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Ordnance & accessories, (no vehicles/guided missiles) company · DE · FY ends Dec · Revenue $552M · -4.12% margin · $42M FCF
The business is unprofitable at the operating level (-2.25% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue growth slowed to 1.9%, essentially flat. Margins also contracted 8.2pp. This is a business that needs a catalyst.
ROIC dropped from 7.45% to -3.20%, capital efficiency is deteriorating. Operating margin contracted 8.2pp YoY, cost discipline may be slipping.
Profitability & Returns
Revenue (TTM)
$552M
▲ +1.9% YoY
Net Income (TTM)
-$12M
▼ -114.4% YoY
Op. Margin
-4.12%
▼ -8.2pp YoY
ROIC
-6.28%
▼ -10.6pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$42M
▲ +10.9% YoY
Op. Cash Flow (TTM)
$62M
▼ -2.2% YoY
Net Debt
-$104M
Net Cash Position
Cash & Equiv.
$105M
5Y CAGR: -0.8%
5Y CAGR: -20.3%
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