MAHLE Metal Leve (LEVE3) Q2 2026 earnings summary

Executive summary

• Delivered resilient results in H1 2026, maintaining strong operating margins and profitability despite revenue pressure and challenging market conditions, with net operating revenue of BRL 2.59 billion, down 1.8% year-over-year, and net profit of BRL 373.8 million, up 31% year-over-year.

• Operational discipline, business diversification, and innovation in sustainable mobility technologies supported profitability, with strong cash generation enabling high dividend payouts.

• Recognized for ESG leadership and technological innovation, winning major industry awards and the Gold Seal for GHG transparency.

• Expanded presence in off-road and agricultural segments through new product launches and participation in key trade shows.

• The company maintained resilience amid macroeconomic and industry headwinds.

Financial highlights

• Net operating revenue was BRL 2.59 billion in H1 2026, down 1.8% year-over-year; Q2 2026 revenue was BRL 1.33 billion, down 2.7% from Q2 2025.

• Gross margin improved to 29.2% (adjusted) in H1 2026 and 28.9% in Q2 2026; adjusted EBITDA margin was 20.2% in H1 and 20.5% in Q2.

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

• Free Cash Flow and working capital improved, with DSO reduced by one day and inventory levels normalized.

• Leverage ratio (Net debt/Adjusted EBITDA) was 1.05x at June 30, 2026.

Outlook and guidance

• Positive outlook for Brazilian vehicle sales, with ANFAVEA projecting registrations above 3 million units in 2026 and 13% growth in light vehicle sales.

• Export outlook remains challenging due to weaker demand in Argentina and increased competition.

• Management remains cautious due to macroeconomic volatility, FX risks, and upcoming tax reforms, with continued focus on operational efficiency and investment in sustainable mobility technologies.

• Investments in R&D and sustainable mobility are expected to drive long-term value.

• Heavy-duty vehicle sales projected to decline in Brazil and Argentina for 2026.