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 performance.

• EBITDA declined 6% year-over-year to $171 million due to extraordinary North American expenses and FX headwinds, with margin improving sequentially from 9% in Q1 to 11% in Q2.

• Integration of GF Casting Solutions and other acquisitions is progressing, with $157 million revenue contribution and $20–$40 million in synergies expected by 2027.

• Strategic focus remains on maximizing ICE powertrain value while expanding in e-mobility, structure, and chassis applications, supported by new program launches.

• Major investments include the Augusta, Georgia mega-casting facility, nearing operational launch and expected to generate $170–$200 million in annual revenue.

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, down 36.4% year-over-year.

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

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

Outlook and guidance

• Management reaffirmed full-year EBITDA guidance of $840 million, citing sequential improvement and expected stabilization of extraordinary costs.

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

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

• Operations in Georgia expected to begin in 2H26, with production ramp-up through 2027–2028.

• Focus on disciplined execution, synergy capture, and leveraging expanded platform for growth.