Lisi (ENXTPA:FII) Stock Faces One Off Loss Question After 49.4% Earnings Growth

Lisi (ENXTPA:FII) has put up solid headline numbers for H1 2026, with revenue of €961.2 million and basic EPS of €1.36, set against a backdrop of 49.4% earnings growth over the past year and a trailing net margin of 5.1% versus 3.3% a year earlier. The company has seen first half revenue move from €929.6 million and EPS of €0.69 in 2024 to €961.2 million and €1.36 in 2025, while trailing twelve month EPS of about €1.89 and net income of €94.0 million provide additional context around recent profitability. With earnings growth forecasts around 24.5% a year and revenue growth expectations of 9.1% a year, investors may view these results as indicating a step up in margins and underlying performance quality.

See our full analysis for Lisi.

With the key figures on the table, the next step is to see how Lisi’s latest earnings compare with the prevailing narratives around its growth prospects, risks and long term profitability story.

Curious how numbers become stories that shape markets? Explore Community Narratives

49.4% earnings growth and a 5.1% margin put recent progress in context

• Over the last 12 months Lisi generated €1.8b of revenue with net income of €94.0 million, which translates into a trailing net margin of 5.1% compared with 3.3% a year earlier and headline earnings growth of 49.4%.
• Supporters of a bullish view often point to this combination of higher margin and strong earnings growth, backed by forecasts of roughly 24.5% annual earnings growth and 9.1% annual revenue growth. Those same figures also invite a closer look at how much of the improvement comes from ongoing operations versus timing factors or the base period.

€40.4 million one off loss complicates the bullish story

• The trailing 12 month results include a one off loss of €40.4 million alongside the 5.1% net margin and €94.0 million of net income, so headline profitability is being measured against a period that contains a large, non recurring drag.
• What is interesting for a bearish narrative is how this charge interacts with the growth story:
  • Critics highlight that a very strong 49.4% earnings increase and a higher margin can look less straightforward once a one off loss of €40.4 million sits in the same period, because it makes it harder to judge the underlying level of earnings power.
  • On the other hand, the fact that net income still stands at €94.0 million with a 5.1% margin despite that one off item challenges a purely bearish concern that profitability is fragile, since the core business figures appear resilient enough to absorb a sizeable hit.

For readers weighing how much weight to put on that one off item versus ongoing trends in Lisi’s business, it can help to see how different investors frame the opportunity and the risks around this set of results.📊 Read the what the Community is saying about Lisi.

P/E of 32.5x and DCF fair value of €98.87 set the bar

• Lisi trades on a P/E of about 32.5x, which is slightly below the wider European Aerospace & Defense industry at roughly 33.4x but above the peer group at about 30.1x, while a cited DCF fair value of €98.87 sits well above the current share price of €66.90.
• Viewed through a bullish lens, this mix of multiples and DCF work creates a clear tension:
  • Supporters argue that the gap between the €66.90 share price and the €98.87 DCF fair value, combined with 49.4% reported earnings growth and forecasts of 24.5% annual earnings growth, supports the idea that the stock could be priced below its longer term fundamentals.
  • Skeptics counter that a 32.5x P/E being richer than the 30.1x peer average means a lot of that growth story is already reflected in the valuation. In this view, the implied upside versus the DCF fair value depends on the company continuing to deliver revenue growth around 9.1% a year and maintaining margins near the recent 5.1% level.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Lisi's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

Seeing both risks and rewards around Lisi in this report, it makes sense to move quickly and test the data against your own expectations using the 3 key rewards and 1 important warning sign.

See What Else Is Out There Beyond Lisi

Lisi’s 32.5x P/E sitting above peers, combined with a large one off loss and a modest 5.1% margin, suggests valuation and earnings quality questions that some investors may not be comfortable with.

If you are concerned about paying up for that kind of profile and would rather focus on companies where pricing looks more forgiving, the 236 high quality undervalued stocks can quickly surface ideas that line up better with your comfort zone.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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