It also earned a record $72.5 million in 2017.
Founded in 1958, Britain-based Cosworth has long made a name for itself as one of the best engine manufacturers in the business, most notably Formula One engines. According to a report from Reuters, Cosworth is apparently planning an initial public offering (IPO) after the first quarter of 2019. Cosworth Chairman Kevin Kalkhoven further told Reuters the company currently has a backlog of $440 million worth of contracts through 2026. Last year alone it earned a record $72.5 million.
For many years, Ford owned Cosworth but sold it to Kalkhoven and business partner Gerald Forsythe in 2004 when the pair were co-owners of the Champ Car World Series. Since the duo took over the reins at Cosworth, the company has expended beyond just engines, such as powertrains and electronics technology. This includes software, data analytics, and autonomous and assisted driving sensors. Some of Cosworth’s upcoming contracts includes hybrid engines and sensor technologies. “We will be able to demonstrate our new product revenue and profit potential in real terms after the close of the first quarter in 2019,” Kalkhoven told Reuters. “It’s at that time that we will look to go public.”
Cosworth is also expanding beyond the UK with an upcoming manufacturing center in Detroit, Michigan staffed with at least 100 professionals and other specialists. Along with Ford, Cosworth has established relationships with GM, Aston Martin, Honda and Porsche. So why does the IPO? Because such a move would provide an even larger amount of cash to come in, and given Cosworth’s expansion plans and potentially other, though still secret, intentions, the more available cash the better.