Business
LISI S A : 2025 Half-yearly Results
LISI S A : 2025 Half-yearly
About this update from Lisi Sa
HALF-YEARLY RESULTS 30 th June 2025 The LISI Group achieved record sales of nearly €980 million in the first half of 2025 and significantly improved its key financial indicators Revenue up +8.3%, reflecting strong ramp-up in all segments of the aerospace market, EBIT increased by +77.1% to 95.6 €m, reflecting strong operating leverage, Current operating margin improved by 3.8 points to 9.8%, driven by higher profitability across all divisions, Free cash flow of -14.3 €m impacted by a negative year-end currency effect estimated at -31.9 €m due to the weakening of the dollar against the euro, As a result, the annual targets previously announced are confirmed. On July 9, 2025, LISI Group announced that it had entered into exclusive discussions with SK CAPITAL to acquire its LISI MEDICAL division. Paris, July 24, 2025 - LISI today announces its results for the first half of the year ended June 30, 2025. These financial statements have been reviewed by the Statutory Auditors and were presented to the Board of Directors at its meeting held today. Six months ended June 30 H1 2025 H1 2024 Change Key items in the income statement Revenue M 978.8 903.6 + 8.3% EBITDA € million 147.3 107.2 + 37,4% EBIT € million 95.6 54.0 + 77.1% Current operating margin % 9.8 6.0 + 3.8 pts Net income for the period attributable to equity holders of the company € million 38,5 31,6 + 22.0% Diluted earnings per share € 0.83 0.68 + 22.1 % Main items in the cash flow statement Cash flow from operations € million 88.8 86,0 +2.8 €m CAPEX € 52.7 55.5 - 2.8 €m Free Cash Flow 1 M -14,3 -13,3 -1,0 €m Key elements of the financial position H1 2025 12/31/2024 Net financial debt € million 519.7 488.5 + 31.2 €m Gearing % 52.8% 48.6% + 4.2 pts 1 Free Cash Flow : cash flow from operations less net capital expenditure and changes in working capital Comments on half-year activity Revenue in €m 2025 2024 2025/2024 At constant scope and exchange rates Q1 486.7 449.3 +8.3% +7.5% Q2 492.1 454.3 +8.3% +11.9% Six months ended June 30 978.8 903.6 +8.3% +9.7% Consolidated revenue for the first half of 2025 amounted to 978.8 €m, up +8.3% compared to the same period in 2024, taking into account the following factors: an average negative currency impact of -6.0 €m (0.6% of revenue), mainly resulting from the weakening of the average US dollar exchange rate against the euro; a scope effect of -6.0 €m (0.6% of revenue) related to the sale of LISI AUTOMOTIVE Nomel. In line with the objective of maintaining positive organic growth in 2025, revenue adjusted for currency and scope changes rose by 9.7% to the first six months of the year. The current EBITDA margin reached 15.1% of revenue, up 3.2 points compared to the same period last year. It benefited from significant leverage, thanks in particular to: improved industrial productivity resulting from training efforts for the large number of new hires in 2023 (1,158 people) and 2024 (1,263 people) in the LISI AEROSPACE division, the passing on of inflation to sales prices, with the latest negotiations with customers finalized in 2024, the work to adjust fixed costs in the LISI AUTOMOTIVE division. The effect of provisions and reversals (mainly on inventories) was favorable compared with the first half of 2024, amounting to 0.6 €m. They had been negative in the first half of 2024 (-1.0 €m). EBIT amounted to 95.6 €m, up by +41.6 €m, representing a current operating margin of 9.8% compared with 6.0% in the first half of 2024. Non-recurring operating income and expenses amounted to -3.4 €m, compared with -3.1 €m in the first half of 2024. They mainly relate to the continuation of the Forge 2022 project and industrial reorganizations in the LISI AUTOMOTIVE division. The financial result amounted to -40.0 €m (-8.4 €m in H1 2024). This is mainly due to the following factors: the effects of the revaluation of foreign currency-denominated debts and receivables and the change in the fair value of hedging instruments (-29.2 €m compared with +3.6 €m in H1 2024), which includes a latent foreign exchange loss reflecting the depreciation of the dollar against the euro, particularly on cash and cash equivalents denominated in dollars, financial expenses, corresponding to the cost