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  • Sales decreased to $114.1 million, from $126.2 million a year ago
  • Operating income was $2.6 million, compared to $10.8 million last year
  • Adjusted EBITDA1 reached $11.4 million, compared to $20.0 million a year ago
  • Earnings per share came in at $0.03, compared to $0.19 last year
  • New contract with Boeing for the repair and overhaul of F-18 main landing gear and side braces

LONGUEUIL, QC, Aug. 5, 2022 /CNW Telbec/ - Héroux-Devtek Inc. (TSX: HRX) ("Héroux-Devtek" or the "Corporation"), the world's third-largest landing gear manufacturer, reported financial results today for the first quarter ended June 30, 2022. Unless otherwise indicated, all amounts are in Canadian dollars.

"We are disappointed with our first quarter results. We are operating in a challenging environment as the pandemic and other global factors continue to cause absenteeism and disruptions in our facilities and supply chain, impacting our ability to deliver product steadily.

Our order book remains strong and will allow us to increase our sales in the quarters to come. The demand for our products and services has not been affected by the current environment. In fact, this morning, we announced a significant contract with Boeing, testifying once again our strong relationships with major OEMs.

We foresee the challenges of the current operating environment continuing. To this effect, we are strengthening our team and are all committed to improving our performance," said Martin Brassard, President and CEO of Héroux- Devtek.


(in thousands of dollars, except per share data)

Quarter ended June 30

       2022            2021


$ 114,089

$ 126,188

Operating income



Adjusted EBITDA1



Net income



Per share – diluted ($)



Cash Flow Related to operating activities



Free Cash Flow1




1 This is a non-IFRS measure. Please refer to the "Non-IFRS Measures" section at the end of this press release.



Consolidated sales fell 9.6% to $114.1 million, from $126.2 million in the same period last year. The lower sales figures are the result of the impact of the current operating environment on the Corporation's ability to generate throughput. These elements were partially offset by the ramp-up of deliveries for the F-18 program with Boeing and an increase in deliveries for the Embraer Praetor.

Gross profit was $12.5 million or 11.0% of sales compared to $21.6 million or 17.1% of sales a year ago. The decrease is due to lower throughput and higher production inefficiencies resulting from the production system disruptions experienced in the quarter.

Operating income decreased to $2.6 million, or 2.3% of sales, from $10.8 million, or 8.6% of sales last year. Lower operating income reflects decreased gross profit as well as a marginal decline in SG&A expenses.

Net income for the first quarter of fiscal 2023 stood at $1.0 million, or $0.03 per diluted share, from $6.7 million, or $0.19 per diluted share, in the corresponding period last year.


Cash flows related to operating activities amounted to $12.0 million in the first quarter of fiscal 2023, down from $19.1 million in the same period last year. This decrease in cash flow from operations year over year is mainly the results of lower throughput. Similarly, free cash flow decreased to $4.5 million from $14.4 million in the same period last year.

As at June 30, 2022, net debt stood at $150.0 million, down from $152.1 million at March 31, 2022. As a result of lower profitability during the recent quarter, the net debt to adjusted EBITDA ratio rose to 2.0x compared to 1.8x at March 31, 2022.


The Corporation announced today a contract with Boeing for the repair and overhaul of the main landing gear and side braces for the F/A-18 E/F super Hornet and the EA-18G Growler. The first phase of the contract covers 40 aircraft and is expected to be followed by options for the sustainment of the complete U.S. Navy fleet of over 600 aircraft.


Héroux-Devtek Inc. will hold a conference call to discuss these results on Friday, August 5, 2022 at 11:00 AM Eastern Time. Interested parties can join the call by dialling 1-888-390-0549 (North America) or 1-416-764-8682 (overseas). The conference call and accompanying presentation can also be accessed via live webcast at Héroux- Devtek's website,

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 039693 on your phone. Local dial-in number is 416-764-8677. This recording will be available from Friday, August 5, 2022, as of 2:30 PM, until 23:59 PM on Friday, August 12, 2022.


Héroux-Devtek will hold its Annual Meeting of Shareholders today, Friday, August 5, 2022 at 10:00 a.m. local time in virtual format. Participants who wish to attend the Annual Meeting will be able to join the webcast at or by phone in listen-only mode at 1-844-491-1187. All the details to access the Annual Meeting are also available on the Corporation's website.


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 may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Corporation's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results. Please see the Guidance section in the Corporation's MD&A for the fiscal year ended March 31, 2022 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 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 commercial and defence sectors. Approximately 94% of the Corporation's sales are outside of Canada, including about 58% 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,