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About Aerojet Rocketdyne, Inc.

Aerojet Rocketdyne wants to take you higher—if you're a rocket, that is. The company is one of the largest manufacturers and suppliers of propulsion systems for defense and space applications in the US. These propulsion systems are used in defense missiles, tactical missiles, and hypersonic systems. Virtually all its revenue comes from aerospace and defense for companies and government agencies. Principal customers include the US Department of Defense and NASA.  The company also has a much smaller business segment that deals in real estate. In late 2020, Aerojet Rocketdyne announced that it has agreed to acquire by Lockheed Martin for $5 billion.

Change in Company Type

In late 2020, Aerojet Rocketdyne announced that it has agreed to acquire by Lockheed Martin in an all-cash transaction of $5.0 billion. The transaction is expected to close in the second half of 2021. As part of Lockheed Martin, Aerojet Rocketdyne brings its advanced technologies together with their substantial expertise and resources to accelerate its shared purpose: enabling the defense of its nation and space exploration

Operations

Aerojet Rocketdyne operates through two segments: Aerospace and Defense and Real Estate.

The Aerospace and Defense, which generated almost all of the company's revenue,  includes the operations of its wholly owned subsidiary, Aerojet Rocketdyne Inc., a technology-based designer, developer, and manufacturer of aerospace and defense products and systems. 

The Real Estate segment is managed by its wholly owned subsidiary, Easton Development Co. Easton is involved in rezoning, entitlement, sale, and leasing of its excess real estate—about 11,400 acres adjacent to US Highway 50 between Rancho Cordova and Folsom, California.

Geographic Reach

Headquartered in El Segundo, California, Aerojet Rocketdyne operates facilities in Arkansas, Alabama, California, Florida, Mississippi, New Jersey, Virginia, Tennessee, and Washington. The company also has real estate operation located in California.

Sales and Marketing

The US government departments and agencies (NASA, US military branches, the Missile Defense Agency) are the end customers for around 95%% of Aerojet Rocketdyne's sales. The company's major customers are Lockheed Martin Corp. (about a third of sales), Raytheon Company (around 20% of sales), NASA (more than 15%), and United Launch Alliance (about 10%).

Financial Performance

The company's revenue in 2019 increased to $2.0 billion while in the prior year with $1.9 billion. The increase in net sales was primarily due to an increase of $120.6 million in defense program sales, primarily driven by the PAC-3, GMLRS, and hypersonic booster programs. The increase in net sales was partially offset by a decrease of $34.7 million in space program sales primarily driven by lower sales in the RS-68 program and the anticipated wind-down of the AJ-60 solid rocket motor program partially offset by growth in the RS-25 program.

Net income for 2019 was $141.0 million compared to $137.3 million in the prior year.

Cash held by the company at the end of 2019 increased to $935.6 million compared to $740.3 million in the prior year. Cash provided by operations was $261.2 million, while cash used for investing and financing activities were $41.8 million and $24.1 million, respectively. Main uses for cash were purchases of marketable securities and debt principal payments.

Strategy

Aerojet is committed to a cash management strategy that maintains liquidity to adequately support the operation of the business, its growth strategy and to withstand unanticipated business volatility. The company's cash management strategy includes maintaining the flexibility to pay down debt and/or repurchase shares depending on economic and other conditions.

The company believes it maintains a unique competitive position due to its strategic focus on creating and maintaining a broad spectrum of propulsion and energetic products assisted by the growing market demand for its innovative energy management technologies.

Mergers and Acquisitions

n 2019, Aerojet Rocketdyne acquired 3D Material Technologies (Florida-based), a provider of additive manufacturing services to the aerospace, defense, medical and industrial markets. The acquisition complements Aerojet Rocketdyne's additive manufacturing capabilities.

Company Background

Aerojet Rocketdyne traces its history to the 1915 founding of the General Tire & Rubber Company in Akron, Ohio. General Tire jumped into the aerospace business in 1945 with the acquisition of Aerojet Engineering Corp. The subsidiary was officially renamed Aerojet-General Corp. in 1953. Move ahead to the 21st century when the company bought Pratt & Whitney Rocketdyne and changed its name to Aerojet Rocketdyne.

Aerojet Rocketdyne, Inc.

2001 Aerojet Rd
Rancho Cordova, CA 95742-6418
Phone: 1 (916) 355-4000

Firm Stats

Employer Type: Privately Owned
Chief Engineer, Advanced Space and Launch: Doug Bradley
Vice President and Chief Financial Officer: Paul Lundstrom
Executive Managing Director: Rowena Tafoya
Employees (This Location): 1,400
Employees (All Locations): 2,700

Major Office Locations

Rancho Cordova, CA

Other Locations

Huntsville, AL
Camden, AR
Folsom, CA
Stennis Space Center, MS
Socorro, NM
Arlington, VA
Bristow, VA
Culpeper, VA
Redmond, WA