Half Year 2026 Montana Aerospace AG Earnings Call

August 13, 2026

Speaker #1: In your eyes, I get lost. I get washed away. Just as long as I'm here in your arms, I could be in no better place.

Speaker #1: You're simply the best. Better than all the rest. Better than anyone I've ever met. I'm stuck on your heart. I hang on every word you say.

Speaker #1: Tears apart.

Speaker #4: No, no, no.

Speaker #1: Baby, I would rather be dead.

Speaker #4: Each time you leave me, I start losing control.

Speaker #1: You walk away with my heart and my soul.

Speaker #4: I can feel you, even when I'm alone.

Speaker #1: Oh, baby.

Speaker #4: Now I'm gone.

Speaker #1: Oh, you're the best.

Speaker #4: Better than all the rest.

Speaker #1: Better than anyone I've ever met.

Speaker #4: Oh, I'm stuck on your heart. I hang on every word you say. Tears apart.

Speaker #1: No, no.

Speaker #4: Baby, I would rather be dead.

Speaker #1: You're the best.

Speaker #4: Oh, you're simply the best.

Speaker #1: Better than all the rest.

Speaker #4: Better than anyone any.

Speaker #2: Top.

Speaker #3: The conference is now being recorded.

Speaker #2: Ladies and gentlemen, welcome to the Montana Aerospace H1 2026 conference. I'm Moritz Yoko, your call operator. I would like to remind you that all participants will be in listen-only mode and that the conference is being recorded.

Operator: Ladies and gentlemen, welcome to the Montana Aerospace H1 2026 conference. I'm Moritz, your conference call operator. I would like to remind you that all participants will be in a listen-only mode, and the conference is being recorded. The presentation will be followed by a question and answer session. If you would like to ask a question from the webinar, you may click the Q&A button on the left side of your screen and then click the raise your hand button. For written questions, please use the Q&A button and then the text button and type your question. If you are connected via phone, please press star followed by one on your telephone keypad. For operator assistance, please press the operator assistance button on the bottom left side of your screen or star zero on your telephone. At this time, it's my pleasure to hand over to Patrick Maurer.

Operator: Ladies and gentlemen, welcome to the Montana Aerospace H1 2026 Conference. I'm Moritz, your conference call Operator. I would like to remind you that all participants will be in a listen-only mode, and the conference is being recorded. The presentation will be followed by a question-and answer session. If you would like to ask a question from the webinar, you may click the Q&A button on the left side of your screen and then click the raise your hand button. For written questions, please use the Q&A button and then the text button and type your question. If you are connected via phone, please press star followed by one on your telephone keypad. For operator assistance, please press the operator assistance button on the bottom left side of your screen or star zero on your telephone. At this time, it's my pleasure to hand over to Patrick Maurer.

Speaker #2: The presentation will be followed by a question-and-answer session. If you would like to ask a question during the webinar, you may click the Q&A button on the left side of your screen and then click the 'raise your hand' button.

Speaker #2: For written questions, please use the Q&A button, then select the text button and type your questions. If you are connected via phone, please press star followed by one on your telephone keypad.

Speaker #2: For operator assistance, please press the operator assistance button on the bottom left side of your screen or star zero on your telephone. At this time, it's my pleasure to hand over to Patrick Maurer.

Speaker #2: Please go ahead, sir.

Operator: Please go ahead, sir.

Speaker #5: Welcome, everyone, to the Half-Year 2026 earnings call of Montana Aerospace. Quarter two, and therefore the first half of the year 2026, represents another chapter in Montana Aerospace's strong track record of revenue and results growth.

Patrick Maurer: Welcome everyone to the H1 2026 earnings call of Montana Aerospace. Q2, and therefore the first half of the year 2026, represents another chapter in Montana Aerospace's strong track record of revenue and results growth. As said, my name is Patrick Maurer, CFO of Montana Aerospace, and today I am joined by Vicky Welvaert, our CHRO, and as always, Mark Westervey in investor relations. in today's call, we will take you through the key developments of the first six months, our financial performance, the balance sheet and cash flow development, as well as going a bit deeper into selected strategic growth areas. Giving some further insight into capital allocation priorities and, finally, have an outlook for the remainder of 2026 and 2027.

Speaker #5: As mentioned, my name is Patrick Maurer, CFO of Montana Aerospace. Today, I'm joined by Vicky Velvet, our CHRO, and, as always, Mark Vesely from Investor Relations.

Speaker #5: In today's call, we will take you through the key developments of the first six months—our financial performance, the balance sheet, and cash flow development—as well as going a bit deeper into selected strategic growth areas.

Speaker #5: Giving some further insight into capital allocation, priorities, and finally having an outlook for the remainder of 2026 and 2027. But before we go into the numbers, I want to bring us all back on the same page as to why we at Montana Aerospace achieve industry-leading performance in the aerospace industry.

Patrick Maurer: Before we go into the numbers, I want to bring us all back on the same page why we in Montana Aerospace achieve industry-leading performance in the aerospace industry. Over the past years, we have sharpened our portfolio significantly. This started with this divestment of the e-mobility segment in 2024 and energy in 2025. We now have a clear profile that allows for better comparability and through the proceeds of these divestments, also strengthened financial resilience. Our ambition from the beginning was to build an aerospace platform that is different from the traditional fragmented model that we typically see in the industry, because we want to be a game changer in the aerospace supply chain. That is not a slogan. It is based on some concrete industrial capabilities that we see here on this page again.

Speaker #5: Over the past years, we have sharpened our portfolio significantly. This started with the disinvestment of the E-Mobility segment in 2024 and Energy in 2025.

Speaker #5: And we now have a clear profile that allows for better comparability, and, through the proceeds of these investments, also a strengthened financial resilience. Our ambition from the beginning was to build an aerospace platform that is different from the traditional fragmented model that we typically see in the industry.

Speaker #5: Because we want to be a game changer in the aerospace supply chain. And that's not a slogan; it's based on concrete industrial capabilities that we see here on this page again.

Speaker #5: First and foremost, our vertical integration starts with partially chips recycling, metal chips recycling, casting, extrusion, and then goes into machining and assembly.

