Montana Aerospace : Interim Finanzreport - Halbjahresbericht 2025

About this update from Montana Aerospace Ag

INTERIM FINANCIAL REPORT FIRST HALF-YEAR 2025 WE SHAPE THE FUTURE. WITH EXPERIENCE, A SPIRIT OF INNOVATION AND THE HIGHEST STANDARDS, WE ARE SETTING OUT FOR NEW HORIZONS. 2 INTERIM REPORT FIRST HALF-YEAR 2025 | MONTANA AEROSPACE AG MONTANA AEROSPACE AG -SELECTED KEY FIGURES For the six months ended 30 June (financial figures in M€) 2025 2024 yoy change Net Sales 820.6 719.5 +101.1 EBITDA 101.4 75.2 +26.2 Adjusted EBITDA 102.0 79.3 +22.7 Adjusted EBITDA margin (%) 12.4% 11.0% +1.4% Operating result 52.1 28.7 +23.4 Result for the period 6.4 -17.4 +23.8 Net Cash from operating activities 38.5 -4.3 +42.8 Net Cash from investing activities -37.5 -38.0 +0.5 Net Cash from financing activities -3.5 -20.7 +17.2 Free Cash Flow 1.0 -42.3 +43.3 CAPEX spent -41.1 -38.8 -2.3 Trade Working Capital * 375.3 353.6 +21.7 Equity Ratio (%) * 51.5% 50.8% +0.7% Net Debt (cash) * 237.6 210.9 +26.7 Total Assets * 1,792.3 1,830.7 -38.4 Employees 7,774 7,553 +221 * Comparison period is 31 December 2024 3 INTERIM REPORT FIRST HALF-YEAR 2025 | MONTANA AEROSPACE AG TABLE OF CONTENTS MONTANA AEROSPACE AG - SELECTED KEY FIGURES 3 FINANCIAL OVERVIEW 5 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 10 THE MONTANA AEROSPACE EQUITY STORY 29 ABOUT MONTANA AEROSPACE 31 DISCLAIMER 32 4 INTERIM REPORT FIRST HALF-YEAR 2025 | MONTANA AEROSPACE AG FINANCIAL OVERVIEW Earnings For the six months ended 30 June (in TEUR) 2025 2025 (adjustments) 2024 2024 (adjustments) Net Sales 820,636 719,549 Change in finished and unfinished goods 16,717 30,603 Own work capitalized 4,710 4,558 Other operating income 21,115 7,857 Cost of materials, supplies and services -510,197 -464,070 Personnel expenses -165,993 -139,159 Other operating expenses -85,545 -84,118 EBITDA * 101,442 75,220 Legal costs 163 3,443 Stock option plans (share-based payment) MSOP 406 681 Adjusted EBITDA 102,011 79,344 Adjusted EBITDA margin 12.4% 11.0% Depreciation and amortization -49,314 -46,545 Operating Profit (EBIT) 52,128 28,675 Financial result -47,416 -17,624 Share of result of equity-accounted investees, net of tax - 383 Result before tax 4,713 11,434 Income tax expense / income 1,705 -2,239 Result from continuing operations 6,417 9,195 Result from discontinued operation, net of tax ** - -26,621 Result for the period 6,417 -17,426 Thereof attributable to: Owners of Montana Aerospace AG 6,385 -17,260 Non-controlling interests 32 -166 * EBITDA is calculated as result for the period before income tax expense, interest income, other financial income, interest expenses, other financial expenses and depreciation and amortization. ** The Group has elected to present the result after tax of the discontinued operation in a separate amount in the statement of comprehensive income and has disaggregated this separate amount into revenue, expenses and result before tax in Note 10. Net Sales In the first six months of 2025, Montana Aerospace generated consolidated net sales of EUR 820.6 million, an increase of 14.1% compared to EUR 719.5 million in the first half of the previous year. The largest contribution to net sales was made by the Aerostructures segment with EUR 429.9 million, closely followed by the Energy segment with EUR 356.7 million. The positive net sales development was solely driven by organic growth in both segments. In the Aerostructures segment, the growth was supported by gains in market share while the Energy segment benefited from a highly positive tailwind in the industry. EBITDA On an unadjusted basis, the Group's reported EBITDA increased from EUR 75.2 million in the first six months of 2024 to EUR 101.4 million in the first six months of 2025, an increase of 34.9%. This translates into a Group EBITDA margin of 12.4% compared to 10.5% in the same period last year. Accounting for smaller non-recurring and non-operational items - mainly expenses related to legal fees and the management stock option program (MSOP) - the adjusted EBITDA reached EUR 102.0 million in the first six months of 2025, up from EUR 79.3 million in the same period of 2024. The two minor adjustments to the reported EBITDA in the first six months of 2025 were the legal costs (EUR 0.2 million) and the expenses related to the management stock option program (MSOP) (EUR 0.4 million), totaling EUR 0.57 million. Operating result (EBIT) The operating result (EBIT) reached EUR 52.1 million as of 30 June 2025, a considerable increase compared to EUR 28.7 million EBIT in the first six months of 2024. Total depreciation and amortization expenses amounted to EUR 49.3 million in the first six months of 2025 compared to EUR 46.5 million in the same period of 2024. No adjustments to depreciation and amortization (impairment) were made. Net Sales and EBITDA development per segment in EURm Aerostructures Energy H1 2024 H1 2025 H1 2024 H1 2025 Net Sales 409.0 429.9 311.7 356.7 yoy growth +5.1% +14.4% EBITDA 60.1 76.4 18.2 24.0 yoy growth +27.2% +32.1% In the first half of 2025, Montana Aerospace's Aerostructures and Energy segments continued to drive the Group's growth trajectory. Aerostructures posted net sales of EUR 429.9 million, up 5.1% (yoy), while EBITDA rose by 27.2% to EUR 76.4 million. This performance was driven by strong operational execution, improved cost absorption, and a growing share of business with third-party customers beyond Airbus and Boeing. Strategic delivery sequencing further supported capacity utilization and margin expansion, even as OEM production rates remained flattish. The Energy segment also delivered a strong performance, with net sales increasing by 14.4% to EUR 356.7 million and EBITDA climbing 32.1% to EUR 24.0 million. This growth reflects the momentum from the global energy transition, with robust demand for high-voltage infrastructure and a healthy pipeline of long-term contracts. Together, both segments underscore Montana Aerospace's ability to deliver profitable growth across diverse market