Nemak, S. A. B. de C. V.

Second-quarter revenue was $1.5 billion, up 19% year over year, driven by the recently acquired operations and higher aluminum prices. EBITDA was $171 million, down 6% versus $182 million in Q2 2025; operating income was $49 million versus $77 million a year ago; and the company reported a $13 million net loss. Regional revenue grew to $704 million in North America (+2.5%), $571 million in Europe (+39%), and $229 million in the rest of the world (+34%). For the balance sheet, net debt was about $1.76 billion, net debt-to-EBITDA was about 2.9x on a pro forma basis, cash and cash equivalents were about $284 million, and capex was $110 million. Management kept full-year EBITDA guidance at about $640 million, and said North American extraordinary costs of $7 million to $10 million per quarter should gradually phase off; it also expects revenue from the Georgia facility to ramp to $170 million to $200 million annually in the midterm.

Herve Boyer framed the quarter as evidence that Nemak’s core ICE business remains resilient while the company expands in e-mobility, structure and chassis applications. He emphasized that Q2 was stronger than Q1, that North American issues are temporary, and that the company is on track to improve margins through operational fixes, footprint optimization in Europe, and synergies from the acquisition. His tone was constructive and confident, especially on the strategic fit of GF Casting Solutions and the long-term relevance of ICE.

Alberto Sada highlighted the mechanics behind the quarter: revenue of $1.5 billion, EBITDA of $171 million, operating income of $49 million, and a $13 million net loss. He attributed the EBITDA decline to the Mexican peso’s appreciation, lower commercial compensations, and extraordinary operating costs in North America, and said SG&A included about $15 million of extraordinary and reclassified costs; excluding those effects, recurring SG&A should be around $110 million per quarter. He also noted net debt of about $1.76 billion, cash of about $284 million, capex of $110 million, interest coverage of 5.2x, and reiterated the medium-term leverage goal of closer to 2.0x.

Analysts focused on three issues: the extraordinary North American costs, the feasibility of the roughly $640 million EBITDA target, and how GF synergies and Georgia’s ramp could affect future results. Management said the North American extra costs are a quarterly $7 million to $10 million issue that should significantly reduce in Q3 as equipment and production are adjusted. On guidance, management said it remains comfortable with the $640 million EBITDA target, pointed to sequential improvement in Q2 and upcoming GF contribution, and said Georgia should eventually generate $170 million to $200 million of annual revenue. On USMCA, management said the situation is fluid but expressed confidence in regional content compliance and reiterated that customers handle duties and import logistics under ex-works contracts.