MAHLE Metal Leve (LEVE3) Q1 2026 earnings summary

Executive summary

• Net operating revenue reached BRL 1,256.4 million in Q1 2026, a decrease of 0.8% year-over-year, with stable gross margin at 27.0% and net margin at 17.0%, as volume and price gains were offset by foreign exchange impacts.

• Net profit rose 34.9% year-over-year to BRL 214.2 million, driven by improved financial results and operational efficiency.

• EBIT margin improved to 17.3%, reflecting productivity gains, synergy capture, and disciplined cost management.

• Leadership transition completed, with Eduardo Luiz Spilla succeeding Sergio Pancini de Sá as CEO, ensuring continuity in governance and strategic direction.

• The company launched the MAHLE chargeBIG EV charging solution, opened a Global Competence Center for Air Conditioning Compressors, and received multiple Everest Awards for excellence.

Financial highlights

• Net sales for Q1 2026 reached BRL 1.2 billion, down 0.8% year-over-year, mainly due to a negative exchange rate impact of 3.7%.

• Gross margin stood at 27.0%, with gross profit at BRL 339.8 million, and a minor retraction attributed to exchange rate effects.

• Net income totaled BRL 214.2 million, up 34.9% year-over-year.

• EBIT increased 7.5% to BRL 217.2 million; EBITDA margin was 19.9%.

• Earnings per share reached BRL 1.58073, up 35% year-over-year.

Outlook and guidance

• Management remains confident in the long-term strategy, emphasizing R&D, innovation, and operational efficiency.

• Expecting a 5% increase in light vehicle sales in Brazil for 2026, outperforming the market projection of 2.8%.

• Heavy vehicle market anticipated to stabilize or improve in the second half of the year due to government incentives (MOVER program).

• Combined Brazil and Argentina light vehicle sales projected to grow by 2.23% for the year.

• Export markets (North America and Europe) expected to see a 2% drop in light vehicle production for the year.