Magellan Aerospace (MAL) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 was $249.8 million, up 2.8% year-over-year; six-month revenue rose 6.8% to $510.7 million.

• Gross profit increased 25.1% to $33.3 million in Q2 2025, with margin rising to 13.3% from 11.0% a year ago.

• Net income for Q2 2025 was $5.4 million, down 27.9% year-over-year, but six-month net income rose 17.7% to $16.2 million.

• EBITDA for Q2 2025 was $21.1 million, a 3.6% decrease from Q2 2024, mainly due to higher admin expenses and FX losses.

Financial highlights

• Canadian revenue grew 14.9% in Q2 2025, driven by higher casting product sales after a prior-year work stoppage.

• US revenue increased 1.0% (down 0.1% currency neutral), while European revenue fell 8.4% (down 14.8% currency neutral) due to lower aircraft parts and MRO sales.

• Administrative and general expenses rose 19.1% to $17.7 million, including a $1.0 million redundancy charge.

• Foreign exchange loss of $6.3 million in Q2 2025, compared to a $0.2 million gain in Q2 2024.

• Effective tax rate increased to 38.4% in Q2 2025 from 25.0% in Q2 2024, due to changes in income mix and reversal of temporary differences.

Outlook and guidance

• Commercial aircraft supply chain shows improvement, with Airbus and Boeing order backlogs at record highs and delivery targets requiring ramp-up.

• Defence market expected to see sustained growth, supported by increased global and Canadian defence spending and new EU-Canada partnership.

• Ongoing risks include supply chain vulnerabilities, raw material and labor shortages, and unpredictable US tariff policies.