Aerospace, defence and energy company, Meggitt announced a trading update for the first quarter of 2022, where the company noted a 116% rise in civil orders on Thursday.
Meggitt recorded original equipment up 54% and aftermarket up 176%, including a good performance from braking systems across large, regional, and business aircraft in Q1 2022.
The group’s civil order intake in the quarter was up 116%, highlighting the civil segment’s recovery but still weak compared to Q1 2021.
Meggitt noted a book-to-bill ratio of 1.38x near the end of the quarter, which was higher than 1.02x at the end of 2021.
On an organic basis, Meggitt’s group revenue increased 5% in the first quarter of 2022 compared to Q1 2021, indicating the upward trajectory in civil aircraft and growth in energy. However, group revenue remained 23% below pre-pandemic times.
Meggitt’s revenue increased by 25% in civil aerospace, with original equipment and aftermarket revenue increasing by 11% and 37%, respectively.
The regional jet revenue increased by 65%, while big and business jet income increased by 40% and 13%, respectively, in the civil aftermarket for Meggitt.
The effects of inventory destocking and weaker orders from the US Defense Logistics Agency in the aftermarket contributed to a 16% drop in defence income compared to Q1 2021 for the group.
Meggitt’s energy revenue increased by 27%, with its Heatric division seeing particularly strong growth.
Meggitt said the European Commission approved Parker-proposed Hannifin’s acquisition on April 11, 2022, subject to full compliance with Parker’s undertakings, including the disposal of Parker’s Aircraft Wheel and Brake division. The deal is still on track to close in the third quarter of 2022.
Outlook
Meggitt is not offering financial guidance for 2022, as previously stated since the group is in an offer phase under the UK Takeover Code and is unable to comment on projected performance in comparison to any analyst projections that may be available.
Meggitt shares gained 0.5% to 770p on Thursday after the company released its Q1 trading update.
