increase in revenue, beginning of ramp-ups for widebody aircraft
Leading Tier 1 for composites in commercial aircraft sees continued industry recovery, plans 500 new hires to meet increase in long-haul production rates.
Photo credit: FACC AG
The aviation industry is continuing its recovery. In the first 9 months of 2023, FACC AG (Ried im Innkreis, Austria) achieved an increase in revenue of 22.5% to €513.9 million (approximately $549.5 million) compared to the same period of the previous year. The high production rate in the aviation industry is also reflected in FACC’s long-term order book, which recorded significant growth with a volume of $5.8 billion.
The results for Q3 2023 are impacted by seasonally lower revenues in the summer months, challenges with the procurement of materials along the supply chain, training expenses for new employees and inflation-related cost increases, particularly in the HR area.
In addition to the short- and medium-haul aircraft segment, FACC is also starting to see significant rate ramp-ups for long-haul aircraft (A350 and B787), which will lead to further revenue growth over the next 18 months. The company is therefore planning to increase its current headcount of 3,294 FTEs by up to 500 in the coming months.
Another positive development is the recently signed order from Pratt & Whitney Canada (Longueuil, Quebec) for the repair and overhaul of engine components. This multiyear contract is particularly important for FACC AG’s Aftermarket Services division. The expansion of the new facility in Croatia, which was opened last year, was also started as planned in Q3 2023 — the new production area is scheduled to be completed by the end of Q2 2024.
FACC’s outlook for the rest of the 2023 financial year remains unchanged: Group revenue in 2023 is expected to increase by over 12% to 16% compared to 2022. In terms of earnings, management expects a reduced but positive result for the second half of the year compared to the first half.
