Gestamp Automoción (GEST) Q4 2025 earnings summary

Executive summary

• 2025 delivered strong results and profitability despite global economic uncertainty, tariff wars, regulatory changes, and slower EV adoption, especially outside Asia.

• Extraordinary strategic actions realigned EV exposure, enhanced balance sheet flexibility, and advanced ESG initiatives, including a 45% reduction in tCO₂ (scopes 1 & 2) since 2018.

• All updated 2025 targets were met, with profitability, free cash flow, and leverage in line with or exceeding guidance.

• The Phoenix Plan in North America improved margins and operational efficiency.

• Net profit fell to €152.2M due to lower sales and higher financial expenses.

Financial highlights

• Revenue declined 5.4% to €11,349M, mainly due to adverse FX and lower scrap prices.

• EBITDA increased 1% to €1,307M, with margin at 11.5%; Auto business margin (ex-Gescrap, ex-Phoenix) reached 11.9%.

• EBIT fell 6.1% to €546.4M; net income was €152M, down from €188M in 2024.

• Free cash flow reached €278M, supporting a reduction in net debt to €1,821M.

• Q4 2025 EBITDA margin rose to 13.4% despite a 6.9% revenue drop.

Outlook and guidance

• 2026 is expected to be flat, with limited volume growth, continued cost pressures, and moderate steel price increases.

• Group EBITDA margin targeted above 11.7% (auto business above 11.9%, scrap above 7.4%), with operating cash flow conversion of 34%-35%.

• Focus remains on profitability, efficiency, maintaining a strong balance sheet, and executing the Phoenix Plan.

• Phoenix Plan targets a 10% EBITDA margin in NAFTA for 2026.