Business
Latecoere Reports FY 2024 Results
Latecoere Reports FY 2024
About this update from Latecoere Sa
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 twelve-month period ended December 31, 2024, noting that the work on its sustainability report is still ongoing whilst not anticipating any material impacts. Therefore, Latecoere is pleased to present below its unaudited financial statements. André-Hubert Roussel Group Chief Executive Officer, stated : “If I had to sum up the daily work of Latecoere’s teams today, I would highlight three key priorities. First, as OEM volume growth accelerates across commercial, business jet, and defense markets, we are fully committed to supporting this ramp-up while tackling the associated challenges. Second, we are excited with the development and growth prospects of our customer service and after-market business. Finally, we continue to push forward in research & technology; whether it’s advancing metallic and composite materials, optical wiring, preparing for More Electric Aircraft, or embracing a digital-first approach to the design, manufacturing, and operation of aerospace products. We are determined to play a key role in shaping the future of air transport.” FY 2024 Results Group (€ million) Dec 31, 2023 Dec 31, 2024 Revenue 622,3 705,8 Reported growth 32,9% 13,4% Recurring EBITDA (18,5) 25,7 Recurring EBITDA margin on revenue -3,0% 3,6% Operating free cash flows from continuing operations (118,2) (7,4) Net Cash Flow 11,2 (25,6) Cash and cash equivalents 85,1 59,4 Net Debt 1 125,2 170,9 1 Net debt is stated before consideration of RMF Latecoere’s unaudited financial results for 2024 reflect the general increased level of production in the aeronautical sector as a whole. Revenues amounted to €705.8 million, up €83.5 million or +13.4%. 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 2024 of €25.7 million, a significant improvement compared to the €(18.5) million reported in 2023. This turnaround was mainly driven by 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 €(14.8) million in 2024, compared with €148.5 million 2023, reflecting net interest cost on the PGE loans and other indebtedness outstanding during the year. The Group’s net result for 2024 amounted to €(61.9) million, compared with €6.2 million for 2023. Operating free cash flow from continuing operations amounting to cash flow losses of €(7.4) million primarily reflects: The recurring EBITDA of €25.7 million; Non-recurring cash costs of €17.7 million primarily related to the ongoing transfers of work and related restructuring; Further investments of €17.9 million into capital expenditures, particularly in North America and; A net reduction in total working capital of €7.7 million. At the end of 2024, cash and cash equivalent stood at €59.4 million. The net debt at the end of 2024 stood at €170.9 million (excluding the RMF obligation). To date, the hedging portfolio amounted to $611.1 million at an average EUR/USD rate of 1.128. Since December 31, 2024, the Group has continued to put in place hedges for 2025 and 2026 at attractive terms. Aerostructures Revenue for Latecoere’s Aerostructures Division increased by +10% on a reported basis vs 2023. 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 €(1.8) million, representing a significant turnaround from the €(18.8) million loss incurred in the prior year. 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 (€31.0) million, impacted primarily by the improving EBITDA and working capital reduction of €6.8 million; but offset by the incurrence of non-recurring cash costs for €16.9 million primarily related to work package transfers and related restructuring, and capital expenditures of €16.5 million. Aerostructures (€ million) Dec 31, 2023 Dec 31, 2024 Consolidated revenue 381,0 419,4 Reported growth 47,1% 10,1% Recurring EBITDA (18,7) (1,8) Recurring EBITDA margin on revenue -4,9% -0,4% Interconnection Systems Revenues of €286.5 million were up by +19% on a reported basis compared with €241.3 million in 2023. This growth is primarily driven by increased volumes, notably for the A320 program and from the benefit of commercial initiatives concluded in 2024. Recurring