2026 Half yearly results

HALF-YEARLY RESULTS 30th June 2026

External Public

The LISI Group announces a significant improvement in its results for the 1st half of 2026, ahead of schedule

• Revenue growth driven by strong activity across all segments of the aerospace market,
• Improved profitability ahead of schedule: current operating margin of 11.3%, supported by significant productivity gains and the increasing value of the product portfolio in both divisions,
• Half-year EBIT exceeded €100 million for the first time,
• FCF remains positive, with capacity investments and inventory levels tailored to support the acceleration of business at the LISI AEROSPACE division and thereby secure customer deliveries.
• 2026 targets confirmed driven by high-stakes projects: improvement for the fourth consecutive fiscal year of key financial indicators, including current operating income, as well as, once again, the generation of a positive Free Cash Flow*.

Paris, July 23, 2026—LISI today announced its results for the 1st half-year ended June 30, 2026. These financial statements were subject to a limited review by the Statutory Auditors and were presented to the Board of Directors at its meeting held today.

Comments on the Half-Year Performance

* The consolidated figures for 2025 do not include LISI MEDICAL’s revenue for the first quarter of 2025, which amounted to €44.7 million, or for the second quarter, which amounted to €42.4 million.

Consolidated revenue for the first half of 2026 totaled 942.9 €M, up +5.7% compared to the same period in 2025, and reflects the following factors:

• an average negative currency impact of -28.2 €M (3.0% of revenue), resulting primarily from the weakening of the average U.S. dollar exchange rate against the euro;
• a scope-of-consolidation effect of +3.3 €M (0.4% of revenue) related to the acquisition of LISI AUTOMOTIVE Hungary on September 30, 2025;
• a scope-of-consolidation effect of -5.6 €M (0.6% of revenue) related to the removal of Ankit (India) from the LISI AEROSPACE scope of consolidation on December 31, 2025.

Adjusted for currency and scope changes over the first six months of the year, organic growth remained at a high level of +9.2% of revenue.

EBITDA reached 148.3 €M, an increase of 15.2 €M compared to H1 2025. Both divisions contributed to this result:

• LISI AEROSPACE: strong volume effect and improved industrial productivity. This improvement stems, on the one hand, from the automation of manufacturing processes, and on the other hand, from training efforts for the many new hires in 2023 and 2024,
• LISI AUTOMOTIVE: progress in the structural reduction of the break-even point, combined with the continued repositioning of the product portfolio toward higher-value-added products.

The current EBITDA margin reached 15.7% of revenue (14.9% in H1 2025, which had benefited from the lingering effects of inflation on selling prices).

The net effect of provisions and reversals of provisions of +4.3 €M in the first half of 2026 is primarily due to the reclassification of a provision that had no impact on current operating income.

As a result, half-year EBIT exceeded 100 €M for the first time in the Group’s history, reaching 106.2 €M - an increase of 22.8% compared to the first half of 2025 - representing a recurring operating margin of 11.3% versus 9.7% in H1 2025.

Non-recurring operating income and expenses totaled -23.0 €M, compared to -3.4 €M in H1 2025. These primarily reflect costs associated with the transfer of operations from the Puiseux site (France) to other sites within the LISI AUTOMOTIVE division (see the April 23, 2026 press release regarding the first quarter).

The financial result came in at -2.7 €M (-40.0 €M in H1 2025). This is attributable to the following main factors:

• effects related to the revaluation of foreign-currency debts and receivables and the change in the fair value of hedging instruments, amounting to +3.7 €M compared to -29.1 €M in H1 2025;
• financial expenses, corresponding to the cost of net long-term debt, of -8.9 €M (-13.1 €M in H1 2025);
• gains on investments of working capital, amounting to +2.5 €M (+2.2 €M in H1 2025).

The corporate income tax rate was 23.8%, in line with the Group’s historical rates.

Net income amounted to 62.4 €M (representing 6.6% of revenue), compared to 38.5 €M (4.3% of revenue) in H1 2025.

Operating Free Cash Flow was positive at 5.9 €M, driven by an increase in cash flow from operations.

At 119.4 €M, cash flow from operations is up compared to the same period of the prior fiscal year (+30.6 €M) and represents 12.7% of revenue. It covers the full 48.0 €M in funding required for investment programs. These programs are primarily dedicated to advancing strategic initiatives aimed at implementing multi-year industrial programs and developing new products and technologies.

