Aerojet Rocketdyne Holdings, Inc. operates aerospace and defense, and real estate businesses.
Aerospace and Defense
Includes the operations of the company’s wholly-owned subsidiary Aerojet Rocketdyne, Inc. (Aerojet Rocketdyne), a leading technology-based designer, developer and manufacturer of aerospace and defense products and systems for the United States (U.S.) government, including the Department of Defense (DoD), the National Aeronautics and Space Administration (NASA), and major aerospac...
Aerojet Rocketdyne Holdings, Inc. operates aerospace and defense, and real estate businesses.
Aerospace and Defense
Includes the operations of the company’s wholly-owned subsidiary Aerojet Rocketdyne, Inc. (Aerojet Rocketdyne), a leading technology-based designer, developer and manufacturer of aerospace and defense products and systems for the United States (U.S.) government, including the Department of Defense (DoD), the National Aeronautics and Space Administration (NASA), and major aerospace and defense prime contractors.
Aerojet Rocketdyne is a world-recognized technology-based engineering and manufacturing company that develops and produces specialized power and propulsion systems, as well as armament systems. The company develops and manufactures liquid and solid rocket propulsion, air-breathing hypersonic engines, and electric power and propulsion for space, defense, civil and commercial applications. Principal customers and end users include the DoD (including the U.S. Air Force (USAF), the U.S. Space Force, U.S. Army, Missile Defense Agency (MDA), and U.S. Navy), NASA, The Boeing Company (Boeing), Lockheed Martin, Raytheon Technologies Corporation (Raytheon), Northrop Grumman Corporation (Northrop), and United Launch Alliance (ULA).
The company has demonstrated a legacy of successfully meeting the most challenging missions by producing some of the world’s most technologically advanced propulsion systems to meet its nation's critical needs.
Primary Markets and Programs
The markets and key programs the company serves are:
Aerospace: The company specializes in the development and production of propulsion and power systems for space applications. The company’s products include a broad market offering of both electric and chemical propulsion, including liquid propellant engines and solid rocket motors required for launch vehicle and in-space applications supporting defense, civil and commercial missions.
The company’s key space programs include RS-25 main and RL10 upper-stage engines that power NASA’s Space Launch System (SLS); RL10 engines that power ULA launch vehicles; propulsion for the Orion spacecraft and the Starliner Commercial Crew Transportation Capability capsule; power systems for spacecraft, space stations and rovers; multiple electric and chemical propulsion systems that provide in-space maneuvering capability for spacecraft and satellites; and chemical propulsion for reaction control systems for launch vehicles.
One of the company’s most exciting accomplishments in 2022 was powering the historic launch of Artemis I; the first launch of NASA’s new mega Moon rocket, the SLS. The company provided propulsive elements for the Artemis I mission, as well as high pressure tanks. SLS launched using four shuttle-derived RS-25 main engines on the core stage and one RL10 engine on the upper stage. Artemis I, a three-week mission to cislunar space and back with NASA’s Orion spacecraft, was the first in a series of increasingly complex missions that will enable the return of humans to the Moon and eventually their exploration of Mars.
With the uncrewed Artemis I mission complete, the company is beginning preparations with NASA for crewed Artemis flights, and it is positioned to continue supporting the program going forward. The company is under contract to build new production RS-25 engines to support Artemis V through IX. The certification process for verifying the new production engine configuration began with an RS-25 confidence test in December 2022. The certification test series will continue throughout 2023.
In addition to the propulsion on NASA’s SLS rocket, the company supplies the majority of propulsion aboard the Orion spacecraft and a key component of the Launch Abort System, the jettison motor. In 2022, the company received a contract option from Lockheed Martin for the procurement of propulsion systems for the Orion spacecraft that will fly on Artemis missions VI through VIII. This contract option includes delivery of three additional sets of Orion’s service module auxiliary engines and three additional jettison motors. The company continues to make progress on the Orion Main Engine contract awarded in 2021.
Aerojet Rocketdyne is also on contract to provide NASA the Advanced Electric Propulsion System for the Power and Propulsion Element (PPE) of the agency’s Gateway platform. The PPE is intended to ferry crews and cargo between high and low lunar orbit as part of the Artemis program.
The company’s propulsion and power systems have a long and distinguished flight heritage with the U.S. government and commercial customers. The company provides liquid propulsion systems for the first and upper stages of ULA’s Delta IV heavy launch vehicle, as well as the liquid upper-stage propulsion for their Atlas V launch vehicle. ULA’s new Vulcan Centaur launch vehicle is expected to make its inaugural flight in 2023 and the company is under contract to supply RL10 upper-stage engines for each Vulcan Centaur mission, as well as reaction control thrusters.
In 2022, ULA awarded Aerojet Rocketdyne to deliver RL10C-X engines for its Vulcan Centaur rocket. The new engines will support ULA as it works to fulfill its commitments under a contract it received from Amazon, as part of the largest commercial launch contract in history, to support the launch of Amazon’s Project Kuiper satellites. The RL10C-X will extend the six-decade flight heritage of the RL10 family of engines by incorporating new upgrades, including a 3D-printed injector and combustion chamber, as well as a lightweight composite nozzle.
In 2022, NASA’s first planetary defense mission, the Double Asteroid Redirection Test (DART) mission, used its hydrazine thrusters to successfully position the DART spacecraft in order to collide with a small asteroid to change its orbit. Fission surface power continues to be a growth area for the company.
