MAHLE Metal Leve (LEVE3) Q2 2025 earnings summary

Executive summary

• Net operating revenue reached R$2,635.8 million in H1 2025, up 26.1% year-over-year, with Q2 2025 net revenue at R$1,369.2 million, driven by acquisitions and strong domestic OE and aftermarket sales.

• EBITDA margin for H1 2025 was 18.9% (R$498.2 million), down from 24.1% in H1 2024, reflecting lower margins from recent acquisitions.

• Profit for H1 2025 was R$285.4 million, stable year-over-year, with net margin at 10.8%.

• Recognized for sustainability and diversity, receiving the GHG Protocol Gold Seal and industry awards.

• Operations span 9 business facilities across South & Central America, including manufacturing, technology, and distribution centers.

Financial highlights

• Q2 2025 net revenue rose 28.1% year-over-year; H1 2025 net revenue up 26.1%.

• Gross margin in H1 2025 was 27.5%, down from 30.8% in H1 2024; EBIT margin 16.4%; EBITDA margin 18.9%.

• Net finance costs decreased to R$29.6 million in H1 2025 from R$38.6 million in H1 2024.

• Cash and equivalents declined to R$208.9 million at June 2025, impacted by dividend payments and acquisitions.

• EPS for H1 2025 was R$2.10559; basic and diluted EPS rose 42.9% to R$0.93510.

Outlook and guidance

• Management expects increased capital expenditures in H2 2025 to meet annual targets.

• Market signals suggest a challenging H2 2025 for the automotive industry, despite a strong H1.

• New business lines launched in carbon canisters, dust filters, oil filters, ducts, and turbo engine components.

• Strategic focus on sustainable and efficient vehicle components, aligned with regulatory changes and tax incentives.

• Conservative internal projections for 2025: 8% growth in light vehicles, 0% in heavy-duty vehicles.