Q4 2024 Nemak SAB de CV Earnings Call Transcript

Feb 20, 2025 / 05:00 PM GMT

Transcript

Key Points

Positve

Nemak SAB de CV (NMAKF) successfully generated free cash flow and improved its leverage position despite a year-over-year volume decline.
EBITDA increased by 9% compared to the previous year, driven by operating efficiencies, cost reduction initiatives, and successful commercial negotiations.
The company secured commercial agreements that compensated for investments and contributed to accelerating debt reduction.
Nemak SAB de CV (NMAKF) was awarded contracts worth approximately $460 million, with 80% in the internal combustion engine powertrain segment.
The company achieved inclusion in the Dow Jones Sustainability Indexes for the sixth consecutive year and made strides in the Aluminum Stewardship Initiative.

Negative

Nemak SAB de CV (NMAKF) faced a 6% decline in volume, impacting overall revenue.
The company wrote off fixed and intangible assets amounting to $80 million due to strategic decisions to adjust capacity for EV components.
Net loss for the quarter was $51 million, compared to a $26 million loss in the same period of the previous year.
The company anticipates challenges in volume for 2025 due to market volatility and evolving OEM electrification plans.
Revenue for the full year 2024 was down 2% year-over-year, partially offset by higher aluminum prices and commercial negotiations.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

NEMAKA.MX - Nemak SAB De CV
Q4 2024 Nemak SAB de CV Earnings Call
Feb 20, 2025 / 05:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning, everyone, and welcome to NEMA's 4th quarter 2024 earnings webcast. Armando Tamez, NMA CEO Alberto Sada, CFO, and Denise Reyes, investor relations officer, are here this morning to discuss the company's business performance and answer any questions that you may have. As a reminder, today's event is being recorded and will be available on the company's investor relations website. I will now turn the call over to Denise Reyes.

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Unidentified_2 [2]
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Thank you operator. Good morning and welcome everyone. We greatly appreciate your participation. Armando

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