LISI 2025 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.

Comments on half-year activity

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

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 catchup 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

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

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

          OPERATING PROFIT                                                                                                                                                                                                               92 207                                      50 929

           PROFIT (LOSS) FOR THE PERIOD                                                                                                                                                                                      38 710                                      31 204

 External Public

Statement of comprehensive income of LISI Group

Elements that can subsequently be recycled as a result

TOTAL OTHER PORTIONS OF GLOBAL EARNINGS FOR THE PERIOD, AFTER TAXES                                                                                                              -44 921                                   10 751

 External Public

Consolidated statement of financial position of LISI GROUP ASSETS

CURRENT ASSETS

TOTAL EQUITY AND LIABILITIES

SHAREHOLDERS' EQUITY

NON-CURRENT LIABILITIES

CURRENT LIABILITIES

TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES                                                                                                                                                        2 282 762                                  2 210 283

* Including short-term banking facilities                                                                         156 208                                  39 390

 External Public

Consolidated cash flow statement of LISI Group

OPERATING ACTIVITIES

CASH PROVIDED BY OR USED FOR OPERATING ACTIVITIES (A)                                                                                                                                     68 133                             55 256

INVESTMENT ACTIVITIES

CASH PROVIDED BY OR USED FOR INVESTMENT ACTIVITIES (B)                                                                                                                                (64 377)                          (60 403)

FINANCING ACTIVITIES

CASH PROVIDED BY OR USED FOR FINANCING ACTIVITIES (C)                                                                                                                                    (45 184)                          (62 485)

CLOSING CASH POSITION                                                                                                                                                                                                     99 040                             48 079

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Statement of changes in equity of LISI Group

                                                                                                                                   Other elements                               Group's share

                                                                                                                                                 of              Profit for                       of                                          Total

                                                   Capital stock     Capital-linked      Treasury     Consolidated         Conversion comprehensive           the period,    shareholders'            Minority shareholders'

# External Public