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  • Sales of $131.1 million, compared to $150.3 million last year
  • Operating income of $10.5 million, compared to $13.4 million last year
  • Adjusted EBITDA(1) of $19.7 milliom, compared to $23.7 million last year
  • Cash flows related to operating activities of $17.6 million, compared to $26.7 million last year
  • Earnings of $0.18 per share, compared to $0.24 or adjusted EPS1 of $0.26 last year
  • Purchase and cancellation of 1.4 million common shares for $25.1 million under the NCIB in the quarter

LONGUEUIL, QC, Feb. 9, 2022 /CNW Telbec/ - Héroux-Devtek Inc. (TSX: HRX) ("Héroux-Devtek" or the "Corporation"), a leading international manufacturer of aerospace products and the world's third-largest landing gear manufacturer, today reported its financial results for the third quarter ended December 31, 2021. Unless otherwise indicated, all amounts are in Canadian dollars.

"In the final weeks of the quarter, we faced supply chain and production system disruptions brought on by the generally challenging environment, mostly due to the Omicron variant of COVID-19, resulting in lower throughput than anticipated, particularly for aftermarket products. While we expect these factors to continue to affect the fourth quarter as well, we are confident in our ability to recover the lower throughput in the quarters ahead," said Martin Brassard, President and CEO of Héroux-Devtek.

"We are moving forward with prudent optimism in our approach and strategy as our fundamentals remain strong. Our OEM deliveries are on schedule, our order book is strong and unimpacted, and our sales portfolio spans a multitude of clients, segments and geographies," added Mr. Brassard.


Three months ended
December 31,

Nine months ended 
December 31,

(in thousands, except per share data)














Operating income





Adjusted operating income1





Adjusted EBITDA1





Net income





Adjusted net income1





Cash flows related to operating activities





Free cash flow1





In dollars per share

EPS – basic and diluted









Adjusted EPS1






These are non-IFRS measures. Please refer to the "Non-IFRS Measures" section at the end of this press release.


Consolidated sales decreased 12.7% to $131.1 million, from $150.3 million last year, mainly relating to delayed deliveries resulting from supply chain and production system disruptions related to the current environment. Excluding the negative impact of foreign exchange fluctuations year-over-year, consolidated sales decreased 9.9%, or $14.9 million.

Excluding foreign exchange fluctuations, defence sales were down 3.9% to $94.6 million from $101.8 million, due to the more severe supply chain and production system disruptions experienced at the Corporation's U.S. production sites in the quarter. Civil sales decreased 22.4% to $36.5 million from $48.5 million, as OEM demand in the large civil sector was lower than in the corresponding quarter last year when the full impact of the COVID- 19 pandemic had not fully materialized. The decrease also resulted from the repatriation by customers of certain Tier-2 contracts for large civil programs, partly offset by higher deliveries for business jet programs.

Gross profit as a percentage of sales decreased from 18.7% last year to 16.3%, mainly due to lower throughput resulting from the disruptions mentioned above, as well as higher quality costs.

Operating income decreased to $10.5 million, or 8.0% of sales, from $13.4 million, or 8.9% of sales last year. Adjusted EBITDA, which excludes non-recurring items, decreased at $19.7 million, or 15.0% of sales, from 15.8% a year ago.

Earnings per share decreased from $0.24 last year to $0.18 this year, due to the factors stated above. Adjusted EPS reached $0.18, down from $0.26 last year.


Consolidated sales decreased 6.5% to $388.6 million over the first nine months of Fiscal 2022, from $415.7 million for the corresponding period last year.

Net of foreign exchange fluctuations, defence sales were up 7.8% as a result of ramp-up of deliveries under the Sikorsky CH-53K, Boeing F-18 and MQ-25 programs, partially offset by lower aftermarket sales, while civil sales decreased 19.6% due to the same factors as for the third quarter.

Gross profit as a percentage of sales remained stable at 16.8% as the negative effects of the quarter were offset by the positive effect of restructuring initiatives on the Corporation's cost structure, including lower depreciation.

Operating income grew to $33.3 million, or 8.6% of sales, from $21.9 million, or 5.3% of sales last year. Adjusted EBITDA, which excludes non-recurring items, stood at $60.9 million, or 15.7% of sales, compared with $63.3 million, or 15.2% of sales last year.

EPS incresased from $0.31 last year to $0.58, while adjusted EPS increased to $0.58 from the $0.52 recorded in the same period last year.


