Aerostar posts over 21 mln lei in Q1 net profit

Aircraft maker Aerostar posted, in the first quarter of 2025, a net profit of 21.057 million lei, down 16.2% compared to that recorded in the similar period in 2024, according to the report submitted to the Bucharest Stock Exchange on Friday.Turnover amounted to 168.822 million lei (153.309 million lei in Q1 2024), and export sales to 146.834 million lei (127.989 million lei in Q1 2024).Aerostar's clients are located in Europe, Asia, Africa, the USA and Canada. In Europe, it provides maintenance services for civil aviation, aviation products (landing gear systems, mechanical parts, assemblies and subassemblies), electronic equipment and ground equipment. In Asia and Africa it provides civil aviation maintenance services and in Canada, aviation products.In Romania, the company provides repair services for military aircraft and repair of electronic parts and components for military aircraft, upgrades, integrations and maintenance for military aviation systems, repair services for systems and launchers and civil aviation products.In the first quarter of this year, Aerostar made capital expenditures worth 2.82 million lei. Of the value of investments in tangible assets, approximately 90% were made for the acquisition of technological equipment and installations for production programs, aircraft maintenance programs and for the maintenance of civil aircraft."The reporting period was marked by major economic turbulence, among which we mention the unpredictability of customs duties and the reorientation of defense policies of the world's states. The decisions taken by the world's organizations and states regarding the increase in defense budgets generated, at the state level, different orientations, but all converged towards increases in defense spending. In addition to all this, we witnessed the weakening of the dollar against the main international trading currencies. The Romanian leu also entered this monetary vortex, which registered a strengthening against the dollar with consequences on the company's result", the report states.It indicates that there was an 8.7% increase in the company's sales, with all three business lines of the company having approximately the same percentage contribution.However, operating income decreased compared to the same period last year, as a result of the change in the status of unfinished production stocks.A major influence on the net profit and its rate was the result of the financial activity, where a decrease in profit of 3 million lei was recorded, mainly due to exchange rate differences. Also, a small influence on the net profit rate was the expense of the profit tax, in this period the tax rate being higher compared to the same period last year.Aerostar's main business lines are: manufacturing of aeronautical products; maintenance of commercial aircraft; aerial and land systems for defense, production and integration.The main business lines, all in the aeronautics and defense field, aim to maintain the status of supplier in the field of aviation systems and land defense systems for the Romanian Ministry of National Defense and for other beneficiaries.The company has consolidated its position as a supplier for the globalized aviation industry, having an important footprint as a supplier of parts, aerostructures, hydraulic systems and landing gears, subassemblies and equipment for civil aviation.Aerostar is a regional center of excellence for commercial aircraft maintenance services, according to information on the BVB website.The company's main shareholders are IARIOM, with 71.5143% of the shares, and Evergent Investments, with 15.1394%.