environments, despite volatility in the aerospace sector. Trade Working Capital Over the past five quarters, TWC has remained stable relative to sales, fluctuating within a narrow range of 23-25%. This consistency is in line with the Group's objective to support growth without overextending its balance sheet. Net Income Montana Aerospace delivered a solid net income of EUR 6.4 million in the first half of 2025, despite being impacted by non-cash foreign exchange losses of around EUR 24 million. These FX effects, driven by USD rate developments and the valuation of intercompany loans, are accounting-related and did not affect our cash flow. Adjusted for these one-off items, our net income would have exceeded EUR 30 million. Free cash flow In H1 2025, we have been able to turn our free cash flow around, getting from negative EUR 8.2 million in Q2 2024 to a positive EUR 26.0 million in Q2 2025. This reflects our focus on operational efficiency and disciplined cash management. Net Debt The Group has also actively strengthened its capital structure over the past year by significantly reducing its net debt from EUR 342.4 million in Q2 2024 to EUR 237.6 million in Q2 2025. This was the result of disciplined cash management and a clear focus on operational efficiency. At the same time, the Group brought the net debt-to-EBITDA ratio down from 2.5x to 1.3x, giving greater financial flexibility. This improved position allows to move forward to invest in future growth opportunities while maintaining a solid financial foundation. Cash flow statement For the six months ended 30 June (in TEUR) Cash and cash equivalents at the beginning of the period 2025 133,529 2024 175,252 Net cash provided / used in operating activities 38,494 -4,290 Net cash used in investing activities -37,461 -37,996 Net cash used in / from financing activities -3,532 -20,658 +/- effect of exchange rate fluctuations on cash held -3,827 -278 Cash and cash equivalents at the end of the period 127,202 112,030 Balance sheet (in TEUR) 30 June 2025 31 December 2024 ASSETS Non-current assets 1,004,849 1,037,619 Current assets 787,404 793,112 o/w cash and cash equivalents 127,202 133,529 Total Assets 1,792,253 1,830,732 EQUITY AND LIABILITIES Total equity 923,772 929,388 Non-current liabilities 472,102 474,825 Current liabilities 396,378 426,519 Total equity and liabilities 1,792,253 1,830,732 As of 30 June 2025, total assets amounted to EUR 1,792.3 million (31 December 2024: EUR 1,830.7 million), with total non-current assets of EUR 1,004.8 million (31 December 2024: EUR 1,037.6 million). Total non-current assets included mainly intangible assets and goodwill of EUR 292.2 million (31 December 2024: EUR 309.8 million) and property, plant, and equipment of EUR 650.8 million (31 December 2024: EUR 669.9 million). Within the total current assets of EUR 787.4 million (31 December 2024: EUR 793.1 million), inventories amounted to EUR 372.0 million (31 December 2024: EUR 389.4 million), trade receivables to EUR 182.3 million (31 December 2024: EUR 181.8 million), other receivables and assets to EUR 85.6 million (31 December 2024: EUR 60.5 million), and cash and cash equivalents to EUR 127.2 million (31 December 2024: EUR 133.5 million). Total liabilities were at EUR 868.5 million as of 30 June 2025 (31 December 2024: EUR 901.3 million), of which EUR 396.4 million are current liabilities (31 December 2024: EUR 426.5 million) and EUR 472.1 million are non-current liabilities (31 December 2024: EUR 474.8 million). Non-current liabilities include bank loans and borrowings of EUR 210.8 million (31 December 2024: EUR 217.8 million), other financial liabilities of EUR 114.3 million (31 December 2024: EUR 101.8 million) and other liabilities and accruals of EUR 47.3 million (31 December 2024: EUR 48.9 million). Current liabilities include loans and borrowings of EUR 35.1 million (31 December 2024: EUR 18.4 million) and trade payables of EUR 180.3 million (31 December 2024: EUR 235.2 million). Total equity decreased slightly to EUR 923.8 million (31 December 2024: EUR 929.4 million) and included EUR 924.7 million of share premium (31 December 2024: EUR 922.3 million). At 30 June 2025, Montana Aerospace's trade working capital amounted to EUR 375.3 million compared to EUR 342.2 million in H1 2024. Supplemental financial information USAGE OF ALTERNATIVE PERFORMANCE MEASURES Montana Aerospace AG is managed in accordance with internally defined financial and non-financial key figures in the interest of achieving a sustainable increase in value. The following key financial figures are used for the purpose of value-oriented management and in the context of the H1 2025 Interim Report: Organic Growth refers to increases in net sales (in %) excluding any contributions from acquired companies. EBITDA refers to operating profit before interest, taxes, depreciation and amortization. Adjusted EBITDA refers to operating profit before interest, taxes, depreciation and amortization adjusted for one-off effects. Operating Cash Flow is defined as net cash used / provided in operating activities. Investing Cash Flow is defined as net cash used / provided in investing activities. Financing Cash Flow is defined as net cash used / provided in financing activities. Free Cash flow is defined as the sum of operating cash flow and investing cash flow. CAPEX (capital expenditures) refers to payments made for purchase of PPE and intangible assets. Equity Ratio refers to total equity in % of total equity and liabilities. Trade Working Capital includes trade receivables and inventories less trade payables and advances received from customers. Due to the Group's dynamic growth, the trend in the number of employees is also an important non-financial indicator. