Airbus and Boeing Supplier Senior Expects Strong H2 Amid Increased Demand

British engineering firm Senior is optimistic about a robust second half of the year as it reports a doubling of adjusted profits for the first six months. The surge in profits is attributed to the easing of supply chain issues in its aircraft parts business and a surge in demand in the auto and power unit sectors.

Customers like Boeing and Airbus contribute to Senior’s success as planemakers increase production to meet the growing demand for air travel. For the first half of the year ending on June 30, Senior’s adjusted profits reached 17.6 million pounds ($22.62 million), and revenue saw a 20% rise, reaching 482.3 million pounds.

The company anticipates higher sales in H2 due to planned aircraft build rate increases. Although supply chain challenges persist, they are expected to ease towards the end of the year.

Both Rolls-Royce and General Electric have also increased their profit forecasts, counting on a faster-than-expected recovery from the pandemic’s lows.

Boeing is ramping up production of its popular 737 narrow-body jet, aiming for 38 jets per month, while Airbus reaffirms its goal to produce 75 A320neo-family jets per month in 2026.

Senior’s flexonics business, which manufactures fluid conveyance and thermal management components for vehicles and power applications, has seen a recovery in sales and margins. The North America-focused unit secures new electric vehicle contracts, and cost pressures have eased.

CEO David Squires is positive about a sustained growth environment in the aerospace industry for an extended period.

While Senior is fully booked for the second half of the year in some areas of the business, investors remain cautious due to potential lingering supply chain challenges.

Despite the cautious sentiment, Senior’s overall outlook remains promising for the rest of the year.

Sources: AirGuide Business airguide.info, msn.com, Reuters.com