Latécoère: Revenue up 15.2% in first half, EBITDA in sharp decline
Latécoère published its first-half 2026 accounts on September 22, 2026, closed on June 30. The tier-1 partner of major aerospace manufacturers recorded organic growth of 19%, driven by production rate increases in the industry, but saw its underlying profitability decline significantly.
The group attributes this deterioration to difficulties linked to production rate increases, inflationary pressures, supply chain tensions and an unfavorable foreign exchange environment.
Revenue at €431.6 million, current EBITDA at €3.7 million
First-half 2026 revenue stood at €431.6 million, compared with €374.6 million a year earlier, representing reported growth of 15.2% and organic growth of 19.3%. The progress in reported figures includes the effect of the MADES disposal which occurred in August 2025. This dynamic was driven by increased production rates from manufacturers, revenues from new contracts and commercial initiatives.
Current EBITDA stood at €3.7 million, compared with €22.3 million in the first half of 2025. Current EBITDA margin came in at 0.8% of revenue, compared with 5.9% a year earlier. The group's net result stood at -€23.5 million, compared with -€6.8 million in the first half of 2025. Net financial result improved, to -€7.9 million compared with -€16.3 million, due to lower unrealized foreign exchange losses.
Aerostructures in loss, Interconnection Systems and Services showing progress
The divergence between divisions structures the disclosure. The Aerostructures division, which accounted for €237.0 million in revenue (up 16.6%), posted a current EBITDA loss of €25.6 million, compared with a profit of €5.6 million a year earlier. The group attributes this change to investments in short-term resources, low initial productivity linked to production rate increases and an unfavorable foreign exchange environment.
Conversely, the Interconnection Systems division generated €139.2 million in revenue (up 16%, and approximately 30% excluding MADES effect) and current EBITDA of €16.0 million, compared with €7.7 million a year earlier, bringing its margin to 11.5%. The Latécoère Services division reached €55.3 million in revenue (up 7.8%) and current EBITDA of €13.3 million, compared with €8.9 million, representing a margin of 24.1%.
Cautious outlook and renegotiation of PGE debt through 2029
For fiscal year 2026, the group now anticipates current EBITDA below the level achieved in 2025, in revision from its previous guidance. It also expects a marginal decline in operating free cash flow compared with the prior year, due to deteriorating profitability and increased working capital requirements linked to production rate increases.
Management expects improved profitability and cash flows in the second half compared with the first, thanks to increased volumes and operational efficiency efforts. As of June 30, 2026, cash and cash equivalents stood at €45.6 million and net debt at €162.6 million (excluding the Better Fortune Return mechanism of €7.2 million).
After closing, a conditional agreement was reached with lenders of the State-Guaranteed Loan, providing for an extension of the maturity to December 31, 2029, a revision of debt ratios and a modification of the amortization schedule. Its finalization is expected by end of October 2026. An agreement intended to increase financing capacity secured by inventory was also finalized in July with BZ Private Credit Limited.
