Gestamp Automoción (GEST) Q4 2025 earnings summary

Executive summary

• 2025 delivered strong results despite global tariff wars, regulatory changes, and slower EV adoption, especially outside Asia.

• Strategic actions realigned EV exposure and enhanced balance sheet flexibility.

• All updated 2025 targets were met, with profitability and free cash flow in line with or exceeding guidance.

• The Phoenix Plan in North America delivered improved margins and operational turnaround.

Financial highlights

• Revenues reached EUR 11.35 billion, a 5.4% decrease year-over-year, mainly due to FX impacts and lower scrap prices.

• EBITDA increased 1% to EUR 1,307 million, with a margin of 11.5%; excluding Phoenix/extraordinary items, margin was 11.7%.

• Net income was EUR 152 million, down from EUR 188 million in 2024, due to higher depreciation, amortization, and interest expenses.

• Free cash flow reached EUR 278 million, supporting a reduction in net debt to EUR 1.821 billion.

• Q4 2025 revenue fell 6.9% YoY, but EBITDA rose 6.6% YoY, with margin at 13.4%.

Outlook and guidance

• No market growth expected for 2026; flat volumes anticipated, with limited growth in India and Mercosur, and a slight decrease in China.

• Focus remains on increasing profitability, maintaining a strong balance sheet, and executing the Phoenix Plan.

• 2026 guidance: EBITDA margin above 11.7% (auto business above 11.9%, scrap above 7.4%), operating cash flow conversion of 34%-35%, and continued CapEx discipline.

• Phoenix Plan targets a 10% EBITDA margin in NAFTA for 2026.

• Major regulatory changes anticipated in NAFTA and Europe could alter the medium-term outlook.