Working capital requirements stand at 84 days of revenue (75 days as of December 31, 2025), with inventories - expressed in terms of days of revenue - on the rise (109 days compared with 99 days as of December 31, 2025). These inventories consist primarily of raw materials and work-in-progress intended to support production increases in the coming months to meet the sharp rise in demand from major customers in the LISI AEROSPACE division.

Taking these factors into account and in line with established objectives, operating Free Cash Flow was positive at 5.9 €M (0.6% of revenue).

Solid financial structure characterized by the Group’s historically low debt level

Net financial debt stood at 265.1 €M in the first half of 2026, including 123.3 €M in debt related to lease agreements (IFRS 16). It represents 23.2% of equity and 1.0x current EBITDA (annualized). It is well below the covenants authorized by the banking partners, which are set at 120% of equity and 3.5x current EBITDA (annualized), respectively.

LISI AEROSPACE (70% of total consolidated revenue)

• Significant revenue growth driven by strong activity across all segments of the aerospace market and market share gains,
• Improved manufacturing productivity following the high level of hiring in recent years and the implementation of plans to optimize production flows,
• Positive operating Free Cash Flow amid a rise in work-in-progress inventory to meet the sharp increase in demand from the division’s major customers.

Analysis of Revenue Trends

Aerospace Market

Global air traffic and cargo volumes performed well during the first half of the year despite the crisis in the Strait of Hormuz.

The global commercial aviation market remains strong, with long-term prospects still favorable, as reflected in the high volume of orders received by major manufacturers. Demand from airlines continues to outpace supply from aircraft manufacturers.

Production rates continue to rise for the Airbus A320 family (currently 66 aircraft per month, with a target of 75 aircraft per month by 2027) as well as for the A350 program. At Boeing, the ramp-up in production of the B737 MAX and B787 has materialized. The strong performance of the helicopter and defense segments, which account for 10% and 15% of the division’s business, respectively, is also helping to support overall demand.

Comments on First-Half Performance

Revenue for the LISI AEROSPACE division reached a record high of 663.2 €M in the first half of 2026, up 10.4% from the already high baseline of the first half of 2025.

With a 23.7% increase, revenue for the “Fasteners” business in the United States during the first half of 2026 posted the strongest growth; it benefited from Boeing’s ramp-up. The “Fasteners” business in Europe and the “Structural Components” business also posted strong growth, up 10.7% and 11.2%, respectively, compared to the first half of 2025.

Adjusted for currency effects and the change in scope resulting from the divestiture of Ankit (India) as of December 31, 2025, the LISI AEROSPACE division’s revenue posted sustained organic growth of +15.8% in the first half of 2026.

Record Results

The division benefited from volume increases, market share gains, initiatives to expand high-value￾added product lines, improved industrial productivity following the initial phase of heavy hiring in previous fiscal years, and the ongoing optimization of production flows.

The current EBITDA margin thus increased by 1.3 points compared to the first half of 2025, reaching 18.4% of revenue. The EBIT totaled 97.3 €M. Operating leverage was particularly strong, driven by improved industrial productivity (revenue: +10.4%, recurring operating income: +30.7%). The recurring operating margin increased by 2.3 points compared to H1 2025 and stood at 14.7% of the division’s revenue.

Operating Free Cash Flow increased compared to the first half of the year (6.6 €M as of June 30, 2026, compared to 1.4 €M as of June 30, 2025), despite an increase in work-in-progress inventory linked to the ramp-up in production.

Capital expenditures totaled 37.1 €M (31.9 €M in 2025), primarily intended to support the ramp-up of production capacity and boost industrial productivity in response to sustained customer demand.

LISI AUTOMOTIVE (30% of total consolidated revenue)

• Decline in global production among the division’s major customers,
• Market share gains driven by strong momentum in new product order intake,
• Temporary effects related to the industrial reorganization following the shutdown of manufacturing operations at the Puiseux-Pontoise site (France).

Analysis of Revenue Trends

Automotive Market

Global light vehicle registrations fell by -3.9% in the first half of 2026 compared to the same period last year. This decline was particularly pronounced in China (-22.7%) and in the NAFTA region (Canada, United States, Mexico) at -2.1%. The European region, meanwhile, posted growth of +6.1%.

Comments on the Half-Year Performance

Revenue for the LISI AUTOMOTIVE division totaled 279.9 €M in the first half of 2026, down -4.2% compared to the same period in 2025.

