MAHLE Metal Leve (LEVE3) Q4 2024 earnings summary

Executive summary

• Net sales revenue reached $4.6 billion (R$4,558.0 million) in 2024, up 5.1% year-over-year, driven by strong domestic OE and Aftermarket growth, and supported by three acquisitions: MAHLE Compressores, MAHLE Aftermarket Thermal, and a 33.3% stake in Arco Climatização.

• Q4 2024 net revenue surged 29.6% over Q4 2023, with domestic OE up 89.9% and Aftermarket up 13.8%.

• Operations span 9 business facilities across South & Central America.

• Released Sustainability Report 2023 and received the Golden Seal from the Brazilian GHG Protocol Program for emissions transparency.

Financial highlights

• EBIT margin was 19.1% in 2024, with adjusted EBITDA margin at 21.7%; gross margin was 28.5%.

• Adjusted net profit for 2024 was R$551.6 million, down 27.6% year-over-year; net margin declined to 12.1%.

• Net finance costs increased to R$171.1 million from net finance income of R$121.8 million in 2023, mainly due to exchange rate effects and higher debt.

• Cash and equivalents at year-end were R$382.2 million.

• Q4 2024 net operating revenue was R$1,317.8 million, up 29.6% from Q4 2023.

Outlook and guidance

• Domestic demand and vehicle production in Brazil and Argentina are expected to remain robust, with market expecting 8% growth in light vehicle sales and 1% in heavy-duty for 2025.

• Global economic growth projected at 3.3% for 2025 and 2026, but with downside risks from inflation and monetary policy.

• Management is cautious about macroeconomic volatility and interest rates, focusing on maintaining reserves and prudent capital allocation.