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (unaudited) 30 JUNE 2025 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 11 CONSOLIDATED STATEMENT OF PROFIT OR LOSS 12 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (OCI) 13 CONSOLIDATED STATEMENT OF CASH FLOWS 14 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 2025 15 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 2024 15 REPORTING ENTITY 16 BASIS OF ACCOUNTING 16 USE OF JUDGEMENTS AND ESTIMATES 17 CHANGES IN MATERIAL ACCOUNTING POLICIES 17 SEGMENT REPORTING 18 FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENT 21 OTHER FINANCIAL LIABILITIES 24 EQUITY 24 OTHER FINANCIAL EXPENSES 26 DISCONTINUED OPERATION 26 SHARE-BASED PAYMENT ARRANGEMENTS 27 CONSOLIDATED STATEMENT OF CASH FLOW 28 SUBSEQUENT EVENTS 28 Consolidated statement of financial position (unaudited) Notes 30.06.2025 31.12.2024 (in TEUR) ASSETS 292,164 309,780 650,763 669,922 5,211 5,211 2,215 2,265 40,893 37,155 13,603 13,286 1,004,849 1,037,619 371,973 389,394 18,172 25,257 182,281 181,778 362 500 1,818 2,130 85,595 60,524 127,202 133,529 787,404 793,112 1,792,253 1,830,732 Intangible assets and goodwill Property, plant and equipment Equity-accounted investees Other financial assets Other receivables and assets Deferred tax assets Non-current assets Inventories Contract assets Trade receivables Income tax receivables Receivables from affiliated companies Other receivables and assets Cash and cash equivalents Current assets TOTAL ASSETS EQUITY AND LIABILITIES 8 56,617 56,501 8 924,693 922,326 8 -55,588 -47,207 8 925,722 931,620 8 -1,949 -2,232 8 923,772 929,388 217,798 210,778 7 114,318 101,831 40,009 39,335 18,130 8,821 48,902 474,825 18,450 33,485 39,613 17,191 9,447 47,271 472,102 35,145 7 4,584 6,315 7,633 6,802 7,177 10,050 32,940 30,089 180,255 235,193 26,780 19,006 6 23 101,858 100,591 396,378 426,519 868,480 901,344 1,792,253 1,830,732 Share capital Share premium Retained earnings Equity attributable to owners of Montana Aerospace AG Non-controlling interests Total equity Loans and borrowings Other financial liabilities Deferred tax liabilities Provisions Employee benefits Contract liabilities Other liabilities and accruals Non-current liabilities Loans and borrowings Other financial liabilities Tax liabilities Provisions Employee benefits Trade payables Contract liabilities Liabilities from affiliated companies Other liabilities and accruals Current liabilities TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES The notes on pages 16 to 28 are an integral part of these condensed consolidated interim financial statements. Consolidated statement of profit or loss (unaudited) (in TEUR) Net Sales Change in finished and unfinished goods Own work capitalized Other operating income Cost of materials, supplies and services Personnel expenses Other operating expenses EBITDA * Depreciation and amortization OPERATING RESULT Interest income Interest expenses Other financial income Other financial expenses FINANCIAL RESULT Share of result of equity-accounted investees, net of tax RESULT BEFORE TAX Income tax expense / income RESULT FROM CONTINUING OPERATIONS Result from discontinued operation, net of tax ** RESULT FOR THE PERIOD Thereof attributable to: Owners of Montana Aerospace AG Non-controlling interests EARNINGS PER SHARE (IN EUR) Basic earnings per share Diluted earnings per share EARNINGS PER SHARE - CONTINUING OPERATIONS (IN EUR) Basic earnings per share Diluted earnings per share 01-06/2024 Notes 04-06/2025 01-06/2025 04-06/2024 5 411,868 820,636 364,515 13,057 2,430 2,864 -228,317 -70,973 -45,275 38,301 -23,991 14,310 2,782 -11,731 4,238 5,779 16,717 2,621 4,710 11,284 21,115 -253,224 -510,197 -83,068 -165,993 -42,356 -85,545 52,903 101,442 -24,418 -49,314 28,485 52,128 1,407 2,498 -9,594 -18,837 2,187 3,874 9 -23,646 -34,951 -2,953 -7,664 596 7,242 -1,773 5,469 -29,646 -47,416 0 0 -1,160 4,713 2,306 1,705 1,145 6,417 10 0 0 -25,630 1,145 6,417 -20,161 719,549 30,603 4,558 7,857 -464,070 -139,159 -84,118 75,220 -46,545 28,675 4,241 -22,926 7,236 -6,175 -17,624 383 11,434 -2,239 9,195 -26,621 -17,426 1,116 6,385 -20,069 -92 29 32 -17,260 -166 0.02 0.10 -0.33 -0.33 0.02 0.10 -0.28 -0.28 0.02 0.10 0.08 0.08 0.02 0.10 0.15 0.15 * EBITDA is calculated as result for the period before income tax expense, interest income, other financial income, interest expenses, other financial expenses and depreciation and amortization. ** The Group has elected to present the result after tax of the discontinued operation in a separate amount in the statement of comprehensive income and has disaggregated this separate amount into revenue, expenses and result before tax in note 10. The notes on pages 16 to 28 are an integral part of these condensed consolidated interim financial statements. Consolidated statement of profit or loss and other comprehensive income (OCI) (unaudited) (in TEUR) 01-06/2024 Result for the period -17,426 ITEMS THAT WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS Remeasurements of the defined benefit liability (asset) *** 1,005 Related taxes -163 842 ITEMS THAT ARE OR MAY BE RECLASSIFIED SUBSEQUENTLY TO PROFIT OR LOSS Effective portion of changes in fair value of cash flow hedges -5,284 Foreign exchange differences -664 Equity-accounted investees - share of OCI -205 Related taxes 424 -5,729 OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX -4,887 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -22,313 Notes 04-06/2025 01-06/2025 04-06/2024 1,145 6,417 -20,161 0 0 626 -102 524 0 0 0 0 3,515 8,469 -269 -13,108 -20,941 -1,405 0 0 -146 -693 -2,043 107 -10,286 -14,515 -1,713 -10,286 -14,515 -1,189 -9,141 -8,098 -21,350 Thereof attributable to: -9,333 -8,381 -21,238 192 283 -112 Owners of Montana Aerospace AG Non-controlling interests *** For the six months ended 30 June 2025 remeasurements of the defined benefit liability (asset) were not taken into account as they are considered as not material. The notes on pages 16 to 28 are an integral part of these condensed consolidated interim financial statements. -22,087 -226 Consolidated statement of cash flows (unaudited) For the six months ended 30 June (in TEUR) Notes 2025 2024 * CASH FLOW FROM OPERATING ACTIVITIES Result before tax Net interest expense / income 4,713 16,339 -14,709 18,953 Share