Earnings release
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Nemak reports EBITDA of US$143 M in 3Q25 EBITDA declined by 15% year-over-year on a high comparison base Monterrey, Mexico , October 22, 202 5. Nemak, S.A.B. de C.V. (BMV: NEMAK) (“Nemak” or the “Company”) announced today its operating and financial results for the third quarter of 2025 (“3Q25”). The following is a summary of the key figures for the period: Message from the CEO This quarter, our top line remained stable, while our EBITDA reached US$143 M, driven by expected seasonality and the absence of the one-off effect from commercial negotiations that took place in 3Q24, reflecting resilient performance in a challenging environment. By the end of July, we announced the agreement to acquire GF Casting Solutions’ automotive business, a milestone in our long -term strategy that will strengthen Nemak’s business profile and accelerate its transformation. This acquisition , which remains subject to regulatory approvals, is expected to be accretive in terms of technology, operations, and diversification. It will broaden our product portfolio and expertise in high-pressure die casting (“ HPDC”), enhance our R&D capabilities, and deepen our presence and customer base in Europe and China. The closing remains subject to customary regulatory approvals. We remain confident in our strategy and the quality of our performance. Looking ahead, focused execution and the successful integration of GF Casting Solutions are expected to drive growth and profitability, while further strengthening Nemak’s position as a leader in lightweighting solutions across different propulsion systems, creating long-term sustainable value for our stakeholders. 2025 2024 D% 2025 2024 D% Volume (M. Equivalent units) 9.6 9.6 (0.5) 29.2 30.5 (4.1) Revenues 1,227 1,224 0.2 3,708 3,698 0.3 EBITDA1 143 169 (15.5) 474 477 (0.6) CAPEX 70 96 NA2 206 279 NA2 US$ M illions, except Volume (1 ) EBITDA = Operating Income + Depreciation, Amortization & other Non-Cash Charges (2) NA = Not applicable Third Quarter Nine months
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2 Recent Developments • During 3Q25 Nemak announced the agreement to acquire GF Casting Solutions’ automotive business, marking a major milestone in its strategic journey to strengthen technological capabilities and expand its global footprint. This transaction will enhance Nemak’s innovation platform, particularly in HPDC and structure applications for electric mobility, while providing Nemak with access to new customers and additional production facilities in Europe, China, and the U.S. • During 2025, Nemak has secured new business worth approximately US$250 million in annual revenue, 80% for ICE powertrain components , and 20% for electric mobility and structure and chassis applications segment. • During the quarter, the Company achieved new certifications under the Aluminum Stewardship Initiative (“ASI”) in Europe and Mexico, further advancing its sustainability roadmap and reinforcing its commitment to responsible manufacturing and the integration of sustainable practices across its value chain. Automotive Industry In the United States, light -vehicle seasonal-adjusted annual rate (“ SAAR”) sales reached 16.4 million units in 3Q25, representing a 5.1% year-over-year (“y-o-y”) increase. This growth was mainly driven by a pull-ahead effect prior to the phase-out of the Inflation Reduction Act EV incentives and the potential impact from tariffs to new vehicle prices . On the production side, volumes increased 3% y -o-y to 3.9 million units, driven by sustained demand. In Europe, light-vehicle SAAR sales rose 2.4% y-o-y to 15.7 million units, reflecting improved affordability as OEMs introduced lower-priced trims. However, production remained at 3.4 million units, showing a marginal decline mainly due to lower exports. 2025 2024 % Var US Vehicle Sales SAAR(1)(2) 16.4 15.6 5.1 North America Vehicle Production(2) 3.9 3.8 3.0 North America Nemak Customer Production(2) 2.6 2.5 3.1 Europe Vehicles Sales SAAR(1)(2) 15.7 15.3 2.4 Europe Vehicle Production(2) 3.4 3.4 (0.7) Europe Nemak Customer Production(2) 3.0 3.1 (0.7) (1) SAAR = Seasonally Adjusted Annual Rate (2) Source: Industry Analyst and Nemak estimates Millions of Units Third Quarter
