Nemak (NEMAKA) Q2 2026 earnings summary

Executive summary

• Revenue increased 19% year-over-year to $1.5 billion in 2Q26, driven by acquisitions, higher aluminum prices, and stable core business.

• EBITDA declined 6% year-over-year to $171 million due to extraordinary costs in North America and negative forex effects, but margin improved from 9% in Q1 to 11% in Q2.

• Integration of acquired operations, including Georg Fischer Casting Solutions, is progressing well, with $157 million revenue contribution and $20–$40 million in synergies expected by 2027.

• Net result was a $13 million loss, mainly due to lower operating income and higher income tax, partially offset by reduced FX losses.

• Strategic expansion in e-mobility, structure, and chassis applications, with new program launches and strong ICE powertrain demand.

Financial highlights

• Revenue for Q2 2026 was $1.5 billion, up 19% year-over-year; ICE powertrain contributed $1.3 billion, e-mobility/structure/chassis $197 million (13% of revenue).

• EBITDA was $171 million, down from $182 million in Q2 2025.

• Operating income totaled $49 million, compared to $77 million last year.

• Net debt stood at $1.76 billion at the end of June, with a net debt-to-EBITDA ratio of 2.9x.

• Capital expenditures were $110 million, mainly for the Georgia facility, up 50.7% year-over-year.

Outlook and guidance

• Management reaffirmed full-year EBITDA guidance of $640 million, citing sequential improvement and expected stabilization of extraordinary costs.

• Extraordinary expenses in North America ($7–$10 million per quarter) are expected to phase out in coming quarters.

• Georgia Mega-casting facility is on track to begin operations in the second half of 2026, with production ramp-up through 2027–2028.

• Working capital consumption expected to normalize in the second half of the year.

• Targeting net debt-to-EBITDA ratio closer to 2.0x over the medium term.