MAHLE Metal Leve (LEVE3) Q3 2025 earnings summary

Executive summary

• Net revenue reached R$4,081.1 million in the first nine months of 2025, up 26% year-over-year, driven by acquisitions and market share gains, with strong growth in filters and engine parts.

• EBITDA margin for 9M 2025 was 19.8% (R$808.0 million), slightly down from 23.8% in 9M 2024, reflecting integration of acquired businesses with lower margins.

• Profit for the period rose 9.8% year-over-year to R$472.8 million for 9M 2025.

• The company expanded its Americas Filter Engineering Center and received multiple awards for transparency, ESG, and supplier excellence.

• Market conditions remain uncertain due to political and macroeconomic factors, but the quarter brought positive news and improved performance.

Financial highlights

• Q3 2025 net operating revenue: R$1,445.3 million, up 25.6% year-over-year.

• 9M 2025 net finance costs decreased to R$36.3 million from R$57.9 million in 9M 2024.

• Capital expenditures in 9M 2025 totaled R$85.7 million (2.1% of net sales).

• Net debt at September 30, 2025 was R$891.6 million, with net debt/Adjusted EBITDA at 0.87x.

• Net income for the third quarter was BRL 6.7 million; nine-month net income was BRL 13.6 million.

Outlook and guidance

• Management anticipates continued investment in R&D and sustainable solutions, leveraging expanded technical capabilities and a balanced OE/Aftermarket strategy.

• Combined Brazil and Argentina vehicle sales expected to grow 7% by year-end, down from earlier 8% projections.

• Light vehicle production in Brazil and Argentina projected to grow 4% for the year.

• Heavy-duty vehicle production expected to decrease by 3% in Brazil and Argentina.

• European and North American markets face production declines, with a combined decrease of 2.3% for light vehicles and 10.1% for heavy-duty vehicles.