EBITDA for the Interconnection Systems division reached €27.5 million, a turnaround from the €0.1 million from the prior year, reflecting operating leverage from volume increase, tight costs control, and better commercial terms and conditions achieved with customers. The division’s operating free cash-flows from continuing operations amounted to €23.7 million, improving by +€38.6 million compared to 2023. This improvement reflects the stronger EBITDA, working capital release of €0.9 million; non-recurring costs of €0.8 million and capex of €1.4 million Interconnection Systems (€ million) Dec 31, 2023 Dec 31, 2024 Consolidated revenue 241,3 286,5 Reported growth 15,4% 18,7% Recurring EBITDA 0,1 27,5 Recurring EBITDA margin on revenue 0,1% 9,6% FY 2025 Outlook FY 2024 was a challenging year for the aerospace supply chain industry in general and for Latecoere in particular. These challenges will continue into FY 2025, with inflationary pressures and challenges arising from operating within a constrained aerospace supply chain. 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) holding indirect operating costs flat 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 Sunday February 4, 2024, a fire broke out at the Latecoere elementary parts production site in Hermosillo, Mexico. The Hermosillo fire department extinguished the blaze with no injuries. Damage was limited to the surface treatment and painting building. Machining and sheet metal operations were unaffected. Latecoere set up a dedicated team to deal with the consequences of this incident. To date, the estimated financial impact is €(2.7) million mainly composed as follows: Inventory write-downs of €4.1 million; Depreciation of damaged industrial assets for around €1.4 million; Insurance profit received in advance for €5 million; Postponed deliveries of the B787 program from February 2024 to May 2024, while the supply chain was reorganized, resulting in additional production costs. A claim has been filed with the Group’s insurance companies to cover the property damage suffered and business interruption operating losses. The financial consequence of these events, including receiving a down payment from the insurance coverage, has been fully recognized in the financial statements for FY 2024. Post-closing events None to report. Annual General Meeting Latecoere informs that its Annual General Meeting will be held in Toulouse on 6 th June 2025. Appropriate notices will be published accordingly. About Latecoere As a Tier 1 partner to major industrial OEMs (Airbus, BAE Systems, Boeing, Bombardier, Dassault Aviation, Embraer, Honda Aircraft Company, Lockheed Martin, Raytheon Technologies, Thales), Latecoere serves the aerospace sector with innovative solutions for a sustainable world. The Group operates in all segments of the aerospace industry (commercial, regional, business, defense, space), in two business areas: Aerostructures: doors, fuselage, wings and empennage, connecting rods and customer service; Interconnection systems: wiring, avionics furniture, on-board equipment, electronic products and customer service. At December 31, 2024, the Group employed 5,400 people in 14 countries. Latecoere is listed on Euronext Paris - Compartment B, ISIN Code: FR001400JY13 - Reuters: AEP.PA - Bloomberg: AT.FP Consolidated financial statements (IFRS) Consolidated Income statement In thousands of euros Dec. 31, 2023 Dec 31, 2024 Sales figures 622 335 705 825 Other operating income 432 2 907 Stocked production -8 169 20 824 Purchases and external charges -396 817 -424 915 Personnel expenses -234 644 -268 371 Taxes -6 510 -7 965 Depreciation, amortization and impairment -47 664 -37 036 Net additions to operating provisions -17 968 735 Net additions to current assets -2 481 -8 590 Other products 26 614 17 978 Other expenses -3 428 -12 840 OPERATING INCOME RECURRING -68 301 -11 450 Other non-recurring operating income 12 608 6 900 Other non-current operating expenses -92 582 -36 500 OPERATING INCOME -148 275 -41 050 Cost of net financial debt -25 874 -12 600 Foreign exchange gains and losses -1 817 -1 719 Unrealized gains and losses on derivative financial instruments -144 5 520 