Patrick Maurer: One and foremost, our vertical integration that starts with partially chips recycling, metal chips recycling, casting, extrusion, and then going into the machining and assembly, so the full supply chain. What it brings for our customers is reduced complexity, improved lead times, sometimes substantially improved lead times, and of course, reduced transport and qualification cost and complexity. That on the second side allows us as Montana Aerospace to capture more value than other players in the industry. Second, our setup is based on a largely best cost country manufacturing footprint across all key regions in the aerostructure industry. That is critically to be close to the customers, but also to ensure we are cost-wise competitive in the long run and also in the short run. It is an outcome of our heavy investments over the last decade.

Speaker #5: So the full supply chain. And what it brings for our customers is a reduced complexity, improved lead times, sometimes substantially improved lead times, and of course reduced transport and qualification cost and complexity and that of on the second side allows us as Montana Aerospace to capture more value than other players in the industry.

Speaker #5: Second, our setup is based on a largely best-cost country manufacturing footprint across all key regions in the air structure industry. And that's critical to be close to the customers, but also to ensure we are cost-wise competitive in the long run and also in the short run.

Speaker #5: And yeah, it's an outcome of our heavy investments over the last decade. Third, we have a high material competence in Montana Aerospace—in aluminum, steel, but also titanium.

Patrick Maurer: Third, we have a high material competence in Montana Aerospace in aluminum, steel, but also titanium, with a portfolio that ranges from structural components for fuselages, wings, and landing gears to very complex engine components. If we continue our processes and our long-term know-how and industrial experience, it gives us the required know-how and IP in order to really excel in this industry. Finally, and important to mention, through our integrated setup and being, let's say, where the customer is, ESG is deeply embedded in our business model and allows us to solve ambitious sustainability goals, but also brings added benefits for the customer that we have just discussed. With that, Montana Aerospace not only participates in the aerospace industry and in the ramp-up, but we, with our model, address structural issues that our customers face today.

Speaker #5: With a portfolio that ranges from structural components for fuselages, wings, and landing gears to very complex engine components, if we continue our processes and build on our long-term know-how and industrial experience, it gives us the required expertise and IP in order to really excel in this industry.

Speaker #5: And finally, and importantly to mention, through our integrated setup and by being, let's say, where the customer is, ESG is deeply embedded in our business model. This allows us to achieve ambitious sustainability goals, but it also brings added benefits for our customers, as we have just discussed.

Speaker #5: And with that, Montana Aerospace not only participates in the aerospace industry and in the ramp-up, but we, with our model, address structural issues that our customers face today.

Speaker #5: And if we look on the next page, what it means is that we have a strong commercial aerospace order book above €7 billion by now, and are best positioned to benefit from the growth and the very positive momentum that we currently see in the industry.

Patrick Maurer: If we look on the next page, what it means is that we have a strong commercial aerospace order book, above EUR 7 billion by now, and are best positioned to benefit from the growth and the very positive momentum that we currently see in the industry. The EUR 7 billion come from just EUR 3.9 billion in 2021 and underlie the progress we have made in expanding our position across all the different aerospace platforms and winning additional market share. What is important to mention here is that our order book is also qualitatively very strong across all narrow body, wide body and business jet platforms, as well as military transportation aircraft such as the A400M. The way it is calculated is rather conservative.

Speaker #5: And the $7 billion comes from just $3.9 billion in 2021 and underlines the progress we have made in expanding our position across all the different aerospace platforms and winning additional market share.

Speaker #5: And what is important to mention here is that our order book is also qualitatively very strong—across all narrow-body, wide-body, and business jet platforms, as well as military transportation aircraft such as the A400M.

Speaker #5: The way it's calculated is rather conservative. So we basically take our contracted ships at value per plane, multiply that by the duration of the contract we have with our customers.

Patrick Maurer: We basically take our contracted ships at value per plane, multiply that by the duration of the contracts we have with our customers, so typically somewhere between 5 to 7, sometimes even more years. Then multiply that with our Montana build rate assumptions, which are for sure more conservative than the OEM build rates, and therefore give us, let's say, an upside potential. We are basing our plan on a prudent view of what we believe can be achieved, and still benefit from the strong long-term industry demand and momentum that we see. If we now switch to the financial performance of H1, we can see that we have a nice sales growth of 12%. This despite the fact that FX rate in H1 2025 was around 117 for the US dollar euro exchange rate.

Speaker #5: So typically somewhere between 5 to 7, sometimes even more, years. And then multiply that with our Montana build rate assumptions, which are for sure more conservative than the OEM build rates.

Speaker #5: And therefore, give us, let's say, an upside potential. So we are basing our plan on a prudent view of what we believe can be achieved.

Speaker #5: And still benefit from the strong, long-term industry demand and momentum that we see. If we now switch to the financial performance of half-year one, we can see that we have a nice sales growth of 12%.

Speaker #5: And this despite the fact that the FX rate in half year one '25 was around 1.17 for the US dollar-euro exchange rate, and now in this year was around 1.09.

Patrick Maurer: Now in this year was around 1.09. That took a bit away of the dynamic, but nonetheless, the performance is very positive. Important to mention is that this growth was purely organic, so without any acquisition or other dilutions, driven by increased volumes and additional market share wins in the aerostructure segment and other interesting industries or related industries. EBITDA was EUR 87.1 million in 2026 H1, which also corresponds to a growth of 12.2%. The EBITDA margin was at 16.8%. Here I would like to highlight that there were no adjustments made in the EBITDA 2026, so it is a, let's say, a pure EBITDA without anything to consider or without anything to adjust for. What I also like to highlight is that the aerostructure segment again performed very strongly.

Speaker #5: So that took a bit away from the dynamic, but nonetheless, the performance is very positive. And important to mention is that this growth was purely organic.

Speaker #5: So, without any acquisition or other dilutions—driven by increased volumes and additional market share wins in the air structure segment and other interesting industries.

Speaker #5: Or related industries. EBITDA was €87.1 million in H1 2026, which also corresponds to a growth of 12.2%. And the EBITDA margin was at 16.8%.

Speaker #5: And here I would like to highlight that there were no adjustments made to the EBITDA for 2026. So it's, let's say, a pure EBITDA without anything to consider or anything to adjust for.

