Page 36 - Australian Defence Magazine Dec-Jan 2023

36 TOP 40 DEFENCE CONTRACTORS 2022
DECEMBER 2022-JANUARY 2023 | WWW.AUSTRALIANDEFENCE.COM.AU
Sitzler ($112.6 million to $224.2 million), and Downer EDI ($840.7 million to $1.015 billion).
Interestingly, Downer EDI saw similarly large growth from 2020 to 2021, when it recorded a $200 million in- crease in revenue. Atlantic and Peninsula has also repeat- ed its success from the previous year.
“Downer’s growth in Defence is largely a product of our core capabilities and capacity dovetailing with Defence requirements in both Australia and New Zealand,” ex- plained Head of Downer Defence Jacob Bonisch.
“Downer Defence also continues to see strong growth in our Professional Services business across strategic advi- sory, program management and technical services, where
BAE Systems Australia, Thales Australia, Downer EDI, and Boeing Defence Australia.
“2022 has been a year of strong progress for BAE Sys- tems Australia. We have a deep and enduring partnership with the ADF which is the foundation of all that we do and something we are all proud of. The BAE Systems Aus- tralia team and all our partners have put in a significant effort this year to deliver on our commitments despite the challenges we are seeing in the post COVID environment in which we operate,” Ben Hudson, CEO of BAE Systems Australia commented.
“An increasingly complex environment strengthens the need for Australia to have a robust, sovereign defence in- dustrial base that is also internationally competitive. As I look forward to 2023 and the decades ahead, I am keen to ensure that BAE Systems Australia develops and provides innovative solutions and critical capabilities that will give our customers an essential edge.”
Looking to 2023 and beyond, the outcome of Land 400 Phase 3 will undoubtedly have an effect on the composi- tion of the Top 40, although it remains unclear whether the scope of the program will be reduced (the final bidders are Hanwha Defense Australia and Rheinmetall Defence Australia). This will likely remain unclear until the release of the Defence Strategic Review, though Army is clearly concerned and Prime Minister Anthony Albanese has ap- peared to publicly hint at a reduction.
Meanwhile, the total turnover of the Top 20 SMEs is $1.48 billion, increased from $1.16 billion in 2021. The turnover for the top placed company has grown by $89 million as Sitzler doubled its revenue from 2021 and taken the top spot.
“Our turnover in the defence sector has increased this year in line with a number of projects in the north now well underway,” Managing Director Steve Margetic said to ADM.
“THE COMPANIES LEADING THE TOP 40 IN 2022 AGAIN ARE LARGELY UNCHANGED FROM 2021”
as a key partner we work in- step with the Commonwealth as they acquire and sustain the next generation of key defence capabilities.”
Notable decreases in turn- over include ASC (down $43.8 million) and EOS ($187 mil- lion to $77.4 million). As ADM
wrote when EOS went public with its results in September, the company has taken a 45 per cent drop in revenue and a net operating loss of almost $99 million due to 'delayed revenue recognition' through supply chain disruption, a cost structure larger than required for current revenue, and most significantly a $54.4 million loss due to the 'impairment of assets and onerous contracts' held in Spacelink Corpora- tion, the company's satellite data transfer subsidiary.
The turnover for BAE Systems (last year’s number one as well) has increased by $147 million, while the cut-off to enter the Top 40 has only increased $2 million, high- lighting a growing gap between Australia’s largest defence companies and the rest. 2022 also marks the first year that we have seen four companies cross the $1 billion mark: