- Continued revenue growth of +6.4%, driven by the ramp-up of production and the execution of commercial initiatives to partially mitigate inflation.
- Recurring EBITDA of €22.3 million; a significant improvement from H1 2024 loss of €(1.8) million. This reflects the operational leverage coming from volume growth, and execution of the commercial measures tackling inflation.
- Latecoere continues to invest in its platform, people, and a resilient business model, aligning with customer needs through quality and on-time delivery.
Regulatory News:
Latecoere (Paris:LAT), a Tier 1 supplier to major international aircraft manufacturers, announced that the Board of Directors approved Latecoere's financial statements for the six-month period ended June 30, 2025.
André-Hubert Roussel Group Chief Executive Officer, stated: "Thanks to the commitment of our employees and the continued support of our partners, I am pleased to report improving results in H1 2025. These results reflect our key priorities of serving OEM volume growth, the development and growth prospects of our customer service and after-market business, and our keen focus on our cost containment and cash optimization."
H1 2025 Results
Group | June 30, 2025 | June 30, 2024 | ||
Revenue | 374,6 | 352,1 | ||
Reported growth | 6,4% | 15,9% | ||
Recurring EBITDA | 22,3 | (1,8) | ||
Recurring EBITDA margin on revenue | 5,9% | -0,5% | ||
Operating free cash flows from continuing operations | (0,4) | (40,9) | ||
Net Cash Flow | (18,7) | (46,2) | ||
Cash and cash equivalents1 | 42,4 | 38,8 | ||
Net Debt2 | 182.0 | 201.0 | ||
1 Including €1.7 million Cash in Mades 2 Net debt is stated including RMF | ||||
Latecoere's unaudited financial results for the half year ended 30 June 2025 reflect the general increased level of production in the aeronautical sector as a whole. Revenues amounted to €374.6 million, up €22.5 million or +6.4%. The increase in revenues was driven by higher production rates from OEMs, additional revenue from new business wins and the conclusion of commercial initiatives to offset inflation.
The Group reported a recurring EBITDA for H1 2025 of €22.3 million, a significant improvement compared to the €(1.8) million reported in H1 2024. This turnaround was mainly driven by the continued operating leverage from increased volumes, and the positive benefits coming from both operational and commercial initiatives undertaken by the Group. These positive benefits are still being offset however by continued inflationary pressures on the material cost base and ongoing supply chain disruptions during the ramp up of the operations.
Latecoere's net financial result amounted to €(16.3) million in H1 2025, compared with €(9.4) million in H1 2024, reflecting net interest cost on the PGE loans and other indebtedness outstanding during the year and unrealised exchange losses on foreign currency denominated debt.
The Group's net result for H1 2025 amounted to €(6.8) million, compared with €(49.9) million for H1 2024.
Operating free cash flow from continuing operations amounting to cash flow losses of €(0.4) million primarily reflects:
- The recurring EBITDA of €22.3 million;
- Non-recurring cash costs of €3.7 million primarily related to the ongoing transfers of work and related restructuring;
- Further investments of €6.8 million into capital expenditures, and;
- A net increase in total working capital of €4.8 million.
At the end of H1 2025, cash and cash equivalent stood at €42.4 million (including €1.7 million held in MADES). The net debt at the end of June 2025 stood at €182.0 million (including the RMF obligation).
As of June 2025, the hedging portfolio amounted to $541.8 million at an average EUR/USD rate of 1.1358. Since June 30, 2025, the Group has continued to put in place hedges for 2026 to 2027 at attractive terms.
Aerostructures
Revenue for Latecoere's Aerostructures Division increased by +11,5% on a reported basis vs H1 2024. The segment's activity benefited from increased production rates and the benefit of commercial initiatives concluded in 2024.
The division's recurring EBITDA amounted to €4.4 million, representing a significant turnaround from the €(13.2) million loss incurred in the prior year H1. This reflects the operating leverage from the volume increase, tight costs control, and better commercial terms and conditions achieved with customers.
The division's operating free cash-flows amounted to €(5.8) million, but offset by the improving EBITDA and working capital reduction.
