Iochpe-Maxion (MYPK3) Investor Day 2025 summary

Strategic direction and business priorities

• Emphasis on operational efficiency, smart growth, and shareholder value, with a shift from large CapEx projects to multiple smaller, quicker-payback investments over the next years.

• Focus on synergies between wheels and structural components, especially in the Americas, to drive innovation and efficiency.

• Continued global expansion with new plants in Turkey (forged aluminum wheels) and Mexico (Castaños), plus targeted investments in Brazil and India to support local market growth.

• Local-for-local production strategy to serve regional markets, leveraging a global footprint for competitive advantage.

• Commitment to outpacing market growth, with 2025 revenues expected to rise faster than the overall market due to an innovative product portfolio.

Financial performance and guidance

• Net revenue reached R$8 billion in H1 2025, up from R$4 billion in H1 2024, mainly due to exchange rate effects and stable volumes.

• Gross margin returned to 13% in Q2 2025, with EBITDA margin at 11%, reflecting a recovery to historical levels.

• Leverage reduced to 2.38x, with a short-term target of 2x and a medium-term goal of 1.5x, supported by strong cash generation and disciplined financial management.

• CapEx levels to remain similar in coming years, but with a focus on smaller, high-return projects rather than large-scale investments.

• R$300 million in new reimbursable funding secured at favorable rates to support future investments.

Innovation, product development, and market positioning

• Launch of new technologies such as Maxion Fusion (combining steel and aluminum) and NVH-reducing wheels, with scalable production across global plants.

• Expansion into new applications and niches, including light rail and recreational vehicles, and a new forged aluminum wheel plant in Turkey to complete the commercial vehicle portfolio.

• Strategic focus on electrification, with new products for electric trucks and a partnership with Novelis for lightweight aluminum battery boxes.

• Increased use of digitalization and artificial intelligence in manufacturing and decision-making, with a strong Lean Six Sigma culture and over 2,200 trained belts.

• Sustainability initiatives include solar panels, waste reduction, and low-CapEx emission reduction projects, aiming for affordable and efficient environmental improvements.