Nemak (NEMAKA) Q4 2025 earnings summary

Executive summary

• 2025 results showed resilience amid complex trade and electrification trends, with stable revenue of $4.93 billion and EBITDA of $591 million, within guidance range, reflecting disciplined execution and operational efficiency.

• Acquisition of GF Casting Solutions' automotive business closed in February 2026, expanding capabilities in light weighting, high-pressure die casting, e-mobility components, and access to Chinese manufacturers.

• Strong operational discipline led to $130 million debt reduction and positive cash flow, with net debt reduced by $190 million sequentially to $1.4 billion.

• New Czech Republic facility ramped up, supporting e-mobility programs and showcasing advanced assembly technologies.

• $440 million in new business awards secured in 2025, with 85% in ICE powertrain and 15% in e-mobility, structure, and chassis segments.

Financial highlights

• Full-year 2025 revenue stable at $4.93 billion, up 0.5% year-over-year; Q4 revenue up 1% to $1.22 billion.

• EBITDA for 2025 was $591 million, down 7% year-over-year; Q4 EBITDA $117 million, down 25%.

• Net loss for 2025 was $116 million, compared to $25 million profit in 2024, mainly due to impairments and FX losses.

• Net debt at year-end was $1.4 billion, down 9% year-over-year; net debt/EBITDA ratio stable at 2.4x; interest coverage ratio improved to 5.5x.

• CapEx for 2025 was $306 million, down 21% year-over-year.

Outlook and guidance

• 2026 guidance: revenue $5.3–$5.5 billion, EBITDA $630–$650 million, CapEx $385–$395 million.

• Focus remains on disciplined strategy execution, operational efficiency, and successful integration of the acquired business.

• Additional CapEx required for new U.S. manufacturing facility from GF acquisition.

• Continued emphasis on capturing synergies and expanding commercial offerings post-acquisition.