Defense: The company specializes in the development and production of propulsion systems for defense applications, including both solid and liquid propellant based systems, along with air-breathing (ramjet and hypersonic scramjet) systems for missile applications. The majority of these applications are the primary axial propulsion for missile systems. The company also develops and manufactures divert and attitude control (DACs) propulsion (solid propellant and liquid-fueled) systems for missile defense applications. These are complex systems that provide multi-directional and variable thrust levels to steer or control an intercept missile. Additionally, the company develops and manufacture post-boost propulsion systems for strategic missiles. These systems provide directional control for ground and sea-based strategic missiles. Using its energetics expertise the company also designs, develops, and produces warhead/lethality systems for tactical missiles and stored chemical energy propulsion for torpedoes. The company’s products have been successfully fielded on multiple active the U.S. and international weapon system platforms. The breadth of the company’s applications includes tactical missiles, missile defense interceptors, hypersonic systems, strategic boosters and post-boost systems and torpedo propulsion for a variety of applications.
During 2022, the company continued to expand its strong legacy propulsion franchises on the Standard Missile, Patriot Advanced Capability-3 (PAC-3), Terminal High Altitude Area Defense (THAAD) and Guided Multiple Launch Rocket System (GMLRS) missile programs. On the THAAD program, the company was awarded a multi-year production contract with Lockheed Martin for propulsion elements to include the Liquid Divert and Attitude Control (LDACs) and Solid Rocket Motor (SRM) Booster. These franchise programs continue to be globally deployed in support of the U.S. and allied armed forces.
In the hypersonic propulsion arena, an advanced Aerojet Rocketdyne scramjet engine powered the successful 2022 flight test of the Hypersonic Air-breathing Weapon Concept (HAWC), in a joint effort with Defense Advanced Research Projects Agency (DARPA), Air Force Research Laboratory (AFRL), and Lockheed Martin. Additionally, in January 2023, a second successful flight test was executed for DARPA by Lockheed Martin and Aerojet Rocketdyne. Significant scramjet performance data was collected on this flight that reached speeds in excess of Mach 5, travelled more than 300 nautical miles and reached altitudes above 60,000 feet. Further, the company continued technology maturation and ground testing at in-house and the U.S. government facilities on scramjet and ramjet propulsion systems to support emerging U.S. Air Force, Army, and Navy programs.
The company’s Aerojet Rocketdyne Coleman Aerospace (Coleman) business continued to expand both its production backlog and technical capability of the medium-range ballistic missile (MRBM) target program. The company was awarded the third lot of production targets that will incorporate advanced propulsion technology. These technologies include a new large SRM (designated eSR-19) that was successfully validated with a static firing at the AFRL.
The company opened its Center of Excellence for Undersea Propulsion to support the U.S. Navy's next generation torpedoes at its Coleman site. A subset of the company’s key defense programs include Boosters and Solid DACs for the U.S. Navy’s Standard Missile family; Booster and LDACs for THAAD; PAC-3; GMLRS; Stinger; Javelin; Patriot GEM-T; Tactical Tomahawk; Army Tactical Missile Systems (ATACMS); Tube-launched Optically-tracked Wire-guided (TOW) warhead; Next Generation Interceptor (NGI); and Ground Based Strategic Deterrent (GBSD).
Customers
The company’s primary aerospace and defense customers include DoD, NASA, and the prime contractors that supply products to these customers. The company relies on the U.S. government funding for aerospace and defense and its backlog depends, in large part, on the continued funding by the U.S. government for these programs.
Competition
Northrop is a competitor for the company’s propulsion products. The company faces competition from emerging spaceflight companies, such as SpaceX and Blue Origin.
Seasonality
Aerojet Rocketdyne’s business is not subject to predictable seasonality. Primary factors affecting the timing of the company’s sales include the timing of the U.S. government awards, the availability of the U.S. government funding, contractual product delivery requirements, and customer acceptances.
Regulation
As a U.S. government contractor, the company is subject to routine audits, reviews, and investigations by the Defense Contract Audit Agency (DCAA), the Defense Contract Management Agency, and other similar U.S. government ag0encies.
Competition
Northrop is a competitor for the company’s propulsion products. The company faces competition from emerging spaceflight companies, such as SpaceX and Blue Origin.
Real Estate segment
Includes the activities of the company’s wholly-owned subsidiary Easton Development Company, LLC (Easton) related to the re-zoning, entitlement, sale, and leasing of its excess real estate assets. The company is in the process of seeking zoning changes and other governmental approvals on its excess real estate assets.
This segment includes the activities of the company’s wholly-owned subsidiary Easton Development Company, LLC (Easton) related to the re-zoning, entitlement, sale, and leasing of its excess real estate assets. The company is in the process of seeking zoning changes and other governmental approvals on its excess real estate assets.
The company owns 11,277 acres of land adjacent to the U.S. Highway 50 between Rancho Cordova and Folsom, California east of Sacramento (Sacramento Land). The company’s plan is to re-entitle the Sacramento Land for new uses and explore various opportunities to optimize its value.
The Sacramento Land is made up of 5,203 acres previously used for the company’s aerospace and defense operations, 628 acres available for future entitlement, and 5,446 acres for future development under the brand name ‘Easton’. Easton has 3,904 acres that are fully entitled.
As Easton continues to execute re-entitlement and pre-development activities, the company is pursuing a variety of monetization options and is exploring how to maximize value from Easton. Value creation and monetization may include outright land sales and/or joint ventures with real estate developers, residential builders, and/or other third parties.
Leasing
The company leases office space to various third parties.
Research and Development (R&D)
The company-funded R&D expenses (reported as a component of cost of sales) were $58.4 million in 2022.
History
Aerojet Rocketdyne Holdings, Inc. was founded in 1915. The company was incorporated in Ohio in 1915 and was reincorporated to the state of Delaware in 2014.
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