of result of equity-accounted investees, net of tax 0 -383 Depreciation and amortization 49,314 73,796 Gains and losses from disposals of property, plant and equipment and intangible assets Other non-cash income and expenses 12 467 27,079 -53 -1,312 Subtotal 97,882 76,190 Changes in assets and liabilities: Inventories 5,449 -48,661 Trade receivables and other current assets -33,987 -16,930 Trade payables and other current liabilities -24,598 -11,286 Provisions and liabilities for employee benefits -1,621 3 Subtotal -54,757 -76,874 Income taxes paid -4,632 -3,606 NET CASH FROM OPERATING ACTIVITIES 38,494 -4,290 CASH FLOW FROM INVESTING ACTIVITIES Acquisition of subsidiaries, net of cash acquired 12 -1,500 -2,260 Disposal of subsidiaries, net of cash disposed of 0 1,000 Disposal of discontinued operation, net of cash disposed of 12 Acquisition of intangible assets and property, plant and equipment 760 -41,089 0 -38,809 Disposal of intangible assets and property, plant and equipment 2,167 1,691 Loans granted to joint ventures 0 -2,000 Other payments received for investing activities 80 108 Interest received NET CASH FROM INVESTING ACTIVITIES 2,121 -37,461 2,274 -37,996 CASH FLOW FROM FINANCING ACTIVITIES Payments received for capital increase 8 2,077 140 Issuance of interest-bearing liabilities 32,106 91,480 Repayment of interest-bearing liabilities -24,250 -79,846 Payments of lease liabilities 12 1,582 -12,401 Interest paid -15,047 -20,031 NET CASH FROM FINANCING ACTIVITIES -3,532 -20,658 NET CHANGE IN CASH AND CASH EQUIVALENTS -2,500 -62,944 Cash and cash equivalents as at 1 January 133,529 175,252 Effect of exchange rate changes on cash and cash equivalents -3,827 -278 Cash and cash equivalents as at 30 June 127,202 112,030 * The Group has chosen to present a consolidated cash flow statement that breaks down all cash flows in their entirety - that is, including continuing and discontinued operations. The notes on pages 16 to 28 are an integral part of these condensed consolidated interim financial statements. Consolidated statement of changes in equity 2025 (unaudited) Attributable to owners of the Company (in TEUR) Notes Share capital Share premium Foreign Exchange Differences Fair Value Reserve Other retained earnings Total Retained earnings Total Non-controlling interest Total equity Balance as of January 1, 2025 56,501 922,326 8,405 1,725 -57,337 -47,207 931,620 -2,232 929,388 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD Result for the period 6,385 6,385 6,385 32 6,417 Other comprehensive income for the period, net of tax -21,192 6,426 -14,766 -14,766 251 -14,515 Total -21,192 6,426 6,385 -8,381 -8,381 283 -8,098 TRANSACTIONS WITH OWNERS OF THE COMPANY Capital increase 115 1,961 2,077 2,077 Effect of share-based payments 8 / 11 406 406 406 Total 115 2,367 2,482 2,482 Balance as of June 30, 2025 56,617 924,693 -12,787 8,151 -50,952 -55,588 925,722 -1,949 923,772 The notes on pages 16 to 28 are an integral part of these condensed consolidated interim financial statements. Consolidated statement of changes in equity 2024 (unaudited) Attributable to owners of the Company (in TEUR) Notes Share capital Share premium Foreign Exchange Differences Fair Value Reserve Other retained earnings Total Retained earnings Total Non-controlling interest Total equity Balance as of January 1, 2024 56,480 921,061 39,932 9,935 -91,247 -41,380 936,161 -1,803 934,358 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD Result for the period -17,260 -17,260 -17,260 -166 -17,426 Other comprehensive income for the period, net of tax -809 -4,860 842 -4,827 -4,827 -60 -4,887 Total 0 0 -809 -4,860 -16,418 -22,087 -22,087 -226 -22,313 TRANSACTIONS WITH OWNERS OF THE COMPANY Capital increase 8 132 140 140 Effect of share-based payments 8 / 11 681 681 681 Total 8 813 0 0 0 0 821 0 821 Balance as of June 30, 2024 56,488 921,875 39,123 5,075 -107,665 -63,468 914,895 -2,029 912,866 The notes on pages 16 to 28 are an integral part of these condensed consolidated interim financial statements. NOTES to the condensed consolidated interim financial statements (unaudited) Reporting entity Montana Aerospace AG ("Montana Aerospace" or "the Company") is a worldwide supplier of structural parts for the aerospace and energy industries and was incorporated on 25 November 2019 in Switzerland with its registered office in Reinach, Switzerland. These condensed consolidated interim financial statements as at and for the six months ended 30 June 2025 comprise the Company and its subsidiaries (collectively the 'Group' and individually 'Group companies'). The controlling parent company of Montana Aerospace is Montana Tech Components AG. Basis of accounting These interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with the Group's last annual consolidated financial statements as at and for the year ended 31 December 2024 ("last annual financial statements"). They do not include all of the information required for a complete set of financial statements prepared in accordance with IFRS Accounting Standards. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual financial statements. The accounting policies adopted are consistent with those of the previous financial year (last annual consolidated financial statements of Montana Aerospace as of 31 December 2024). Amendments to IFRS accounting standard that are effective as of 1 January 2025 have no material effect on the Group's financial statements. The Group's sales were not subject to seasonal variations during the reporting period. The consolidated interim financial statements have been prepared under the historical cost convention, unless otherwise indicated. All amounts are in thousands of euros unless otherwise stated. These interim financial statements were authorised for issue by the Board of Directors on 12 August 2025. Use of judgements and estimates In preparing these interim financial statements, management has made judgements, estimates and assumptions that affect the application of the Group's accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. The significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainties were the same as those described in the last annual financial statements of Montana Aerospace. Measurement of fair values A number of the Group's accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. When measuring the fair value of an asset or a liability, the Group uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows. Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. Changes in material accounting policies The accounting policies applied in these consolidated interim financial statements are the same as those applied in the Group's consolidated financial statements as at and for the year ended 31 December 2024. Amendments which apply for the first time in 2025 had no material impact on the condensed interim financial statements. Segment reporting Basis for segmentation Operating segments requiring to be reported are determined on the basis of a management approach. Accordingly, external segment reporting reflects the internal organizational and management structure used within the Group as well as internal financial reporting to the chief operating division maker. In the case of Montana Aerospace, the chief operating decision maker is the Board of Montana Aerospace AG. The reporting is divided into the reportable segments "Aerostructures" and "Energy". In addition, all other segments as well as unallocated costs are reported separately under "All other segments". Aerostructures The Aerostructures segment is a partner for aircraft manufacturers. The segment develops and manufactures aircraft parts. The Group's product portfolio ranges from structural components for fuselage, wings and landing gear to critical engine components subject to high thermal and mechanical loads, and functional components for the cabin interior. Energy The Energy segment produces components for the energy infrastructure. The segment specializes in copper processing and has high-level expertise in copper refinement and insulation systems. The accounting and measurement policies for the segment reporting are based on the IFRS used in the present consolidated financial statements. The Board of Directors (CODM) uses adjusted EBITDA for management purposes. The adjustments are made to eliminate non-operational expenses and income not attributed to management performance. The following were incurred during the reporting and comparison period: For the six months ended 30 June (in TEUR) 2025 2024 EBITDA as reported 101,442 75,220 Legal costs 163 3,443 Stock option plans (share-based payment) 406 681 Adjusted EBITDA 102,011 79,344 Information according to reportable segments The management variables, which are used to assess the performance of the operating segments, are shown below: Reportable segments Aerostructures Energy Total All other segments Group E-Mobility (discontinued operation * ) 2025 2024 80,594 280 80,874 576 576 -27,251 4,302 For the six months ended 30 June (in TEUR) 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 External net sales 429,903 407,878 356,661 311,671 786,564 719,549 34,072 820,636 719,549 Net sales between segments 1,102 0 1,102 -1,102 0 Total Net Sales 429,903 76,584 408,980 356,661 24,033 311,671 786,564 100,617 720,651 34,072 1,394 -1,102 820,636 102,011 719,549 Adjusted EBITDA 63,540 18,189 81,729 -2,385 79,344 Non-operative income and expenses -163 -3,443 -163 -3,443 -406 -681 -569 -4,124 EBITDA 76,421 60,097 24,033 18,189 100,454 78,286 988 -3,066 101,442 75,220 Depreciation and amortization -42,525 -41,789 -4,475 -4,740 -47,000 -46,529 -2,314 -16 -49,314 -46,545 Operating result 52,128 28,675 Financial result -47,416 -17,624 Share of result of equity-accounted investees, net of tax 383 Result before tax 4,713 11,434 Income tax expense / income 1,705 -2,239 Result from continuing operations 6,417 9,195 Result from discontinued operation, net of tax -26,621 Result for the period 36,460 12,568 49,028 1,057 6,417 50,085 -17,426 Investments 25,517 8,735 34,252 34 34,286 * Further information relating to discontinued operation see note 10. A summary of the elimination of intra-Group interdependencies between the segments is provided in the "All other segments" column. This column also contains all other segments as well as facts that are not directly allocated to any segment, such as the effect of share-based payments. Entity-wide disclosures INFORMATION BY GEOGRAPHICAL SEGMENT For the six months ended 30 June 2025 2024 Non-current Non-current (in TEUR) Net Sales * assets ** Net Sales * assets ** Switzerland 784 47 601 Germany 105,893 15,056 84,124 5,411 Austria 17,371 58,466 12,292 23,799 UK 56,187 1,134 51,191 Poland 7,172 4,295 Slovenia 6,337 7,117 Turkey 9,437 6,823 France 17,669 3,693 14,962 3,873 Spain 8,035 2 6,913 Italy 9,778 3,924 6,350 Finland 628 1,500 Sweden 8,828 6,948 Romania 6,519 331,946 5,272 337,733 Belgium 26,581 188,059 21,188 187,873 Rest of Europe 45,645 23,191 37,046 8,434 USA 200,148 164,971 196,262 184,807 Canada 14,673 21,904 9,025 25,328 Mexico 15,137 10,025 Brazil 120,759 37,007 102,340 36,906 Rest of America 19,592 24,768 China 55,382 9,336 55,256 8,229 India 22,671 7,014 18,308 7,806 Vietnam 4,202 77,177 4,363 85,748 Rest of Asia 35,288 27,975 Africa, Australia and New Zealand 5,920 4,605 Total 820,636 942,927 719,549 915,947 * The geographic information on revenues in the table above is based on the customers' location. ** Non-current assets include in this respect property, plant and equipment and intangible assets. PRODUCTS AND SERVICES The Group's revenues and trade receivables are split into the following products and services: For the six months ended 30 June 2025 2024 (in TEUR) Net Sales Trade receivables Net Sales Trade receivables thereof product sales 817,581 180,521 719,522 170,033 thereof service sales 3,055 1,760 27 0 Total 820,636 182,281 719,549 170,033 KEY ACCOUNTS For the six months ended 30 June 2025 - as for the six months ended 30 June 2024 - revenue