TORONTO--(BUSINESS WIRE)--March 27, 2026--
Magellan Aerospace Corporation ("Magellan" or the "Corporation") released its financial results for the fourth quarter of 2025. All amounts are expressed in Canadian dollars unless otherwise indicated. The results are summarized as follows:
Three month period ended Twelve month period ended
December 31 December 31
-------------- ---------------------------- -----------------------------
Expressed in
thousands of
Canadian
dollars, except
per share
amounts 2025 2024 Change 2025 2024 Change
--------------- -------- -------- -------- ----------- -------- ------
Revenues 278,325 240,704 15.6% 1,044,682 942,368 10.9%
Gross Profit 45,171 32,426 39.3% 144,805 107,889 34.2%
Net Income 10,578 15,884 (33.4)% 39,439 35,486 11.1%
Net Income per
Share 0.19 0.28 (32.1)% 0.69 0.62 11.3%
Adjusted EBITDA 38,937 32,371 20.3% 117,115 98,338 19.1%
Adjusted EBITDA
per Share 0.68 0.57 19.3% 2.05 1.72 19.2%
--------------- -------- -------- -------- ----------- -------- ------
This news release contains certain forward-looking statements that reflect the
current views and/or expectations of the Corporation with respect to its
performance, business and future events. Such statements are subject to a
number of risks, uncertainties and assumptions, which may cause actual results
to be materially different from those expressed or implied. The Corporation
assumes no future obligation to update these forward-looking statements except
as required by law.
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This news release presents certain non-IFRS financial measures to assist
readers in understanding the Corporation's performance. Non-IFRS financial
measures are measures that either exclude or include amounts that are not
excluded or included in the most directly comparable measures calculated and
presented in accordance with Generally Accepted Accounting Principles
("GAAP"). Throughout this news release, reference is made to EBITDA (defined
as earnings before interest, income taxes, depreciation and amortization) and
Adjusted EBITDA (defined as earnings before interest, income taxes,
depreciation and amortization and non-operational items related to former
sites) which the Corporation considers to be indicative measures of operating
performance and metrics to evaluate profitability. EBITDA and Adjusted EBITDA
are not generally accepted earnings measures and should not be considered as
an alternative to net income (loss) or cash flows as determined in accordance
with IFRS. As there is no standardized method of calculating this measure, the
Corporation's EBITDA and Adjusted EBITDA may not be directly comparable with
similarly titled measures used by other companies.
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1. Overview
A summary of Magellan's business and significant updates
Magellan is a diversified supplier of components to the aerospace industry. Through its wholly owned subsidiaries, controlled entity and joint venture, Magellan designs, engineers and manufactures aeroengine and aerostructure components for aerospace markets, including advanced products for defence and space markets, and complementary specialty products. The Corporation also supports the aftermarket through supply of spare parts as well as performing repair and overhaul services.
Magellan operates substantially all of its activities in one reportable segment, Aerospace, which is viewed as one segment by the chief operating decision-makers for the purpose of resource allocations, assessing performance and strategic planning. The Aerospace segment includes the design, development, manufacture, repair and overhaul, and sale of systems and components for defence and civil aviation.
Business Update
For additional information, please refer to the "Management's Discussion and Analysis" section of the Corporation's 2025 Annual Report available on www.sedarplus.ca.
2. Results of Operations
A discussion of Magellan's operating results for the fourth quarter ended December 31, 2025
The Corporation reported revenue in the fourth quarter of 2025 of $278.3 million, a $37.6 million or 15.6% increase from the fourth quarter of 2024 revenue of $240.7 million. Gross profit was $45.2 million in the fourth quarter of 2025 compared to $32.4 million in the same quarter of the prior year. Net income for the fourth quarter of 2025 was $10.6 million compared to $15.9 million for the fourth quarter of 2024.
Consolidated Revenue
Three month period Twelve month period
ended December 31 ended December 31
------------------- ------------------------ -----------------------------
Expressed in
thousands of
dollars 2025 2024 Change 2025 2024 Change
------------------- ------- ------- ------ ----------- -------- ------
Canada 106,306 94,318 12.7% 408,769 357,769 14.3%
United States 75,749 60,203 25.8% 295,799 262,645 12.6%
Europe 96,270 86,183 11.7% 340,114 321,954 5.6%
------------------- ------- ------- ------ ----------- -------- ------
Total revenue 278,325 240,704 15.6% 1,044,682 942,368 10.9%
------------------- ------- ------- ------ ----------- -------- ------
Revenue in Canada increased 12.7% in the fourth quarter of 2025 compared to the corresponding period in 2024 largely due to higher casting product revenues, increased aircraft engine part revenues and higher defence product revenues.
Revenue in the United States in the fourth quarter of 2025 increased 25.8% from the fourth quarter of 2024 largely driven by higher single aisle and wide-body aircraft part revenues for Boeing. On a currency neutral basis, revenues in the United States increased 26.3% in the fourth quarter of 2025 over the same period in 2024.
European revenue in the fourth quarter of 2025 increased 11.7% compared to the corresponding period in 2024 largely driven by higher single aisle and wide-body aircraft part revenues for Airbus and favourable foreign exchange impacts due to the strengthening of the British Pound relative to the Canadian dollar. On a currency neutral basis, European revenues in the fourth quarter of 2025 increased by 7.6% when compared to the same period in 2024.
Gross Profit
Three month period Twelve month period
ended December 31 ended December 31
---------------------------- ---------------------- ------------------------
Expressed in thousands of
dollars 2025 2024 Change 2025 2024 Change
---------------------------- ------ ------ ------ ------- ------- ------
Gross profit 45,171 32,426 39.3% 144,805 107,889 34.2%
---------------------------- ------ ------ ------ ------- ------- ------
Percentage of revenue 16.2% 13.5% 13.9% 11.4%
---------------------------- ------ ------ ------ ------- ------- ------
Gross profit of $45.2 million for the fourth quarter of 2025 was $12.8 million or 39.3% higher than the $32.4 million level for the fourth quarter of 2024, and gross profit as a percentage of revenues of 16.2% for the fourth quarter of 2025 increased from 13.5% recorded in the same period in 2024. The increase in profitability is mainly the result of volume increases, contract rehabilitations on certain programs and favourable product mix, offset in part by price increases on purchased materials and supplies.
Administrative and General Expenses
Three month period Twelve month period
ended December 31 ended December 31
----------------------------- ---------------------- -----------------------
Expressed in thousands of
dollars 2025 2024 Change 2025 2024 Change
----------------------------- ------ ------ ------ ------- ------ ------
Administrative and general
expenses 16,100 14,178 13.6% 65,463 56,935 15.0%
----------------------------- ------ ------ ------ ------- ------ ------
Percentage of revenue 5.8% 5.9% 6.3% 6.0%
----------------------------- ------ ------ ------ ------- ------ ------
Administrative and general expenses as a percentage of revenue was 5.8% for the fourth quarter of 2025, slightly lower than the same period of 2024 percentage of revenue of 5.9%. Administrative and general expenses increased $1.9 million or 13.6% to $16.1 million in the fourth quarter of 2025 compared to $14.2 million in the fourth quarter of 2024 driven by higher salary and benefit costs, higher one-time employee headcount reduction initiative costs and higher travel costs.
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