Latecoere: EBITDA Up by 53%, Yet Net Loss Persists

Revenue and EBITDA Growth

The group's revenue increased by 50.9 million euros in absolute terms. Excluding the effect of the divestiture of MADES in August 2025, the underlying growth reached 9.7%. This expansion is driven by increased production rates among equipment manufacturers, the conclusion of commercial initiatives to offset inflation, and growth in the aftermarket and spare parts business. The current EBITDA stands at 39.4 million euros, an improvement of 13.7 million euros compared to 25.7 million euros in 2024. The current EBITDA margin thus increased from 3.6% to 5.2% of revenue. This progress reflects the operational leverage related to increasing volumes and the implementation of commercial measures aimed at mitigating inflationary pressures. Aerostructures recorded a particularly marked turnaround, moving from an EBITDA loss of 1.8 million euros in 2024 to a profit of 12.9 million euros in 2025.

Cash Flow and Financial Results

Operating cash flows from continuing operations turned positive at 10.5 million euros, marking a turnaround after the 7.4 million euros in funding calls in 2024. This turnaround is primarily due to the improvement in EBITDA, partially offset by non-recurring cash costs of 7.1 million euros related to business transfers and restructuring. The operational recovery is still not enough to offset the worsening net financial result, which deepened to -25.9 million euros from -14.8 million a year earlier. The group did reduce its net loss, brought down to -32.1 million euros after -60.6 million in 2024, but remains in the red. On the balance sheet side, available cash stands at 56.7 million euros, slightly down by 2.7 million over a year, while net debt fell to 151.3 million euros, supported by the divestiture of MADES.

Outlook for 2026

For 2026, the group anticipates continued volume growth across most major programs, supported by demand in commercial aviation, business jets, and defense. Latecoere expects continuous improvement in profitability and cash flows due to volume effects and a focus on operational efficiency. The group plans to offset inflationary pressures on raw material and labor costs through new commercial negotiations and value creation programs focused on optimizing industrial operations and procurement savings. However, this trajectory will be constrained by restructuring costs, an increase in working capital due to sales growth, and key investments to strengthen the group's competitive position. The challenge remains to transform this operational turnaround into net profitability and continue reducing debt.