Aerostructures | June 30, 2025 | June 30, 2024 | ||
Consolidated revenue | 229,2 | 205,6 | ||
Reported growth | 11,5% | 8,1% | ||
Recurring EBITDA | 4,4 | (13,2) | ||
Recurring EBITDA margin on revenue | +1,8% | -6,1% | ||
Interconnection Systems
Revenues of €145.4 million were broadly flat on a reported basis compared with H1 2024. This reflects no growth in European programs and a small reduction in activity at Mades.
Recurring EBITDA for the Interconnection Systems division reached €17.9 million, a growth from €11.4 million from the prior year H1, reflecting tight costs control, and better commercial terms and conditions achieved with customers.
The division's operating free cash-flows from continuing operations amounted to €(2.9) million, improving by +€2.7 million compared to 2024. This improvement primarily reflects the stronger EBITDA.
Interconnection Systems | June 30, 2025 | June 30, 2024 | ||
Consolidated revenue | 145,4 | 146,5 | ||
Reported growth | -0,7% | 28,9% | ||
Recurring EBITDA | 17,9 | 11,4 | ||
Recurring EBITDA margin on revenue | 12,2% | 7,7% | ||
H2 2025 Outlook
Inflationary pressures and challenges arising from operating within a constrained aerospace supply chain will continue in the remainder of 2025. OEM volume growth for commercial, business jet and defense market sub-segments continues to improve overall revenue, but the ramp-up in activity results in challenges and cost pressures for the whole industry. To alleviate these challenges, Latecoere continues to invest in its operating platform, people and geographic footprint, creating a more resilient business model better positioned to grow with customer requirements. We expect to see further improvements in profitability and cash flow resulting from increased volumes and the focus on improving operational efficiency across all parts of the business. We are also convinced that the business is well positioned to capitalise on the continuing, strong market demand for civil, military and space products and from the strong prospects for our customer services and after-market business. Latecoere's outlook for FY 2025 includes:
- Volume growth across most major programs
- A full year effect of the operational and commercial initiatives started in 2024
- Continued cost inflation across bill of materials and labor cost, but largely counterbalanced by (i) a reduction in operating expenses and over-costs experienced in 2024, being avoided in 2025; (ii) restricting indirect operating costs whilst accommodating volume growth; and (iii) delivering cost savings from our value creation programs. Our value creation programs are focused on (i) cost improvement from optimization of our industrial operations; (ii) improving direct labour efficiency across our manufacturing sites and (iii) driving purchasing related savings across both direct materials and indirect cost centre spending;
- Overall growth in EBITDA, resulting from the above realization of operational and commercial initiatives, an improving supply chain situation and increased activity across key commercial, business jet and defense market sub-segments; and
- Improvements in operational free cash flow reflecting the improvements in operational and commercial initiatives partially offset by restructuring costs, increased working capital due to sales growth and key investments to strengthen Latecoere's competitive position.
Significant Events in the Period
On April 4th, 2025, the company entered into a definitive agreement for the sale of Malaga Aerospace, Defense and Electronics Systems (MADES) to Cicor Group.
Post-closing events
The sale of MADES was completed on August 1st, 2025
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About Latecoere
A Tier-1 partner to major aerospace manufacturers (Airbus, BAE Systems, Boeing, Bombardier, Dassault Aviation, Embraer, Honda Aircraft, Lockheed Martin, Thales), Latecoere serves aerospace with innovative solutions for a sustainable world.
The Group operates across all segments of the industry (commercial, regional, business aviation, defense), throughout the entire product lifecycle, primarily in four business areas:
- Aerostructures: doors, fuselage, wings and empennage, rods;
- InterconnectionSystems: wiring, avionics racks, on-board systems, test benches;
- Services and special products : customer support, maintenance, repair, video systems;
- Space: electrical harnesses and sub-assemblies for satellites, launchers, and space vehicles.
Latecoere operates close to its customers through facilities in 13 countries, organized into two regions: EMEA-Asia on one side, and the Americas on the other. In 2024, the Group employed more than 5,000 people and generated revenue of €705.8 million.
