Montana Aerospace (AERO) Q3 2024 earnings summary

Executive summary

• Net sales for the first nine months of 2024 rose 18.8% year-over-year to €1,086.3m, driven by strong Aerostructures and Energy segments.

• Adjusted EBITDA increased 56.1% to €118.1m, with margin improving to 10.9% from 8.3% year-over-year.

• Operating result (EBIT) turned positive at €43.7m, up €45.5m year-over-year.

• The E-Mobility segment was divested, with proceeds to be used for deleveraging and strategic investments.

• Workforce expanded to 8,252 employees, reflecting business growth and the re-acquisition of Alpine Metal Tech GmbH.

Financial highlights

• Adjusted EBITDA for the first nine months was €118.1m (+56.1% y/y); margin improved to 10.9%.

• Net debt increased to €346.2m, with equity ratio at 46.5%.

• Free cash flow improved to €-22.5m from €-45.2m year-over-year, with operating cash flow up to €31.7m.

• CAPEX for the period was €57.3m, focused on capacity and know-how expansion.

• FX losses of nearly €15m impacted results, but these are non-cash and could reverse with currency movements.

Outlook and guidance

• 2024 guidance (excluding E-Mobility): net sales above €1.5bn, adjusted EBITDA around €165m, and positive net income.

• Aerostructures sales guided at €850–900m, Energy above €600m, with continued EBITDA growth.

• 2025 guidance: net sales above €1.6bn and adjusted EBITDA over €200m, revised down due to Boeing strike and macro build rate weakness.

• Conservative planning for 2025 due to uncertainties with Boeing and Airbus build rates.

• Management anticipates significantly lower and more sustainable trade working capital levels by year-end 2024.