Speaker #5: And what I also like to highlight is that the air structure segment, again, performed very strongly. So, the growth there, again without taking FX into account, was over 13%.

Patrick Maurer: The growth there, again, without taking FX into account, was over 13%, and EBITDA growth in the aerostructure segment was over 16%, bringing us to a strong 18.3% EBITDA margin. Overall, sales are growing organically, EBITDA is increasing, and most importantly, margins are resilient and improving where it matters the most in our aerostructure segment. When we switch now to the next page, it is a pleasure to present to you that the operating leverage that we have allows the results basically to flow through to EBIT, where we see a 22% increase, and to the final result of the period, which is at around or almost EUR 30 million, heavily increased compared to the last year.

Speaker #5: And EBITDA growth in the Air Structure segment was over 16%, bringing us to a strong 18.3% EBITDA margin. So, overall, sales are growing organically.

Speaker #5: EBITDA is increasing. And most importantly margins are resilient and improving where it matters the most in our air structure segment. When we switch then now to the next page, it's a pleasure to present to you the that the operating leverage that we have allows us allows the results basically to flow through to EBIT where we see a 2022% increase.

Speaker #5: And to the final result of the period, which is at around or almost €30 million—heavily increased compared to last year. Because in addition to the strong operative performance, we have also not seen a negative impact from the non-cash FX impact that we saw last year.

Patrick Maurer: Because in addition to the strong operative performance, we have also not seen a negative impact from the non-cash FX impact that we saw last year, because the US dollar didn't fall or didn't weaken further compared to December 2025. As a consequence, the earnings per share have heavily increased to EUR 0.47 from just EUR 0.1 in H1 2025. The key takeaway is that our business is converting operational progress into bottom line improvement. We are not only growing sales, we are seeing the benefit through EBITDA, EBIT, net result, and earnings per share. That is an important proof point for the scalability of our platform. If we deep dive a bit more into the aerostructure segment, I like to highlight the path where we came from.

Speaker #5: Because the US dollar didn't fall or didn't weaken further compared to December 2025. And as a consequence, the earnings per share have heavily increased to €0.47 from just €0.10 in half year one 2025.

Speaker #5: So, the key takeaway is that our business is converting operational progress into bottom-line improvement. And we're not only growing sales; we're seeing the benefit through EBITDA, EBIT, net result, and earnings per share.

Speaker #5: And that is an important proof point for the scalability of our platform. If we deep dive a bit more into the Aerostructure segment, I'd like to highlight the path where we came from.

Speaker #5: So only three years ago, we were standing at around 10%, a bit above 10%, EBITDA margin—despite a pretty strong US dollar in that time frame.

Patrick Maurer: Only three years ago, we were standing at around 10%, a bit above 10% EBITDA margin, despite the pretty strong US dollar in that time frame, to now, just three years later, where we are very well on track towards our 20% EBITDA margin in the aerostructure segment. That means over a time frame of three years, we were able to almost double the margin profile in our aerostructure segment. We invested heavily in this last decade in capacity, process capabilities, our best country footprint, and program readiness. That naturally came with, let us say, fixed costs and industrialization expenses and a certain underutilization at the start. But now as the volume continue to grow and we more and more utilize our assets and our asset base, our platform sees better margin and strong operating leverage. That we expect to certainly continue going forward.

Speaker #5: To now, just three years later, we are very well on track towards our 20% EBITDA margin in the Air Structure segment. So that means, over a timeframe of three years, we were able to almost double the margin profile in our Air Structure segment.

Speaker #5: So, we invested heavily in this last decade in capacity, process capabilities, our best country footprint, and program readiness. And that naturally came with, let's say, fixed costs and industrialization expenses and a certain underutilization at the start.

Speaker #5: But now, as the volume continues to grow and we more and more utilize our assets and our asset base, our platform sees better margin and strong operating leverage.

Speaker #5: And that we expect to certainly continue going forward. Let us now switch and address our cash flow, working capital, and balance sheet progress. In half year one, Montana Aerospace generated a free cash flow of €67 million.

Patrick Maurer: Let us now switch and address our cash flow, working capital, and balance sheet progress. In H1, Montana Aerospace generated a free cash flow of EUR 67 million, including, as we know, the first proceeds from the energy divestment. If we go through step by step the different contributors, we see a cash flow from operating activities of EUR 26 million, which is behind H1 for two main reasons. One is an inventory increase from the pre-buying and the higher pricing of metal pass-throughs. As you know, driven by the Middle East situation and crisis, where we started early on to secure our supply chain to not see any impacts and any production limitations for the rest of the full year. That is clearly an impact on the inventory that we saw in this first half year, in addition, of course, to the higher business activity.

Speaker #5: Including, as we know, the first proceeds from the energy divestment. And if we go through, step by step, the different contributors, we see a cash flow from operating activities of €26 million.

Speaker #5: Which is behind half year one for two main reasons. One is an inventory increase from the pre-buying, and the higher pricing of metal pass-throughs.

Speaker #5: As you know, driven by the Middle East situation and crisis, we started early on to secure our supply chain to avoid any impacts and any product production limitations for the rest of the full year.

Speaker #5: So that clearly had an impact on the inventory that we saw in this first half year, in addition, of course, to the higher business activity.

Speaker #5: And the second, equally important factor is that we do not factor anymore a customer who was last year still in certain financial difficulties. And therefore, we have to mitigate and reduce the risk by having non-recourse factoring in place.

Patrick Maurer: And the second equally important factor is that we do not factor anymore a customer who was last year still in certain financial difficulties, and therefore we had to mitigate and reduce the risk by having non-recourse factoring in place. But this we stopped entirely for that customer and has, of course, a certain impact in this H1 of 2026. Cash flow from investing activities of EUR 41 million, roughly, is positive because of the proceeds from the energy segment. And, of course, we will come to a bit more details on the further investing activities and capital allocation relating to it in the upcoming slides. From the finance perspective, we just paid back part of the term loan, as you know, and have some movements there back and forth, but overall in a continuous and very strong financial position.

Speaker #5: But this we stopped entirely for that customer, and it has of course a certain impact in this first half year of 2026. Cash flow from investing activities of roughly €41 million is positive.

Speaker #5: Because of the proceeds from the Energy segment. And of course, we will come to a bit more detail on the further investing activities and capital allocation relating to it in the upcoming slides.

