Romanian helicopter producer IAR Brasov and aircraft manufacturer Aerostar Bacau more than doubled their net profits last year as their revenues also increased significantly.

The results were mainly driven by the state’s higher military spending, as the Romanian Ministry of Defense is the top client for both companies.

Helicopter producer IAR Brasov posted a net profit of over EUR 3.15 million in 2015, up by 145% compared to the previous year. Its turnover went up by 28% to EUR 29.2 million 28%. The company produces military helicopters for Romania’s Air Force and Naval Force. It also provides maintenance for the existing ones. The Romanian state has a stake of 65% stake in the company.

Aircraft producer Aerostar Bacau posted a net profit of EUR 11.75 million last year, 2.6 times higher compared to 2014. The company increased its turnover by 26%, to EUR 74.2 million. Aerostar produces small planes and carries maintenance contracts for military aircraft and civil planes. The company does the repairs and maintenance for Romania’s fleet of MiG-21 Lancer fighter jets. Aerostar is controlled by its top managers, who hold 71% of its shares via a firm called IAROM Bucuresti.

Aerostar plans to pay EUR 2.8 worth of dividends from last year’s profit. The estimated dividend yield is little over 3% considering the closing share price on February 16. Aerostar’s shares, which are trading on the Bucharest Stock Exchange (BVB) with the ticker ARS, have gained 45% in the last 12 months. The company is currently valued at EUR 92 million.

IAR Brasov’s shares are also trading on the Bucharest Stock Exchange with the ticker IARV. They have more than tripled their value in the past year, despite a 21% drop since the beginning of this year. IAR has a market capitalization of almost EUR 22 million.

Both IAR and Aerostar are low-liquidity shares, due to their reduced free-float.

Helicopter producer, EUR 53 mln contract from the Romanian Defense Ministry

editor@romania-insider.com