Cook Defence Systems will continue to operate out of its Stanhope factory

The North East operations of historic steel business William Cook have been acquired by US defence giant Heico in an undisclosed deal.

The move sees the formation of a new company Heico-Cook Defence which will encompass Cook Defence Systems, William Cook Stanhope and William Cook Intermodal. The joint venture is 80% owned by Heico and 20% by William Cook Holdings.

Cook Defence Systems – which has played a key role in providing replacement tracks for Ukraine’s tank fleet – and its sister companies will continue to operate from their purpose-built factory in Stanhope, which employs about 130 people. The two firms have said contracts with employees, customers and supplies remain unaffected.

Meanwhile, William Cook Rail, William Cook Cast Products and their subsidiaries and associates remain wholly owned by William Cook Holdings, which reported turnover of £100m for the year to June 28, 2025. Cook Defence Systems also makes blast-proof components for armoured vehicles and was created in its current form in 1994 by Sir Andrew Cook, who has helped it become a long-standing supplier to national ministries of defence.

Sir Andrew said: “We are proud to have built Cook Defence Systems into a trusted partner to governments, armies and armoured vehicle manufacturers worldwide. In Heico, we have found a long-term partner that values our independence, supports our growth ambitions, and shares our commitment to engineering excellence, quality, and service.

“We are confident about the future of Cook Defence Systems under the joint ownership of Heico and William Cook Holdings.”

Hollywood-based Heico makes parts of large commercial and military aircraft as well as industrial turbines, targeting systems, missiles and electro-optical devices. It reported net sales of more than $4.4bn (£3.2bn) in the year to the end of October, 2025.

Eric Mendelson Heico’s co-chairman and co-chief executive officer, said: “Cook Defence Systems represents a distinctive addition to Heico, with many of the attractive attributes we look for in our businesses. The company has established strong relationships across leading defence OEMs and government customers across multiple critical armoured vehicle platforms.

“Cook’s proprietary technology, consistent aftermarket demand, and exposure to increasing global defence spending position it well for continued growth and long-term value creation. We are pleased to welcome William Cook and his team to the Heico family.”

Last year, Cook Defence Systems hosted the Minister for Armed Forces Luke Pollard as the firm celebrated a three-year contract to supply spare tracks for all of the Army’s in-service armoured fighting vehicles. The firm is also supplying tracks for the Army’s Challenger 3 tanks and Ajax vehicles.

Sir Andrew Cook CBE remains chairman of William Cook Holdings and William Cook and Chris Seymour continue as directors.

This article was written by

Follow

With a Buy rating, the international brokerage raised the target by 23%. Jefferies said Titagarh Rail Systems delivered a stronger-than-expected quarter, and improving execution is likely to drive a re-rating of the stock going forward.

The brokerage believes Titagarh is well-positioned to benefit from rising demand for passenger and metro coaches, supported by government-led infrastructure initiatives. It estimates a 44% EPS CAGR over FY26-30 and expects the company’s strong order book in the passenger segment to provide healthy earnings visibility.

Titagarh delivered 64 coaches in FY26, ahead of Jefferies’ estimate of 60 coaches. While this fell short of the management’s earlier guidance of 100-120 coaches, the shortfall was largely anticipated due to execution delays in the first half of FY26.

Management has reiterated confidence in delivering 200-220 coaches in FY27, compared with Jefferies’ estimate of 193 coaches, citing the resolution of initial execution challenges. On the flagship Vande Bharat project, the company expects to deliver two trains in FY27, in line with Jefferies’ projections, with the prototype scheduled for supply in the December 2026 quarter.

Live Events

Margins in the March quarter came in significantly ahead of expectations at 19%, compared with Jefferies’ estimate of 12%, supported by a sharp increase in execution of the Bengaluru Metro project, which is being executed as a job contract. Management has guided for margins of around 12% in the near term, with a gradual improvement towards 15% as the company advances up the technology value chain.
Rail wagon sales declined 29% year-on-year due to supply-side constraints. While Jefferies expects wagon sales to fall a further 5% in FY27, it forecasts a largely stable trajectory over FY27-30, supported by its estimate that Indian Railways’ cargo volumes could reach around 3 billion tonnes by FY35, compared with the FY30 target.The company currently has an order book of 6,500 wagons, providing visibility for about 97% of Jefferies’ FY27 wagon sales estimates, although visibility beyond FY27 remains limited. Separately, Titagarh has secured 28% capital assistance for its brownfield shipbuilding expansion plans and is evaluating technology partnerships and potential joint ventures with shipyards.

The brokerage noted that a recent report by Live Mint indicated Indian Railways is considering an order for 1 lakh wagons, which could significantly improve earnings visibility for wagon manufacturers.

The valuation assigns 30x March 2028 estimated EPS to the core business, up from 25x previously, reflecting positive developments around potential wagon orders and the upcoming wheel joint venture, which it values at 2.5x its investment value. Key risks to the outlook include delays in wagon orders or wheel supplies from Indian Railways, as well as weaker-than-expected execution.

Titagarh Rail Q4 snapshot

Titagarh Rail reported a net profit for the quarter at Rs 53.96 crore, compared to a net loss of Rs 122.4 crore that the company reported last year.

Titagarh Rail’s revenue in the March quarter declined by 12.9% to Rs 875.4 crore from Rs 1,005.6 crore in the previous year.

The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) declined 4.4% to Rs 97.3 crore in the March quarter from Rs 96.56 crore last year, while margins stood at 11% from 10% last year.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)