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  • Sales increased to $140.7 million, up from $114.1 million a year ago, or 23.3% year-over-year
  • Operating income of $7.5 million, compared to $2.6 million a year ago,
  • Adjusted EBITDA1 increased 43.2% to $16.4 million, compared to $11.4 million a year ago
  • Earning per share increased to $0.12, compared to $0.03 last year
  • Cash flows related to operating activities reflect higher working capital to support operations and growth

LONGUEUIL, QC, Aug. 8, 2023 /CNW/ - 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 first quarter ended June 30, 2023. Unless otherwise indicated, all amounts are in Canadian dollars.

"We are proud of our performance this quarter, as we delivered sales totaling $141 million, bringing our trailing twelve-month total to $570 million. Fulfilling orders at a steady pace remains a challenge in this environment and this quarter's success is the direct result of the improvements we put in place over the past year. Our teams have managed a substantial surge in demand, positioning us to further improve our results and expand our market share. I would like to thank every employee for their professionalism and dedication," said Martin Brassard, President and CEO of Héroux-Devtek.

"We are well positioned for upcoming opportunities in both the civil and defence market segments. While our order book is already healthy, our customers have many projects, and we will continue to support them as they pursue their growth," added Mr. Brassard.


Three months ended June 30,

(in thousands, except per share data)




$        140,697

$        114,089

Operating income



Adjusted EBITDA1



Net income



Cash flows related to operating activities



Free cash flow (usage)1



In dollars per share

EPS – basic and diluted

$               0.12

$               0.03



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


Consolidated sales increased 23.3% to $140.7 million, from $114.1 million in the same period last year, reflecting growth in both the civil and defence market segments as well as the 5.5% positive impact of foreign exchange.

Civil sales were up 41.8% to $50.2 million, mainly driven by increased deliveries for the Boeing 777 and Embraer Praetor programs. Defence sales were also up 15.1% at $90.5 million due to the alignment of operations to better deliver while facing the challenges of the current environment as well as the ramp-up of deliveries for the Sikorsky CH-53K.

Gross profit increased to $20.1 million from $12.5 million, or from 11.0% last year to 14.3% as a percentage of sales. This is mainly due to higher volume and was partly offset by the year-over-year effects of inflation on labour and general production supplies, as well as a 0.3% negative impact of foreign exchange.

Operating income increased to $7.5 million from $2.6 million last year, reflecting higher volume partly offset by an increase in selling and administrative expenses driven by higher employee-related costs, as well as the $1.0 million year-over-year negative impact of foreign exchange. Adjusted EBITDA, for the same reasons, rose 43.2% to $16.4 million, or 11.6% of sales, from $11.4 million or 10.0% last year.

Net income for the first quarter of fiscal 2024 stood at 4.0 million, or $0.12 per diluted share, up from 1.0 million, or $0.03 per diluted share, in the corresponding period last year.

Cash flows related to operating activities represented a usage of $12.2 million in the first quarter, compared to $12.0 million generated during the corresponding period last year. This decrease resulted from last year's proceeds of $11.3 million from the unwinding of cross-currency interest rate swaps, an unfavourable seasonal variation in accounts receivable and accounts payable compared to last year and from the strategic investment in inventory levels made to stabilize the production system and sustain future sales growth.

As at June 30, 2023, net debt stood at $187.5 million, an increase as compared to $165.0 million as at March 31, 2023, mainly as a result of the cash flow usage described above. The improved profitability this quarter compared to last partly offset the effect of increased net debt on the net debt to adjusted EBITDA ratio, which therefore increased slightly to 2.8x compared to 2.7x at March 31, 2023.

Héroux-Devtek Inc. will hold a conference call to discuss these results on Tuesday, August 8, 2023, at 11:00 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 and accompanying presentation can also be accessed via live webcast at Héroux-Devtek's website, or 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 886811 on your phone. Local dial-in number is 1-416-764-8677. This recording will be available from Tuesday, August 8, 2023, as of 2:00 PM, until 23:59 PM on Tuesday, August 15, 2023.

Héroux-Devtek will hold its Annual Meeting of Shareholders today, Tuesday, August 8, 2023, 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 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 include, but are not limited to 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 Risk Management section under Additional Information in the Corporation's MD&A for the first quarter ended June 30, 2023, 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 61% 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,