Quickstep sees aerospace orders out to FY29


Composites manufacturer Quickstep expects to receive purchase orders for the ongoing production of aerospace components from customers Northrop Grumman, Lockheed Martin and Marand by the end of July 2024.

The company, in an update for investors, said that over the coming months production was transitioning to the next phase of multi-year orders under long-term agreements with these key customers.

According to Quickstep: “This provides clear demand signals out to FY27 for F-35 components and to FY29 for C-130 components.

“All demand requirements are expected to be finalised through receipt of purchase orders before the end of July 2024.”

Quickstep supplies composite components for the Northrop Grumman F-35 joint strike fighter and the Lockheed Martin C-130 Super Hercules transport aircraft, while Australian company Marand is a sub-contractor to Lockheed Martin.

Quickstep said that as the F-35 approaches the midpoint of its initial volume buildout, it had been working closely with its customers to establish production schedules which meet their demand profiles, while providing the company with the opportunity to streamline its operating model.

“As production commences on Lots 18 to 20, Quickstep will run a ‘level-loaded’ production schedule which will see consistent production volume through FY25 to FY27.

“In line with customer requirements, overall demand for F35 components will be circa eight percent lower than average demand over the FY23 / FY24 period,

“However, Quickstep’s streamlined operating model aims to ensure programme margins remain consistent despite this lower demand.”

Quickstep’s next contract period for C-130 components commences in mid-FY25 and goes out to FY29.

The company said the demand profile was expected to see 20 ship sets of components supplied each year – in line with the current demand profile for these components.

“The streamlined operating model being initiated by Quickstep will support new programmes.

“Quickstep continues to be actively engaged with all major customers and partners to identify new opportunities in traditional programme component supply and new and emerging sectors.

“Interest in and demand for advanced composites along with next generation production processes remains strong and provides opportunities for Quickstep globally.”

Late this afternoon Quickstep shares were trading 8.7 percent up on the ASX at 19 cents.

Picture: Quickstep/autoclaves at Quickstep’s Bankstown, Sydney facility

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