Kleos Space, Raytheon, Boeing - Only flying is more beautiful!

Kleos Space SA - New satellites pass hardware test

Kleos Space SA is a private Luxembourg-based high-tech Company that already operates 4 satellites in orbit, and now the next generation is ready to be launched into orbit. The partner here is again SpaceX with their Falcon 9 rocket. The launch is planned for June 2021, NASA will determine the exact slots. An exciting thing because the launches of SpaceX attract quite a bit of interest because Elon Musk also continually has new ideas about how space can be used for us citizens of Earth.

Kleos Space SA, to be precise, is a space-based Radio Frequency Reconnaissance data-as-a-service (DaaS) Company. What is meant by this is that the motion data recorded from space is collected, analyzed and delivered to customers in the form of a service agreement. The latest mission is called Polar Vigilance Mission (KSF1). It has completed the critical hardware review and is now cleared for launch.

The current milestone was achieved in the Netherlands and performed by satellite developer ISISPACE, and now the new satellites can enter the assembly and verification phase. They will be launched by SpaceX into a 500-600km Sun-synchronous orbit, complementing the current Kleos' Scouting mission. With the new satellites, the Earth's surface can be scanned even better, data quality increases and false signals are less likely.

Kleos had already successfully repaid AUD 5.5 million in financing from Dubai in the middle of the month, and Kleos' refinancing of research expenses is currently going very well. The Kleos share has recently attracted a lot of attention in Germany, as there are only a few comparable listed companies in Europe. With a capitalization of a good AUD 100 million, the stock is well in the running to be considered by larger high-tech investors. Analysts at First Berlin also rate the stock a buy with a target of EUR 0.74.

Raytheon Technologies Corp. - A dire 2020

Raytheon has come a long way from its glory days. The Corona Crisis and high write-downs have dragged the newly formed defense and aerospace Group Raytheon Technologies deep into the red in 2020. The Massachusetts-based Company posted a bottom-line loss of more than USD 3.5 billion. However, without the charges from Raytheon's merger with engine manufacturer Pratt & Whitney and aerospace supplier Collins Aerospace, the Company would have made a profit of a similar amount. In fact, in continuing operations, i.e. excluding the merger's special charges, the Company would have posted a surplus of USD 3.7 billion. Amortization of intangible goodwill alone had impacted earnings by USD 3.2 billion.

Sales were USD 56.6 billion but are not comparable to last year's figures. Because aircraft manufacturers Boeing and Airbus cut production, sales at Pratt & Whitney slumped by a fifth on a comparable basis and at Collins Aerospace by around a quarter. In the fourth quarter, the declines were even more significant due to the partial plant closures. For the new year, Group CEO Greg Hayes is targeting revenues of USD 63.4 to 65.4 billion. The Company also plans to buy back its shares for at least USD 1.5 billion in the new year.

Raytheon stock has always been a profit guarantor in the past, with large US defense budgets flowing into the Company's sales. The quarterly dividend remains at USD 0.475; still, nearly 3% annualized. A comeback in the stock should be on the radar.

Boeing Company - New orders for the 737 Max again

The American aircraft manufacturer Boeing reports an order for 25 aircraft of the 737 Max series. This model was banned from air traffic for almost 2 years and recently re-certified for passenger traffic which is undoubtedly good news for the struggling Seattle-based manufacturer. US carrier United Airlines has ordered the planes, and they are due to be handed over in 2023.

There is no doubt that the past year has been extremely difficult for Boeing and its customers, but now they are trying to tackle the pandemic head-on. Some US airlines believe that US air traffic will climb back to its old record levels very quickly. However, this is doubted by opinion and trend researchers alike because the change in people's behavior will be more sustainable and conscious in large parts of their lives, including a significantly lower need for travel, both for business and pleasure.

Nevertheless, the picture seems to be brightening slightly at Boeing. Overall, it is fascinating to see how a corporation with 160,000 employees can be kept stable during such a crisis. The government support has probably had its full effect here. Since its all-time low of EUR 83, the Boeing share has recovered to an astonishing EUR 187, which is only a 33% drop over three years. Of course, Boeing is still a full 100% away from its all-time high before the crisis - and under the new circumstances, this mark is not likely to light up again in the near future. One should keep an eye on the DOW value and stop out tightly if the line around EUR 160 is undercut.