Daher exceeded its targets in 2023, although profitability remains improvable

Patrick Daher, President of the eponymous group, stated that Daher achieved a turnover of €1.65 billion in 2023, showing growth and exceeding expectations. While the order books have never been as full as they are today, the executive remains cautious, pointing out a paradoxical overall situation.

Daher exceeded its targets in 2023, although profitability remains improvable

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If we rely on Daher’s financial indicators, everything is green, as shown by a global turnover of €1.65 billion in 2023, compared to €1.3 billion in 2022. This growth is explained by the dynamism of the activity and recent external growth operations, like the takeover of AAA in 2023. The turnover is balanced between industrial activities and services, around 50/50. Geographically, development continues in the United States, which now accounts for 35% of turnover, despite legal issues encountered with Triumph Group, particularly at the aerostructures production plant in Stuart, FL.

For aircraft sales, Daher’s center of gravity remains in the United States

Another positive indicator is the number of aircraft delivered to customers and operators in 2023, with 56 units from the TBM range and 18 utility aircraft Kodiak (notably the Kodiak 100 Series III). It is now offered as standard with a five-blade composite propeller that reduces noise levels and improves performance. The top-of-the-line model TBM 960 dominates the sales mix, still largely driven by the American market (43 units, regarding 7 units in Europe, including 2 in France). For Kodiak, North America remains the main market.

A current paradox of the aerospace industry, Daher’s challenge is to produce what it has already sold.

A still disrupted supply chain

Satisfied, Patrick Daher and Didier Kayat, respectively president and CEO of the group, remain attentive to a market context described as paradoxical.

“It’s a case of laughing and crying… While the consequences of Covid have been absorbed faster than expected, we must face heavy geopolitical threats, in Ukraine of course, in the Middle East, in the South China Sea, not to mention the numerous elections taking place around the world. Furthermore, as highlighted by the impressive 2023 Paris Air Show, we must deal with a necessary energy transition but with costs that are expected to be exorbitant”, they explained.

They also point out that the supply chain is experiencing numerous impacts, such as inflation and its consequences on energy costs and payroll. “In large companies, we had lost the notion of managing inflation since the 90s”, Patrick Daher notes. Moreover, supply flows are not yet completely smooth. The recruitment market is under high tension at a time when needs are significant.

Daher’s executives are pleased with the group’s revenue growth and its expansion in the American market.

The €2 billion in turnover is soon expected

The leaders remain optimistic for 2024, recalling that Daher has three years of turnover in its order book. For aircraft deliveries, Didier Kayat expects a little over 80 units in 2024, provided they can be produced. Turnover is expected to continue to grow, and several financial analysts estimate that the symbolic threshold of €2 billion will be exceeded in 2025. In general, the strategic plan ‘Take off 2027’, presented last year, is meeting its milestones, although the leaders aim to improve the group’s profitability. Didier Kayat concludes by stating that the results are good, but without the scope of acquisitions, they have not yet reached the level of 2019.

Daher is meeting the initial milestones of its ‘Take off 2027’ strategic plan.
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