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  • Sales of $140.9 million, up from $131.1 million a year ago and $132.7 million last quarter
  • Higher throughput driven by civil sector with higher large commercial and business jet deliveries
  • Operating income of $5.1 million, compared to $10.5 million a year ago
  • Adjusted EBITDA1 of $14.1 million, compared to $19.7 million a year ago
  • Backlog expansion continues, reaching $870 million, bolstered by both civil and defence orders

LONGUEUIL, QC, Feb. 8, 2023 /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, 2022. Unless otherwise indicated, all amounts are in Canadian dollars.

"Our quarter-over-quarter improvement in throughput has continued, with third-quarter sales reaching $140.9 million, compared to $132.7 and $114.1 million the last two quarters respectively. However, inflation and the continued challenges in our operating environment have increased the cost of these deliveries, resulting in lower profitability," said Martin Brassard, President and CEO of Héroux–Devtek.

"We are encouraged for the future, as our order book continues to grow, in fact reaching a record high of $870 million on the strength of orders for both the civil and defence sectors. The challenge lies in delivering these orders in a steady, timely and cost-effective manner, and we are focused on doing so. Our teams are fully engaged, dedicated and working hard to improve our profitability. Our balance sheet remains healthy and provides us with the flexibility needed to execute our plans," added Mr. Brassard.


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


Héroux-Devtek's throughput improved for a second consecutive quarter, with sales reaching $140.9 million, up from $132.7 million in the second quarter and $114.1 million the first. This level also compares favourably to last year's $131.1 million.

Civil sales were up 23.6% to $45.1 million, mainly driven by increased deliveries for the Boeing 777, Embraer Praetor and Falcon 6X programs, while defence sales were stable at $95.8 million.

Gross profit as a percentage of sales decreased from 16.3% last year to 14.1%, mainly due to inefficiencies resulting from production system disruptions and inflation, while government relief measures partly compensated for last year's COVID-19 disruptions, bearing a 1.4% positive impact on gross profit (none this year).

Operating income decreased to $5.1 million, or 3.6% of sales, from $10.5 million, or 8.0% of sales last year, reflecting lower gross profit and a non-recurring $1.6 million foreign exchange loss on conversion of monetary items (1.1% of sales).

Earnings per share decreased to $0.05 compared to $0.18 last year.


Consolidated sales were $387.6 million, roughly equal to the corresponding period last year. Defence sales totaled $265.9 million, down 4.1% compared to last year, while civil sales were up 9.3% to $121.8 million, mainly driven by increased deliveries for the Boeing 777, Embraer Praetor and Falcon 6X programs.

Gross profit was $50.8 million or 13.1% compared to $65.2 million or 16.8% of sales last year. The decrease was caused by the same unfavourable factors listed for the three-month period, while government relief measures partly compensated for last year's COVID-19 disruptions, bearing a 1.7% positive impact on gross profit (none this year).

Operating income fell to $16.3 million, or 4.2% of sales, from $33.3 million, or 8.6% of sales last year, reflecting lower gross profit.

Earnings per share decreased to $0.22, or $0.18 when adjusted for the gain on achievement of commercial objectives related to the sale of Bolton, compared to $0.58 last year.


Cash flows related to operating activities were $5.2 million in the third quarter and $25.5 million in the first nine months of the year, compared to $17.5 million and $53.2 million for the corresponding periods last year. These decreases resulted from lower operating income and an increase in inventories intended to stabilize the production system and mitigate the effect of supply chain delays.

As at December 31, 2022, net debt stood at $152.7 million, stable as compared to $152.1 million as at March 31, 2022.

Conference Call

Héroux-Devtek Inc. will hold a conference call to discuss these results on Wednesday, February 8, 2023, at 8:30 AM Eastern Time. Interested parties can join the call by dialing 1-888-390-0549. The conference call can also be accessed via live webcast on Héroux-Devtek's website, or at https://Q3FY2023.

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 184528 on your phone. Local dial-in number is 1-416-764-8677. This recording will be available from Wednesday, February 8, 2023, as of 11:30 AM, until 23:59 PM on Wednesday, February 15, 2023.


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 COVID-19 pandemic on Héroux-Devtek's operations, customers, supply chain, the aerospace industry and the economy in general; the impact of other worldwide geopolitical 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 third quarter ended December 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 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 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,