Cobham

NOTE: Cobham is owned by a private equity firm and therefore is not required to publish detailed financial information. As such this Account Overview is limited in scope.

Cobham Limited is a private British aerospace manufacturing company. It is also a leading global technology and services innovator, respected for providing solutions for the most challenging problems, in space, in the air, on land, and at sea across commercial, defense, and security markets.

In January 2020, the company was acquired by American private equity firm Advent International.

Employees: 10,000+

HQ Location: Wimbourne, Bournemouth, Dorset, UK

What they do:

• They design, develop, manufacture, and deliver communication and connectivity equipment and solutions for aerospace, energy, electronics, and defence services.

• They also provide precision engineering and specialist air services.

• The company’s product portfolio includes air-to-air refueling; defense electronics; aviation services such as airline, charter, audio, video, and data communications, including aviation oxygen systems, refueling equipment, rescue and navigation lights, weapon system containers, satellite communications; and life support and mission equipment.

• Cobham serves commercial, the US defence/security, and the UK defense/security market.

• They have a business presence in the UK, the US, Australia, and Africa.

Three things to know right now

• Cobham Missions System was sold to Eaton in 2021.

• Cobham Pension Plan benefits secured by £530 million deal with Standard Life.

• CAES welcomed Martha McSally to its board this part of the year. McSally was a pioneer in the United States Air Force as an A-10 pilot, reaching the rank of Colonel and becoming the first woman to fly a fighter jet in combat in U.S. history, as well as the first woman to command a fighter squadron.
  

What does each business segment do?

CAES (formerly Cobham Advanced Electronic Solutions)

This business segment engineer critical data solutions for the most challenging missions on land, sea, air, and space, with customised solutions across the entire chain, including RF, microwave, and high-reliability microelectronics.

Aviation Services Australia

This business is a specialist aviation operator in Australia that delivers outsourced aviation services for military, government, and civil customers in some of the most demanding settings including military training, special mission flight operation, and outsourced commercial aviation services.

Note: Aviation Services Australia's two businesses (Regional Services and Special Mission) were sold in 2022.

Communications and Connectivity

This business offers connectivity and SATCOM for both military and civil platforms and customers at the leading edge of avionics. They provide control and communication solutions for civil and military aircraft and satellite communications across the globe in the most demanding environments.

C16 Ventures

This business supports the next generation of technologies and visionary companies.

Their financial calendar
H1: January to June - Earnings 28th September 2022

H2: July to December - Earnings End of February 2023

Next Earnings Report:

End of February 2023

Positives from the last earnings report:

• Revenue grew by 8% despite a challenging macroeconomic environment showing the resilience of the Cobham group.

• The Group’s businesses proved themselves resilient to the impact of the COVID-19 pandemic.

• The commercial aerospace service, which was impacted by COVID-19, has seen a strong recovery and they capitalised on this with successful new product launches.

• CAES continued to win high-profile work this half of the year. Winning a contract with Raytheon to provide units for the U.S. Navy’s SPY-6 radar platform.

• CAES also expanded its product range for space markets to develop advanced, 3D-printed, phased array antennas for upcoming satellite missions.

• Cobham SATCOM entered into a partnership with Inmarsat on its next generation of antennas.

• Cobham SATCOM also entered into a partnership with Mangata to provide a scalable ground station tracker platform for Mangata’s satellite constellations.

• The Aero Comms business benefitted from a strong recovery in the commercial aerospace market and saw an increase in customer momentum for new products.

Challenges from the last earnings report:

• Cash generation through the year is expected to be weighted towards H2 as a result of the phasing of key contract milestones.