Latécoère (LAT) H1 2026 earnings summary

Executive summary

• Revenue reached €431.6 million, up 19% organically year-over-year, driven by increased customer demand, production ramp-ups, and commercial initiatives.

• EBITDA declined to €3.7 million from €22.3 million, reflecting higher investments, inflation, supply chain constraints, and adverse currency effects.

• Net result was a loss of €23.5 million, compared to a €6.8 million loss in H1 2025.

• Free cash flow was negative, mainly due to ongoing strategic investments and increased working capital needs.

• Continued investment in operations and capabilities to support customer ramp-up and long-term growth.

Financial highlights

• Revenue: €431.6M (+19% organic, +15.2% reported year-over-year).

• EBITDA: €3.7M (down from €22.3M in H1 2025); EBITDA margin: 0.8% (vs. 5.9%).

• Net loss: €23.5M (vs. €6.8M loss in H1 2025).

• Net debt: €162.6M (excluding RMF), cash and equivalents: €45.6M.

• Operating cash flow: -€5.6M; capital expenditures: €6.3M.

Outlook and guidance

• Continued volume growth expected across major programs, with full-year benefit from H1 initiatives.

• Underlying EBITDA for 2026 expected to be below 2025 due to margin pressure and higher working capital.

• Marginal decline in operational free cash flow anticipated for the full year.

• Cautious H2 2026 outlook due to ongoing geopolitical and macroeconomic uncertainties, including the Iran crisis and high oil prices.

• Expectation of further improvements in profitability and cash flow in H2 2026 from increased volumes and operational efficiency.