Bet Shemesh Engines Holdings (1997) (BSEN) Company Presentation summary

Company overview

• Bet Shemesh Engines (BSEL), controlled by FIMI Fund, has 57 years of experience in jet propulsion, specializing in forging, machining, casting, and MRO for jet engines.

• Operates across 3 continents with 9 facilities and 1,300 employees, serving major aerospace and defense clients globally.

• Holds a diversified structure with subsidiaries and JVs, including Carmel Forge, Turbine Standard (TS), LPO, and JetCat Defense.

• Manufactures critical parts for advanced engine programs and provides MRO for both civilian and military jet engines.

• Long-term agreements total approximately USD 1.7 billion, with recent renewals and expansions.

Market environment

• Civil aviation demand has rebounded, with 2024 passenger numbers surpassing 2019 and OEM backlogs for Airbus and Boeing totaling about 15,000 aircraft.

• Aircraft manufacturers forecast strong deliveries through 2028, driven by demand for efficient, narrow-body jets.

• Military aviation market is expanding due to geopolitical tensions, with global defense spending projected to grow at a 5% CAGR to USD 3.87 trillion by 2033.

• There is a global shortage of spare parts and high demand for small jet engines, especially for unmanned platforms.

• BSEL identifies increased demand in both civil and military sectors, reflected in improved financial results.

Recent strategic developments

• Renewed and expanded a 16-year agreement with a leading aviation customer worth about USD 530 million.

• Signed a long-term agreement with Pratt & Whitney (USA) for up to USD 280 million through 2032.

• Acquired 80% of Turbine Standard (TS) in the U.S. for USD 33 million, enhancing MRO and small engine capabilities.

• Formed a JV with JetCat (Germany) to develop and supply small engines for U.S. and Israeli military markets.

• Expanded multiannual F100 engine maintenance contracts and received significant new orders in the engines sector.