Magellan Aerospace Corporation Announces Financial Results
Executive Summary
- Magellan Aerospace reported Q4 2025 revenue of C$278.3 M, up 15.6% year‑over‑year, driven by strong growth in Canada, the United States and Europe.
- Gross profit rose 39.3% to C$45.2 M (16.2% of revenue), but net income fell 33.4% to C$10.6 M due to higher administrative expenses, a large environmental remediation provision, and foreign‑exchange losses.
- Adjusted EBITDA increased 20.3% to C$38.9 M; cash flow from operations was C$26.5 M, while investing activities used C$22.5 M and financing activities used C$11.7 M.
Key Details
- Revenue: C$278,325 K (Q4 2025) vs. C$240,704 K (Q4 2024); +15.6% YoY.
- Canada: +12.7% (C$106,306 K) – higher casting, aircraft‑engine and defence product sales.
- United States: +25.8% (C$75,749 K) – driven by Boeing single‑aisle & wide‑body parts; currency‑neutral increase of 26.3%.
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Europe: +11.7% (C$96,270 K) – Airbus part sales and favourable GBP/CAD exchange impact; currency‑neutral rise of 7.6%.
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Gross Profit: C$45,171 K vs. C$32,426 K prior year; +39.3%, representing 16.2% of revenue (up from 13.5%).
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Net Income: C$10,578 K vs. C$15,884 K prior year; –33.4%. Net income per share fell to $0.19 from $0.28.
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Adjusted EBITDA: C$38,937 K vs. C$32,371 K prior year; +20.3% (per‑share $0.68 vs. $0.57).
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Administrative & General Expenses: C$16,100 K (+13.6%) – higher salaries, one‑time headcount reduction costs and travel.
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Other Expense (Income): Net other expense of C$15,501 K versus a gain of C$(2,030) K YoY, driven by:
- $1.8 M foreign‑exchange loss vs. $2.9 M gain prior year.
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Environmental remediation provision of $12.1 M (USD $8.8 M) for a former site acquired via subsidiary.
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Interest Expense: Net interest expense fell to C$563 K from C$860 K, reflecting higher cash balances and lower debt service.
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Taxation: Effective tax rate 18.7% vs. 18.2% YoY; current tax expense C$4,737 K, deferred recovery C$(2,308) K.
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Cash Flow (Q4 2025):
- Operating cash provided: C$26.5 M (down from C$46.3 M).
- Investing cash used: C$22.5 M (up $10.2 M YoY) – mainly PP&E purchases of C$21.6 M and intangible spend.
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Financing cash used: C$11.7 M (down from C$16.4 M) – lower bank‑indebtedness repayments offset by higher dividend payments.
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Financing Arrangements: Extended 2025 Credit Facility to June 30 2027; $75 M maximum with an additional $75 M accordion option, interest at CORRA/SOFR + 1.00%.
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Dividends: Total FY 2025 dividend paid C$10.0 M; quarterly payouts of $0.025 (Q1) and $0.05 per share (Q2‑Q4). Board declared a Q2 2026 cash dividend of $0.05/share payable March 31 2026.
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Share Repurchases: NCIB extended June 13 2025 – June 12 2026; 59,926 shares repurchased for C$0.9 M at $15.63 average price.
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Outlook (2026): Management expects continued demand in commercial and defence aerospace, tempered by supply‑chain constraints, raw‑material shortages, skilled‑labour gaps and geopolitical risks.
Notable Quotes
(No direct CEO/CFO quotes were included in the release.)