UK's Senior Sees Interim Profit Rise, Airbus Contracts Offset Boeing Woes

UK's Senior has reported an increase in interim profits, largely attributed to robust contracts with Airbus. These positive results have helped to balance out concerns related to issues with Boeing. The company's strategic partnerships and market positioning have played a crucial role in this financial improvement, showcasing its resilience and adaptability in a challenging aerospace market.

British engineering firm Senior Plc (SNR.L) reported a 10% rise in first-half profit on Monday, thanks to new and extended contracts with Airbus (AIR.PA) that offset production issues with the Boeing (BA.N) 737 MAX.

CEO David Squires told Reuters that a combination of business with Airbus, Spirit Aerosystems (SPR.N), Rolls-Royce (RR.L), and other aerospace firms supported Senior in the first half.

Aerospace and defence firms have been benefiting from increased demand for airplanes as flying hours return to pre-pandemic levels, mitigating production caps at Boeing. "We'll be able to continue to mitigate any issues with lower Boeing sales through other sales," Squires added while maintaining Senior's annual outlook.

Analysts at Jefferies noted that "Senior is very well-positioned to benefit from a recovery in several of its key end markets over the next few years."

Under its Flexonics division, the downstream oil & gas and nuclear businesses helped offset normalizing in the upstream unit where customers reduced inventory levels.

The Flexonics unit manufactures fluid conveyance and thermal management components for vehicles and power and energy applications. Senior, a supplier to both Boeing and Airbus, reported an adjusted operating profit of 25.1 million pounds ($31.9 million), up from 22.9 million pounds last year.

The London-listed firm declared an interim dividend of 0.75 pence per share, up 25% year-on-year. Shares in the firm were down 3.3% at 152.4 pence by 0712 GMT, while the midcaps index (.FTMC) was trading 3.4% lower.

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