Other financial income and expense 176 292 -6 032 FINANCIAL RESULT 148 458 -14 831 Income tax 4 569 -6 025 NET INCOME FROM CONTINUING OPERATIONS 4 752 -61 906 NET INCOME FROM DISCONTINUED OPERATIONS 1 406 0 NET INCOME 6 159 -61 906 Consolidated Balance sheet In thousands of euros Dec. 31, 2023 Dec 31, 2024 Goodwill 17 970 17 970 Intangible assets 132 422 119 949 Property, plant and equipment 113 421 104 559 Other financial assets 6 151 6 402 Deferred taxes 3 078 6 260 Derivative financial instruments 3 618 0 Other long-term assets 8 0 TOTAL NON-CURRENT ASSETS 276 669 255 140 Inventories and work-in-progress 215 622 246 396 Trade and other receivables 116 540 124 146 Tax receivables 11 810 4 380 Derivative financial instruments 3 710 119 Other current assets 4 647 3 651 Cash and cash equivalents 85 423 59 791 TOTAL CURRENT ASSETS 437 751 438 483 TOTAL ASSETS 714 420 693 624 In thousands of euros 31 Dec 2023 31 Dec 2024 Capital 124 968 126 198 Additional paid-in capital 327 251 326 021 Treasury stock -440 -443 Other reserves -294 134 -286 608 Derivative financial instruments - effective portion 1 532 -32 223 Net income / loss for the period 6 159 -61 906 ISSUED CAPITAL AND RESERVES ATTRIBUTABLE TO OWNERS OF THE PARENT COMPANY 165 335 71 038 NON-CONTROLLING INTERESTS 0 0 TOTAL SHAREHOLDERS' EQUITY 165 335 71 038 Borrowings and financial liabilities 183 186 208 226 Repayable advances 20 694 20 543 Commitments to employees 12 429 12 763 Non-current provisions 33 229 25 785 Deferred taxes 7 826 8 594 Derivative financial instruments 1 097 16 235 Other non-current liabilities 6 853 22 044 TOTAL NON-CURRENT LIABILITIES 265 312 314 189 Borrowings and bank overdrafts 34 808 29 061 Repayable advances 2 254 2 360 Current provisions 1 151 9 075 Trade and other payables 173 070 191 303 Tax payable 5 597 3 513 Contract liabilities 25 720 22 953 Other current liabilities 36 974 30 721 Derivative financial instruments 4 200 19 412 TOTAL CURRENT LIABILITIES 283 774 308 397 TOTAL LIABILITIES 549 086 622 586 TOTAL EQUITY AND LIABILITIES 714 420 693 624 Consolidated cash flow statement In thousands of euros Dec. 31, 2023 Dec 31, 2024 Net income for the period 6 159 -61 906 Adjustment for : 0 0 Depreciation and provisions 85 885 35 940 Elimination of revaluation gains/losses (fair value) 144 -184 (Gains)/losses on asset disposals -628 2 304 Other non-cash items -179 725 2 446 Other 947 5 074 CASH FLOW AFTER COST OF NET DEBT AND TAX -87 219 -16 326 Of which cash flow from discontinued operations -11 045 0 Income tax expense -4 569 6 025 Cost of debt 25 966 12 598 CASH FLOW FROM OPERATIONS BEFORE COST OF DEBT AND TAX -65 823 2 298 Change in inventories net of provisions -172 -34 444 Change in trade and other receivables net of provisions -21 129 1 651 Change in trade and other payables 2 591 20 342 Tax paid -4 613 -6 194 CASH FLOW FROM OPERATING ACTIVITIES -89 145 -16 347 Of which cash flow from operating activities related to discontinued operations 8 220 0 Impact of changes in scope of consolidation 0 0 Acquisitions of tangible and intangible fixed assets (including change in fixed asset suppliers) -34 320 -22 067 Acquisition of financial assets 0 0 Change in loans and advances -193 322 Disposal of property, plant and equipment and intangible assets 13 031 3 650 Dividends received 0 0 CASH FLOW FROM INVESTING ACTIVITIES -21 482 -18 094 Of which cash flow from investing activities related to discontinued operations -598 0 Capital increase 124 432 0 Purchase or sale of treasury shares 45 -4 New loan and advances 88 876 36 283 Loan repayments -54 826 -14 605 Repayment of lease obligations -10 351 0 Interest paid -26 024 -12 911 Cash flow from repayable advances -423 -50 Other flows from financing activities 0 0 CASH FLOW FROM FINANCING ACTIVITIES 121 729 8 714 +/- impact of exchange rate fluctuations 103 0 CHANGE IN NET CASH AND CASH EQUIVALENTS 11 205 -25 728 Of which net cash from discontinued operations 7 622 - Opening cash and cash equivalents (net of bank overdrafts) 73 897 85 102 Closing cash and cash equivalents (net of bank overdrafts) 85 102 59 374 View source version on businesswire.com: https://www.businesswire.com/news/home/20250320804360/en/