Q2 2026 Nemak SAB de CV Earnings Call Transcript
Key Points
- Revenue increased by 19% year-over-year, driven by the acquisition of new operations and higher aluminum prices.
- The company is making progress in expanding its presence in e-mobility, structure, and chassis applications, with several key program launches across multiple regions.
- Nemak received a Porsche supplier quality rating for 2025, achieving an A-grade classification at its Altenmarkt and Dillingen facilities in Europe.
- The integration of recently acquired operations is progressing well, with synergies estimated to be in the range of $20 million to $40 million by 2027.
- Nemak was included in the Dow Jones best-in-class indices for the seventh consecutive year, highlighting its strong environmental, social, and governance practices.
- EBITDA declined 6% year-over-year due to temporary factors in North America, a negative foreign exchange effect, and a high comparison base.
- Extraordinary expenses in North America related to higher ICE volumes are impacting financial performance, with costs expected to gradually taper off.
- Operating income decreased to $49 million from $77 million in the same period last year, reflecting lower EBITDA performance and higher depreciation and amortization.
- Net result was a $13 million loss, driven by lower operating income and higher income tax.
- Net debt-to-EBITDA ratio increased to approximately 2.9 times from 2.4 times at year-end, reflecting seasonal working capital increases and acquisition-related debt.
Good morning, everyone, and welcome to Nemak's second quarter 2026 earnings webcast. I am Denise Reyes, Nemak's Investor Relations Officer, and I am pleased to host today's call along with Herve Boyer, Nemak's CEO; and Alberto Sada, CFO; who 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. Herve Boyer, our CEO, will lead off today's call by providing an overview of business and financial highlights for the quarter. Alberto Sada, our CFO, will then discuss our financial results in more detail. Afterwards, we will open for a Q&A session, which participants may join live or submit written questions using the Q&A function.
Before we get started, let me remind you that information discussed on today's call may include forward-looking statements regarding the company's future financial performance and prospects, which are subject to risks
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