As the aviation industry continues its post-Covid recovery, aircraft interiors suppliers such as FACC are seeing the benefits. FACC AG is an Austria-based company that manufactures complete cabin interiors, from overhead stowages to monuments, cabin linings, and entrances, with major contracts including Airbus Airspace interiors. In the first nine months of 2023, the company achieved an increase in revenue of 22.5% compared to the same period of 2022, bringing the figure to EUR 513.9 million (US$549m). The high production rate in the aviation industry is also reflected in FACC’s long-term order book, which recorded significant growth with a volume of US$ 5.8 billion (EUR 5.43m).
The company says its Q3 2023 figures were achieved despite some negative market aspects, such as seasonally lower revenues in the summer months, challenges with the procurement of materials along the supply chain, training expenses for new employees, and inflation-related cost increases, particularly in the HR area.
Rate ramp-ups dominate the market
In addition to increased business activity in the short and medium-haul aircraft segment, FACC says is also starting to see ‘significant rate ramp-ups’ for long-haul aircraft (Airbus A350 and Boeing 787), which will lead to further revenue growth over the next 18 months. The company is therefore planning to increase its current headcount of 3,294 full-time employees by up to 500 in the coming months.
Another positive development is the recently signed order from Pratt & Whitney Canada for the repair and overhaul of engine components. This multi-year contract is particularly important for FACC AG’s Aftermarket Services division.
The expansion of FACC’s new facility in Croatia, which was opened last year, was also started as planned in Q3/2023. The new production area is scheduled to be completed by the end of Q2/2024.
Outlook
FACC’s outlook for the remainder of the 2023 financial year remains unchanged: group revenue in 2023 is expected to increase by 12-16% compared to 2022. In terms of earnings, management expects a reduced but positive result for the second half of the year compared to the first half.
