FIGEAC AÉRO signs €65 million contracts to support Airbus A320 production ramp-up

FIGEAC AÉRO, a prominent partner for major aerospace manufacturers, has secured three new agreements with Airbus and another top-tier customer, collectively valued at €65 million. These contracts are designed to support the increased production rates of Airbus's A320 family aircraft, aligning with the aerospace giant's plans to ramp up output in the coming years.

Two of the agreements have been signed directly with Airbus and cover a wide range of structural titanium components. These parts are integral to the engine pylons of the A320-family aircraft, where their strength and light weight are crucial. The third contract primarily involves large aluminium parts, also destined for the A320 aircraft. The manufacturing of these components will rely heavily on FIGEAC AÉRO's long-standing expertise in machining both hard metals and light alloys. This specialised knowledge, honed over years, is concentrated at the company's flagship facilities in Figeac, France, where the majority of the contracted parts will be produced.

These agreements come at a pivotal time for Airbus, which aims to increase its A320 production rate to 75 aircraft per month by 2027, up from an average of nearly 48 deliveries per month in 2023. In response to these ambitious targets, Airbus has been reinforcing its supply chain capabilities, and FIGEAC AÉRO's industrial performance has returned to near-normal levels following post-COVID challenges that affected the wider aerospace sector. Additionally, FIGEAC AÉRO's strategic investment in expanding its production capacity over the past decade has enabled the company to meet this growing demand effectively.

The newly awarded contracts are a result of various factors, including capacity offloading, first-time outsourcing, and a change of suppliers, underscoring FIGEAC AÉRO's growing strategic importance within the A320 supply chain. The agreements also highlight the opportunities available to high-performing partners in the aerospace industry, as manufacturers like Airbus seek to meet rising demand while maintaining rigorous quality standards.

With a five-year duration, the contracts are expected to generate annual revenue of approximately €12.5 million once full-scale production begins, contributing to FIGEAC AÉRO's longer-term financial targets. The first deliveries under these agreements are anticipated in the fourth quarter of the current financial year, with the bulk of serial production scheduled to commence in the first quarter of the 2025/26 financial year.

These new wins represent a major step forward for FIGEAC AÉRO in its pursuit of a business objective to achieve between €80 to €100 million in annual revenue by the financial year 2027/28. Notably, the company has already secured about one-third of this target, just nine months into its ambitious four-year PILOT 28 plan, further solidifying its position as a key player in the aerospace manufacturing sector. (€1.00 = US$1.12 at time of publication).