Earnings release
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Nemak reports EBITDA of US$117 M in 4Q25 FY2025 EBITDA of US$591 M, a 7% reduction, y-o-y; High comparison base driven by one-time negotiations. Monterrey, Mexico , February 24 , 202 6. Nemak, S.A.B. de C.V. (BMV: NEMAK) (“Nemak” or the “Company”) announced today its operating and financial results for the fourth quarter of 2025 (“4Q25”) and full-year 2025 (“FY2025”). The following is a summary of the key figures for the period: Message from the CEO In 2025, Nemak delivered a n EBITDA of US$591 million, in line with Guidance, driven by disciplined execution and a continued focus on operational efficiency. As the automotive industry showed resilience amid stable economic conditions and a volatile global trade environment, our business structure enabled us to navigate foreign trade complexities, while executing on our strategic and financial priorities. A key highlight of the year was the announcement of the definitive agreement to acquire Georg Fischer Casting Solutions’ automotive business, which was successfully closed in February 2026. This acquisition enhances Nemak’s business profile with a broader product portfolio, stronger R&D capabilities, and a more diversified global presence. We are now focused on executing a successful integration, capturing synergies, and expanding our commercial o ffering as we advance this landmark transaction, strengthening our position as a strategic partner to our customers. During the year, we secured US$440 million in awarded business across our global operations, reflecting the extended lifecycle of ICE powertrain programs while continuing to capture opportunities in the electric mobility segment. Most of these awards will leverage existing assets, supporting our objective of reducing capital expenditures. Looking ahead, we remain focused on executing our strategy with discipline and agility to build long - term sustainable value for all our stakeholders. 2025 2024 D% 2025 2024 D% Volume (M. Equivalent units) 9.2 9.0 1.9 38.4 39.5 (2.7) Revenues 1,223 1,209 1.2 4,931 4,907 0.5 EBITDA1 117 156 (24.6) 591 633 (6.5) CAPEX 99 109 (9.2) 306 389 (21.3) US$ Millions, except Volume (1) EBITDA = Operating Income + Depreciation, Amortization & other Non-Cash Charges (2) NA2 = Not applicable Fourth Quarter Twelve months
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2 Recent Developments • In February 12, 2026, the Company successfully completed the acquisition of GF Casting Solutions automotive business, a transaction with an enterprise value of US$336 million. The acquired operations will be consolidated effective February 2026. • On January 16, 2026, Nemak announced that its Board of Directors approved the CEO succession plan. Armando Tamez will retire effective March 31, 2026, and Hervé Boyer has been appointed Chief Executive Officer, effective April 1, 2026. • In FY2025, Nemak secured business worth approximately US$440 million annually, with 85% allocated to the Internal Combustion Engine (“ICE powertrain”) segment and the remaining 15% to the Electric Mobility, Structure & Chassis applications (“EV/SC”) segment. • During 2025, the Company achieved an “A-” rating from CDP, the Carbon Disclosure Project, for the second consecutive year. This rating places Ne mak in the Leadership band, the highest tier within CDP scoring system. Automotive Industry In 4Q25, U.S. light-vehicle SAAR sales reached 15.7 million units, 4.9% lower compared to the same period last year, mainly due to the rollback of the EV tax credit. FY2025 light-vehicle sales increased 1.9% year-over-year (“y-o-y”), totaling 16.4 million units, backed by strong demand, despite affordability concerns. Light-vehicle production in North America for the fourth quarter declined by 1.7% y-o-y to 3.6 million units, amid cautious production schedules and certain supply chain disruptions . Inventory levels remained stable at 46 days of sales. For the full-year, production stood at 15.2 million units, down 1.4% from 2024, driven by the same factors. In Europe, 4Q25 light -vehicle SAAR sales increased 7.4% y -o-y to 17.4 million units, supported by higher imports under stable macroeconomic conditions, and stronger sales of entry-level vehicles. For FY2025, seasonally adjusted sales totaled 16.4 million units, up 1.7% y-o-y, reflecting similar dynamics. Meanwhile, light-vehicle production in Europe declined 1.8% y -o-y to 3.8 million units in the quarter, mainly due to lower export demand and supply chain constraints, particularly microchip shortages. For the full year, output reached 15.4 million units, 1.7% below last year, reflecting the same headwinds. 2025 2024 % Var 2025 2024 % Var US Vehicle Sales SAAR(1)(2) 15.7 16.5 (4.9) 16.4 16.0 1.9 North America Vehicle Production(2) 3.6 3.6 (1.7) 15.2 15.5 (1.4) North America Nemak Customer Production(2) 2.4 2.4 2.0 10.1 10.3 (2.1) Europe Vehicles Sales SAAR(1)(2) 17.4 16.2 7.4 16.4 16.2 1.7 Europe Vehicle Production(2) 3.8 3.9 (1.8) 15.4 15.7 (1.7) Europe Nemak Customer Production(2) 3.5 3.5 (2.1) 14.0 14.3 (1.7) (1) SAAR = Seasonally Adjusted Annual Rate (2) Source: Industry Analyst and Nemak estimates Millions of Units Last Twelve Months Millions of Units Fourth Quarter
