AeroSpace Technologies Secures $1.9 Million US Air Force Order

AeroSpace Technologies announced a repeat order valued at approximately $1.9 million for temperature controllers used in J85 engines, which power U.S. Air Force training aircraft. This new contract reinforces AeroSpace's long-standing relationship with the U.S. Air Force in aircraft control systems.

Earlier this year, the company received additional orders under a framework agreement for the repair and upgrade of U.S. Air Force training aircraft systems. AeroSpace is also active in health monitoring systems for aircraft and helicopters, muzzle velocity radar, and control systems for both manned and unmanned aerial vehicles.

The company has undergone significant ownership changes recently. In July, Zeev and Masha Dagani sold their controlling stake of about 50.3% to IPE Fund, part of the ION Group, in a deal valuing AeroSpace at approximately $27 million and providing up to $14 million in proceeds. Concurrently, Ofer Alikim assumed the CEO position as part of the management transition led by the new controlling shareholder.

Financially, AeroSpace remains a small and volatile company. In the first half of the year, revenues decreased by about 8% to $2.6 million, with a net loss of $780,000. However, the order backlog grew to $17 million. A substantial portion of this backlog comes from its HUMS (Health and Usage Monitoring Systems) operations, including a $6 million deal to supply monitoring systems for combat helicopters in East Asia, with an additional option for $4.4 million.

The latest U.S. order adds about $1.6 million to the backlog. The company's current market capitalization is trading around the same valuation as when the controlling stake transaction occurred.