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Highlights

  • Heroux-Devtek has been selected by ITP Aero to spearhead the development of its avant-garde technologies.
  • In Q2 FY24, the company posted a 6.6% hike in sales to CAD 141.5 million, as compared to CAD 132.7 million in pcp.
  • Its operating income rose from CAD 8.6 million in Q2 FY23 to CAD 9.1 million in the reporting period. 

Heroux-Devtek Inc (TSX: HRX) is involved in designing, development, manufacturing, and repairs of landing gear and actuation systems and components for the aerospace market. It is also engaged in production of electronic enclosures, heat exchanges, and cabinets for airborne radars, electro optic systems, and aircraft controls via megatron operations and fluid filters products through its Bolton operations. Its products portfolio includes military fighter and transport aircraft, helicopters, jets, electronic enclosures, heat exchangers, and cabinets.

Recently, the company hit a significant milestone with its selection by ITP Aero to spearhead the development of its avant-garde technologies, confirming its onboarding to the FCAS program.

In the second quarter of the fiscal year 2024, the company posted a 6.6% hike in sales to CAD 141.5 million, as compared to CAD 132.7 million in the previous corresponding period. Its operating income rose from CAD 8.6 million in Q2 FY23 to CAD 9.1 million in the reporting period. Also, HRX saw a 12.9% growth in its adjusted EBITDA from CAD 16.2 million in pcp to CAD 18.2 million in Q2 2FY24.

The firm’s top-line business jumped to CAD 141.4 million in Q2 FY24 from CAD 132.6 million in Q2 FY23, due to 4.1% positive impact of foreign exchange.

Overall, HRX’s net income was recorded at CAD 4.6 million in the second quarter of the fiscal year 2024.

Top 10 Shareholders:

Around 58.59% of the total shareholding in the company is held by its top ten shareholders. While Caisse de Depot et Placement du Quebec is the biggest shareholder of the firm with over ­­14.2% shareholding, Fonds de Solidarité FTQ is the second-biggest shareholder with approximately 10.93% shareholding in HRX.

Stock Price Performance

HRX’s stock price has increased by over 1.31% in the last one week. It has declined by over 0.32% over the last one month. The stock’s 52-week high and low price stand at CAD 16.61 and CAD 12.52, respectively.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is January 26, 2024. The reference data in this report has been partly sourced from EODHD/Others.