Red Bull Powertrains declares profit despite transition
By Ian Parkes
Wednesday 11th October, 2023 - 1:30am
Red Bull’s new Powertrains division has already recorded a significant profit despite still being in its infancy.
Following Honda’s withdrawal from F1 at the end of 2021, Red Bull underlined its commitment to the sport by opting to initially maintain the Japanese manufacturer’s PU through to 2025 whilst in tandem building its own system given the introduction of new regulations in 2026.
The team acquired land adjacent to its current Milton Keynes-based factory, and earlier this year completed the development of the new Powertrains facility.
In its accounts through to the end of 2022, Red Bull Powertrains has recorded a profit of £5.834 million (AU $11.15m; US $7.15m) against a turnover of £184.562m (AU $353.28m; US $226.43m).
Naturally, with the company growing, profits have increased by £5.667m, from £167,000 in 2021, with turnover rising by £121m from its figure the year previously of £63m.
In its financial statement, it is made clear that the “current operations of Red Bull Powertrains are focused on providing the continuity of supply of the current generation of power unit engineered and produced by Honda Racing Corporation…securing engineering services and support from HRC until 2025.”
It adds: “This has been a period of transition, whereby the activities relating to the implementation of an operation capable of delivering best-in-class power units for the new regulations expected to come into force for 2026, have been separated into a new legal entity, Red Bull Powertrains 2026 Limited.
“These 2022 results, therefore, reflect a hybrid of those two distinct activities, with current generation power unit operations for the entire year, and future generation power unit activities for the first six months.
“It is important to note that the IP generated by Honda Racing Corporation in developing the current generation power unit has not been shared with Red Bull Powertrains or Red Bull Powertrains 2026 Ltd.
“The investment required to furnish a power unit entity with the resources required has again demonstrated the commitment of the Red Bull Group to Formula 1, and the pursuit of exceptional performance.”
Aside from the new Powertrains factory, that commitment is further underlined in the accounts that show the average monthly numbers of staff has risen from 197 in 2021 to 439 last year, leading to an increase in wages and salaries from £11.461m to £35.475m.