Montana Aerospace (AERO) H2 2025 earnings summary

Executive summary

• Net sales rose 15.1% year-over-year to €979.3 million, driven by strong organic growth, Aerostructure segment performance, and full-year consolidation of Alpine Metal Tech.

• Adjusted EBITDA increased 25.1% to €161.3 million, with margin expansion to 16.5% from 15.2%, reflecting operational leverage and cost management.

• Completed divestment of Energy and E-Mobility segments, transforming into a focused aerospace company with a strong balance sheet.

• Substantial non-cash net FX losses of €28.2 million were recorded, compared to €17.6–18 million gains in FY24.

• Operating cash flow improved to €167.5 million, and free cash flow remained positive at €21.0 million despite M&A-related outflows.

Financial highlights

• EBIT increased to €68.8 million (up from €40.0 million in 2024), with EBIT margin rising to 7.0%.

• Adjusted EBITDA margin expanded to 16.5% (group) and 18.1% (Aerostructures), up from 15.2% and 16.0% respectively in FY24.

• Net debt reduced to €128.1 million, or 0.8x EBITDA, aided by loan repayments and equity conversion of profit certificates.

• Equity ratio improved to 62.5% by end of 2025.

• Gross debt decreased by €103.5 million, aided by debt-to-equity conversion linked to the Energy segment divestment.

Outlook and guidance

• 2026 guidance: net sales above €1 billion, adjusted EBITDA above €185 million, positive net income, free cash flow, and net cash position.

• 2027 outlook: net sales above €1.1 billion, adjusted EBITDA exceeding €210 million, and high double-digit million euro free cash flow.

• Targeting 50% EBITDA to free cash flow conversion by 2027, excluding strategic projects.