Speaker #5: From the finance perspective, we just paid back part of the term loan, as you know, and, yeah, have some movements there back and forth.

Speaker #5: But overall, we are in a continuous and very strong financial position, also having quite large credit lines open that are currently largely unused. If we switch to net debt, we see further progress and improvements compared to December 2025.

Patrick Maurer: Also having quite large credit lines open that are currently largely unused. If we switch to net debt, we see further progress and improvements compared to December 2025. So substantial ones as you see from a 0.8 to 0.4 leverage, but also compared to Q1, we see a certain slightly better numbers than in Q1 2026. And with that, we are fully on track to a cash positive position at year-end, as we have communicated before, driven by our positive operative free cash flow and on top then the proceeds from the energy segment that we already saw and that we still expect in the H2 of 2026. Working capital, as addressed before, saw a certain increase to above what we consider best practice.

Speaker #5: So, substantial ones—as you see, from a 0.8 to 0.4 leverage. But also, compared to Q1, we see slightly better numbers than in Q1 2026.

Speaker #5: And with that, we are fully on track to a cash-positive position at year-end, as we have communicated before. This is driven by our positive operative free cash flow and, on top, the proceeds from the Energy Segment that we have already seen and that we still expect in the second half of 2026.

Speaker #5: Working capital, as addressed before, saw a certain increase to above what we consider best practice. However, the clear reason behind this was, as said, the inventory buildup to have a resilient supply chain for the rest of the year and starting 2027.

Patrick Maurer: However, with clear reason behind, as said, the inventory build-up to have a resilient supply chain for the rest of the year and start in 2027 and the certain impact from factoring that we need to progressively improve through better terms and conditions with customers and suppliers. Okay. Let me then turn to say a bit more on two further strategic growth platforms where Montana Aerospace is present and very well positioned in, defense and space. Starting with defense, we are proud, as we have announced, to expand our strategic partnership with Lockheed Martin and have further program content included in our books with, as typical for the aerostructure industry, long-term production visibility, long-term contracts, and clearly a planability and partnership that we are proud of.

Speaker #5: And there's a certain impact from factoring that we need to fully address and improve through better terms and conditions with customers and suppliers. Okay, let me then turn to say a bit more on two further strategic growth platforms.

Speaker #5: Where Montana Aerospace is present and very well positioned in: defense and space. And, starting with defense, we are proud—as we have announced—to expand our strategic partnership with Lockheed Martin and have further program content included in our, yeah, in our books.

Speaker #5: As is typical for the aerospace industry, we have long-term production visibility, long-term contracts, and, clearly, a plannability and partnership that we are proud of. But in addition to that, we are proud, and very positive, that there's further growth potential with others—with two other, or many others, but in more concrete discussions with two other leading European defense players.

Patrick Maurer: But in addition to that, we are proud and very positive that there is further growth potential with two other or many others, but in more concrete discussions with two other leading European defense players. And there, we expect to have more clarity on the outcome and what that means in terms of sales and potential margin benefits for the years to come in the H2 of the year. If we then turn to the second growth pillar, space, which has become a very meaningful growth platform to Montana Aerospace, and where we see revenues developing towards 10% group revenue in 2026.

Speaker #5: There, we expect to have more clarity on the outcome and what that means in terms of sales and potential margin benefits for the years to come.

Speaker #5: In the second half of the year. If we then turn to the second growth pillar, Space, which has become a very meaningful growth platform to Montana Aerospace.

Speaker #5: And where we see revenues developing towards 10% of group revenue in 2026. Here, I would like to highlight that our vertical integration, again, was the basis for customers coming to us because of fast lead times, reliability, a competitive cost setup, and fast engineering capabilities. This allows both them and us to dynamically provide innovations and offer products for this sector of the aerospace industry.

Patrick Maurer: Here I like to highlight that our vertical integration again was the basis that customers are coming to us because of fast lead times, because of reliability, a competitive cost setup, and fast engineering capabilities that allows them and us to dynamically provide innovations and provide products also for this sector of the aerospace industry. The result is that what was an opportunity just 3 years ago is now one of our key growth drivers, as said, going towards EUR 100 million in sales per annum and with very strong momentum and perspective in the years to come, as you all know from different IPOs in that field and all the things that are happening there.

Speaker #5: And the result is that what was an opportunity just three years ago is now one of our key growth drivers. As said, going towards €100 million in sales per annum.

Speaker #5: And with very strong momentum and perspective in the years to come. As you all know from different IPOs in that field, and, yeah, all the things that are happening there.

Speaker #5: What I would also like to mention and highlight here is that we are not only focused on one single platform or one single product, but we are part of different generations, different platforms, and are more and more working towards a broader customer field in that segment or in that industry.

Patrick Maurer: What I also like to mention and highlight here is that we are not only focused on one single platform or one single product, but we are part of different generations, different platforms, and more and more, working towards also a broader customer field in that segment or in that industry. Let us now address the capital allocation and knowing that we move towards net cash position in the course of the year. We have, of course, discussed together with the board how to create value for our shareholders and have agreed basically on a certain framework of a capital allocation. One step of that is seeing through our business wins. Three, seeing the capacity requirements in the aerospace commercial industry, but also these 2 additional growth platforms and the impact and importance of being in different regions.

Speaker #5: Yeah, let us now address the capital allocation. Knowing that we will move towards a net cash position in the course of the year, we have, of course, discussed together with the Board how to create value for our shareholders.

Speaker #5: And have agreed basically on a certain framework of capital allocation. So, one step of that is seeing through our business wins, three, seeing the capacity requirements in the aerospace commercial industry, but also these two additional growth platforms.

Speaker #5: And the impact and importance of being in different regions, we have decided, in addition to the maintenance CAPEX or a standard CAPEX of around $50 million, that we have discussed with you in the past.

Patrick Maurer: We have decided, in addition to the maintenance CapEx or standard CapEx of around EUR 50 million that we have discussed with you in the past, to add an additional EUR 30 to 40 million per annum in the next 2 years at least, for accretive margin projects and growth CapEx. That's not related to only a specific area or one side. It's related to all geographies and markets, and it's both, as said, market wins where we partially need just additional machinery or strategic projects where we continue our integration and further strengthen our independence from the rest of the supply chain. Obviously that, in the long term, will increase to also bring our platform to the even next level to where we are now. Okay. I think we can then, with that, continue.