with a single external customer accounted for 10% or more of the Group sales. This customer contributed a total of 16% of the Group sales (H1/2024: 16%). This revenue is entirely attributable to the Aerostructures segment. Financial instruments - fair values and risk management Accounting classifications and fair values The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value. Fair values for trade and other receivables, trade and other payables, bank loans and borrowings and loan liabilities from affiliated companies are not included in the table below. Their carrying amount is a reasonable approximation of fair value. Bank loans and borrowings are mainly bearing variable interest rates. The put options granted to non-controlling shareholders that are presented in other financial liabilities are categorised as Level 3 within the fair value hierarchy. Total Carrying amount Fair value Other assets and liabilities Measured at fair measured at fair Financial assets value - hedging value in profit measured at Other financial instruments or loss amortised cost liabilities Level 1 Level 2 Level 3 Total 30 June 2025 (in TEUR) Financial assets - measured at fair value Derivative financial instruments 15,004 15,004 Securities 8 8 15,004 8 0 0 15,012 15,004 15,004 0 8 8 Financial assets - not measured at fair value Escrow account 6,753 6,753 Contract assets 18,172 18,172 Trade receivables 182,281 182,281 Receivables from affiliated companies 1,818 1,818 Other financial assets 2,215 2,215 Other receivables and assets 47,857 47,857 Cash and cash equivalents 127,202 127,202 0 0 386,298 0 386,298 Financial liabilities - measured at fair value Derivative financial instruments 9,693 9,693 9,693 0 0 0 9,693 9,693 9,693 Financial liabilities - not measured at fair value Loans and borrowings 245,924 245,924 Other financial liabilities * 80,854 80,854 Lease liabilities 38,011 38,011 Trade payables ** 179,821 179,821 Other liabilities from affiliated companies 2 2 Other liabilities from joint ventures and from associated companies 1,141 1,141 Accruals 38,852 38,852 Other liabilities *** 35,184 35,184 0 0 0 619,793 619,793 * Does not include accrued interest TEUR 35. ** Does not include other payments received TEUR 434. *** Does not include deferred income TEUR 4,068, derivatives TEUR 9,693, government aid & grants TEUR 41,756 and liabilities from other taxes as well as in the context of social security TEUR 18,435. Total Carrying amount Fair value Other assets and liabilities Measured at fair measured at fair Financial assets value - hedging value in profit measured at Other financial instruments or loss amortised cost liabilities Level 1 Level 2 Level 3 Total 31 December 2024 (in TEUR) Financial assets - measured at fair value Derivative financial instruments 1,950 1,950 Securities 168 168 1,950 168 0 0 2,118 1,950 1,950 0 168 168 Financial assets - not measured at fair value Escrow account 7,295 7,295 Contract assets 25,257 25,257 Trade receivables 181,778 181,778 Receivables from affiliated companies 2,130 2,130 Other financial assets 2,265 2,265 Other receivables and assets 44,819 44,819 Cash and cash equivalents 133,529 133,529 0 0 397,073 0 397,073 Financial liabilities - measured at fair value Derivative financial instruments 12,629 12,629 12,629 0 0 0 12,629 12,629 12,629 Financial liabilities - not measured at fair value Loans and borrowings 236,248 236,248 Other financial liabilities * 80,915 80,915 Lease liabilities 27,168 27,168 Trade payables ** 234,759 234,759 Trade payables from affiliated companies 21 21 Other liabilities from affiliated companies 2 2 Other liabilities from joint ventures and from associated companies 1,117 1,117 Accruals 38,643 38,643 Other liabilities *** 30,664 30,664 0 0 0 649,537 649,537 300 300 * Does not include accrued interest TEUR 62. ** Does not include other payments received TEUR 434. *** Does not include deferred income TEUR 7,480, derivatives TEUR 12,629, government aid & grants TEUR 43,800 and liabilities from other taxes as well as in the context of social security TEUR 15,159. Other financial liabilities Other financial liabilities are composed as follows: (in TEUR) 30.06.2025 31.12.2024 Lease liabilities 38,011 27,168 Other * 80,891 80,977 Other financial liabilities 118,902 108,146 Thereof non-current 114,318 101,831 Thereof current 4,584 6,315 * Item "Other" results mainly from profit certificates in the amount of TEUR 65,961 (including accrued dividends): The Belgian Federal Holding and Investment Company ("FPIM / SFPI") holds profit certificates in Asco, issued against a cash consideration in the amount of TEUR 54,312. These profit certificates were subscribed respectively in 2008, 2012 and 2020. A put option is granted to FPIM / SFPI, currently exercisable for all Profit Certificates during a period of 30 calendar days after the 31st of March 2028, and thereafter each time during a period of 30 calendar days after each consecutive period of 3 years after the 31st of March 2028. The price to be paid when the put option is exercised is the initial cash consideration of TEUR 54,312, to be increased with any dividends related to the past financial year(s) that have not been paid. This put option is recognized as a financial liability. Equity Share capital In the current fiscal year, the Company executed a capital increase. Therefore, 108,602 new ordinary shares of a nominal value of CHF 1.00 each out of its authorized capital were issued. As of 30 June 2025, the total authorized and issued number of ordinary shares comprises 62,114,856 shares with a nominal value of CHF 1.00 each. The split of the capital stock is shown in the table below. CAPITAL STOCK 30 June 2025 31 December 2024 Nominal value per share (CHF) 1.00 1.00 Total number of shares 62,114,856 62,006,254 Total amount of share capital (CHF) 62,114,856 62,006,254 Total amount of share capital (EUR) 56,616,706 56,501,344 The Principal Shareholder (Montana Tech Components AG) holds 49.96% of the shares as of 30 June 2025. Earnings per share The calculation of earnings per share has been based on the profit or loss attributable to shareholders of Montana Aerospace AG as presented in the consolidated statement of profit or loss and the weighted average of shares in circulation as of 30 June 2025. 