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3 Financial Results Summary In 3Q25, Nemak reported volume of 9. 6 million equivalent units, stable y-o-y, driven by stronger production in North America, partially offset by lower customer production in Europe. Revenue in the quarter remained at US$1.2 billion in line with 3Q24, due to updated pricing, and the appreciation of the euro, which offset the absence of one-off commercial negotiations. EBITDA was US$143 million, a 15.5% y-o-y decline, primarily due to a high comparison base associated with commercial negotiations in the same quarter of last year, and launch expenses associated with volume ramp-up and mix in certain platforms. On a unitary basis, EBITDA stood at US$15.0, reflecting the aforementioned factors. Operating income was US$26 million, compared to US$73 million in 3Q24, mainly driven by lower EBITDA and impairment of non-operating assets for US$17 million. Nemak reported a net income of US$25 million, driven by lower net financing expenses and a favorable income tax effect from foreign exchange fluctuations, mainly the appreciation of the Mexican peso against the U.S. dollar. This was partially offset by lower operating income during the quarter. Capital expenditures in the quarter totaled US$70 million, 27% lower y -o-y, consistent with the Company’s disciplined investment strategy, which prioritizes projects with adequate profitability. As of September 30, 2025, Nemak’s net debt was US$1.6 billion. The financial ratios were: Net Debt to LTM EBITDA , 2.5 times; and Interest Coverage , 4.9 times. These compared to 2.9 and 5.0 times, respectively, at the end of 3Q24. 2025 2024 D% 2025 2024 D% Volume (M. Equivalent units) 9.6 9.6 (0.5) 29.2 30.5 (4.1) Revenues 1,227 1,224 0.2 3,708 3,698 0.3 Operating Income 26 73 (64.4) 153 185 (17.3) EBITDA1 143 169 (15.5) 474 477 (0.6) EBITDA1 / Eq. Unit 15.0 17.6 (14.8) 16.2 15.7 3.2 Net Income 25 5 NA2 (16) 76 NA2 CAPEX 70 96 NA2 206 279 NA2 Net Debt3 1,592 1,765 (9.8) US$ Millions, except Volume and EBITDA / Eq. Unit (1) EBITDA = Operating Income + Depreciation, Amortization & other Non-Cash Charges (2) NA = Not applicable (3) Net Debt = Total Debt - Total Cash Third Quarter Nine months
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4 Regional Results North America Revenue in the region grew 2.3% y-o-y to US$651 million, driven by higher volume . EBITDA declined 13.9% y-o-y to US$67 million, due to the absence of commercial negotiations, and additional costs from volume ramp-up in certain platforms. Europe Revenue declined 4.3% y-o-y to US$401 million, mainly due to the absence of commercial negotiations, partly offset by pricing and the appreciation of the euro . EBITDA decreased 26.4% y-o-y to US$50 million, reflecting lower volume and the absence of commercial negotiations, which more than offset the positive effect from the appreciation of the euro. Rest of the World Revenue increased 3.4% y-o-y to US$175 million, driven by an improved product mix, which was slightly offset by lower volume . EBITDA ros e 11.3% y -o-y to US$ 26 million, supported by enhanced performance and mixed improvements across operations.
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5 Methodology for presentation of results The report presents unaudited financial information. Figures are in US dollars, and financial ratios are calculated in the same currency. Due to rounding, minor differences may occur when calculating percentage changes from one period to another. Earnings webcast information Nemak’s 3Q25 Earnings Webcast will be held on Thursday, October 23, 2025, 1:00 p.m. Eastern Time (1 1:00 a.m. Mexico City Time). To participate, please join the live webcast. If you are unable to participate, the transcript and audio recording of the event will be available on Nemak’s website. For more information, please visit https://investors.nemak.com/ Forward-looking statements This report may contain certain “forward -looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to risks, uncertainty, and