Speaker #5: To add an additional $30 to $40 million per annum in the next two years, at least, for creative margin projects and growth CAPEX.

Speaker #5: So that is, and that's not related to only a specific area or one site. It's related to all geographies and markets.

Speaker #5: And it’s both, as said, market wins where we partially need just additional machinery, or strategic projects where we continue our integration and further strengthen our independence from the rest of the supply chain.

Speaker #5: And obviously, that in the long term will also increase to bring our platform to the next level beyond where we are now. Okay.

Speaker #5: I think we can then, with that, continue. Here we see the consolidated supply chain in air structure on the left side, which still gives room and attractive opportunity in the end to decomplexify the air structure supply chain.

Patrick Maurer: Here we see the consolidated supply chain in aerostructure on the left side, which still gives room and attractive opportunity in the end to decomplexify the aerostructure supply chain, as many specialist suppliers are small, have very limited integration, sometimes financial troubles, and can become a source or are a source of uncertainty in the ramp-up environment for the OEMs and tier 1 customers. There, our approach is something that the customers really appreciate and where we gain a lot of traction. Of course, in terms of M&A, we remain disciplined and selective to what adds really value to our supply chain. In most cases, it has to be in alignment with the OEMs. There are often alternatives on the inside to have brownfields or additional investments to just win packages and market share instead of purchasing one of the current suppliers.

Speaker #5: As many specialist suppliers are small, they have very limited integration. Sometimes they experience financial troubles and can become a source of, or are a source of, uncertainty in the ramp-up environment for the OEMs.

Speaker #5: And tier-one customers. There, our approach is something that the customers really appreciate, and where we gain a lot of traction. Of course, in terms of M&A, we remain disciplined and selective regarding what really adds value to our supply chain.

Speaker #5: And in most cases, it has to be in alignment with the OEMs. And there are often alternatives on the inside to have brownfield or additional investments to just win packages and market share, instead of purchasing one of the current suppliers.

Speaker #5: Nonetheless, the conclusion is that supply chain consolidation overall remains a meaningful value creation opportunity for us—clearly both on the organic side, but also potentially on the inorganic side.

Patrick Maurer: But nonetheless, the conclusion is that the supply chain consolidation overall remains a meaningful value creation opportunity for us. Clearly, both on the organic side, but also potentially on the inorganic side should interesting opportunities come up. When we switch to our guidance, I believe the strong H1 2026 is the best example and the best concrete support for our 2026 and 2027 guidance. So we remain very confident in these figures and believe in clearly a sales number above EUR 1 billion and adjusted EBITDA, which will be probably the same as the reported EBITDA as in H1 of above EUR 185 million. Then Aerostructures segment margin moving to the 19% range, depending a bit on the cost side and what we pass on there and what is just a flow-through, basically.

Speaker #5: Should interesting opportunities come up. When we switch to our guidance, I believe the strong first half of 2026 is the best example and the best concrete support for our 2026 and 2027 guidance.

Speaker #5: So we remain very confident in these figures and believe in clearly achieving sales numbers above €1 billion, and adjusted EBITDA, which will probably be the same as the reported EBITDA, as in half year one.

Speaker #5: Of above $185 million. And then air structures, or air—yeah, air structures segment margin moving to the 19% range, depending a bit on the cost side and what we pass on there.

Speaker #5: And what is just a flow-through, basically. Cash conversion, excluding or before gross CAPEX that I just mentioned and before M&A, remains a target to move towards 50% this year and above 50% in the years to come.

Patrick Maurer: Cash conversion, excluding or before growth CapEx that I just mentioned and before M&A, remains a target to move towards 50% this year and above 50% in the years to come. And with that, I believe we are well set up to achieve or overachieve our guidance and are open and happy for our discussions with you all now in the next minutes to come. Thank you.

Speaker #5: And with that, I believe we are well set up to achieve or overachieve our guidance. And we are open and happy for our discussions with you all now in the next minutes to come.

Speaker #5: Thank you.

Speaker #1: Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question from the webinar may click the Q&A button on the left side of the screen and then click the 'raise your hand' button.

Operator: Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question from the webinar may click the Q&A button on the left side of the screen and then click the Raise Your Hand button. For written questions, please click the Q&A button and then the Text button and type in your questions. If you are connected via phone, please press star followed by one on your telephone keypad. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press the Lower Your Hand button from the webinar or press star and two on your telephone. Anyone who has a question may queue up now. One moment for the first question, please. The first question comes from George McWhirter from Berenberg. Please go ahead.

Speaker #1: For written questions, please click the Q&A button, then the text button, and type in your questions. If you are connected via phone, please press star followed by one on your telephone keypad.

Speaker #1: You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press the "Lower Your Hand" button from the webinar, or press star and two on your telephone.

Speaker #1: Anyone who has a question may queue up now. One moment for the first question, please. And the first question comes from Jorg George McWither from Bernberg.

Speaker #1: Please go ahead.

Speaker #2: Good afternoon. Thank you very much for the questions. Firstly, on the cash proceeds from the energy divestment, can you just run through your assumptions on the timing of that?

George McWhirter: Good afternoon. Thank you very much for the questions. Firstly, on the cash proceeds from the energy divestment, can you just run through your assumptions on the timing of that? So how much do you expect to receive in the second half of this year and next year? And what level of net debt do you expect to reach at the end of the year? The second question is on the decision to raise the growth CapEx guidance for the next two years. Can you just explain a little bit in more detail the areas that you are planning to invest in and when we should actually begin to see the revenue being generated from this additional investment? Thank you.

Speaker #2: So, how much do you expect to receive in the second half of this year and next year? And what level of net debt do you expect to reach at the end of the year?

Speaker #2: And the second question is on the decision to raise the growth CAPEX guidance for the next two years. Can you just explain a little bit in more detail the the areas that you are planning to invest in and what and and when we should actually begin to see the the revenue being generated from this additional investment.

Speaker #2: Thank you.

