Montana Aerospace (AERO) Q3 2025 earnings summary

Executive summary

• Completed transition to a pure-play aerostructures company after divesting the Energy and E-mobility segments, achieving an enterprise value of EUR 204 million for the carve-out and securing a strong position in the aerospace sector.

• Streamlined operations and reduced leverage, enabling focus on high-return aerospace opportunities.

• Achieved significant operational improvements, with sales growth outpacing the market and a focus on margin expansion and cash flow generation.

• Net sales rose 15.5% year-over-year to €712.3 million for the nine months ended 30 September 2025, driven by organic growth and increased exposure to Boeing platforms.

• Maintains a robust contracted sales backlog exceeding EUR 7 billion, providing high visibility and stability for future revenues.

Financial highlights

• Net sales for the first nine months of 2025 reached €712.3 million, up 15.5% year-over-year.

• EBITDA increased to €113.0 million, up 28.6% year-over-year, with margin improving to 15.9%.

• Adjusted EBITDA reached €113.8 million, with a margin of 16.0%.

• Result from continuing operations turned positive at €3.0 million, despite a €30 million non-cash FX loss; excluding this, result would have been €33 million.

• Free cash flow (excluding carve-out and earn-out impacts) would have exceeded €30 million; reported at €2.8 million.

Outlook and guidance

• 2025 guidance: sales above €900 million, adjusted EBITDA around €160 million, and positive net income expected.

• 2026 guidance: sales over €1 billion, adjusted EBITDA over €185 million, assuming a EUR/USD rate of 1.19 and some tariff headwinds.

• Net debt expected to reach one-time EBITDA by end-2025, transitioning to a high double-digit million net cash position by end-2026.

• High cash conversion targeted, with operational cash flow in the triple-digit million EUR range for 2026.

• Dividend proposal planned for 2025, to be paid in 2026.