Adjusted for currency effects and the change in scope resulting from the consolidation of LISI AUTOMOTIVE Hungary in October 2025, the decline was -4.4% in the first half of 2026 and reflects:

• a 2.5% decline in global production by the division’s automotive manufacturer customers;
• a resolutely maintained strategy to reposition the product portfolio toward higher-value-added product families, initiated several years ago. This focus is reflected in orders for new products, which remain particularly strong, accounting for 12.2% of revenue for the half-year.

The division continues to expand in promising and profitable segments (braking systems, electromobility, interior trim, and cable channels). It demonstrates agility in adapting its product lines and solid operational execution.

Results

The implementation of the industrial reorganization related to the shutdown and transfer of manufacturing activities from the Puiseux-Pontoise site (France) to other sites within the division is proceeding according to plan but is temporarily leading to increases in inventory.

Nevertheless, the division’s financial indicators show good resilience, thanks in particular to the disciplined pursuit of measures to optimize fixed costs.

The current EBITDA margin thus stood at 10.3% (11.1% in H1 2025), and the operating margin reached 4.2% (4.9% in H1 2025). The EBIT totaled 11.8 €M (14.3 €M in H1 2025).

Operating Free Cash Flow for the period was negative at -2.7 €M (+5.0 €M in H1 2025), primarily impacted by the temporary build-up of inventory associated with the transfer of manufacturing activities from the Puiseux-Pontoise site (France) to other entities within the division.

The division also maintained a steady level of investment over the half-year (10.8 €M) to ensure the continued development of new products and improvements in industrial productivity.

LISI GROUP OUTLOOK AND OBJECTIVES FOR 2026–2027

LISI AEROSPACE

The aerospace market remains particularly favorable across all civil platforms. The helicopter and defense segments are also maintaining their strong momentum. Gaining market share with major strategic customers - notably through the renewal of major contracts in 2025 and 2026 - is further driving this growth. In addition, LISI AEROSPACE’s order backlog for 2026 and 2027 remains very strong. The key focus areas are therefore:

• the establishment of additional production capacity (the “Fasteners” business) and the improvement of industrial productivity (the “Structural Components” business), in order to meet growing demand;
• the ability to increase production volumes while maintaining control over the cost structure and inventory levels. The goal is to meet customer needs and ensure the continuity of programs amid persistent, significant pressures across the entire aerospace supply chain.

LISI AUTOMOTIVE

LISI AUTOMOTIVE is continuing the structural initiatives it has been implementing for several years, with two priorities: securing its positioning in new vehicle models and adjusting the fixed-cost structure. These efforts aim to preserve the division’s competitiveness and its ability to rebound in a global automotive market undergoing profound changes in terms of competition, geography, and technology.

Priorities for the second half of the year center on two major areas:

• advancing the industrial reorganization project underway at the Puiseux-Pontoise site (France). This includes transferring production to other sites within the “Clipped Solutions” business, as well as relocating the sales teams and design office to the LISI AEROSPACE site in Saint-Ouen l’Aumône,
• finalizing the operational and functional integration of LISI AUTOMOTIVE Hungary in Györ, along with strengthening industrial capacity at the division’s sites in China, Mexico, and Morocco.

LISI Group

The Group reaffirms its ambition to improve its key financial indicators for the fourth consecutive year in 2026 - most notably recurring operating income - and to generate positive operating Free Cash Flow.

The Group’s longer-term cross-functional strategic initiatives - automation, robotization, digitalization, new products, capacity investments, and rationalization of its geographic footprint - will support the expansion of production capacity, the enhancement of the portfolio’s value, and improved productivity. Given their implementation timelines, learning curves, and the need to adapt industrial resources to program development, their rollout could temporarily moderate operational leverage without undermining the strength of the Group’s current trajectory.

Building on solid financial fundamentals, the LISI Group reaffirms its ability to strengthen its global positions in its high-value-added businesses over the long term.

LISI Group Consolidated Income Statement

SUMMARY OF STATEMENT OF COMPREHENSIVE INCOME

Consolidated balance sheet of the LISI Group

ASSETS

EQUITY AND LIABILITIES

LISI Group Consolidated Cash Flow Statement

Changes in the LISI Group's Consolidated Equity

Notes

1. In accordance with IFRS 5, the 2025 figures have been restated following the sale of the LISI MEDICAL division on October 31, 2025. Income from discontinued operations is presented on a separate line item in the income statement titled “Income from discontinued operations, net of tax.” The 2025 comparative figures relating to the sale of LISI MEDICAL on October 31, 2025, have been restated to conform to this presentation.
2. Operating Free Cash Flow: cash flow from operations less net capital expenditures and changes in working capital.