Quickstep aims for $99 million in sales, underlying profit

Composites manufacturer Quickstep has completed the streamlining of operations of its Structures Business Unit which manufactures parts for F-35 fighter jets and C-130J Hercules transport aircraft.

The changes involved a move from a three shift/six-days a week operation to a two shift/five-days a week pattern at its Bankstown, Sydney facility and the implementation of leaner staffing across the business.

The Sydney company told investors a reduction in direct production headcount of approximately 20 percent has resulted in underlying EBITDA being positive for FY24 on revenues likely to b $99 million.

This is above previous expectations of $94 to $95 million, up five percent on the previous year.

Although FY24 saw slightly softer revenue in the Structures business unit, this was offset by growth of 94 percent in Services to over $10 million and Engineering Development which grew 57 percent year on year.

“The rationalisation of the corporate support functions is also nearing completion with the timing of the remaining changes planned throughout July and August to ensure a successful transition.”

Quickstep has now completed negotiations with Lockheed Martin for the C-130 programme which will involve 100-shipsets of parts.

Negotiations with Northrop Grumman over the F-35 programme which focused on agreeing a level loaded production plan for FY25 and FY26 have now successfully concluded.

Negotiations with Marand Precision Engineering regarding production of F-35 Vertical Tail components remain ongoing.

“As part of the above negotiated outcome, Lockheed Martin will be providing funding to Quickstep for the purchase of long lead time materials, improving Quicksteps cashflows.

“The finalisation of the C130 agreement with Lockheed Martin not only underpins Quicksteps base business but demonstrates Lockheed’s commitment to the Australian supply chain.”

Quickstep also said the expansion of its Geelong, Victoria facility was progressing well alongside expanded drone production capacity.

“This additional space enables development work to commence in support of a number of space initiatives as well as prototyping capability for guided weapons components such as rocket motor housings, fuselage bodies and launch systems.”

Further reading:
Quickstep restructures its aerospace structures business

Picture: Quickstep