MAHLE Metal Leve (LEVE3) Q1 2025 earnings summary

Executive summary

• Net operating revenue rose 24.1% year-over-year to R$1,266.6 million in Q1 2025, driven by strong domestic OE sales, recent acquisitions, and market share gains.

• EBITDA margin declined to 18.7% (R$237.2 million) from 28.2% year-over-year, reflecting margin pressure from acquisitions, hyperinflation, and product mix.

• Profit for the period was R$158.8 million, down 20.7% year-over-year, impacted by higher SG&A and acquisition integration.

• Dividends of R$258.5 million were approved for FY2024, representing a 66% payout ratio.

• Operational efficiency, cost management, and R&D investment supported performance despite inflationary and supply chain volatility.

Financial highlights

• Domestic original equipment sales surged 84.9% year-over-year to R$511.3 million, while export OE sales declined 7.0%.

• Aftermarket domestic sales grew 10.0%, export aftermarket sales fell 5.2%, and total aftermarket sales rose 7.3%.

• Gross margin was 27.8% (down from 31.1% last year); net margin 12.5% (down from 19.6%); EBITDA margin 18.7%.

• Net finance income was R$12.1 million, slightly up year-over-year.

• Earnings per share were R$1.1705, down 25.4% year-over-year.

Outlook and guidance

• Management expects continued market share gains in light vehicles, ongoing recovery in Argentina, and increased CapEx and project hours at the Tech Center.

• Participation in the MOVER Program supports innovation and localization; new product launches in electric/hybrid bus systems and agricultural equipment are planned.

• U.S. tariffs on vehicles and auto parts (25% from May) and macroeconomic volatility present risks for export markets.