of long-term net debt, amounted to -13.1 €m (-14.6 €m in H1 2024). Gains on cash investments amounted to +2.3 €m (+2.6 €m in H1 2024). The corporate income tax rate was 25.8%, in line with the Group's historical rates. Net income amounted to 38.5 €m (3.9% of revenue), compared with 31.6 €m (3.5% of revenue) in the first half of 2024. At 88.8 €m, cash flow from operations increased compared to the same period last year (86.0 €m) and represents 9.1% of revenue. It covers the entire financing requirement for investment programs of 52.7 €m (5.4% of revenue). These investments are mainly devoted to the pursuit of strategic initiatives aimed at stimulating future growth, the development of new products, innovation and the implementation of multi-year industrial programs. Working capital requirements (79 days of revenue) decreased by four days compared to the same period last year. The number of days of inventory remained stable at 103 days at the end of June, taking into account anticipated future growth. Free cash flow stood at -14.3 €m (-13.3 €m in H1 2024). Adjusted for the unfavorable impact of the weakening of the dollar against the euro, as explained above in the financial result, operating free cash flow was positive at +17.6 €m. Net financial debt stood at 519.7 €m in the first half of 2025. It represents 52.8% of equity and 2.1x current EBITDA. It is well below the covenants authorized by the banking partners, set at 120% of equity and 3.5x current EBITDA. LISI AEROSPACE (61% of total consolidated revenue) Record revenue driven by strong activity across all segments of the aerospace market and accelerating demand for new aircraft Gradual improvement in industrial productivity following high recruitment levels over the past two years Positive free cash flow driven by improved operating income Analysis of revenue trends Revenue in €m 2025 2024 2025/2024 At constant scope and exchange rates Q1 294.4 252.5 +16.6% +14.4% Q2 306.5 252.5 + 21.4% + 24.8% 6 months ended June 30 600.8 505.0 + 19.0% +19.6% Aerospace market The favorable long-term outlook for the global commercial aviation market, confirmed at the Paris Air Show, is reflected in the high level of orders recorded by manufacturers. The visibility of order books is very good for 2025. Production rates are increasing for the Airbus A320 family (currently 61 aircraft, with a target of 75 in 2027) and for the A350 program. In addition, the resumption of production rates for the B737 MAX and B787 programs at Boeing has largely limited the impact of the strike at the end of 2024 on the first half of 2025. The significant return of long-haul orders and the resilience of the helicopter and military market segments, which account for between 10% and 15% of the division's business, are supporting demand over the long term. Comments on half-year activity LISI AEROSPACE division revenue amounted to 600.8€m in the first half of 2025, up +19.0% compared to the same period in fiscal year 2024. The ramp-up of single-aisle aircraft and maintenance activities benefited all product lines. The "Fasteners" segment grew by +17.7% in Europe, driven by Airbus and the gradual ramp-up of the A350 program. In the United States, the "Fasteners" segment benefited from Boeing's ramp-up and a catch-up effect on sales prices achieved with a time lag compared to Europe. As a result, revenue rose by +25.6% compared to the same period last year. The "Structural Components" business posted growth of +15.5% compared with the first half of 2024 and is facing strong demand. The increase in revenue for the LISI AEROSPACE division, adjusted for currency fluctuations and excluding scope effects, was +19.6% in the first half of 2025. Results The division is gradually benefiting from higher volumes, productivity gains following significant recruitment in the two previous financial years, and the ongoing optimization of production flows. The current EBITDA margin thus gained +3.4 points compared with the same period last year, reaching 17.1% of revenue. EBIT increased 1.8 times compared with the first half of 2024, reaching 74.4 €m for the half-year. The current operating margin improved by 4.4 points compared with the same period last year, reaching 12.4% of the division's revenue. The division's Free Cash Flow increased significantly