MAHLE Metal Leve (LEVE3) Q1 2025 earnings summary

Executive summary

• Net operating revenue reached BRL 1.3 billion (R$1,266.6M) in Q1 2025, up 24.1% year-over-year, driven by acquisitions and strong domestic market performance.

• Gross margin was 28% (27.8%), net margin 12.5%, EBIT 16%, and EBITDA 18.7%, with margins impacted by hyperinflation in Argentina and acquisition mix.

• Dividends of BRL 258 million (R$258.5M) were approved, with BRL 62 million to be paid in May; payout for 2024 was 60–66%.

• Net indebtedness stands at BRL 640 million (R$640.1M), with leverage at 0.69x.

• Profit for the period was R$158.8M, slightly below Q1 2024, reflecting higher SG&A and acquisition integration.

Financial highlights

• Domestic original equipment revenue grew 84–84.9% year-over-year, outperforming market growth.

• OEM exports revenue dropped 7%, in line with market contraction; aftermarket revenue grew 10% (5.4% ex-acquisitions).

• Acquisitions contributed BRL 190 million (Compressores) and BRL 23.4 million (Aftermarket Thermal) to revenue.

• Total net sales increased 24.1% with acquisitions, or 5.5% excluding them.

• Dividends of R$258.5M were paid, representing a 66% payout for 2024.

Outlook and guidance

• Participation in the MOVER Program (Green Mobility) positions the company for innovation funding and localization projects.

• Management expects continued market share gains in light vehicles and ongoing recovery in Argentina, though macroeconomic volatility and U.S. tariffs remain risks.

• New product launches in electric/hybrid bus systems and agricultural equipment support strategic growth.