Montana Aerospace (AERO) Q2 2026 earnings summary

Executive summary

• Net sales rose 11.7% year-over-year to EUR 518.4 million in H1 2026, driven by organic growth, higher production volumes, and market share gains in Aerostructures.

• EBITDA increased 12.2% to EUR 87.1 million, with margin expansion to 16.8% reflecting operating leverage and disciplined cost management.

• Result from continuing operations improved to EUR 29.7 million from a loss of EUR 2.4 million in H1 2025, with EPS rising to EUR 0.47.

• Order backlog exceeded EUR 7 billion as of June 2026, providing long-term revenue visibility across commercial, defense, and space platforms.

• Strategic focus on commercial aerospace, with defense and space as key growth platforms and expanded partnership with Lockheed Martin.

Financial highlights

• EBIT increased to EUR 40.1 million from EUR 32.8 million year-over-year; EBIT margin expanded to 7.7%.

• Free cash flow reached EUR 67.3 million, up from EUR 1.0 million in H1 2025, supported by strong operating and investing cash flows.

• Net debt declined to EUR 64.7 million (0.4x LTM EBITDA), supported by proceeds from the Energy divestment.

• Equity ratio improved to 66.3% from 62.5% at year-end 2025.

• Operating cash flow was EUR 26.4 million, down from EUR 38.5 million, mainly due to lower factoring utilization.

Outlook and guidance

• 2026 guidance re-confirmed: net sales over EUR 1 billion, adjusted EBITDA over EUR 185 million, cash conversion around 50%.

• 2027 guidance: net sales over EUR 1.1 billion, adjusted EBITDA over EUR 210 million, group EBITDA margin ~19%.

• Net cash position expected by end of 2026, supported by free cash flow and remaining Energy divestment proceeds.

• Investments of EUR 60–80 million planned for 2026–2027 to expand capacity and margins.

• Cash conversion targeted at 50% for 2026 and above 50% in subsequent years.