Iochpe-Maxion (MYPK3) Q1 2026 earnings summary

Executive summary

• Sales remained stable year-over-year, with declines in North and South American commercial vehicles offset by strong light vehicle performance and resilience in Europe and Asia.

• Profitability improved due to operational discipline, cost control, and efficiency projects, despite global volatility and market contractions.

• Supply chain resilience and proactive risk mitigation enabled uninterrupted customer service and new business wins, including with Chinese OEMs.

• Regional performance varied: North America stabilized in commercial vehicles, Europe was resilient in commercial but soft in passenger vehicles, Brazil's light vehicle segment offset weak truck demand, and Asia, especially India, showed strong growth.

Financial highlights

• Net operating revenue was R$ 3,807.3 million in 1Q26, a 3.3% decrease year-over-year, mainly due to lower commercial vehicle demand and currency effects.

• Gross profit was R$ 441.5 million, with a gross margin of 11.6%, up 0.3 p.p. year-over-year.

• EBITDA reached R$ 357.0 million, margin up 0.4 p.p. to 9.4%, with recurring EBITDA at R$ 363.1 million (9.5% margin).

• Net income was R$ 3.9 million, down from R$ 10.9 million in 1Q25, impacted by higher interest costs.

• Leverage (Net Debt/EBITDA) improved to 2.49x from 2.65x in 4Q25.

Outlook and guidance

• Consulting forecasts for 2026: global light vehicle production to decline 1.8% (1.5% ex-China), global commercial vehicle production to rise 1.0% (6.3% ex-China).

• Management expects gradual improvement in commercial vehicle volumes and margins, with a stronger second half of 2026, especially in North America.

• South American outlook remains uncertain due to macroeconomic factors and interest rates.