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  • Sales of $132.7 million, stable with $131.3 million a year ago, but an increase of $18.6 million compared to the first quarter
  • Operating income at $8.6 million, compared to $12.0 million last year and $2.6 million in the first quarter
  • Adjusted EBITDA1 reached $16.2 million, compared to $21.2 million a year ago and $11.4 million in the first quarter
  • Cash flows related to operating activities decreased to $8.3 million following investment in inventory
  • Strong backlog bolstered by aftermarket and business jet orders
  • New life-cycle contract with Embraer to design, develop, and manufacture the main deck cargo door actuation system for the E190F and E195F Freighter conversion program


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

LONGUEUIL, QC, Nov. 11, 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 second quarter ended September 30, 2022. Unless otherwise indicated, all amounts are in Canadian dollars.

"I am encouraged with the improvement in our throughput compared to the first quarter, with sales reaching $132.7 million this quarter compared to $114.1 million in the first quarter, despite planned shutdowns and summer vacation. As well, our profitability improved from the first to the second quarter, and this performance is the result of the relentless work of our people overcoming supply chain and production constraints," said Martin Brassard, President and CEO of Héroux–Devtek.

"Having worked closely with our teams and strategically increased our inventory, we are in a better position today to satisfy the needs of our customers, though we expect the environment to remain challenging in the coming quarters. Customer demand for our products remains strong, and has in fact increased with aftermarket and business jet orders. Our main challenge at the moment is to satisfy that demand while navigating the volatile production environment. Our talented and dedicated teams will enable us to deliver on that demand, seize the opportunities that may arise in the market, and emerge stronger," added Martin Brassard, President and CEO of Héroux–Devtek.


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


Consolidated sales increased slightly to $132.7 million, from $131.3 million last year, despite the challenging operating environment.

Civil sales rose 10.7% to $41.3 million, driven by increased deliveries for the Embraer Praetor and Boeing 777 programs, while defence sales were down 2.8% to $91.4 million, partially offset by the ramp-up of deliveries for the Boeing F-18 program.

Gross profit as a percentage of sales decreased from 16.9% last year to 13.8%, mainly due to inefficiencies resulting from the production system disruptions mentioned above and a less favourable product mix, while the Canadian Emergency Wage Subsidy compensated for last year's COVID-19 disruptions, representing 1.8% of sales.

Operating income decreased to $8.6 million, or 6.5% of sales, from $12.0 million, or 9.1% of sales last year, mainly reflecting lower gross profit.

Earnings per share decreased to $0.14, or to $0.10 when adjusted for the gain on the achievement of commercial objectives related to the sale of Bolton, from $0.21 last year.


Consolidated sales decreased 4.2% to $246.8 million, from $257.5 million for the corresponding period last year following lower throughput in the first quarter as a result of the complexities of the current operating environment.

Gross profit as a percentage of sales decreased to 12.5% from 17.0% last year, a result of lower throughput as well as the unfavourable factors described above.

Operating income fell to $11.2 million, or 4.5% of sales, from $22.8 million, or 8.8% of sales last year.

EPS decreased from $0.40 last year to $0.17, or $0.13 this year when adjusted for the gain on the achievement of commercial objectives related to the sale of Bolton.


Cash flows related to operating activities reached $8.3 million in the second quarter and $20.3 million in the first six months of the year, down from $17.5 million and $35.7 million in the corresponding periods last year. These decreases resulted primarily from an increase in inventories of $13.3 million for the second quarter and $30.3 million for the first six-month period intended to stabilize the production system and to prepare for ramp-up of sales in the coming quarters.

As at September 30, 2022, net debt stood at $154.5 million, stable as compared to $152.1 million as at March 31, 2022.


Héroux-Devtek Inc. will hold a conference call to discuss these results on Friday, November 11, 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 on Héroux-Devtek's website, or at https://HRX_Q2-FY23 .

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 059465 on your phone. Local dial-in number is 1-416-764-8677. This recording will be available from Friday, November 11, 2022, as of 11:30 AM, until 23:59 PM on Friday, November 18, 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 geopolical and general economic conditions; the war in Ukraine;  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 second quarter ended September 30, 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 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 93% of the Corporation's sales are outside of Canada, including about 59% 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,