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Industrials
AeroVironment misses estimates despite revenue surge
Defence technology company AeroVironment missed estimates last quarter despite a spike in revenue, with its operating loss widening after a series of charges. Earnings per share were US$0.64 in the quarter to 31 January, up from $0.30 one year ago but below Zacks consensus estimates of $0.68. Revenue was $408.05 million, surging from $167.64 million but missing estimates by 13.73%. “While our third quarter results were impacted by revenue timing and adjustments in our Space business, demand for our unique solutions remains robust,” said CEO Wahid Nawabi. “Strong order flow and growth in funded backlog during the quarter are setting the stage for record fourth quarter revenue and a solid start to fiscal year 2027. We are executing with discipline, scaling manufacturing ahead of demand and accelerating the commercialization of our platforms to improve profitability and time to market.” Product sales revenue was $277.81 million, climbing from $139.75 million. Contract services revenue rose to $130.23 million, from $27.88 million. AeroVironment’s Autonomous Systems segment’s revenue was $278.7 million, while Space, Cyber and Directed Energy revenue was $129.3 million. Its purchase of defence company BlueHalo last year c
Industrials
Renk: Iran war could boost Middle East defence spending
The United States-Iran war could lead to a boost in the Middle East’s defence spending, said German defence company Renk’s CEO Alexander Sagel. Renk also reported record fiscal 2025 revenue, up 19.8% to EU€1.37 billion. Its order intake reached a new high of €1.57 billion, rising 9%. “So far, I do not see that there is any negative impact [on orders] from, for example, the current crisis in the Middle East, the Iran war,” said Sagel on an earnings call. “This might lead overall, and this is really a gut feeling, to an overall increasing demand for defence capabilities in this region.” Renk also received orders for new infantry fighting vehicle prototypes from a Gulf state the previous day, Sagel said. “It’s a kind of indication that I think this conflict could drive further defence spending, not only on air and not only on ammunition and not only on air defense systems, but also on ground based.” The company’s 2025 revenue surge was driven by growth in its defence business, where revenue climbed 24%. Its Vehicle Mobility Solutions segment reported a 24.8% increase in revenue, while Marine & Industry revenue rose 15.3%. Its adjusted EBIT increased 21.7% to €230 million during the year. Around €200 million in defen
Industrials
Anduril aims to double valuation in new funding round
Defence technology company Anduril Industries is aiming to double its valuation to US$60 billion in a new funding round, as it seeks to expand production and build new sites. Anduril, which produces autonomous weaponry including drones, reportedly hopes to raise around $4 billion in the funding round. The company was valued at $30.5 billion in June 2025. It has signed a series of contracts with the United States military in recent months, such as a $23.9 million agreement to provide more than 600 Bolt-M drone systems announced in January. “This year, Anduril plans to scale production across Bolt variants to a sustained rate of more than 175 systems per month,” it said at the time. The funding round will be led by Andreessen Horowitz and Thrive Capital, with existing investors Lux Capital and Founders Fund also set to participate. Andreessen Horowitz said in January that it would allocate around $1.2 billion to funding the U.S. defence and aerospace sector. Anduril expects to have doubled its revenue to around $2 billion in 2025, The Information reported. The company is also seeking to expand its physical footprint, having said in January that it would establish a second site in Southern California. The campus would
Industrials
Defence tech company Thales sales rise, orders stay high
French defence technology company Thales Group saw sales rise in 2025 as as its order intake remained high. Sales rose 8% to EU€22.14 billion, above company-compiled estimates of €21.88 billion. Adjusted net income per share increased 6% to €9.76. “2025 was a very good year for Thales, a world leader in advanced technologies in Defence, Aerospace, Cybersecurity and Digital. The Group has successfully pursued its strategy of profitable growth,” said chair and CEO Patrice Caine. “Order intake exceeded the €25 billion mark for the second year in a row, a record for the Group, confirming the strong commercial momentum, the excellence of our products and solutions portfolio and the trust of our customers and partners. This performance enables Thales to benefit from an unprecedented order book, ensuring exceptional visibility for the years ahead.” Its order intake was roughly flat year-over-year at €25.26 billion, beating company-compiled estimates of €25.21. Thales’ order book at the end of the year was up 5% to €53.32 billion. Thales’ Defence segment saw the largest increase in order intake, growing 3% to €15.13 billion. Aerospace and Cyber & Digital orders respectively dipped by 5% and 4%. The company said it receiv
Industrials
Defence shares rally as Gulf conflict escalates