Speaker #3: Thank you, George, for the questions. So yeah, starting with your first point on cash proceeds, we expect for the second half of the year at least another roughly $50 million to come through.

Patrick Maurer: Thank you, George, for the questions. Starting with your first point on cash proceeds, we expect for the H2, at least another roughly EUR 50 million to come through. That is well in line with recent discussions with the board and CFO of ASTA Energy. With that proceeds, and a bit depending on how much finally come through, we will be clearly cash positive at the end of the year. At this point, it's difficult to mention or to say how exactly that position will look like. First of all, for the proceeds of the energy segment, but also from a perspective of our strategic investments. The question is how much we can bring, let's say, into the spend already in the H2. On the gross CapEx guidance, to continue with that.

Speaker #3: That is well in line with recent discussions, yeah, with the board and CFO of Aster Energy. And with those proceeds, and a bit depending on how much finally comes through, we will be clearly cash positive at the end of the year.

Speaker #3: But it's at this point, it's difficult to mention or to say how exactly that position will look like. First of all, for the proceeds of the energy segment, but also from a perspective of our strategic investments, the question is how much we can bring into the, let's say, into the spend already in the second half of the year.

Speaker #3: Oh yeah, on the gross CAPEX guidance—to continue with that—so it's, I would say, a combination of programs that enhance our integration and margin profile, which are not always generating extra sales, but, yeah, improve the margin profile.

Patrick Maurer: It's, I would say, a combination of programs that enhance our integration and margin profile, which are not always generating extra sales, but improve the margin profile and strategically our independence from the rest of the supply chain. That's in different regions and sites. That's I would say the guidance that I would give for that at the moment, and has been approved by the board already. Then there are indeed some additional growth CapEx for market share wins, that we have brought on board in the recent months, I would say. There, the revenue will largely come in 2027 on board or start to come on board and being industrialized in 2027. Some of the machines obviously have lead times of close to a year.

Speaker #3: And strategically, our independence from the rest of the supply chain—and that's in different regions and sites. But yeah, that’s, that's, I would say, the guidance that I would give for that at the moment.

Speaker #3: And has been improved by the Board already. And then there are indeed some additional growth CAPEX for market share wins that we have brought on board in recent months, I would say.

Speaker #3: And there, the revenue will largely come in 2027 or start to come on board and be industrialized in 2027. Some of the machines, obviously, have lead times of close to a year.

Speaker #3: So yeah, that's a bit of the timeline of expectations for when additional sales from these investments will hit our P&L.

Patrick Maurer: That's a bit the timeline of expectations of when additional sales from these investments will hit our P&L.

Speaker #2: Thank you very much.

George McWhirter: Thank you very much.

Speaker #3: Thank you George.

Patrick Maurer: Thank you, George.

Speaker #1: The next question comes from Sullivan Josh at Jones Trading. Please go ahead. Mr. Sullivan, you need to unmute your line. Now we can hear you.

Operator: Then the next question comes from Josh Sullivan from Jones Trading. Please go ahead. Mr. Sullivan, you need to unmute your line. Now we can hear you.

Speaker #4: Hey, good morning. Can you hear me now?

Josh Sullivan: Hey, good morning. Can you hear me now?

Sullivan Josh: Hey, good morning. Can you hear me now?

Speaker #3: Yes we can hear you.

Patrick Maurer: Yes, we can hear you.

Speaker #4: Just just as far as the the CEO search you know at this point you know you're leaning internal versus external candid candidates in any color you can provide on timelines as well.

Josh Sullivan: Just as far as the CEO search. At this point, are you leaning internal versus external candidates, and any color you can provide on timelines as well?

Sullivan Josh: Just as far as the CEO search. At this point, are you leaning internal versus external candidates, and any color you can provide on timelines as well?

Speaker #3: Yeah, I will maybe leave that to our group CHRO, who joins me today.

Patrick Maurer: Yeah. I will maybe leave that to our group CHRO who joins me today.

Speaker #5: Yes well I would like to reiterate what we said last time. That is that after the resignation of the CEO of our CEO of Montana Aerospace the company is operating activities are continuing as planned to support by and a strong and highly experienced leadership structure.

Vicky Welvaert: Well, I would like to reiterate what we said last time. That is that after the resignation of our CEO of Montana Aerospace, the company's operating activities are continuing as planned, supported by a strong and highly experienced leadership structure. The responsibilities are currently distributed across the group management board, the divisional management teams, and a strong extended leadership team, comprising well-respected executives with many years of execution experience in our industry. The board of directors continues to work diligently on the future composition of the management team and expects to provide a further update in Q3 of this year.

Speaker #5: The responsibilities are currently distributed across the group management board, the division management teams, and a strong extended leadership team, comprising well-respected executives with many years of execution experience in our industry.

Speaker #5: The board of directors continues to work diligently on the future composition of the management teams and expects to provide a further update in the third quarter of this year.

Speaker #4: Yes. Then I guess just switching over to, you know, more of a final fundamental demand poll question from the aerospace OEMs. You know, just how are you looking at it relative to the guidance assumptions you had earlier in the year at this point?

Josh Sullivan: Yeah. I guess just switching over to more of a fundamental demand poll question from the aerospace OEMs. Just how are you looking at it relative to the guidance assumptions you had earlier in the year at this point?

Sullivan Josh: Yeah. I guess just switching over to more of a fundamental demand poll question from the aerospace OEMs. Just how are you looking at it relative to the guidance assumptions you had earlier in the year at this point?

Speaker #3: Yeah, I mean from a guidance perspective, as said, we remain conservative but are very confident that we at least achieve the guidance.

Patrick Maurer: Yeah, from a guidance perspective, as said, we remain conservative, but are very confident that we at least achieve the guidance. I think H1 comparatively looks quite positive and strong on the track to get there, as you can see from the pure numbers, on a run rate basis. Typically, Q3 and Q4 are stronger, and I would say from the current perspective, I still expect it, but especially still with the macroeconomic environment and situation, there are some things that, let's say, are not clear enough yet for a clear guidance raise. But we stay very confident with the 2026 figures. 2027, of course, we will review once we know more about how the defense possibilities develop and also the space platform. Of course, the additional wins that we saw or that we discussed with the extra CapEx.

