Gestamp Automoción (GEST) Q2 2025 earnings summary

Executive summary

• H1 2025 delivered strong results with revenues of EUR 5,844 million, down 4.8% year-over-year, mainly due to negative forex and lower volumes in Western Europe and NAFTA, but with improved profitability and solid free cash flow generation.

• EBITDA margin improved to 11.1% (EUR 651 million), with record Q2 profitability and margin expansion driven by cost control, operational flexibility, and the Phoenix Plan.

• Net income fell to EUR 75 million, mainly due to negative financial results and the absence of prior year one-off gains.

• Free cash flow reached EUR 99 million in H1, with a record EUR 182 million in Q2, supporting net debt reduction.

• Closed acquisition of López Soriano to strengthen scrap business and entered a partnership with Banco Santander for a capital injection, reducing leverage and crystallizing asset value.

Financial highlights

• H1 2025 revenues: EUR 5,844 million, down 4.8% year-over-year, with FX impact of EUR 205 million.

• EBITDA: EUR 651 million (11.1% margin), up from 10.6% in H1 2024; EBIT: EUR 286 million (4.9%-5.0% margin), nearly flat year-over-year.

• Net income: EUR 75 million, down from EUR 106 million in H1 2024.

• Free cash flow: EUR 99 million in H1, with Q2 at EUR 182 million, offsetting Q1 seasonality.

• Net debt: EUR 2,141 million, reduced by EUR 50 million year-over-year; net debt/EBITDA at 1.7x (1.5x pro forma post-Santander deal).

Outlook and guidance

• Full-year 2025 guidance reiterated for revenues, EBITDA margin, and free cash flow in line with or better than 2024.

• Upward revisions for FY 2025 expected after a better-than-anticipated H1, with Phoenix Plan a key priority.

• Market growth for 2025 expected to be heterogeneous: declines in North America (-4%) and Western Europe (-5%), growth in Mercosur (+7.1%) and Asia (+2.5%).

• Free cash flow and net debt/EBITDA ratio expected to remain within 2024 targets, with leverage below 1.6x.

• Focus remains on profitability, cost control, operational improvements, and maintaining a strong balance sheet.