The lethal blows traded between Washington and Tehran have seen global defence stocks sharply higher and deepened fears of a broader Middle East war that could reverberate through energy markets and into Australian households. In the United States, shares in contractors including Lockheed Martin and Northrop Grumman surged as investors recalibrated for the prospect of sustained military operations. Across Europe, Britain’s BAE Systems and Germany’s Hensoldt rallied strongly even as broader indices slid. Closer to home, DroneShield (ASX: DRO) and Codan (ASX: CDA) were up 6.6% and 4.6% respectively. The immediate catalyst was a weekend escalation in which U.S. and Israeli forces struck Iranian nuclear and military targets, killing Iran’s supreme leader, Ali Khamenei. Tehran responded with missile attacks on American bases in the Gulf, leaving U.S. personnel dead and prompting warnings from President Donald Trump that the confrontation could stretch for weeks. Oil prices spiked amid concerns about the security of shipping routes through the Strait of Hormuz, through which roughly a fifth of the world’s crude flows. Energy giants such as Exxon Mobil climbed as airlines and travel companies sold off on fears of h

Industrials
Rolls-Royce lifts profit outlook, stock jumps
Shares in Rolls-Royce Holdings climbed as much as 7% on Thursday after the jet engine maker lifted its profit outlook, unveiled plans for up to £9 billion in share buybacks and signalled a possible return to the narrow-body aircraft market. The British engineering firm told the market to expect an underlying operating profit of £4 billion to £4.2 billion this year, ahead of analyst expectations, with free cash flow forecast at £3.6 billion to £3.8 billion. Management added that £2.5 billion of share repurchases will be completed this year as part of a £7 billion to £9 billion programme running from 2026 to 2028. Chief executive Tufan Erginbilgic expects the upgraded guidance to see Rolls-Royce reach its previous mid-term profit targets two years earlier than planned. For 2028, the group now expects underlying operating profit of £4.9 billion to £5.2 billion, operating margins of 18% to 20% and free cash flow of £5 billion to £5.3 billion. The stronger outlook follows a year in which operating profit rose more than 40% to £3.46 billion, beating market forecasts, while revenue increased 12% to £20.1 billion. It marked the fourth consecutive year the company has exceeded earnings expectations, extending a turnar
Industrials
Leonardo CEO: EU defence companies must collaborate
Italy-based defence contractor Leonardo saw new orders surge in 2025, with CEO Roberto Cingolani saying Europe’s defence companies must collaborate to ensure the content is independent from the United States’ security umbrella. New orders were up 15% to €23.78 billion, buoyed by a 55% increase in aeronautics orders. Revenue rose 11% to €19.50 billion, and EBITDA climbed 9.5% to €2.43 billion. “Leonardo’s preliminary 2025 results highlight a significant increase across all key economic and financial indicators and a substantial reduction of the Group’s net debt. We exceeded the challenging guidance, which had been already upgraded during the year,” said Cingolani. Net debt dropped 44.2% to €1.00 billion, which the company credited to stronger cash generation and a €446 billion collection from selling its underwater armaments and systems business. European defence companies should work together to support the continent’s defence needs, Cingolani told CNBC. “The silent agreement was that Americans were paying for European defence,” said Cingolani. “Correctly, the Americans want Europeans to be more independent. It’s a reasonable request.” “On the other hand, it means we need to develop our own technologies that are
Industrials
Rolls-Royce shares fly higher on buy-back news
Rolls-Royce Holdings shares continued to strengthen on a news report that it plans to buy back up to £1.5 billion (US$2.03 billion) in shares. The aerospace and defence engineering company will disclose these plans when it reports record profits this week, according to a Sky News report. “I’ve learnt that Rolls-Royce is expected to announce alongside its annual results on Thursday that it will launch a fresh share buyback worth as much as £1.5bn,” Sky News City Editor Mark Kleinman wrote. “The capital return, which will come on top of the company’s final dividend, will reinforce the size of Rolls-Royce’s free cashflow at a company that during the COVID pandemic had genuine fears for its survival.” Rolls-Royce shares (LON: RR) closed 22.50 pence (1.70%) higher at £13.47 on Friday, capitalising the company at £113.49 billion. The shares have more than doubled over the last 12 months and increased by more than 1,150% over the last five years in a stunning turnaround from its position during the COVID-19 pandemic, when its survival was under threat. The performance has been transformed by former BP executive Tufan Erginbilgic, the Chief Executive. Last year, Rolls-Royce announced a £1bn buyback, its first since 20
Industrials
FedEx earnings updates surprise to the upside
Fedex Corp has released an earnings forecast that exceeded expectations, along with growth targets through to 2029. The global delivery company said earnings per share (EPS) for the third quarter (Q3) ending 28 February would exceed the consensus analysts forecast, which, based on FactSet, was US$4.01 per share on average. FedEx said in December that Q3 adjusted EPS would fall below the $4.82 reported in Q2 due to US$150 million (A$211 million) in unexpected peak-season costs related to finding trucks and planes to move goods because its MD-11 cargo plane fleet was grounded after a crash. “Due to the company’s exceptional execution in delivering a successful Peak season, FedEx now expects third fiscal quarter adjusted earnings per share to exceed the consensus average (as of February 11),” the company said in a news release. The company also set compound annual growth rate (CAGR) targets for calendar 2029, excluding FedEx Freight, of 4% per year in consolidated revenue to $98 billion and 14% in operating income to $8 billion. The expected increase in operating income was driven by targeted strategies across FedEx’s realigned reporting segments. FedEx (NYSE: FDX) shares closed $2.30 (0.63%) higher at $369.46 on Th