Iochpe-Maxion Releases First Quarter 2025 Results

According to S&P Global, global light vehicle production increased by 1.3% in 1Q25 (or a reduction of 2.8%, excluding China) compared to 1Q24.  The Global Data also reported that global commercial vehicle production fell by 3.8% in 1Q25 (or 6.7%, excluding China) compared to the same period last year.

Despite this, Maxion had a solid start to 2025, both in terms of volume and margins. The company's performance in Brazil was particularly favorable, enabling it to mitigate the decline in activity in Europe and North America.

We are monitoring recent tariff announcements from the US and its commercial implications. Maxion's global presence and strategic focus on domestic/regional production and sales once again prove to be an appropriate path for addressing international competitive dynamics.

The company's net operating revenue grew by 9.5% in 1Q25, reaching R$ 3.9 billion. This growth reflects the readjustment of prices due to the increase in product costs, as well as the currency conversion of sales made abroad.

Once again, we recorded an increase in gross profit, with growth of 15.5% in 1Q25, and a gross margin of 11.3%, representing an increase of 0.6 p.p. compared to 1Q24. This evolution was driven by greater operational efficiency and the passing on of certain cost increase to prices.

EBITDA grew 11.9% in the period, with a margin of 9.0%, 0.2 percentage points higher than in the same quarter of the previous year.

Financial leverage, measured by the ratio between net debt and EBITDA over the last 12 months, was 2.34x in 1Q25, compared to 2.95x in 1Q24 and 2.39x in 4Q24. Net debt totaled R$ 3,660.8 million, a reduction of 3.2% compared to 1Q24, although negatively impacted by the devaluation of the Real.

Our cash position at the end of 1Q25 remained strong and at R$ 1,932.7 million, compared to R$ 2,295.2 million in the same period of the previous year. In addition, the company has R$ 760.0 million in undrawn credit lines.

During the first quarter of 2025, we were once again recognized by automakers and industry associations, reaffirming our commitment to quality, technology, competitiveness, punctuality, sustainability and customer satisfaction. The Company also continues to launch new product flawlessly, globally, and win important new business in all segments. 

Our Operations continue to cope well with on-going market changes, geopolitical issues, inflationary pressures and fluctuations in customer production volumes.

While we execute on targeted gains in productivity and operational efficiency, solid engineering, digitalization and innovation, we continue to prioritize strengthening our capital structure. We are strongly committed to generating sustainable value over time.

1Q25 HIGHLIGHTS

• Net operating revenue of R$ 3,938.1 million in 1Q25, representing growth of 9.5%¹

• Gross profit of R$ 443.7 million with a gross margin of 11.3%, an increase of 15.5% and 0.6 p.p. ¹

• EBITDA growth of 11.9% in 1Q25 with an EBITDA margin of 9.0%, representing an increase of 0.2 p.p.¹

• Financial leverage² of 2.34x in 1Q25, compared to 2.95x in 1Q24 and 2.39x in 4Q24, evidencing a trajectory of strengthening capital structure

¹Compared to the same period last year

²Net debt/EBITDA for the last 12 months