MAHLE Metal Leve (LEVE3) Q2 2025 earnings summary

Executive summary

• Net operating revenue reached BRL 1,369.2 million in Q2 2025, up 28.1% year-over-year; H1 2025 revenue totaled BRL 2,635.8 million, up 26.1% year-over-year, driven by acquisitions and organic expansion despite macroeconomic and political uncertainties.

• Gross margin for H1 2025 was 27.5%, with EBITDA margin at 18.9% and EBIT margin at 16.4%.

• Profit for Q2 2025 was BRL 126.7 million, up from BRL 88.5 million in Q2 2024, excluding hyperinflation effects; H1 2025 profit was R$285.5 million, nearly flat year-over-year.

• Acquisitions in compressors, thermal aftermarket, and minority interest in Arco contributed significantly to revenue and operational results.

• Recognized for diversity leadership, biomobility initiatives, and received the GHG Protocol Gold Seal for emissions transparency.

Financial highlights

• Net revenue increased by 28.1% in Q2 2025; H1 2025 net operating revenue was R$2,635.8 million, up 26.1% year-over-year.

• Domestic original equipment revenue grew 82% in H1 2025 vs. H1 2024; excluding acquisitions, growth was 20%.

• Aftermarket revenue rose 10% in H1 2025; organic growth was 5.5%.

• Gross profit increased in absolute terms, but gross margin declined by two percentage points due to sales mix and acquisition effects.

• Q2 2025 EBITDA was BRL 261.0 million, with a margin of 19.1%; H1 2025 EBITDA reached BRL 498.2 million.

Outlook and guidance

• Management expects normalization of inventory and freight costs by year-end and anticipates a challenging H2 2025 for the automotive industry.

• Tariff impacts are expected to be more significant in the second half of 2025, with ongoing monitoring of macroeconomic risks.

• Conservative internal projections for 2025: 8% growth in light vehicles, 0% in heavy-duty vehicles.

• New business lines launched in carbon canisters, dust filters, oil filters, ducts, and turbo engine components.

• Capital expenditures are expected to increase in the coming quarters to meet annual budget targets.