{"id":558497,"date":"2026-07-25T05:30:21","date_gmt":"2026-07-25T05:30:21","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/558497\/"},"modified":"2026-07-25T05:30:21","modified_gmt":"2026-07-25T05:30:21","slug":"nemak-sab-de-cv-nmakf-q2-2026-earnings-call-highlights-revenue-surge-amidst-ebitda-challenges","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/558497\/","title":{"rendered":"Nemak SAB de CV (NMAKF) Q2 2026 Earnings Call Highlights: Revenue Surge Amidst EBITDA Challenges"},"content":{"rendered":"\n

This article first appeared on GuruFocus<\/a>. <\/p>\n

Revenue: Increased 19% year-over-year to $1.5 billion. <\/p>\n

EBITDA: Declined 6% year-over-year to $171 million. <\/p>\n

EBITDA Margin: Expanded from 9% in Q1 to 11% in Q2. <\/p>\n

Operating Income: Decreased to $49 million from $77 million in the same period last year. <\/p>\n

Net Income: Reported a $13 million loss. <\/p>\n

Net Debt: Approximately $1.76 billion at the end of June. <\/p>\n

Net Debt-to-EBITDA Ratio: Approximately 2.9 times. <\/p>\n

Cash and Cash Equivalents: Totaled approximately $284 million. <\/p>\n

Capital Expenditures: $110 million during the quarter. <\/p>\n

ICE Powertrain Revenue: Approximately $1.3 billion. <\/p>\n

E-Mobility, Structure, and Chassis Revenue: Approximately $197 million, representing 13% of consolidated revenue. <\/p>\n

North America Revenue: Increased 2.5% year-over-year to $704 million. <\/p>\n

North America EBITDA: Declined 31% to $61 million. <\/p>\n

Europe Revenue: Increased 39% year-over-year to $571 million. <\/p>\n

Europe EBITDA: Increased 17% to $80 million. <\/p>\n

Rest of the World Revenue: Increased 34% year-over-year to $229 million. <\/p>\n

Rest of the World EBITDA: Improved 21% to $30 million. <\/p>\n

Release Date: July 22, 2026 <\/p>\n

For the complete transcript of the earnings call, please refer to the full earnings call transcript<\/a>. <\/p>\n

Positive Points <\/p>\n

Revenue increased by 19% year-over-year, driven by the acquisition of new operations and higher aluminum prices. <\/p>\n

The company is making progress in expanding its presence in e-mobility, structure, and chassis applications, with several key program launches across multiple regions. <\/p>\n

Nemak received a Porsche supplier quality rating for 2025, achieving an A-grade classification at its Altenmarkt and Dillingen facilities in Europe. <\/p>\n

The integration of recently acquired operations is progressing well, with synergies estimated to be in the range of $20 million to $40 million by 2027. <\/p>\n

Nemak was included in the Dow Jones best-in-class indices for the seventh consecutive year, highlighting its strong environmental, social, and governance practices. <\/p>\n

Negative Points <\/p>\n

EBITDA declined 6% year-over-year due to temporary factors in North America, a negative foreign exchange effect, and a high comparison base. <\/p>\n

Extraordinary expenses in North America related to higher ICE volumes are impacting financial performance, with costs expected to gradually taper off. <\/p>\n

Operating income decreased to $49 million from $77 million in the same period last year, reflecting lower EBITDA performance and higher depreciation and amortization. <\/p>\n

Net result was a $13 million loss, driven by lower operating income and higher income tax. <\/p>\n

Net debt-to-EBITDA ratio increased to approximately 2.9 times from 2.4 times at year-end, reflecting seasonal working capital increases and acquisition-related debt. <\/p>\n

Story Continues <\/p>\n

Q & A Highlights <\/p>\n

Q: Could you elaborate on the extraordinary expenses associated with the high production levels servicing the North America facilities? Should we expect this cost to continue in the upcoming quarters? A: Yes, as highlighted, we have been incurring extraordinary additional expenses in North America due to increased production on certain platforms. These costs range between $7 million to $10 million per quarter and are expected to gradually phase off in the upcoming quarters as we stabilize and adapt our equipment to new requirements. – Alberto Medina, CFO <\/p>\n

Q: How comfortable are you with reaching the EBITDA guidance of $640 million, especially given the need for a significant acceleration in the second half? A: The guidance remains intact. Our Q2 performance is more reflective of our capabilities, and we are improving our North American operations. We are on track to deliver the guidance. – Herve Boyer, CEO <\/p>\n

Q: Can you share more about the expected synergies from the GF acquisition, and what is the expected top line impact from the new Georgia facility? A: The synergies, estimated between $20 million to $40 million, stem from restructuring in Europe and streamlining fixed costs. The Georgia facility is expected to generate $170 million to $200 million in annual revenue. – Herve Boyer, CEO <\/p>\n

Q: Regarding the USMCA review, how does Nemak’s current sourcing mix align with potential changes in rules of origin? A: We are prepared to support current regional content levels and will adjust if necessary. Our agreements pass any duty responsibilities to our customers, ensuring minimal impact on Nemak. – Alberto Medina, CFO <\/p>\n

Q: Could you provide a same-store sales comparison, excluding the GF business for the second quarter? A: Revenue from Georg Fischer was $157 million in Q2. Comparing legacy business quarter-over-quarter, there is an increment of close to $80 million in revenue. – Alberto Medina, CFO <\/p>\n

For the complete transcript of the earnings call, please refer to the full earnings call transcript<\/a>. <\/p>\n","protected":false},"excerpt":{"rendered":"This article first appeared on GuruFocus. Revenue: Increased 19% year-over-year to $1.5 billion. EBITDA: Declined 6% year-over-year to…\n","protected":false},"author":2,"featured_media":532754,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[114,83598,202811,253055,85,46,253053,2819,115365,253054],"class_list":["post-558497","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-consolidated-revenue","tag-ebitda","tag-europe-revenue","tag-il","tag-israel","tag-nemak","tag-north-america","tag-operating-income","tag-powertrain-revenue"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/558497","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=558497"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/558497\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/532754"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=558497"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=558497"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=558497"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}