Aernnova Aerospace S.A.

Overview Key strengths Key risks Leading market positions in wings, composites and empennage (No. 3 globally) through narrow-body exposure and presence in over 30 programs, including next-generation programs such as A350XWB and the A320NEO. Significant customer concentration, as the top 3 customers (Airbus, Boeing, and Embraer) account for more than 80% of the total order backlog. Long-standing relationships as a tier 1 or 2 supplier with global original equipment manufacturers (OEMs) such as Airbus, Boeing, and Embraer. The negative impact of the COVID-19 pandemic caused Aernnova to generate negative free operating cash flow (FOCF) in 2020. FOCF turned positive in 2021 but remains weaker than pre-pandemic levels. Robust levels of inventory offsetting current scarcity of some critical raw materials including

...Recovering demand for new aircraft, especially narrowbodies, and rising OEM production rates will support a gradual improvement in Aernnova's operating results through 2022 and 2023. Aernnova generates 30% of its revenue on key narrow-body aircraft programs such as the A320 and A220. S&P Global Ratings believes that Aernnova will benefit from Airbus' plans to raise production of its narrow-body A320 fleet to 64 a month by mid-2023...

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