Montana Aerospace (AERO) H2 2024 earnings summary

Executive summary

• Net sales rose 17.6% year-over-year to €1,493.7m in 2024, with adjusted EBITDA up 41.2% to €164.8m and net income at €35.8m, a €74.2m improvement.

• Strong organic growth in Aerostructures and Energy; E-Mobility segment divested, focusing future operations on Aerostructures and Energy.

• Balance sheet strengthened: equity ratio at 50.8%, net debt reduced to €210.9m.

Financial highlights

• Adjusted EBITDA margin improved to 11.0% from 9.2% year-over-year.

• Free cash flow for FY24 was €121.6m, up €69.0m from FY23, supported by strong operating performance and E-Mobility sale proceeds.

• Trade working capital increased to €353.6m, reflecting business growth, but remains manageable as a percentage of sales.

• Net debt/EBITDA ratio improved to 1.3x from 2.3x year-over-year.

Outlook and guidance

• 2025 guidance: net sales above €1.6bn, adjusted EBITDA around €200m, strong net income, positive free cash flow, and further net debt reduction.

• 2026 guidance: target net sales of around €2bn and adjusted EBITDA above €250m.

• Margin expansion expected in both Aerostructures and Energy segments.