2017全球航空航天与国防行业财务绩效研究（英文版）

2017 Global Aerospace and Defense Sector Financial Performance Study Summary

Core Content

This report provides an in-depth analysis of the financial performance of the global aerospace and defense (A&D) sector in 2016, focusing on revenue growth, operating margins, productivity, and debt levels. It also includes insights from the "Letters to Shareholders" of the top 20 A&D companies, highlighting strategic focus areas and performance trends.

Key Financial Performance Highlights

• Global Revenue Growth: The global A&D sector revenue increased by 2.4% in 2016 to US$674.4 billion, slightly outperforming the global GDP growth of 2.3%.
• Revenue Drivers:
  • Electronics Segment: Contributed US$3.7 billion in revenue growth.
  • OEM Segment: Added US$3.4 billion in revenue growth.
  • Tier 1 and Tier 2 Suppliers: Each contributed US$2.0 billion.
  • Propulsion Segment: Generated US$1.9 billion in revenue growth.
  • Services Segment: Added US$1.8 billion in revenue growth.
  • Other Segments: Contributed US$0.7 billion.
• Total Revenue Growth: US$15.7 billion added to the global A&D sector in 2016.
• Operating Earnings: Core operating earnings increased by 0.8% to US$70.0 billion.
• Operating Margin: The global sector maintained a 10.4% operating margin, slightly down from 10.5% in 2015.
• Defense Subsector: Grew by 2.1% to US$351.3 billion, outperforming the commercial aerospace subsector.
• Commercial Aerospace Subsector: Revenue increased by 2.7% to US$323.1 billion, but growth slowed compared to 6.3% in 2015.
• Regional Performance:
  • Europe: Recorded a 3.7% revenue growth, with the commercial aerospace subsector growing 6.7%.
  • US: Experienced a 2.4% revenue growth, with the defense subsector growing 3.1% and the commercial aerospace subsector declining 1.3%.
• Operating Margin Trends:
  • European Sector: Improved by 5.3% to 9.6%.
  • US Sector: Declined by 2.5% to 11.5%.
  • Defense Subsector Margins: Increased by 5.3% to 11.5%.
  • Commercial Aerospace Margins: Declined by 9.4% to 9.1%.
• Propulsion Segment: Maintained the highest operating margin, improving from 18.0% to 19.2%.
• Tier 2 Suppliers: Outperformed Tier 1 suppliers with operating margins near 20%.
• Productivity:
  • Global A&D productivity increased by 3.6% to US$351,692 per employee.
  • Europe: Experienced 11.1% productivity growth.
  • US: Productivity growth was only 1.1%.
• Debt Levels:
  • Global A&D debt-to-equity ratio rose to 1.65, up from 1.18 in 2015.
  • US Debt-to-Equity Ratio: Increased to 2.40, a 34.2% rise.
  • Europe Debt-to-Equity Ratio: Rose to 1.58, a 39.4% increase.
• Equity Performance:
  • US and European A&D equities outperformed their respective market indices.
  • US: Outperformed S&P 500 by 11.2% and Dow Jones A&D by 17.9%.
  • Europe: Outperformed STOXX 600 by 4.9%.

Strategic Focus from "Letters to Shareholders"

• Common Themes: The top 20 A&D companies emphasized customers, business growth, new services, markets, and technology.
• Outward Market Focus: The language used in the letters reflected a focus on external growth and innovation, rather than internal restructuring.
• Five Key Themes Identified:
  • Customer Relationships
  • Business Expansion
  • Innovation and Technology
  • Market Development
  • Operational Efficiency

Top Performing Companies

• Boeing: Largest revenue generator, but saw a 1.6% decline in revenue to US$94.6 billion.
• Airbus Group: Second-largest, with 3.3% revenue growth to US$73.7 billion.
• Lockheed Martin: Third-largest, with 4.1% revenue growth to US$47.2 billion.
• Harris Corp.: Highest revenue growth at 46.9%.
• Oshkosh Defense: Highest growth in core operating earnings at 1231.5%.
• Transdigm Group: Highest core operating margin at 40.0%.
• GE Aviation: Highest core operating earnings at US$6.115 billion.
• Woodward Aerospace: Highest FCF change at 2814.9%.
• QinetiQ: Highest ROIC at 50.2%.
• Chemring: Highest ROIC change at 338.2%.

Sector Concentration

• The top 20 A&D companies accounted for 73.7% of global A&D sector revenues in 2016, reflecting continued sector concentration.
• The report highlights the impact of acquisitions, portfolio reshaping, and market dynamics on performance.

Methodology

• The study analyzed 29 key financial metrics.
• Data Sources: Public company filings and press releases.
• Currency Conversion: Constant currency method used to eliminate foreign exchange effects.
• Scope: Excludes government-controlled entities, non-public companies, and those not reporting A&D segment data.

Key Takeaways

• The A&D sector showed moderate growth, with defense outperforming commercial aerospace.
• Europe continued to outperform the US in terms of revenue growth and operating margins.
• Productivity and equity performance were strong, with US and European A&D equities outperforming market indices.
• Debt levels rose, particularly in the US, as companies leveraged debt for acquisitions and development.
• Strategic focus on technology, markets, and new services was evident in the "Letters to Shareholders" analysis.

Conclusion

The 2016 global A&D sector showed a slower growth rate compared to previous years, with defense subsector continuing to recover and commercial aerospace growth slowing. The European sector demonstrated stronger performance than the US sector in both revenue growth and operating margins, driven by increased deliveries and operational efficiency. The strategic emphasis on technology and market expansion by top companies suggests a focus on future growth and innovation.