MAHLE Metal Leve (LEVE3) Q2 2026 earnings summary

Executive summary

• Delivered resilient operational performance in Q2 and H1 2026, maintaining strong operating margins despite revenue pressure and challenging macroeconomic conditions.

• Revenue for H1 2026 was BRL 2.59 billion, down 1.8% year-over-year, but would have grown 2% excluding negative FX effects; EUR 5.5B sales, a 2.3% decrease, but 0.9% organic growth.

• Operational improvements, favorable product mix, and disciplined cost control drove margin expansion and improved profitability.

• Strategic diversification between OEM and Aftermarket, focus on innovation and sustainability, and recognition for ESG leadership and technological innovation.

• Free Cash Flow improved by EUR 316M year-over-year, reaching EUR 134M, driven by operational improvements and lower net working capital increase.

Financial highlights

• Gross margin improved to 29.2% in H1 2026 from 28.6% in H1 2025 (adjusted); Q2 2026 gross margin was 28.9%.

• Adjusted EBITDA margin rose to 20.2% in H1 2026; EBIT margin reached 18.4% in Q2 2026.

• Net profit for H1 2026 was BRL 373.8 million, up 31% year-over-year; net margin was 14.4% for H1 and 12% for Q2.

• Free Cash Flow reached EUR 134M, up EUR 316M from H1 2025.

• Net debt/EBITDA ratio stable at 1.05x (BRL) and 1.3x (EUR), reflecting conservative leverage.

Outlook and guidance

• Full-year 2026 light vehicle sales in Brazil projected to grow 13%, with combined Brazil/Argentina growth expected at 8-9%.

• FY 2026 guidance: ~EUR 11.0B sales, ~7.5% EBITDA margin, ~EUR 250M Free Cash Flow, ~1.2x net debt/EBITDA, assuming stable macro conditions.

• Management remains cautious due to macroeconomic volatility, FX fluctuations, and upcoming tax reforms.

• Continued focus on operational efficiency, cost discipline, and investment in sustainable mobility technologies.

• No significant changes expected in product mix for the remainder of the year.