2025 2024 Weighted average of ordinary shares in circulation as of 30 June 62,060,855 61,985,597 For the six months ended 30 June (in TEUR) 2025 2024 Result of the period attributable to owners of Montana Aerospace AG 6,385 -17,260 For the six months ended 30 June (in EUR) 2025 2024 EARNINGS PER SHARE Basic earnings per share 0.10 0.10 -0.28 Diluted earnings per share -0.28 EARNINGS PER SHARE - CONTINUING OPERATIONS Basic earnings per share 0.10 0.15 Diluted earnings per share 0.10 0.15 Share premium For the current fiscal year, a total of TEUR 406 was recognized in equity as share-based remuneration (see note 11). Nature and purpose of reserves The translation reserves comprise all foreign currency differences arising from the translation of the financial statements of foreign operations. Remeasurements of the net defined benefit liabilities are charged or credited to other comprehensive income in the period in which they arise. Dividends The Company has not paid any dividends in the periods presented. Other financial expenses The increase in other financial expenses in the first half-year 2025 mainly relates to higher exchange rate losses. Discontinued operation E-Mobility The segment "E-mobility" was sold in November 2024. Since this group represented a major line of business of the group, it is to be classified as a discontinued operation. Results of discontinued operation For the six months ended 30 June (in TEUR) External net sales 2024 80,594 Other income 2,483 External expenses -109,220 thereof depreciation and amortization -27,251 Results from operating activities -26,143 Income tax -478 Results from operating activities, net of tax -26,621 Profit (loss) from discontinued operations, net of tax -26,621 Basic earnings (loss) per share (EUR) -0.43 Diluted earnings (loss) per share (EUR) -0.43 Cash flows from discontinued operation For the six months ended 30 June (in TEUR) 2024 Net cash from operating activities -4,738 Net cash from investing activities -4,016 Net cash from financing activities -27,419 Net cash flows for the year -36,173 Share-based payment arrangements Management stock option program 2021 (MSOP 2021) The management stock option program (MSOP) was launched by the parent company Montana Tech Components AG, Reinach, Switzerland, to allow employees to subscribe to ordinary shares in Montana Aerospace AG. The vesting period on which the program is based amounts to five years. The share-based payment arrangement requires employees to be in an active employment relationship with the company whenever options are exercised. The expense recognized in the income statement (personnel expenses) for share-based payment came to TEUR 392 in the current fiscal period. The effects in equity amounted to TEUR 392 and consisted of allocations from the forward projection of the MSOP. As of 16 December 2022, Montana Tech Components AG and Montana Aerospace AG agreed to transfer all rights and obligations in relation to the options vesting from 2023, to Montana Aerospace AG. Management stock option program 2022 (MSOP 2022) In 2022, a further management stock option program (MSOP) was launched by the companies Montana Tech Components AG, Reinach, Switzerland (300,000 options; exercise price CHF 25.65), and Montana Aerospace AG, Reinach, Switzerland (150,080 options; exercise price CHF 18.00), to allow employees to subscribe to ordinary shares in Montana Aerospace AG. The vesting period on which the program is based amounts to three years. The share-based payment arrangement requires employees to be in an active employment relationship with the company whenever options are exercised. The expense recognized in the income statement (personnel expenses) for share-based payment came to TEUR 13 in the current fiscal period. The effects in equity amounted to TEUR 13 and consisted of allocations from the forward projection of the MSOP. Management stock option program 2023 (MSOP 2023) In 2023, a further management stock option program (MSOP) was launched by Montana Aerospace AG, Reinach, In 2023, a further management stock option program (MSOP) was launched by Montana Aerospace AG, Reinach, Switzerland, to allow employees to subscribe to ordinary shares in Montana Aerospace AG. The vesting period on which the program is based amounts to two years. The share-based payment arrangement requires employees to be in an active employment relationship with the company whenever options are exercised. The expense recognized in the income statement (personnel expenses) for share-based payment came to TEUR 1 in the current fiscal period. The effects in equity amounted to TEUR 1 and consisted of allocations from the forward projection of the MSOP. Management stock option program 2024 (MSOP 2024) In 2024, a further management stock option program (MSOP) was launched by Montana Aerospace AG, Reinach, Switzerland, to allow employees to subscribe to ordinary shares in Montana Aerospace AG. The vesting period on which the program is based amounts to one year. The share-based payment arrangement requires employees to be in an active employment relationship with the company whenever options are exercised. The expense in the income statement (personnel expenses) for share-based payment as well as the effects in equity were completely recognized in 2024. Consolidated statement of cash flow Other non-cash income and expenses The item "Other non-cash income and expenses" results mainly from foreign exchange effects (TEUR 24,340). Acquisition of subsidiaries less cash acquired The item "Acquisition of subsidiaries less cash acquired" refers to payments of purchase price relating to previous years' acquisition. Disposal of discontinued operation, net of cash disposed of The item "Disposal of discontinued operation, net