– Profit Strongly Grew by approximately 24% YoY to approximately US$35.6 million in the First Half of 2024
– Significantly Increased Net Orders Brings a Great Momentum for the Steady Growth of the Company
Results Highlights for the Six Months Ended June 30, 2024:
– Revenue reached to approximately US$475.4 million, grew by 11.6% YoY
– Gross Profit amounted to approximately US$163 million and gross profit margin was 34.4%
– Profit grew significantly by 23.6% to approximately US$35.6 million
– In the first half of 2024, the Company brought to market the 7th generation (G7) of the SR2X Series, which has been the best-selling single-engine piston model aircraft in the world for the last 22 consecutive years.
– Net orders increased for both the SR2X and Vision Jet combined for the six months ended June 30, 2024 by a total of 107 units from 255 for the six months ending June 30, 2023 to 362 for the six months ending June 30, 2024.
Cirrus Aircraft Limited (Cirrus Aircraft or Company) and its subsidiaries (together, the Group)( HKG: 2507) announces the unaudited consolidated results for the six months ended June 30 2024 (the Reporting Period).
During the Reporting Period, revenue of the Group grew by 11.6% to US$475.4 million, as compared with US$426.0 million for the same prior year period. Gross profit increased by 10.0% to US$163.4 million as compared with US$14.8 million for the same prior year period. Profit for the Reporting Period significantly increased by 23.6% from US$28.8 million for the same prior year period to US$35.6 million. It is primarily due to increased aircraft deliveries, increased pricing on the aircraft, and better mix of revenue generated from Cirrus Services and Other towards its services with higher margin.
The leading aircraft manufacturer in the global personal aviation market
Since the inception in 1984 in Wisconsin, United States, Cirrus Aircraft is committed to design, develop, manufacture, and sell premium aircraft recognized across the personal aviation industry, which incorporate innovations in safety, technology, connectivity, performance, and comfort. The Company’s two aircraft product lines, the SR2X Series and the Vision Jet, have successfully set the industry standard for owner-piloted aircraft and are currently certified and validated in more than 60 countries with cumulative deliveries of over 9,700 SR2X Series aircraft and over 500 Vision Jet aircraft worldwide as of the June 30, 2024.
As part of its wide-ranging product offering strategy, the Company’s SR2X Series consists of an entry level aircraft, the SR20, as well as the SR22 and SR22T, both of which offer increasing levels of performance and capabilities addressing different customer needs and preferences for a single-engine piston aircraft. SR2X Series aircraft can typically carry up to four adults and one child. The Vision Jet targets a different and more premium segment of the personal aviation market and offers significantly enhanced performance, capabilities and specifications at a higher price point. The Vision Jet is also designed for owners to fly at jet speed without requiring support from a full-time pilot or flight department. The Vision Jet can typically carry up to five adults and two children. With the launch of the G7 line and continuous upgrade of product portfolio, it will sustain the growth of the business and continue to provide a premium experience for the customers.
In the first half of 2024, Cirrus Aircraft delivered 20 more aircraft and the average sales prices (“ASP”) of all deliveries steady increased as compared to the same period in 2023. The average sales price of the SR2X aircraft deliveries was approximately US$1.04 million compared to US$0.99 million in the same period in 2023. The average sales price of the Vision Jet aircraft deliveries was US$3.33 million compared to US$3.08 million in the same period in 2023. At the same time, net orders increased for both the SR2X and Vision Jet combined for the six months ended June 30, 2024 by a total of 107 units from 255 for the six months ending June 30, 2023 to 362 for the six months ending June 30, 2024. This increase is partly attributable to the launch of the G7 line as well as the continuation of the product ladder between the two product lines and the growing ecosystem around the ownership experience. The significantly increased net orders recorded during the Reporting Period will bring a great momentum for the steady growth of the Company.
Outlook and Future Plan
In the future, Cirrus Aircraft will continue to focus on product improvement, model upgrades and ongoing generational changes to equip its aircraft with new technologies and designs to consolidate the leading position of the industry. Meanwhile, the Company intend to adopt a series of measures, including monetize installed base through establishing, among many things but not limited to, new maintenance programs, and expanding aircraft management solutions and an array of useful customer services, enhance flight training solutions, advance and expand its aircraft and services portfolio, advance production capabilities, expand its markets globally and establish on-demand personal aviation solutions, to support the future business development and the long-term steady growth of the Company.
In recent, as part of the ongoing efforts to increase the capacity and efficiency of the manufacturing facilities, the Company has also completed significant improvements in its manufacturing facility in Grand Forks, including expanded autoclave and mold capacity. In addition, the Company continues to increase the areas of the production facilities in which the Company has implemented its Cirrus Operating System (COS) which continues to increase the operating efficiency. Cirrus Aircraft anticipates these continued improvements will help increase and support future production.
In regards to the marketing strategy, the Company adjusted its sales structure in the United Kingdom and France from CSAs to direct sales, which the Company anticipates will drive growth in these markets by developing direct relationships with the customers earlier in the sales cycle, maintaining closer relationships throughout the customers’ ownership experience and allowing the Company to strategically and directly drive sales and marketing initiatives. Moreover, the Company continues to expand the investment within its product portfolio. In April 2024, the Company received the production certificate from Federal Aviation Administration of the U.S. Department of Transportation for its SR10 aircraft, which is the first of its kind clean sheet design exclusive to training the next generation of pilots.
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About Cirrus Aircraft Limited
Cirrus Aircraft Limited is a pioneer and an established global market leader in the personal aviation industry, according to Frost & Sullivan. The Company designs, develops, manufactures, and sells premium aircraft recognized across the personal aviation industry, which incorporate innovations in safety, technology, connectivity, performance, and comfort. The market share of Cirrus Aircraft in the global personal aviation market was 32.0% in 2023 based on the number of units delivered, according to Frost & Sullivan. The Company’s two aircraft product lines, namely SR2X Series and Vision Jet, have successfully set the industry standard for owner-piloted aircraft and are currently certified and validated in more than 60 countries. According to GAMA, SR2X Series has been the best-selling single-engine piston aircraft for 22 consecutive years, while according to GAMA and Frost & Sullivan, Vision Jet has been the best-selling business jet for the last six consecutive years since it first delivered in 2016.
This press release is issued by Porda Havas International Finance Communications Group for and on behalf of Cirrus Aircraft Limited. For further information, please contact:
Porda Havas International Finance Communications Group
Telephone: 852 3150 6788
Email: cirrusaircraft.hk@h-advisors.global