Speaker #3: I think half-year one comparatively looks quite positive and strong, on track to get there, as you can see from the pure numbers.

Speaker #3: On a run rate basis typically Q3 and Q4 are stronger and I would say from the current perspective I still expect it but there are especially still with the macroeconomic environment and situation there are some things that that let's say are not clear enough yet for for a clear guidance raise but we stay very confident with the 2026 figures.

Speaker #3: And 2027 of course we will review once we know more about how the defense possibilities develop and also the space platform. And of course the additional wins that we saw or that we discussed with the extra CAPEX.

Speaker #3: So so we will find and come to a consensus in the quarter three beginning quarter four as a group and then at some point can give there some update as well.

Patrick Maurer: We will find and come to a consensus in Q3, beginning Q4 as a group, and then at some point can give there some update as well.

Speaker #4: And then, so I guess just a clarification question on the increased growth CAPEX plans. Is the upside related to that contemplated in the guidance at this point?

Josh Sullivan: Just a clarification question on the increased growth CapEx plans. Is the upside related to that contemplated in the guidance at this point?

Sullivan Josh: Just a clarification question on the increased growth CapEx plans. Is the upside related to that contemplated in the guidance at this point?

Speaker #3: No they are not or largely not encompassed. So of course we have certain new business wins inside our guidance which are typically quite conservative.

Patrick Maurer: No, they are not, or largely not encompassed. Of course, we have certain new business wins inside our guidance, which are typically quite conservative. So those market share wins that we had or have, go above that. But as said, from a sales and EBITDA perspective or result perspective, they will largely come on board only in 2027.

Speaker #3: So those market share wins that we had, or have, go above that. But as said, from a sales and EBITDA perspective, or result perspective, they will largely come on board only in 2027.

Speaker #4: Great.

Josh Sullivan: Great. Thank you for the time.

Sullivan Josh: Great. Thank you for the time.

Speaker #3: That's part of the current guidance. Yeah.

Patrick Maurer: Part of the current guidance, yeah.

Speaker #4: Okay. Thank you for the time.

Josh Sullivan: Okay. Thank you for the time.

Sullivan Josh: Okay. Thank you for the time.

Speaker #3: Thanks Josh.

Patrick Maurer: Thanks, Josh.

Speaker #1: Then the next question comes from Aymeric Poulin from Kepler Chevreux. Please go ahead.

Operator: Then the next question comes from Aymeric Poulain from Kepler Cheuvreux. Please go ahead.

Speaker #2: Yes thank you very much for taking my question. I've got two please. The first one is again on the conservative I think that you were guidance reiteration especially for 2027 10% growth when most of your customers are are targeting a much higher ramp up rate.

Aymeric Poulain: Yes. Thank you very much for taking my question. I have got two, please. The first one is, again, on the conservative, I think that is your word, guidance reiteration, especially for 2027, 10% growth. When most of your customers are targeting a much higher ramp-up rate, you also highlighted the positive contribution of space, which is much bigger than what you anticipated originally. You have higher pricing of aluminum, you have better dollar. Why are you not in a position to raise this guidance? Is it because of your own capacity restriction, which would explain the CapEx increase? Or is it because you are taking a very conservative assumption on the production rate of the two main customers of yours? That would be the first question. Second question is on factoring. You said you reduce the factoring in this H1.

Speaker #2: You you also highlighted the the the positive contribution of space which is much bigger than what you anticipated originally. You have a higher pricing of aluminum.

Speaker #2: You have better dollar. So why aren't you in a position to raise this guidance? Is it is it because of your own capacity restriction which would explain the CAPEX increase or is it because you you are taking a very conservative assumption on the production rates of the two main customers of yours that that would be the the first question.

Speaker #2: And and second question is on on factoring. You you said you reduce the factoring in in this first half. What is the current level of of balance sheet factoring debt at the moment and and when you look at the free cash flow guidance for the year do you anticipate a factoring to to grow and contribute to that free cash flow or or should we assume it flat for from here on?

Aymeric Poulain: What is the current level of balance sheet factoring debt at the moment? When you look at the free cash flow guidance for the year, do you anticipate a factoring to grow and contribute to that free cash flow, or should we assume it is flat from here on? Thank you.

Speaker #2: Thank you.

Speaker #3: Yeah let's thank you Aymeric for the questions. Let's start with the guidance one. Yeah so first of all indeed we are more conservative versus our customers on their growth expectations.

Patrick Maurer: Yeah. Thank you, Aymeric, for the questions. Let us start with the guidance one. Yeah. First of all, indeed, we are more conservative versus our customers on their growth expectations. Simply looking backwards at the last years, yeah, where we have, I think, a good reasoning to be on the conservative end there. Space and defense for sure provide key opportunities, but not all of them are signed yet. That is, for us, still open to be seen, how much that translates already next year into the sales and result perspective. For that reason, let us say we stay conservative for the moment and do not reiterate the guidance. Do not change it, sorry, but rather reiterate it and, yeah, give a positive outlook on it and belief that it is probably on the lower end for the moment, but not yet there to raise it.

Speaker #3: Simply looking backwards at the last years, yeah, where we have, I think, a good reasoning to be on the conservative end there.

Speaker #3: Space and defense for sure provide clear opportunities, but not all of them are assigned yet. So that's, for us, still open to be seen how much that translates already next year into the sales and result perspective.

Speaker #3: And from that reason let's say we stay conservative for the moment and do not reiterate the guidance. Do not change it. Sorry. But rather reiterate it and yeah give a positive outlook on it and and believe that it is probably on the lower end for the moment but not yet there to raise it.

Speaker #3: On the factoring question yeah clearly lower factoring at the moment compared to last year or also end of the yeah last year June or end of the last year 2025.

Patrick Maurer: On the factoring question, yeah, clearly lower factoring at the moment compared to last year or also end of last year, June or end of last year, 2025. There is still some factoring in our books for the simple reason of flexibility and very strong financial ability of some of the customers, as you may know. They provide also cheap and flexible financing, I would say. But yeah, lower than in the past, and I believe it will also, despite the higher activity and higher sales, it will stay on a lower level compared to the past.

Speaker #3: There is still some factoring in our books for the simple reason of flexibility and, yeah, very strong financial ability of some of the customers, as you may know.