compared to the first half of 2024 (1.4 €m as of June 30, 2025, compared to -21.9 €m as of June 30, 2024). This was mainly due to a significant increase in cash flow from operations and the contribution of certain customers to the financing of raw material inventories in a context of rising production. Capital expenditure amounted to 31.9 €m and were mainly intended to strengthen production capacity in response to increased customer demand and to improve industrial productivity. LISI AUTOMOTIVE (30% of total consolidated revenue) Strong momentum in new product orders Market share gains in a context of declining global production by the division's customers Improvement in key management indicators thanks to significant efforts to adapt the cost structure Positive free cash flow with controlled inventory levels Analysis of revenue trends Revenue in €m 2025 2024 2025/2024 At constant scope and exchange rates Q1 148.3 157.3 -5.7% -3.7% Q1 143.8 153.3 -6.2% -3.2% Six months ended June 30 292.1 310.6 -6.0% -3.5% Automotive market Global light vehicle registrations rose by 4.9% compared with the same period last year. Global sales in terms of registrations rose slightly in all markets. China was the most dynamic market (+11.5%), followed by North America (+3.7%) and Europe (+0.1%). Comments on half-year activity LISI AUTOMOTIVE's revenue amounted to 292.1 €m in the first half of 2025, down -6.0% compared to the same period in 2024. At constant exchange rates and restated for the disposal of LISI AUTOMOTIVE NOMEL, the decline was limited to -3.5% in the first half of 2025. Revenue is in line with the decline in global production (estimated at -4.0% (1) for LISI AUTOMOTIVE division's automotive customers), demonstrating the division's resilience in a difficult market. New product orders remained at a high level of 12.3% of revenue for the half-year (13.6% in the first half of 2024). They are particularly strong in "Clipped Solutions" in Europe and the United States and in "Safety Mechanical Components" in the braking sector in particular. Results In this environment, the division's solid financial performance in the first half of 2025 was the result of the cost optimization measures implemented with discipline in recent years. As a result, current operating income (EBITDA) rose by +20.9% compared with the same period last year to 32.3 €m (11.1% of revenue), compared with 26.7 €m in the first half of 2024 (8.6% of revenue). It benefited not only from lower fixed costs but also from the shift in the product portfolio towards higher value-added parts. With an EBIT of 14.2 €m, up +54.6% compared to the first half of 2024, the operating margin gained +1.9 point to 4.9%. The increase in cash flow from operations and inventory management tailored to needs resulted in free cash flow of 5.0 €m, up +4.0 €m compared to the first half of 2024. This takes into account continued investments in new product development and industrial productivity improvements. LISI MEDICAL (9% of total consolidated revenue) Business more dynamic in Europe than in the United States Operating margin improving Free cash flow remains positive Analysis of revenue trends Revenue in €m 2025 2024 2025/2024 At constant scope and exchange rates Q1 44.7 39.7 +12.5% +11.0% Q2 42.4 48.8 -13.1% -9.8% Six months ended June 30 87.1 88.5 -1.6% -0.5% Medical market The global market for medical implants confirmed its structural growth momentum in the first half of 2025, still driven by demand for technical and innovative products. (1) Source: IHS Comments on half-year activity LISI MEDICAL's revenue amounted to 87.1 €m in the first half of 2025, down -1.6% compared to the same period last year. This decline is the result of a temporary adjustment in response to rising demand in Europe and a slowdown in the United States, ahead of an expected recovery in the second half of 2025. At constant exchange rates and with no changes in scope, revenue was stable (-0.5%) compared to the first half of 2024. Results EBITDA amounted to 14.2 €m (16.3% of revenue), up compared with the same period last year (13.1 €m and 14.8% of revenue). The division benefited from the resolution of raw material supply disruptions, which had temporarily affected production organization in 2024, and improved its overall operating parameters. EBIT