changes in circumstances, which may cause actual results, performance , or achievements to differ materially from anticipated results, performance, or achievements. All statements contained herein that are not clearly historical in nature are forward -looking and the words “anticipate ,” “believe,” “expect,” “estimate, “plan,” and similar expressions are generally intended to identify forward-looking statements. Nemak is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events, or otherwise. About Nemak Nemak is a leading provider of innovative lightweighting solutions for the global automotive industry, specializing in the development and manufacturing of aluminum components for e -mobility, structure & chassis, and ICE powertrain applications. In 202 4, it generated revenue of US$ 4.9 billion. For more information about Nemak, please visit nemak.com/
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6 2025 2024 % Var. 2025 2024 % Var. Volume (million equivalent units) 9.6 9.6 (0.5) 29.2 30.5 (4.1) Total revenues 1,227 1,224 0.2 3,708 3,698 0.3 Gross profit 120 159 (24.5) 414 459 (9.8) Sales & administrative expenses (80) (87) (8.0) (240) (266) (9.8) Other income (expenses) net (13) 0 NA2 (21) (9) NA2 Operating Income 26 73 (64) 153 185 (17.3) Interest Expenses (29) (33) (11) (88) (108) (18.5) Interest Income 3 1 NA2 7 25 NA2 Foreign exchange gain (loss) (4) (28) NA2 (102) (13) NA2 Financing expenses net (30) (60) NA2 (183) (96) 91 Participation in associates results 0 1 NA2 1 2 (50) Income Tax 28 (8) NA2 13 (15) NA2 Net Income 25 5 NA2 (16) 76 NA2 2025 2024 % Var. 2025 2024 % Var. Operating Income 26 73 (64.4) 153 185 (17.3) Depreciation, Amortization & Other Non-Cash items 117 97 20.6 321 292 9.9 EBITDA1 143 169 (15.5) 474 477 (0.6) CAPEX 70 96 (27.1) 206 279 (26.2) (1) EBITDA = Operating Income + Depreciation, Amortization & other Non-Cash items (2) Not applicable Nemak Income Statement Millions of Dollars For the third quarter of: For the nine months of: 19.1685 20.664 Assets Sep-25 Dec-24 % Var Cash and cash equivalents 328 342 (4.1) Accounts receivable 661 579 14.2 Inventories 857 821 4.4 Other current assets 97 30 NA1 Total current assets 1,944 1,773 9.6 Investments in shares 30 27 11.1 Property, plant and equipment, net 2,814 2,814 0.0 Other assets 710 626 13.4 Total assets 5,498 5,240 4.9 Liabilities & stockholders' equity Sep-25 Dec-24 % Var Bank loans 39 69 NA1 Current maturities of long-term debt 29 33 (12.1) Interest payable 10 11 (9.1) Operating liabilities 1,588 1,542 3.0 Total current liabilities 1,666 1,655 0.7 Long-term debt 1,838 1,756 4.7 Labor liabilities 94 91 3.3 Other long term-liabilities 96 83 15.7 Total liabilities 3,694 3,585 3.0 Total stockholders’ equity 1,804 1,656 8.9 Total liabilities & stockholders' equity 5,498 5,240 4.9 (1) Not applicable Nemak Balance Sheet Millions of Dollars
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7 Volume (million equivalent units) 2025 2024 % Var. 2025 2024 % Var. North America 5.2 5.0 3.9 15.5 15.4 0.7 Europe 2.8 3.0 (7.0) 9.1 10.5 (13.4) Rest of World 1.6 1.6 (1.7) 4.6 4.5 1.1 Total 9.6 9.6 (0.5) 29.2 30.5 (4.1) Total Revenues* 2025 2024 % Var. 2025 2024 % Var. North America 651 636 2.3 1,978 1,920 3.0 Europe 401 419 (4.3) 1,225 1,302 (5.9) Rest of World 175 169 3.4 504 475 6.1 Total 1,227 1,224 0.2 3,708 3,698 0.3 EBITDA ¹ 2025 2024 % Var. 2025 2024 % Var. North America 67 78 (13.9) 224 207 8.3 Europe 50 68 (26.4) 178 205 (13.3) Rest of World 26 23 11.3 72 65 11.1 Total 143 169 (15.5) 474 477 (0.6) EBITDA ¹ Margin in % 2025 2024 % Var. 2025 2024 % Var. North America 10% 12% (15.8) 11% 11% 5.1 Europe 12% 16% (23.2) 15% 16% (7.9) Rest of World 15% 14% 7.6 14% 14% 4.8 Total 12% 14% (15.7) 13% 13% (0.9) EBITDA ¹ USD/Equivalent units 2025 2024 % Var. 2025 2024 % Var. North America 12.9 15.6 (17.1) 14.5 13.5 7.5 Europe 17.8 22.5 (20.9) 19.5 19.5 0.1 Rest of World 16.6 14.7 13.2 15.7 14.3 9.9 Total 15.0 17.6 (15.0) 16.2 15.7 3.2 (1) EBITDA = Operating Income + Depreciation, Amortization & other Non-Cash items * To external customers Nemak Regional Results Millions of Dollars For the third quarter of: For the nine months of: