Magellan Aerospace (MAL) investor relations material

Executive summary

• Revenue for Q2 2026 rose 22.3% year-over-year to $305.6 million, with net income up 269.7% to $19.8 million and gross profit up 41.6% to $47.1 million.

• Commercial markets contributed 66.4% of revenue in the first half of 2026, with defence markets at 33.6%.

• Significant contract wins include a Canadian government munitions contract and a strategic MOU with GE Canada for F414 engine MRO capability.

• Middletown subsidiary filed for Chapter 11 bankruptcy in July 2026 due to legacy environmental liabilities and declining business.

Financial highlights

• Q2 2026 revenue: $305.6M (+22.3% YoY); H1 2026 revenue: $590.7M (+15.7% YoY).

• Q2 2026 gross profit: $47.1M (15.4% margin, up from 13.3% YoY); net income: $19.8M (EPS $0.35, up from $0.09 YoY).

• Adjusted EBITDA for Q2 2026: $43.0M (+103.4% YoY); H1 2026: $79.9M (+65.1% YoY).

• Administrative and general expenses increased 5.7% YoY to $18.8M in Q2, but as a percentage of revenue fell to 6.1% from 7.1%.

• Q2 2026 effective tax rate was 24.0%, down from 38.4% YoY.

Outlook and guidance

• Commercial aerospace outlook remains positive, supported by strong demand and record backlogs at Airbus and Boeing, though supply chain constraints persist.

• Defence market outlook is robust, driven by geopolitical tensions and increased global military spending.

• Ongoing risks include supply chain bottlenecks, skilled labour shortages, and geopolitical uncertainties.