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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 companies and government agencies. Principal customers include the US Department of Defense, NASA, Lockheed Martin, and Raytheon Company. Aerojet Rocketdyne has played a role in the eight missions the US has landed on Mars. The company also has a much smaller business segment that deals in real estate.

Operations

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

The Aerospace and Defense segment 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, which supplies a fraction of revenue, 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, Virginia, Tennessee, and Washington.

Sales and Marketing

US government departments and agencies (NASA, US military branches, the Missile Defense Agency) are the end customers for more than 90% of Aerojet Rocketdyne's sales, making the company vulnerable to fluctuations in government spending. In direct sales, the company's major customers are Lockheed Martin Corp. (about a third of sales), Raytheon Company, and NASA (each accounting for about 20%), and United Launch Alliance (more than 15%).

Financial Performance

Aerojet Rocketdyne has turned in steady revenue growth for the past five years. Profit, however, hasn't exactly skyrocketed.

Sales for 2018 totaled about $1.9 billion, up almost $19 million from 2017. The company's sales figure suffered from the switch to a different accounting standard as well as the planned sunset of the AJ-60 solid rocket booster program for the Atlas V.

The company posted net income of $137.7 million in 2018 compared to a loss of $9.2 million in 2017, when it had higher provisions for income tax.

Cash at the end of 2018 was $740.3 million compared to $535 million in the previous year. Cash from operations provided $252.7 million, while investing activities used $20.9 million, and financing activities used another $26.5 million, mainly for debt payments.

Aerojet Rocketdyne has a substantial amount of debt totaling $672.8 million, which could require the company to divert cash to debt payments and away from working capital, capital expenditures, and other corporate purposes.

Strategy

Aerojet Rocketdyne is focused internally on its cost structure and outwardly on its end markets and customers.

Internally, the company has credited its Aerojet Rocketdyne Business Operating System (ARBOS) with helping it make better decisions about resources. The system led to the elimination of more than 1 million sq.ft. of factory and office space over three years. It also has supported higher headcount with fewer resources.

Aerojet Rocketdyne is capitalizing on the renewed interest by the US in cislunar and deep space exploration, demand for commercial and military satellite launches, and new commercial low-Earth orbit capabilities. It's focusing on developing affordable launch systems to fit new commercial, civil and military applications, even while those architectures and projects are not yet well defined. Aerojet Rocketdyne continues to invest in technology such as hypersonics, advanced electric propulsion, and throttleable solid propellants, and aims to strengthen its expertise in complex metallurgy.

Mergers and Acquisitions

In 2019 Aerojet Rocketdyne acquired 3D Material Technologies, 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 of Information Technology Operations: Craig Halterman
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