rose to 9.2 €m (+36.6% compared to H1 2024). The current operating margin reached 10.6%, up +3.0 points compared to 7.6% in the first half of 2024. Working capital requirements have been adjusted to the level of activity, enabling the division to maintain positive free cash flow of 2.0 €m (2.3% of revenue) and thus finance investments mainly aimed at increasing new production capacity to support the growth of new products. LISI GROUP'S OUTLOOK AND OBJECTIVES FOR 2025 LISI AEROSPACE The gradual ramp-up confirms that demand remains strong over the long term in civil aerospace across all platforms . All other market segments, including helicopters and military, are also dynamic. In addition, LISI AEROSPACE announces the renewal of its "Fasteners" contract with Airbus, which is the division's largest contract and demonstrates Airbus' renewed confidence in the expertise and performance of the solutions offered by LISI AEROSPACE. It consolidates a long-standing partnership spanning several decades and positions LISI AEROSPACE as a strategic long-term supplier for the European manufacturer. LISI AUTOMOTIVE The order books for the LISI AUTOMOTIVE division remain stable in the short term, supported by a good positioning on new vehicles and a consistently high level of new product orders in a global automotive market that remains marked by low visibility. The division is supporting this trend by adapting its geographical footprint and lowering its break-even point. In addition, on April 19, LISI AUTOMOTIVE submitted a non-binding offer and signed an exclusive agreement for a period of six months to acquire the assets of a Hungarian company specializing in plastic assembly components. This Hungarian facility would enable the Clipped Solutions Business Group to accelerate its development with its ecosystem of automotive customers (OEMs and Tier1) based in Central Europe. The transaction could be completed in the second half of the year. LISI MEDICAL The long-term growth prospects for minimally invasive robotic surgery and orthopedic reconstruction remain very promising. The division benefits from a robust order book. The focus will be on the continued development of new products and increasing production volumes, leveraging the recently completed expansion of the Big Lake site in the United States. On July 9, 2025, the LISI Group announced that it had entered into exclusive discussions with SK CAPITAL to acquire its LISI MEDICAL division. This project aims to accelerate the next phase of LISI MEDICAL's development by enabling it to benefit from SK CAPITAL's solid experience in the life sciences sector and its leading expertise in France. They will also provide the financial strength needed to support the company in the long term. LISI MEDICAL will thus be able to expand its offering and capabilities, while strengthening its position as a leading partner to major MedTech players. In addition, LISI Group plans to become a partner in SK CAPITAL's development strategy by acquiring a 10% stake in the holding company that owns the entire business acquired by SK CAPITAL, thereby joining the planned transformation project. The transaction remains subject to consultation with the employee representative bodies of the French entities concerned and to the obtaining of the necessary authorizations. Subject to obtaining these authorizations and approvals, the transaction could be completed in the second half of 2025. Once completed, this transaction will have a significant impact on the Group's consolidated financial statements. It should result in a sharp increase in net income in 2025 and a significant reduction in net financial debt, particularly the 2022 loan facilities repayable without penalty. LISI Group The solid performance in the first half of the year strengthens the LISI Group's confidence in achieving the 2025 objectives set last February: to improve its main financial indicators, in particular EBIT, for the third consecutive year, while maintaining positive free cash flow generation. Nevertheless, the Group remains vigilant in the face of global geopolitical and macroeconomic uncertainties, particularly changes in customs policies and currency exchange rates. With its strengthened financial position, the Group is confident that it will consolidate its global