Speaker #3: So they provide also cheap and flexible financing I would say. But yeah lower than in the past and I believe it will also despise the the higher the higher activity and higher sales it will stay on a lower level compared to the past.

Speaker #2: Okay thank you.

Aymeric Poulain: Okay. Thank you.

Speaker #3: As maybe to amend as as because we do not have to factor. Yeah one of the customers for financial reasons or financial instability which was quite expensive.

Patrick Maurer: And maybe to amend, because we do not have to factor, yeah, one of the customers for financial reasons or financial instability, which was quite expensive. That is clearly gone and also helps the financial result as you see. But also it is not necessary from a risk mitigation perspective.

Speaker #3: So, that is clearly gone and also helps the financial result, as you see. But also, it is not necessary from a risk mitigation perspective.

Speaker #2: Thanks.

Aymeric Poulain: Thanks.

Speaker #1: So as a reminder anyone who wishes to ask question may click the Q&A button on the left side of the screen and then either click for the voice or text option if you are connected via phone please press star by and one.

Operator: As a reminder, anyone who wishes to ask a question may click the Q&A button on the left side of the screen and then either click for the voice or text option. If you are connected via phone, please press star 9 and 1. We do have one question by text coming from Yannick Zillig from awp Finanznachrichten. You mentioned a potential share buyback program. What would need to happen for the board to actually launch one, and what size could such a program have?

Speaker #1: And we do have one question by text coming from Yannick Zulik from AWP. You mentioned a potential share buyback program. What would you need what would need to happen for the board to actually launch one and what size could such a program have?

Speaker #3: Yeah, thank you for the question, Yannick. Indeed, I maybe didn't highlight this enough in the capital allocation slide. So, apart from the strategic growth investments and the accretive margin investments, together with the Board, we have agreed that a share buyback, or delivering cash and value to our shareholders, remains a critical component of Montana Aerospace—or is a critical component that we want to see in the future.

Patrick Maurer: Yeah, thank you for the question, Yannick. Indeed, I maybe didn't highlight this enough in the capital allocation slide. Apart from the strategic growth investments and accretive margin investments, together with the board, we have agreed that a share buyback or delivering share cash and value to our shareholders remains a critical component of Montana Aerospace, or is a critical component that we want to see in the future. That could take the form of a share buyback or dividend or even both. What needs to happen, I mean, basically for the moment and for the past, we are somehow limited by the loan requirements, but I think the strong financial performance will give us much more room also on bringing such return to shareholders. Therefore, yeah, I believe we are not far away from getting to this stage of Montana Aerospace.

Speaker #3: So that could take the form of a share buyback or dividend or even both. And what needs to happen I mean basically for the moment and for the past we are somehow limited by the loan requirements but I think the strong financial performance will give us much more room also on bringing such return to shareholders.

Speaker #3: And therefore, yeah, I believe we are not far away from getting to this stage of Montana Aerospace.

Speaker #1: There are currently no more questions at this time, so I would like to turn the conference back over to Patrick Maurer for any closing remarks.

Operator: There are currently no more questions at this time, so I would like to turn the conference back over to Patrick Maurer for any closing remarks.

Speaker #3: Yeah, let me close. Of course, feel free to still add questions along the way, but otherwise, let me close with the main takeaways from today's presentation.

Patrick Maurer: Yeah, let me close. Of course, feel free to still add questions along the way, but otherwise, let me close with the main takeaways from today's presentation. First and foremost, Montana Aerospace continued the strong operational track record and delivered a very positive and strong H1 2026. Second, Aerostructure as a segment continues to be the central value driver of the group. The segment has increased the sales to EUR 485 million and EBITDA of almost EUR 89 million, and an EBITDA margin that expanded to 18.3%. Third, we significantly strengthened the financial profile of the group with positive net cash position still expected at the end of 2026 and as communicated, and the declining financial leverage, which gives us the opportunity for the capital allocation measures we have discussed. Fourth, the aerospace strategy is more and more clear and understandable.

Speaker #3: So first and foremost Montana Aerospace continued the strong operational track record and delivered very positive and strong first half of 2026. Second air structure as a segment continues to be the central value driver of the group.

Speaker #3: The segment has increased the sales to €485 million and EBITDA of almost €89 million, and an EBITDA margin that expanded to 18.3%. Third, we significantly strengthened the financial profile of the group, with a positive net cash position still expected at the end of 2026, as communicated.

Speaker #3: And the declining financial leverage, which gives us the opportunity for the capital allocation measures we have discussed. Fourth, the aerospace strategy is more and more clear and, yeah, more and more clear and understandable.

Speaker #3: Commercial aerospace remains our core, while the adjacent defense and space sectors provide very, very attractive additional growth opportunities to Montana Aerospace. And it's not, let's say, a fantasy.

Patrick Maurer: Commercial aerospace remains our core, while the ancient defense and space sectors provide very attractive additional growth opportunities to Montana Aerospace. It's not, let's say, a fantasy. We are positioned in these segments or in these areas and will further grow there. Fifth, for that reason, our outlook remains very strong and robust. We reiterate our 2026 and 2027 guidance and see a clear path to stronger utilization, stronger margins, and improved cash generation. So in summary, Montana Aerospace combines long-term visibility, a differentiated industrial and integrated platform that others don't have, a further improving margin profile and cash generation profile, and meaningful value creation opportunities for all of you as our shareholders. Thank you very much. If there are no further questions, I suggest we close the call.

Speaker #3: We are positioned in these segments or in these areas and will further grow there. And fifth for that reason our outlook remains very strong and robust.

Speaker #3: We reiterate our 2026 and 2027 guidance and see a clear path to stronger utilization, stronger margins, and improved cash generation. So, in summary, Montana Aerospace combines long-term visibility with a differentiated industrial and integrated platform that others don't have, a further improving margin profile and cash generation profile, and meaningful value creation opportunities for all of you as our shareholders.

Speaker #3: Thank you very much. If there are no further questions, I suggest we close the call.

Speaker #1: Ladies and gentlemen the conference is now over. Thank you for choosing Coruscal and thank you for participating in the conference. You may now disconnect your lines.

Operator: Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your lines. Goodbye.

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Half Year 2026 Montana Aerospace AG Earnings Call

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