FACC lifts operating profit 86% to €40 million in nine months
Key Facts
Austrian aerospace components maker FACC reported on November 11 that operating profit grew in the first nine months of 2026, with EBIT rising 86% to €40.0 million from the same period a year earlier. The EBIT margin climbed to 5.0% from 3.1%, reflecting broader profitability alongside business growth. The company said revenue for the period increased 14.7% year on year to €800.1 million. In the third quarter alone, revenue growth accelerated to 28.6%, reaching €273.8 million. Quarterly operating profit also rose to €14.6 million from €3.1 million a year earlier, according to the company statement.
Chief Executive Robert Machtlinger said demand in the aerospace industry offered the company "good opportunities for growth" and that it wanted to use this momentum to improve profitability over the long term. FACC partly attributed the improved results to its two-year CORE efficiency program, which aims to make operations more efficient and reduce costs across the group and supply chain. Revenue growth outpaced the expansion of the workforce: revenue rose 14.7% in the nine months, while employee numbers increased 7.4%. The company said this divergence reflected more efficient use of existing capacity. That puts the improvement in margins in the context of productivity growth, alongside higher sales.
Aircraft Interiors was the strongest profit driver among the divisions, with operating profit rising to €15.2 million in the nine months from €1.7 million in the corresponding period. The company attributed the improvement to increased deliveries of the Airbus A320 family and business jets, as well as expanded production capacity in Croatia. The Aerostructures division also posted an increase in EBIT, to €12.5 million from €4.2 million. But Engines & Nacelles moved in the opposite direction, with profit falling to €12.3 million from €15.6 million. FACC said the decline was mainly due to delays in meeting milestones for some advanced air mobility development projects, highlighting the differing performance across its units.
Cash flow indicators improved alongside earnings, with operating cash flow rising 69% to €69.9 million in the first nine months. Free cash flow more than doubled, reaching €50.3 million over the same period. Net debt fell by €23.4 million since the start of the year, reaching €192.4 million on September 30, 2026. The company plans to invest about €350 million by 2030 to support its plans, including about €120 million for a new aerostructures plant in St. Martin. In October, FACC announced a new €190 million syndicated financing led by UniCredit Bank Austria, with 7 banks from Austria and Germany participating. The financing replaces a previous €225 million syndicated loan ahead of its maturity in February 2027, and has an initial term of three years, with the option to extend it twice for one year each time.
FACC reaffirmed its outlook for fiscal 2026, targeting revenue growth of between 10% and 15% and an EBIT margin of between 5.25% and 6.25%. The November 11 statement did not raise the outlook; it left it unchanged. The company said achieving it depended largely on aircraft manufacturers meeting their announced delivery schedules and on the stability of known global conditions. Over the longer term, the CEO and CFO set a target of an EBIT margin above 8%, saying operational improvements were bringing the company closer to it. Delivery schedules and development-project milestones remain factors affecting divisional results and the company’s ability to turn revenue growth into higher profits.