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Introduction & Market Context
FACC AG presented its H1 2025 results on August 20, 2025, highlighting continued growth despite global challenges in the aviation sector. The company’s "Unleash the Potential" presentation emphasized the resilience of the aviation industry, which saw 2.5 billion passengers and 84% seat utilization in the first half of 2025.
The broader aviation market showed strong recovery signs with 40 million flights worldwide (+4.6%), 42 new airports, 160 new airlines, and 7,250 new routes established during this period. Aircraft manufacturers maintained robust order books with 17,539 commercial aircraft on firm order.
As shown in the following chart of aircraft deliveries and order backlog distribution:
Airbus and Boeing (NYSE:BA) delivered 586 aircraft in H1 2025, representing an 18% increase (+88 aircraft) compared to H1 2024. While Airbus deliveries decreased by 5.3% (-17 aircraft), Boeing showed significant recovery with a 60% increase (+105 aircraft). The order backlog distribution shows Airbus leading with 50% market share, followed by Boeing (37%), COMAC (9%), Embraer (2%), and others (2%).
H1 2025 Financial Performance
FACC reported revenue of EUR 484.7 million for H1 2025, a 10.6% increase compared to the same period last year. This growth aligns with the company’s Q1 2025 performance, which showed a 14% year-over-year revenue increase to €231 million as reported in their previous earnings call.
The following slide illustrates the company’s strong growth metrics:
Operative EBIT reached EUR 18.4 million, with free cash flow significantly improving to EUR 31.7 million. The company added 123 employees, bringing the total workforce to 3,843 FTE. This represents a continuation of the trend seen in Q1, where FACC reported positive free cash flow of €3.5 million, a substantial improvement from the negative €37 million recorded in the previous year.
Revenue and EBIT development over time shows the company’s recovery trajectory:
FACC’s revenue has grown from EUR 705.6 million in FY 2016/17 to EUR 884.5 million in FY 2024, representing a CAGR of 21.1%. EBIT has recovered from a low of -74.4 million in CY 2019 to positive territory in recent years.
All three divisions showed positive EBIT in H1 2025, with divisional revenue growth demonstrated in the following chart:
Each division has maintained a strong CAGR of approximately 20% since H1 2020, with Aerostructures growing to EUR 174.3 million, Engines & Nacelles to EUR 95.1 million, and Interiors to EUR 215.3 million.
The company’s revenue distribution by program shows continued dependence on key platforms:
The A320 Family remains FACC’s largest revenue contributor at 36%, followed by Business Jets (19%), A350 (12%), and various other programs. This distribution has remained relatively stable compared to FY 2024, with slight increases in C919/C909 and B787 programs.
Strategic Initiatives and Partnerships
FACC highlighted several strategic developments that strengthened its market position, including the recovery of EUR 10.8 million from the "Fake President Incident" after approximately six years of complex legal processes and cooperation between Austrian and Chinese authorities.
The company secured significant new orders at the Paris Airshow, increasing its backlog to over 6 billion USD:
Key partnerships announced include:
- Extension of the Rolls-Royce (OTC:RYCEY) partnership until 2032
- Expansion of the 15-year partnership with Tata Advanced Limited in India
- New strategic cooperation with Kineco Aerospace for structural components production
These partnerships align with FACC’s globalization strategy and focus on expanding its manufacturing footprint in strategic regions.
The company also reported progress on its efficiency initiatives:
Core measures are showing impact across multiple areas: costs are down due to reduced general expenses and inventory costs; organization is streamlined with the expansion of Plant 6; all divisions achieved positive EBIT with an improved equity ratio of 33.2%; and efficiency has increased with higher revenue and stable headcount.
Management Restructuring
FACC announced a significant management restructuring, with COO Andreas Ockel leaving as of June 24, 2025. The company is reorganizing its management structure with CEO Robert Machtlinger taking on additional operational responsibilities including Sales, Business Development, Marketing & Communications, R&D, Operations, and Quality.
CFO Florian Heindl’s responsibilities now include Finance, Controlling, IT, Legal & Compliance, Investor Relations, Human Resources, and Sustainability. CSO Tongyu Xu will oversee Procurement & Logistics, Internal Audit & Compliance, Risk Management, China Business Relations, Strategy Process, and M&A.
This restructuring aims to enhance agility and lean management across the organization.
Outlook and Forward Guidance
Looking ahead, FACC maintains an optimistic outlook for 2025 and beyond:
The company targets revenue of approximately EUR 1 billion with 10% revenue growth. Key focus areas include ensuring industry ramp-up capability, implementing CORE efficiency measures to achieve an EBIT margin of 8-10% by the end of 2027, executing its globalization strategy, and maintaining quality and product safety standards.
This outlook aligns with the guidance provided in the Q1 2025 earnings call, where FACC projected growth of 5-15% for upcoming quarters, anticipating stable production rate increases for key platforms like the A350.
While FACC’s presentation emphasizes positive growth trends, investors should note the EBIT decline observed in Q1 2025 (€4.3 million vs €9.9 million in Q1 2024) and monitor whether the company can achieve its ambitious margin targets amid ongoing operational challenges and investments in efficiency projects.
Full presentation:
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