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3 Financial Results Summary In 4Q25 and FY2025, volume increased 2% and decreased 3% y -o-y, respectively, totaling 9.2 million and 38.4 million equivalent units. This was mainly driven by customers’ cautious production schedules amid geopolitical pressures, as well as declining e-mobility adoption by end consumers during the year. Revenue in 4Q25 increased 1% y -o-y to US$1.2 billion, supported by higher volume and higher aluminum prices. For FY2025, revenue remained stable y -o-y at US$4.9 billion, as lower volume was partially offset by higher aluminum prices, the carryover effect from pr ior years' repricing , and the favorable effect from the euro appreciation. Nemak recorded an operating loss of US$56 million in 4Q25 , driven mainly by impairment charges, including asset write-offs and reorganization expenses totaling US$85 million. This figure compares to an operating loss of US$39 million in 4Q24. For FY2025, operating income totaled US$97 million, down from US$145 million in FY2024, representing a 33% y-o-y decline, due mainly to the same factors. EBITDA for 4Q25 decreased 25% y -o-y to US$117 million. For FY2025, EBITDA declined 7% y -o-y, totaling US$591 million, mainly due to extraordinary launch expenses and currency effects in North America, in addition to high comparison base in 4Q24 and FY2024 due to customer negotiations. This was reflected in EBITDA per equivalent unit of US$12.8 for the quarter, down 26% y-o-y, and US$15.4 for the year, 4% below 2024 levels. For 4Q25, the Company reported a net loss of US$100 million, compared to a net loss of US$51 million in 4Q24. For FY2025, net loss totaled US$116 million, compared to a net income of US$25 million in the previous year, as foreign exchange loss more than offset lower financial expenses and lower income tax. Excluding the non-cash effects from impairments and foreign exchange loss, net result would be a US$75 million profit in 2025. Capital expenditures in 4Q25 totaled US$99 million, 9% below the US$109 million in 4Q24. For FY2025, investments reached US$306 million, 21% below US$389 million in FY2024. The Company remains 2025 2024 D% 2025 2024 D% Volume (M. Equivalent units) 9.2 9.0 1.9 38.4 39.5 (2.7) Revenues 1,223 1,209 1.2 4,931 4,907 0.5 Operating Income (56) (39) 43.6 97 145 (33.1) EBITDA1 117 156 (24.6) 591 633 (6.5) EBITDA1 / Eq. Unit 12.8 17.2 (25.6) 15.4 16.0 (3.8) Net Income (100) (51) NA2 (116) 25 NA2 CAPEX 99 109 (9.2) 306 389 (21.3) Net Debt3 1,402 1,532 (8.5) US$ Millions, except Volume and EBITDA / Eq. Unit (1) EBITDA = Operating Income + Depreciation, Amortization & other Non-Cash Charges (2) NA2 = Not applicable (3) Net Debt = Total Debt - Total Cash Fourth Quarter Twelve months
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4 committed its capital allocation while prioritizing capital investments that support strategic objectives and operational efficiency. As of December 31, 2025, Nemak’s Net Debt was US$1.4 billion. The financial ratios were Net Debt to LTM EBITDA of 2.4 times and Interest Coverage of 5.5 times. These ratios compare to 2.4 times and 4.9 times, respectively, recorded at the end of 4Q24. Regional Results North America In 4Q25, North America revenue decreased 1% y -o-y to US$653 million, mainly due to a high comparable base associated with one -time commercial negotiations in 4Q24. EBITDA was US$43 million, down from US$121 million in 4Q24, mainly due to the comparable effect from commercial negotiations in 4Q24, as well as extraordinary operating expenses related to increased production in certain facilities, and the appreciation of the Mexican peso. Europe In Europe, revenue increased 5% y-o-y to US$410 million despite lower volume, driven by the translation effect from the euro appreciation. EBITDA was US$55 million, up from US$19 million in 4Q24, supported by sustained performance and operating efficiencies in the region. Rest of the World Revenue in the Rest of the World increased 2% y -o-y to US$160 million, underpinned by favorable volume and product mix. EBITDA was US$20 million, up from US$16 million in 4Q24, supported by an enhanced product mix and operating efficiencies.
