Quickstep is an Australian company manufacturing fuselage components for US defence giant Northrop Grumman (NG).
Back in August last year, the company finalised terms for a US$105m order (A$151m) to manufacture those components over a 6 year period for NG.
“Following our multi-year award announcement on 25 August 2022, this additional order means our F-35 vertical tail production is also underpinned by firm contracts through FY25,” Quickstep CEO Mark Burgess said.
The new order, valued at A$11m, extends through to FY25. Existing partner Marand Precision Engineering will be the customer and the parts will ultimately go to NG to be incorporated into F-35 fighter jets.
Centre fuselage including weapons bay (made by Quickstep)
Missile detection radar and other radar systems
On-board mission planning software
Pilot training software
Quickstep Holdings has a facility in Dallas, but its Queensland operations will be the site from which its newly scored contract for vertical tail components are made.
“We are proud to support this important international program and continue to explore opportunities for additional volume,” Burgess added.
A Bell Potter analyst theorised in late 2022 that the “global rearmament thematic” will remain in place for the next ten years to the benefit of defence stocks.
Using free Market Index company information, initial considerations one can make about Quickstep may lend themselves to a favourable assessment of this call. Those observations include:
Company’s share price 56.5c*
Shares are up 1.80%*
Market cap of $40.5m*
One year returns up 29.8%
Year to date returns up 4.63%
Average 4 week volume of 59,758 shares
Ranked 108 of 189 Industrials sector companies
FY23 outlook notes order backlog of $200m
FY23 outlook forecasts EBITDA increase of 35% y/y
*At the time of writing
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