Montana Aerospace (AERO) H1 2024 earnings summary

Executive summary

• Net sales rose 17.2% year-over-year to €719.5 million in H1 2024, driven by strong Aerostructures and Energy segment growth, exceeding expectations despite volatile aerospace markets and lower-than-anticipated build rates from major OEMs.

• Adjusted EBITDA increased 44.4% to €79.3 million, with margin improving to 11.0% from 8.9% year-over-year.

• Result from continuing operations improved to €9.2 million, a €30.6 million increase compared to H1 2023.

• E-Mobility segment was divested and classified as discontinued operation, with sale expected by December 2024.

• Continued operations delivered positive net income and robust market share gains.

Financial highlights

• Net sales: €719.5 million (+17.2% year-over-year); Aerostructures €409.0 million (+22.9%), Energy €311.7 million (+10.5%).

• Adjusted EBITDA: €79.3 million (margin 11.0%), up from €54.9 million (margin 8.9%) in H1 2023.

• Net income from continued operations reached €9.2 million, up €30 million from last year.

• Net debt stood at €342.4 million, with a solid equity ratio of 48.0%.

• Free cash flow was -€42.3 million in H1, improved from -€75.3 million in H1 2023, expected to turn strongly positive in H2.

Outlook and guidance

• 2024 guidance reconfirmed: net sales above €1.5 billion, adjusted EBITDA over €165 million, positive free cash flow and net income.

• 2025 guidance: net sales above €1.7 billion, adjusted EBITDA over €240 million, strong free cash flow.

• Segment guidance: Aerostructures net sales ~€900 million, Energy net sales above €580 million for 2024.

• Trade working capital expected to decrease to more sustainable levels by year-end 2024.

• Higher deliveries and earlier customer payments anticipated in H2 2024 to improve cash flow.