Magellan Aerospace (MAL) Q4 2025 earnings summary

Executive summary

• Revenue for Q4 2025 rose 15.6% year-over-year to $278.3 million, with full-year revenue up 10.9% to $1,044.7 million.

• Gross profit for Q4 2025 increased 39.3% to $45.2 million, with gross margin improving to 16.2% from 13.5% year-over-year.

• Net income for Q4 2025 was $10.6 million, down 33.4% from Q4 2024, while full-year net income rose 11.1% to $39.4 million.

• Adjusted EBITDA for Q4 2025 increased 20.3% to $38.9 million, and full-year Adjusted EBITDA grew 19.1% to $117.1 million.

Financial highlights

• Q4 2025 revenue growth was driven by higher sales in Canada (+12.7%), the US (+25.8%), and Europe (+11.7%).

• Gross profit margin improved due to higher volumes, contract rehabilitations, and favorable product mix, partially offset by increased material costs.

• Administrative and general expenses rose 13.6% in Q4 2025, mainly from higher salaries, benefits, and one-time headcount reduction costs.

• Other expense in Q4 2025 included a $12.1 million environmental provision for a former site.

• Interest expense decreased to $0.6 million in Q4 2025 due to higher cash balances and lower debt costs.

Outlook and guidance

• Commercial aerospace market outlook is cautiously optimistic, with strong Airbus and Boeing deliveries and order backlogs.

• Defence market remains robust, supported by rising global defense spending and fleet modernization.

• Supply chain vulnerabilities, raw material and labor shortages, and geopolitical risks continue to pose challenges.