Magellan Aerospace Corporation Announces Financial Results
Executive Summary
- Magellan Aerospace reported Q3 2025 revenue of C$255.7 M, up 14.4% YoY, and net income of C$12.7 M, a 116.7% increase versus the same quarter in 2024.
- EBITDA rose to C$29.8 M (up 38.2% YoY) driven by higher gross margins and favorable foreign‑exchange gains despite higher SG&A expenses.
- The company generated C$4.8 M of cash from operations, repurchased C$0.9 M of common shares, and paid C$7.1 M in dividends for the first three quarters of 2025.
Key Details
- Revenue: C$255,666 k (Q3 2025) vs. C$223,513 k (Q3 2024); +14.4% YoY.
- Canada: C$95,691 k (+14.9%) – wide‑body part and MRO growth.
- United States: C$73,265 k (+15.6%) – casting, engine shaft, FX impact.
-
Europe: C$86,710 k (+12.9%) – wide‑body parts, MRO, favorable FX.
-
Gross Profit: C$32,620 k vs. C$25,037 k; +30.3% YoY. Gross margin improved to 12.8% from 11.2%.
-
Net Income: C$12,669 k vs. C$5,845 k; +116.7% YoY. Net income per share rose to $0.22 from $0.10.
-
EBITDA: C$29,754 k vs. C$21,531 k; +38.2% YoY. EBITDA margin increased to 11.6%.
-
Administrative & General Expenses: C$16,391 k (+20.3%) reflecting higher salaries, benefits, and IT spending (6.4% of revenue).
-
Other Income/Expense: Net foreign‑exchange gain of C$(1,452) k versus a loss of C$1,209 k in Q3 2024; total other expense net –C$1,452 k.
-
Cash Flow from Operations: C$4,841 k (Q3 2025) vs. C$18,649 k (Q3 2024); decline due to higher working‑capital outflows (receivables, contract assets, prepaid).
-
Investing Activities: Cash used C$(11,103) k (vs. C$(7,205) k YoY), primarily for PP&E purchases of C$10,177 k and intangible asset additions of C$926 k.
-
Financing Activities: Net cash outflow C$(3,426) k (vs. C$(13,002) k YoY).
- Bank indebtedness increased by C$1,868 k; long‑term debt unchanged.
- Common share repurchases: C$0.92 M (Q3 2025).
-
Dividends paid: C$2.86 M (Q3 2025).
-
Dividends: Quarterly cash dividends of $0.05 per share declared for Q3 2025; total dividends paid YTD $7.1 M.
-
Credit Facility Extension: On 24 Jun 2025 the bank credit facility was extended to 30 Jun 2027, providing a $75 M multi‑currency operating line with an optional $75 M accordion (total potential $150 M). Interest at CORRA/SOFR + 1.00%.
-
Capital Commitments: Contractual commitments of C$21.4 M for capital assets as of 30 Sep 2025.
-
Normal Course Issuer Bid (NCIB): Approved to purchase up to 2,856,929 shares between 13 Jun 2025 and 12 Jun 2026; 59,126 shares repurchased in the nine‑month period at a cost of C$0.9 M.
-
Outlook Highlights: Management expects continued revenue growth from commercial aircraft deliveries (Airbus & Boeing) and sustained defence spending; however, acknowledges risks from tariffs, supply‑chain constraints, and labor shortages.
Notable Quotes
(Optional – not provided in the release)