Jochem Verzijl - AAIG

Most of you follow me for AI infrastructure. If you also want to follow the opportunities we find beyond tech at AAIG Research, give @titsinvesting a follow. Tito leads our Global Opportunities team, bringing buy-side experience to researching small caps, specialist businesses and turnaround stories across sectors. His latest $IEHC Q2 breakdown talks about one. EHC is a very strategic, critical company in the defense sector. Owned by the same family for 4 generations, and still run with skin in the game, IEHC produces hyperboloid connectors for the missile sector (key programs: Patriot PAC-3, THAAD, AMRAAM), commercial aerospace, space and medical. Basically, in this industry you need components that will not break during use, and the connector is a tiny fraction of the cost of the missile, so it’s very strategic and gives a certain pricing power. It’s a duopoly with another company that was bought out in 2025, and both companies are mainly sole suppliers for the programs they serve: each company is embedded at the beginning of the program and stays for its whole life. What makes the story interesting is that the previous years have been complicated, with SAP migration that in turn made the company unable to file its reports with the market for a certain period. And to be reliable over time, one of the main components is gold (thanks to its property of not oxidizing), but with the drastic increase in its price, the raw material cost was increasing, and management was lagging to increase prices as much as gold. Over the last few quarters the situation has drastically improved thanks to the urgency to increase missile production, so the backlog has tripled year over year and sits at a record. At the same time sales are increasing, and with an incredible job by management on price negotiations, and the stabilization of gold, margins have been able to return to healthy levels. Going forward, the demand is already booked and will continue; they have to execute and ramp up production to be able to grow. At the same time, margins should catch up toward historical highs, and the company should continue to grow. @titsinvesting walks through the progress and what still needs to happen below 👇

$LIB.V f1 deliveries estimated to start q2 next yr, so the timing of f2 after f1 is finished crucial now. The business update at the bottom of the page sounds promosing as well. Future will tell how many of these prospective customers can be converted in real customers.

$LIB.V f1 deliveries estimated to start q2 next yr, so the timing of f2 after f1 is finished crucial now. The business update at the bottom of the page sounds promosing as well. Future will tell how many of these prospective customers can be converted in real customers.