Senior plc’s Aerospace division delivered substantial earnings growth during the first half of 2026 as rising commercial aircraft production, stronger defense demand, improved pricing, and operational efficiencies expanded profitability.
Aerospace adjusted operating profit increased 42.3% to £30.3 million from £21.3 million on a constant-currency basis.
The division’s adjusted operating margin expanded by 270 basis points to 13.1% from 10.4%.
Revenue increased 12.8% to £231.4 million from £205.1 million and represented approximately 59% of Senior’s continuing group revenue.
The earnings increase was more than three times the rate of revenue growth, demonstrating the operating leverage generated by higher production volumes, pricing, aftermarket activity, and manufacturing efficiencies.
Civil aerospace was the largest contributor to the division’s growth.
Senior’s civil aerospace sales increased 16.4% as Airbus and Boeing raised aircraft deliveries and continued increasing production rates.
Airbus delivered 351 commercial aircraft during the first half, compared with 306 a year earlier. Boeing delivered 314 aircraft, increasing from 280.
Senior’s components are used across large commercial aircraft, business jets, defense platforms, and adjacent markets such as semiconductor manufacturing equipment.
The company’s civil aerospace exposure remains concentrated in single-aisle aircraft, which represented approximately 90% of civil aerospace sales. Widebody platforms supplied the remaining 10%.
Defense demand also supported the Aerospace division.
Senior supplies components for U.S. military programs including the F-35, C-130J, and T-7A Red Hawk, along with European programs such as the Eurofighter, Rafale, and A400M.
Rising government defense commitments and international demand supported higher production volumes during the half.
Sales to adjacent markets also increased, led partly by semiconductor equipment.
Senior said the semiconductor equipment market is expected to grow 23% during 2026 as artificial intelligence, cloud infrastructure, and advanced consumer electronics drive demand for additional chip-manufacturing capacity.
Strong order intake provides additional visibility into future Aerospace revenue.
The division recorded a book-to-bill ratio of 1.17, indicating that new orders exceeded recognized sales during the period.
Senior’s groupwide book-to-bill ratio reached 1.23, while Flexonics produced a ratio of 1.32.
The Aerospace improvement supported stronger results across Senior’s continuing operations.
Group revenue increased 7% at constant currencies to £390.8 million.
Adjusted operating profit increased 28% on a constant-currency basis to £39.1 million, while adjusted operating margin expanded to 10% from 8.4%.
The company has already reached its medium-term target of achieving a double-digit group operating margin.
Flexonics also reached its target range with an 11.4% adjusted operating margin excluding its joint venture. Aerospace remains on track toward its mid-teens margin target.
Adjusted profit before tax increased 38% to £34.8 million from £25.3 million.
Adjusted earnings per share increased 27% to 6.46 pence from 5.07 pence.
Reported results were substantially weaker because of costs associated with the pending acquisition of Senior by Zeus UK Bidco, an entity indirectly controlled by funds affiliated with Tinicum and Blackstone.
Senior recorded £38.9 million of adviser and employee-related costs connected with the transaction, including £34.7 million contingent on its completion.
Those expenses turned the company’s adjusted pre-tax profit into a reported loss before tax of £5.6 million.
Senior reported a basic loss of 3.19 pence per share, compared with earnings of 5.07 pence during the prior-year period.
Shareholders approved the acquisition with 99.7% of votes cast in favor.
Ten of the 12 required regulatory and antitrust approvals had been obtained when Senior issued its results. The transaction is expected to close by the end of 2026.
Senior generated £16.3 million of free cash flow, increasing 54% from £10.6 million.
Free cash flow improved despite a £21 million working-capital outflow associated with the timing of customer collections and higher inventories held to support demand.
Return on capital employed increased by 260 basis points to 14.5%, approaching Senior’s medium-term target range of 15% to 20%.
Net debt excluding leases increased to £89.4 million from £73.3 million at the end of 2025, but leverage remained unchanged at 0.9 times net debt to EBITDA.
Senior maintained the full-year expectations presented in its July trading update.
Management expects higher civil aircraft production and continued demand across defense and adjacent markets to support additional Aerospace progress during the remainder of 2026.
KEY QUOTES:
“The Aerospace Division continued its positive momentum with order intake, sales, profitability and operating margins all showing excellent growth.”
“Growth in civil aircraft build rates and increased demand across other core markets is expected to drive continued strong progress.”
David Squires, Group Chief Executive Officer Of Senior