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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 4Q25 Earnings Webcast will be held on Wednesday, February 25, 2026, 12:00 p.m. Eastern Time (11:00 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 5, 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) 9.2 9.0 1.9 38.4 39.5 (2.7) Total revenues 1,223 1,209 1.2 4,931 4,907 0.5 Gross profit 101 121 (16.5) 515 580 (11.2) Sales & administrative expenses (93) (86) 8.1 (333) (352) (5.4) Other income (expenses) net (64) (75) NA2 (85) (83) NA2 Operating Income (56) (39) 43.6 97 145 (33.1) Interest Expenses (35) (49) (27.6) (123) (157) (21.7) Interest Income 8 1 NA2 15 27 NA2 Foreign exchange gain (loss) (1) 51 NA2 (103) 38 NA2 Financing expenses net (28) 3 NA2 (211) (92) NA2 Participation in associates results 1 1 NA2 2 3 NA2 Income Tax (18) (16) 12.5 (4) (30) (86.7) Net Income (100) (51) NA2 (116) 25 NA2 2025 2024 % Var. 2025 2024 % Var. Operating Income (56) (39) 43.6 97 145 (33.1) Depreciation, Amortization & Other Non-Cash items 173 195 (11.3) 494 487 1.4 EBITDA1 117 156 (24.6) 591 633 (6.5) CAPEX 99 109 (9.2) 306 389 (21.3) (1) EBITDA = Operating Income + Depreciation, Amortization & other Non-Cash items (2) NA2 = Not aplicable Nemak Income Statement Millions of Dollars For the fourth quarter of: For the twelve months of: 19.1685 20.664 Assets Dec-25 Dec-24 % Var Cash and cash equivalents 517 342 51.2 Accounts receivable 622 579 7.4 Inventories 819 821 (0.2) Other current assets 59 30 96.3 Total current assets 2,017 1,773 13.8 Investments in shares 30 27 11.1 Property, plant and equipment, net 2,795 2,814 (0.7) Other assets 707 626 13.0 Total assets 5,550 5,240 5.9 Liabilities & stockholders' equity Dec-25 Dec-24 % Var Bank loans 53 69 NA1 Current maturities of long-term debt 41 33 23.0 Interest payable 7 11 (36.4) Operating liabilities 1,772 1,542 14.9 Total current liabilities 1,873 1,655 13.1 Long-term debt 1,816 1,756 3.4 Labor liabilities 99 91 8.8 Other long term-liabilities 92 83 10.8 Total liabilities 3,880 3,585 8.2 Total stockholders’ equity 1,669 1,656 0.8 Total liabilities & stockholders' equity 5,550 5,240 5.9 (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 4.9 4.7 4.6 20.4 20.1 1.7 Europe 2.8 2.8 (1.2) 11.9 13.4 (10.8) Rest of World 1.5 1.5 (0.7) 6.1 6.0 0.6 Total 9.2 9.0 1.9 38.4 39.5 (2.7) Total Revenues* 2025 2024 % Var. 2025 2024 % Var. North America 653 661 (1.1) 2,632 2,581 2.0 Europe 410 391 4.9 1,636 1,693 (3.4) Rest of World 160 157 1.7 664 632 5.0 Total 1,223 1,209 1.2 4,931 4,907 0.5 EBITDA ¹ 2025 2024 % Var. 2025 2024 % Var. North America 43 121 (64.6) 267 328 (18.5) Europe 55 19 NA2 233 224 3.9 Rest of World 20 16 23.6 91 80 13.6 Total 117 156 (24.6) 591 633 (6.5) EBITDA ¹ Margin in % 2025 2024 % Var. 2025 2024 % Var. North America 7% 18% (64.2) 10% 13% (20.1) Europe 13% 5% NA2 14% 13% 7.5 Rest of World 12% 10% 21.5 14% 13% 8.2 Total 10% 13% (25.4) 12% 13% (7.0) EBITDA ¹ USD/Equivalent units 2025 2024 % Var. 2025 2024 % Var. North America 8.7 25.6 (66.2) 13.1 16.3 (19.9) Europe 19.6 6.7 NA2 19.5 16.8 16.4 Rest of World 13.3 10.7 24.4 15.1 13.4 12.9 Total 12.8 17.2 (25.6) 15.4 16.0 (3.8) (1) EBITDA = Operating Income + Depreciation, Amortization & other Non-Cash items (2) NA2 = Not aplicable * To external customers Nemak Regional Results Millions of Dollars For the fourth quarter of: For the twelve months of: