Nemak (NEMAKA) Q1 2026 earnings summary

Executive summary

• Revenue grew 15.3% year-over-year to $1.4 billion, driven by the integration of GF Casting Solutions, higher aluminum prices, and favorable FX impacts.

• EBITDA declined 14.5% year-over-year to $128 million due to extraordinary expenses, integration costs, and currency headwinds.

• Net income reached $21 million, reversing a net loss of $16 million in the prior year, aided by FX gains and tax adjustments.

• Integration of GF Casting Solutions expanded the global footprint to 53 facilities and added over 2,500 professionals.

• Strategic focus remains on disciplined execution, profitability, cash flow generation, and deleveraging.

Financial highlights

• Revenue: $1,399M in 1Q26 vs $1,213M in 1Q25 (+15.3% year-over-year).

• EBITDA: $128M in 1Q26 vs $149M in 1Q25 (-14.5% year-over-year).

• Operating income: $18M in 1Q26 vs $15M in 1Q25.

• Net income: $21M in 1Q26 vs net loss of $16M in 1Q25.

• Net debt: $1.79B as of March 31, 2026, up from $1.6B, reflecting acquisition and working capital seasonality.

• Capital expenditures: $113M, mainly for facility ramp-ups.

Outlook and guidance

• Focus on capturing synergies from the GF Casting Solutions integration to support profitability and free cash flow.

• Robust pipeline of $1.9 billion in annual revenue opportunities across key segments.

• Continued prioritization of operating efficiency, free cash flow, and prudent capital allocation.

• Net debt to EBITDA target of around 2x within two years, with no major debt maturities until 2028.

• On track with Science-Based Targets Initiative objectives.