Latecoere is listed on Euronext Paris Compartment B
ISIN Code: FR001400JY13 Reuters: AEP.PA Bloomberg: AT.FP
www.latecoere.aero
Consolidated financial statements (IFRS)
Consolidated Income statement
In thousands of euros | June 30, 2025 | June 30, 2024 | ||
Sales figures | 374 606 | 352 081 | ||
Other operating income | -9 | 1 742 | ||
Stocked production | 6 009 | 16 804 | ||
Purchases and external charges | -227 597 | -227 282 | ||
Personnel expenses | -128 163 | -139 946 | ||
Taxes | -4 963 | -4 542 | ||
Depreciation, amortization and impairment | -18 752 | -18 550 | ||
Net additions to operating provisions | 1 574 | -4 914 | ||
Net additions to current assets | -757 | -2 339 | ||
Other products | 3 849 | 4 457 | ||
Other expenses | -2 277 | -1 560 | ||
OPERATING INCOME RECURRING | 3 519 | -24 048 | ||
Other non-recurring operating income | 5 673 | 6 485 | ||
Other non-current operating expenses | -12 251 | -15 648 | ||
OPERATING INCOME | -3 059 | -33 211 | ||
Cost of net financial debt | -6 530 | -6 210 | ||
Foreign exchange gains and losses | -7 065 | -1 079 | ||
Unrealized gains and losses on derivative financial instruments | -305 | -57 | ||
Other financial income and expense | -2 390 | -2 089 | ||
FINANCIAL RESULT | -16 289 | -9 435 | ||
Income tax | 12 523 | -6 674 | ||
NET INCOME FROM CONTINUING OPERATIONS | -6 825 | -49 319 | ||
NET INCOME FROM DISCONTINUED OPERATIONS |
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NET INCOME | -6 825 | -49 319 |
Consolidated Balance sheet
In thousands of euros | June 30, 2025 | Dec. 31, 2024 | ||
Goodwill | 13 582 | 17 970 | ||
Intangible assets | 99 660 | 119 949 | ||
Property, plant and equipment | 89 691 | 101 679 | ||
Other financial assets | 6 604 | 6 408 | ||
Deferred taxes | 1 453 | 1 755 | ||
Derivative financial instruments | 12 831 | |||
Other long-term assets | ||||
TOTAL NON-CURRENT ASSETS | 223 821 | 247 760 | ||
Inventories and work-in-progress | 220 724 | 246 396 | ||
Trade and other receivables | 109 734 | 126 998 | ||
Tax receivables | 5 643 | 4 380 | ||
Derivative financial instruments | 13 408 | 150 | ||
Other current assets | 13 131 | 11 058 | ||
Cash and cash equivalents | 40 822 | 59 791 | ||
Assets held for sale | 33 887 | |||
TOTAL CURRENT ASSETS | 437 350 | 448 773 | ||
TOTAL ASSETS | 661 171 | 696 533 |
In thousands of euros | June. 30, 2025 | Dec. 31, 2024 | ||
Capital | 126 931 | 126 198 | ||
Additional paid-in capital | 326 387 | 326 021 | ||
Treasury stock | -449 | -443 | ||
Other reserves | -350 659 | -286 650 | ||
Derivative financial instruments effective portion | 9 651 | -36 212 | ||
Net income loss for the period | -6 825 | -60 550 | ||
ISSUED CAPITAL AND RESERVES ATTRIBUTABLE TO OWNERS OF THE PARENT COMPANY | 105 037 | 68 365 | ||
NON-CONTROLLING INTERESTS | 0 | 0 | ||
TOTAL SHAREHOLDERS' EQUITY | 105 037 | 68 365 | ||
Borrowings and financial liabilities | 195 278 | 203 359 | ||
Repayable advances | 25 740 | 20 543 | ||
Commitments to employees | 12 713 | 12 379 | ||
Non-current provisions | 26 350 | 26 169 | ||
Deferred taxes | 4 107 | 6 798 | ||
Derivative financial instruments | 51 | 16 235 | ||
Other non-current liabilities | 28 | 6 488 | ||
TOTAL NON-CURRENT LIABILITIES | 264 268 | 291 970 | ||
Borrowings and bank overdrafts | 29 139 | 33 909 | ||