leadership positions in its chosen niche markets in the future. Income statement of LISI Group (in thousands of euros) 06/30/2025 06/30/2024 REVENUE EXCL. TAX 978 779 903 588 Changes in inventories, finished products and production in progress 18 839 31 834 Total production 997 617 935 421 Other income 30 236 26 042 TOTAL OPERATING REVENUES 1 027 853 961 463 Consumed goods (292 132) (289 308) Other purchases and external expenses (221 743) (209 352) Taxes and duties (8 202) (7 913) Employee benefits expense (including temps) (358 456) (347 706) EBITDA 147 319 107 184 Depreciation (52 287) (52 167) Net provisions 617 (1 005) CURRENT OPERATING PROFIT (EBIT) 95 649 54 011 Non-recurring operating income and expenses (3 443) (3 082) OPERATING PROFIT 92 207 50 929 Financing expenses and revenue on cash (10 896) (12 001) Revenue on cash 2 289 2 651 Financing expenses (13 186) (14 653) Other financial income and expenses (29 148) 3 638 Other financial items 12 290 7 534 Other interest expenses (41 438) (3 896) Taxes (including CVAE (Tax on Companies' Added Value)) (13 451) (11 361) PROFIT (LOSS) FOR THE PERIOD 38 710 31 204 Attributable as company shareholders' equity 38 506 31 571 Interest not granting control over the company 204 (367) EARNINGS PER SHARE (IN €) 0,84 0,69 DILUTED EARNINGS PER SHARE (IN €) 0,83 0,68 Statement of comprehensive income of LISI Group (in thousands of euros) 06/30/2025 06/30/2024 PROFIT (LOSS) FOR THE PERIOD 38 710 31 204 Elements not recyclable in result Revaluation of net liabilities (assets) of defined benefit plans (gross element) -443 -969 Revaluation of net liabilities (assets) of defined benefit plans (tax impact) 0 0 Elements that can subsequently be recycled as a result Exchange rate differences resulting from foreign operations -46 516 11 781 Hedging instruments (gross element) 2 736 -130 Hedging instruments (tax impact) -698 71 TOTAL OTHER PORTIONS OF GLOBAL EARNINGS FOR THE PERIOD, AFTER TAXES -44 921 10 751 TOTAL OVERALL INCOME FOR THE PERIOD -6 212 41 955 Attributable as company shareholders' equity -6 086 42 224 Interest not granting control over the company -125 -267 Consolidated statement of financial position of LISI GROUP ASSETS ASSETS (in thousands of euros) 06/30/2025 12/31/2024 NON-CURRENT ASSETS Goodwill 395 313 419 379 Other intangible assets 29 117 29 693 Tangible assets 738 505 765 416 Non-current financial assets 25 570 21 501 Deferred tax assets 46 251 44 913 Other non-current assets 109 123 TOTAL NON-CURRENT ASSETS 1 234 865 1 281 025 CURRENT ASSETS Inventories 497 545 468 174 Taxes - Claim on the state 13 397 12 360 Trade and other receivables 281 706 244 995 Cash and cash equivalents 255 248 191 660 TOTAL CURRENT ASSETS 1 047 897 917 190 Assets held for sale - 12 068 TOTAL ASSETS 2 282 762 2 210 283 TOTAL EQUITY AND LIABILITIES TOTAL EQUITY AND LIABILITIES (in thousands of euros) 06/30/2025 12/31/2024 SHAREHOLDERS' EQUITY Capital stock 18 615 18 615 Additional paid-in-capital - - Treasury shares (19 391) (20 080) Consolidated reserves 931 104 891 754 Conversion reserves 13 464 59 635 Other elements of comprehensive income (4 716) (6 295) Profit (loss) for the period 38 506 56 006 TOTAL SHAREHOLDERS' EQUITY - GROUP'S SHARE 977 574 999 633 Interest not granting control over the company 6 441 6 567 TOTAL SHAREHOLDERS' EQUITY 984 014 1 006 200 NON-CURRENT LIABILITIES Non-current provisions 48 651 48 627 Non-current borrowings 520 288 547 121 Other non-currents liabilities 12 191 14 979 Deferred tax liaibilities 45 659 47 973 TOTAL NON-CURRENT LIABILITIES 626 789 658 700 CURRENT LIABILITIES Current provisions 6 880 15 327 Current borrowings 254 636 133 070 Trade and other accounts payable 395 838 378 591 Taxes due 14 604 5 535 TOTAL CURRENT LIABILITIES 671 959 532 523 Liabilities directly associated with assets held for sale - 12 860 TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 2 282 762 2 210 283 * Including short-term banking facilities 156 208 39 390 Consolidated cash flow statement of LISI Group (in thousands of euros) 06/30/2025 06/30/2024 OPERATING ACTIVITIES NET PROFIT (LOSS) 38 710 31 204 Elimination of net expenses not affecting cash flows: - Depreciation, Amortization and non-current financial provisions 45 934 52 631 - Changes in deferred taxes (4 324) (1 549) - Incarne on disposals, provisions