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Nemak (NEMAKA) investor relations material

Nemak Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary23 Oct, 2025

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.

GF Casting acquisition closing timeline
Implications of 80% ICE in new business wins?
Operational drivers for 3Q25 net income growth?
Detail GF acquisition contingency payment terms
Impact of $250M new ICE business on CapEx?
Expect further EV asset impairments in Q4?
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Frequently asked questions

Nemak S.A.B. de C.V. manufactures complex aluminum components for the automotive industry, including engine blocks, transmission cases, and structural parts for electric and traditional vehicles. The company is headquartered in Monterrey, Mexico, and its shares are listed on the BMV.

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