Repayable advances | 2 313 | 2 360 | ||
Current provisions | 9 349 | 9 075 | ||
Trade and other payables | 153 559 | 180 173 | ||
Tax payable | 5 383 | 3 513 | ||
Contract liabilities | 39 199 | 27 100 | ||
Other current liabilities | 38 215 | 60 657 | ||
Derivative financial instruments | 155 | 19 412 | ||
Liabilities held for sale | 14 552 | |||
TOTAL CURRENT LIABILITIES | 291 866 | 336 198 | ||
TOTAL LIABILITIES | 556 134 | 628 168 | ||
TOTAL EQUITY AND LIABILITIES | 661 171 | 696 533 |
Consolidated cash flow statement
In thousands of euros | June 30, 2025 | June 30, 2024 | ||
Net income for the period | -6 825 | -49 319 | ||
Adjustment for | ||||
Depreciation and provisions | 18 053 | 26 018 | ||
Elimination of revaluation gains/losses (fair value) | 305 | 57 | ||
(Gains)/losses on asset disposals | 119 | 3 170 | ||
Other non-cash items | -144 | 1 357 | ||
Other | 797 | 3 159 | ||
CASH FLOW AFTER COST OF NET DEBT AND TAX | 12 306 | -15 558 | ||
Of which cash flow from discontinued operations | ||||
Income tax expense | -12 523 | 6 674 | ||
Cost of debt | 6 530 | 6 209 | ||
CASH FLOW FROM OPERATIONS BEFORE COST OF DEBT AND TAX | 6 313 | -2 675 | ||
Change in inventories net of provisions | -564 | -25 014 | ||
Change in trade and other receivables net of provisions | 16 347 | -29 713 | ||
Change in trade and other payables | -13 009 | 12 633 | ||
Tax paid | -2 694 | -3 044 | ||
CASH FLOW FROM OPERATING ACTIVITIES | 6 392 | -47 813 | ||
Of which cash flow from operating activities related to discontinued operations | 0 | 0 | ||
Impact of changes in scope of consolidation | 0 | 0 | ||
Acquisitions of tangible and intangible fixed assets (including change in fixed asset suppliers) | -7 024 | -13 228 | ||
Acquisition of financial assets | 0 | 41 | ||
Change in loans and advances | -209 | 1 426 | ||
Disposal of property, plant and equipment and intangible assets | 374 | 1 414 | ||
Dividends received | 0 | 0 | ||
CASH FLOW FROM INVESTING ACTIVITIES | -6 859 | -9 974 | ||
Of which cash flow from investing activities related to discontinued operations | 0 | 0 | ||
Capital increase | 1 100 | 0 | ||
Purchase or sale of treasury shares | -6 | -8 | ||
New loan and advances | 24 988 | |||
Loan repayments | -4 447 | -422 | ||
Repayment of lease obligations | -5 707 | -5 285 | ||
Interest paid | -6 770 | -6 268 | ||
Cash flow from repayable advances | -104 | 150 | ||
Other flows from financing activities | -1 556 | |||
CASH FLOW FROM FINANCING ACTIVITIES | -15 934 | 11 598 | ||
+/- impact of exchange rate fluctuations | -542 | -93 | ||
Reclassification of Mades assets held for sale | -1 710 | 0 | ||
CHANGE IN NET CASH AND CASH EQUIVALENTS | -18 653 | -46 281 | ||
Of which net cash from discontinued operations |
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Opening cash and cash equivalents (net of bank overdrafts) | 59 374 | 85 102 | ||
Closing cash and cash equivalents (net of bank overdrafts)1 | 40 721 | 38 821 | ||
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View source version on businesswire.com: https://www.businesswire.com/news/home/20250924095047/en/
Contacts:
Media Relations
Thierry Mahé, Group Communications Director
+33 (0)6 60 69 63 85
LatecoereGroupCommunication@latecoere.aero
Investor Relations
mandataires-ag-latecoere@latecoere.aero
