Grupo Industrial Saltillo (GISSA A) Q1 2025 earnings summary

Executive summary

• Resilient results amid geopolitical uncertainty and weaker vehicle production, supported by operational discipline, value-added products, and cost controls.

• Newly secured programs are expected to generate over $45M in revenue.

• 2025 priorities include ramping new capacity, capturing market share, and improving profitability and cash flow.

Financial highlights

• Consolidated revenue was $253M, down 7% YoY, as lower casting volumes and raw-material prices were partly offset by value-added processes.

• Consolidated EBITDA was $32M, up 14% YoY, with a 13% margin versus 10% in 1Q24; EBITDA reached its highest level in 10 quarters.

• Draxton revenue was $233M, down 5% YoY; EBITDA rose 15% to $31M, with a 13% margin and record-high EBITDA per ton of $261, up 22%.

Outlook and guidance

• 2025 priorities include completing capacity ramp-ups, improving efficiency, expanding market share, and focusing on profitability and cash flow.

• FY25 EBITDA margins are expected in the low double digits, with levels near Q1 considered reasonable and improvement expected by year-end as machining, plating, and new programs ramp.

• Plating line two is expected to reach full utilization in Q3–Q4; Evercast machining capacity and San Luis Potosí casting volumes are expected to ramp in H2.

• FY25 CAPEX is forecast at ~$85M; priorities include higher-margin products, expanded machining and value-added processes, and materials and process innovation.