Cash flows related to operating activities reached $17.5 million in the third quarter and $53.2 million in the first nine months of the year, down from $26.7 million and $57.6 million in the corresponding periods last year. The decrease in cash flows related to operating activities is mainly the result of lower throughput combined with last year's inventory reductions, while the decrease over the nine-month period mainly results from lower throughput.

As at December 31, 2021, net debt stood at $158.6 million, compared to $157.5 million as at March 31, 2021, mainly as a result of cash flow generation, net of share repurchases under the NCIB. The net debt to adjusted EBITDA remained stable compared to nine months earlier at 1.8x.


In May 2021, the Corporation announced the approval by the Toronto Stock Exchange of its Normal Course Issuer Bid (NCIB), under which Héroux-Devtek has the right to purchase for cancellation, from May 25, 2021, to May 24, 2022, a maximum of 2,412,279 common shares, representing, as of May 12, 2021, 10% of the public float of 24,122,794 common shares.

During the quarter ended December 31, 2021, Héroux-Devtek had purchased and cancelled 1,396,190 common shares at an average price of $18.00 per share for a total cash consideration of $25.1 million under its Normal Course Issuer Bid. As of February 8, 2022, 2,295,634 common shares were purchased and cancelled at an average price of $17.86 for a total cash consideration of $41.0 million.


Héroux-Devtek Inc. will hold a conference call to discuss these results on Wednesday, February 9, 2022 at 8:30 AM Eastern Time. Interested parties can join the call by dialing 1-888-390-0549 (North America) or 1-416-764-8682 (overseas). The conference call can also be accessed via live webcast at An accompanying presentation is also available on Héroux-Devtek's website at

If you are unable to call in at this time, you may access a tape-recording of the meeting by calling toll-free 1-888- 390-0541 and entering the passcode 130900 on your phone. Local dial-in number is 1-416-764-8677. This recording will be available from Wednesday, February 9, 2022, as of 11:30 AM, until 23:59 PM on Wednesday, February 16, 2022.


Except for historical information provided herein, this press release contains information and statements of a forward-looking nature concerning the future performance of the Corporation.

Forward-looking statements are based on assumptions and uncertainties as well as on management's best possible evaluation of future events. Such factors include, but are not limited to: the effect of the ongoing COVID- 19 pandemic on Héroux-Devtek's operations, customers, supply chain, the aerospace industry and the economy in general; the impact of other worldwide general economic conditions; industry conditions including changes in laws and regulations; increased competition; the lack of availability of qualified personnel or management; availability of commodities and fluctuations in commodity prices; financial and operational performance of suppliers and customers; foreign exchange or interest rate fluctuations; and the impact of accounting policies issued by international standard setters. Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward- looking statements.

As a result, readers are advised that actual results may differ from expected results. Please see the Risks and Uncertainties section under Additional Information in the Corporation's MD&A for the third quarter ended December 31, 2021, for further details regarding the material assumptions underlying the forecasts and guidance. Such forecasts and guidance are provided for the purpose of assisting the reader in understanding the Corporation's financial performance and prospects and to present management's assessment of future plans and operations, and the reader is cautioned that such statements may not be appropriate for other purposes.


Earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted EBITDA, adjusted net income, adjusted earnings per share and free cash flow are financial measures not prescribed by International Financial Reporting Standards ("IFRS") and are not likely to be comparable to similar measures presented by other issuers. Management considers these to be useful information to assist investors in evaluating the Corporation's profitability, liquidity and ability to generate funds to finance its operations. Refer to Non-IFRS Financial Measures section under Operating Results in the Corporation's MD&A for definitions of these measures and reconciliations to the most comparable IFRS measures.


Héroux-Devtek Inc. (TSX: HRX) is an international company specializing in the design, development, manufacture, repair and overhaul of aircraft landing gear, hydraulic and electromechanical actuators, custom ball screws and fracture-critical components for the Aerospace market. The Corporation is the third-largest landing gear company worldwide, supplying both the defence and commercial sectors. Approximately 90% of the Corporation's sales are outside of Canada, including about 53% in the United States. The Corporation's head office is located in Longueuil, Québec with facilities in Canada, the United States, the United Kingdom and Spain.

SOURCE Héroux-Devtek Inc.

For further information: Héroux-Devtek Inc.: Stéphane Arsenault, Vice President and Chief Financial Officer, Tel.: 450-679-3330,; Investor Relations: Hugo Delorme, Tel.: 514-700-5550, ext. 555,