of cash disposed of" refers to payments received relating to previous years' disposal. Payments of lease liabilities The item "Payments of lease liabilities" includes repayments received amounting to TEUR 5,765 relating to previous years' lease payments. Subsequent events No events took place between 30 June 2025 and 12 August 2025 that would require adjustments to the carrying amounts of the assets or liabilities in these condensed consolidated interim financial statements or would need to be disclosed here. THE MONTANA AEROSPACE EQUITY STORY What arguments support an investment in Montana Aerospace: Positioning in Distinct Future and Growth Markets Montana Aerospace presents shareholders with an investment opportunity in high-growth niche markets with promising futures. Over the long term, the increase in population and prosperity will drive demand for energy and sustainable mobility solutions, both in the air and on the ground. Montana Aerospace's scalable business model aligns with the objective of expanding its market shares in Europe, the Americas, and the APAC region while solidifying its position as a technology leader in megatrends. Our segments - Aerostructures and Energy - hold substantial growth potential, as reflected in our results. In the Aerostructures segment, the rising air traffic and fleet modernizations are significant drivers. In the Energy segment, our goal is to achieve a revenue of 1 billion euros by the end of the decade. The transition to renewable energy is a key challenge of today's society and we provide key technologies for this change. Our strategy is to play an active role in shaping the profound structural changes in the aerospace and energy transition industries with our globally highly integrated manufacturing operations. As a full-service provider following a global local-to-local strategy, and with approximately 7,600 highly skilled employees across 22 locations worldwide, we are ideally positioned to offer forward-thinking solutions to our customers. Entering the Profit Phase The past years have been defined by strong growth-both organic and inorganic-as well as significant countercyclical investments. Since 2018, we have invested over EUR 700 million of capital expenditures (CAPEX), with the majority directed toward expanding capacities and expertise. These investments fueled our growth in an increasingly dynamic supplier landscape. In the fiscal year 2024, we reached the next stage of our long-term strategy: the profit phase. For the first time since the IPO, we achieved both a positive free cash flow and a positive net income. Now, we are capitalizing on the countercyclical investments of the past to unlock overproportionate benefits in the years ahead. PROFITABILITY AND BEYOND AFTER YEARS OF RAMP-UP AND MAJOR INVESTMENT Montana Aerospace Embraces Sustainability We are deeply committed to sustainability and, in 2022, commenced publishing an ESG report. For the fiscal year 2023 we prepared the reported information with reference to the GRI Standards and currently we are preparing the necessary data base to be able to report according to the ESRS standard. Montana Aerospace wants to contribute to the path toward climate neutrality - especially through its innovative solutions in the energy segment, as well as through a streamlined supply chain and the development and use of lightweight materials in the field of aerostructures. This commitment, along with the integration of ESG criteria into the company's philosophy, is a central element of our strategy and long-term success. At Montana Aerospace, we prioritize sustainability goals like: Reduce our CO 2 emissions by enhancing the vertical integration of our value chain. Foster the circular economy by implementing in-house recycling processes. Establish sustainable, long-term relationships with our employees and partners. In 2023, we completed the process of materiality analysis and in 2024, we conducted a double materiality analysis. We also established sustainability as a key aspect of our strategy, setting up an ESG committee in the board of directors and thus integrating it into the highest level management. In 2024, among other milestones, we completed our ESG risk assessment and received ratings from three different ESG rating agencies. Many more initiatives in the coming years. Our Unique Value: A One-Stop-Shop Experience with Deep Vertical Integration Across Our Locations We provide our customers with vertical integration of the value chain, resulting in significant time savings and reductions in transportation routes and CO 2 emissions. This creates substantial additional value, positioning us as an optimal partner. From the processing of raw materials to the assembly of entire components, we offer the highest quality from a single source with a streamlined supply chain and without potential challenges at the interfaces between smaller suppliers. The end products of our customers, such as passenger aircrafts, consist of thousands of individual parts. The value chain is often highly fragmented, and managing numerous suppliers requires significant coordination effort and entails risks. We position ourselves as a strategic partner capable of covering many parts of the value chain. As Montana Aerospace, we can handle everything from development to the production of system-critical components and complex assemblies, providing our customers with substantial savings and creating a positive ESG impact. With our One-Stop-Shop concept, we see ourselves as a game-changer in the entire supply chain: "Everything from a single source, precisely where it's needed." Regional proximity is crucial. We have established One-Stop-Shops across the globe- in the U.S., Europe, and Asia-strategically positioned to support the aviation industry. As our customers increasingly adopt local-to-local manufacturing, our deep vertical integration and global footprint optimization allow us to fully maximize our USP.

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