Nemak (NEMAKA) investor relations material

Executive summary

• Revenue remained stable at $1.23 billion in Q3 2025, supported by resilient auto industry demand and strong North American production, while EBITDA declined 15% year-over-year to $143 million due to a high comparison base and extraordinary expenses in the prior year.

• Net income increased to $25 million, driven by lower net financing expenses and favorable tax and FX effects, despite lower operating income.

• Positive free cash flow of $18 million was generated in the quarter, with net debt reduced to $1.59 billion, 10% lower year-over-year.

• The acquisition of Georg Fischer (GF) Casting Solutions was announced for $336 million, expected to strengthen capabilities, expand geographic footprint, and enhance technology and innovation.

• $250 million in new business was secured, with 80% in ICE Powertrain and 20% in e-mobility, structure, and chassis applications.

Financial highlights

• Revenue stable at $1.23 billion; EBITDA down 15% to $143 million; operating income decreased to $26 million, impacted by $17 million in impairment charges.

• Free cash flow of $18 million; net debt at $1.59 billion, down 10% year-over-year.

• Net debt to EBITDA ratio improved to 2.5x from 2.9x; interest coverage ratio at 4.9x.

• Capital expenditures totaled $70 million, 27% lower year-over-year.

• EBITDA margin for Q3 2025 was 12%, down from 14% in Q3 2024.

Outlook and guidance

• Full-year EBITDA expected at the high end of $600 million guidance; capital expenditures projected at $280–$290 million.

• Focus on debt reduction and generating higher free cash flow post-acquisition.

• Extended ICE powertrain lifecycle expected due to slower EV adoption.

• Successful integration of GF Casting Solutions and new business wins are expected to drive future growth.