Grupo Industrial Saltillo (GISSA A) Q2 2025 earnings summary

Executive summary

• Q2 EBITDA rose 12% YoY to $31M at a 13% margin, with sequential margin expansion for a fifth consecutive quarter.

• H1 program awards are expected to generate more than $116M in incremental revenue and represented more than 10% of Draxton’s annual revenue.

• Priorities included utilization gains, cash preservation, operational flexibility and managing tariff exposure.

Financial highlights

• Q2 revenue was $250M, down 4% YoY; H1 revenue was $503M, down 5%.

• Q2 EBITDA was $31M, up 12% YoY; H1 EBITDA was $63M, up 13%.

• Draxton Q2 revenue was $232M, down 1%; EBITDA was $30M, up 10%, at a 13% margin.

• Positive Q2 cash flow reflected working-capital optimization and disciplined CapEx; quarter-end cash was $56M.

Outlook and guidance

• 2025 CapEx forecast remained ~ $80M, focused on machining and other value-added capacity; cash preservation and selective strategic investment remained priorities.

• Priorities included maximizing utilization, improving North American operations, pursuing commercial-vehicle opportunities and allocating capacity to higher-margin products.

• The second plating line is ramping up, with full capacity expected in Q4; machining and plating launches are expected to lift utilization.

• San Luis Potosí volumes are expected to rise in 2026 as higher-margin ductile iron programs replace gray iron; net leverage is expected to reach ~2x during 2026.