for liabilities and others 8 967 2 269 GROSS CASH FLOW MARGIN 89 287 84 555 Net changes in provisions associated with ongoing operations (501) 1 448 OPERATING CASH FLOW 88 787 86 004 Income tax expense elimination 17 775 12 910 Restatement of financial items (interest and exchange) 29 720 13 060 Effect of changes in inventory (42 200) (42 031) Effect of changes in accounts receivable and accounts payable (17 025) 410 NET CASH PROVIDED BY OR USED FOR OPERATIONS BEFORE TAX 77 056 70 352 Tax paid (8 924) (15 097) CASH PROVIDED BY OR USED FOR OPERATING ACTIVITIES (A) 68 133 55 256 INVESTMENT ACTIVITIES Acquisition of consolidated companies - - Acquired cash - - Acquisition of tangible and intangible fixed assets (53 322) (55 719) Acquisition of financial assets (5 000) (5 112) Change in granted loans and advances - 216 TOTAL CASH USED FOR INVESTMENT ACTIVITIES (58 322) (60 615) Divested cash (6 671) - Disposal of consolidated companies - - Disposal of tangible and intangible fixed assets 619 212 Disposal of financial assets - - TOTAL CASH FROM DISPOSALS (6 053) 212 CASH PROVIDED BY OR USED FOR INVESTMENT ACTIVITIES (B) (64 377) (60 403) FINANCING ACTIVITIES Capital increase - - Capital decrease (OPRA) - - Dividends paid to Group shareholders (17 897) (14 195) Dividends paid to minority interests of consolidated companies - - TOTAL CASH FROM EQUITY TRANSACTIONS (17 897) (14 195) New long-term loans 41 573 37 715 New short-term loans 1 702 761 Repayment of long-term loans 640 (1 495) Repayment of short-term loans (59 018) (72 214) Net interest expense paid (12 183) (13 057) TOTAL CASH FROM ON LOANS AND OTHER FINANCIAL LIABILITIES (27 287) (48 290) CASH PROVIDED BY OR USED FOR FINANCING ACTIVITIES (C) (45 184) (62 485) Effect of change in foreign exchange rates (D) (12 445) (926) Effect of adjustments in treasury shares (D) 644 (715) CHANGES IN CASH (A+B+C+D) (53 230) (69 273) Cash at January 1 (E) 152 270 117 353 Cash at year-end (A+B+C+D+E) 99 040 48 079 Cash and cash equivalents 255 248 151 544 Short-term banking facilities (156 208) (103 464) CLOSING CASH POSITION 99 040 48 079 Statement of changes in equity of LISI Group Capital stock (in thousands of euros) Capital-linked premiums Treasury shares Consolidated reserves Conversion reserves Other elements of comprehensive income Profit for the period, Group share Group's share of shareholders' equity Minority interests Total shareholders' equity SHAREHOLDERS' EQUITY AT 18 615 - (1tı 638) 866 704 35 tı08 (6 554) 37 533 tı32 565 6 171 tı38 736 Profit (loss) for the period N (a) - - - - - - 31 571 31 571 (367) 31 204 Translation differences (b) - - - - 11 676 - - 11 676 105 11 781 Payments in shares - - - 1 295 - - - 1 295 - 1 295 Restatement of treasury shares - - (505) 13 - - - (492) - (492) Revaluation of net liabilities (assets) of - - - - - (969) - (969) - (969) Appropriation of N-1 earnings - - - 37 533 - - (37 533) - - - Dividends distributed - - - (14 195) - - - (14 195) - (14 195) Restatement of financial instruments (d) - - - - - (54) - (54) (5) (59) Various - - - (24) - - - (24) - (24) SHAREHOLDERS' EQUITY AT JUNE 30 18 615 - (20 143) 8tı1 330 47 584 (7 577) 31 571 tı61 374 5 tı03 tı67 277 including total income and expenses - - - - 11 676 (1 023) 31 571 42 224 (267) 41 955 SHAREHOLDERS' EQUITY AT 18 615 - (20 080) 8tı1 754 5tı 635 (6 2tı5) 56 006 tıtıtı 633 6 567 1 006 200 Profit (loss) for the period N (a) - - - - - - 38 506 38 506 204 38 710 Translation differences (b) - - - - (46 171) - - (46 171) (345) (46 516) Payments in shares - - - 989 - - - 989 - 989 Restatement of treasury shares - - 689 283 - - - 972 - 972 JANUARY 1, 2024 defined benefit plans (c) 2024 reported for the year (a) + (b) + (c) + (d) JANUARY 1ST, 2025 Revaluation of net liabilities (assets) of defined benefit plans (c) - - - - - (443) - (443) - (443) Appropriation of N-1 earnings - - - 56 006 - - (56 006) - - - Dividends distributed - - - (17 897) - - - (17 897) - (17 897) Restatement of financial instruments (d) - - - - - 2 022 - 2 022 16 2 038 Various - - - (38) - - - (38) - (38) SHAREHOLDERS' EQUITY AT JUNE 30 2025 18 615 - (1tı 3tı1) tı31 104 13 464 (4 716) 38 506 tı77 574 6 441 tı84 014 including total income and expenses reported for the year (a) + (b) + (c) + (d) - - - - (46 171) 1 579 38 506 (6 086) (125) (6 212)