Kuo (KUO B) Q2 2025 earnings summary

Executive summary

• 2Q25 pro forma combined revenue rose 4.2% YoY to MXN 13,569m and EBITDA increased 10.4% to MXN 1,261m, led by Consumer sector strength amid Industrial weakness.

• Majority net income was MXN 770m versus a MXN 179m loss in 2Q24; H1 majority net income reached MXN 4,420m, including MXN 3,603m from discontinued operations.

Financial highlights

• 2Q25 operating profit rose 21.8% to MXN 651m; operating margin expanded 0.7 pp to 4.8%.

• 2Q25 gross profit increased 15.9% to MXN 2,750m; gross margin was 20.3% versus 18.2% YoY.

• H1 revenue increased 7.6% to MXN 27,084m, operating profit rose 74.1% to MXN 1,447m, and EBITDA grew 30.3% to MXN 2,655m.

• 2Q25 net financial income was MXN 183m, including MXN 413m in FX gains, offset by MXN 166m net interest expense and MXN 64m other net financial expenses.

Outlook and guidance

• Strong liquidity and historically low leverage support flexibility amid economic challenges; management reiterated disciplined debt reduction and sustainable long-term growth priorities.