Iochpe-Maxion Releases Fourth Quarter and Full Year 2024 Results

4Q24 AND 2024 HIGHLIGHTS

• Net operating revenue of R$ 3,909.1 million in 4Q24 and R$ 15,331.8 million in 2024, representing a growth of 12.2% and 2.5%3
• Gross profit of R$ 483.0 million with a gross margin of 12.4% in 4Q24 and R$ 1,821.4 million with a gross margin of 11.9% in 2024, an increase of 27.0% and 1.5 p.p.¹ and 20.8% and 1.8 p.p. ¹
• Recurring EBITDA² grew 32.9% in 4Q24 with an EBITDA margin of 9.9% and 26.3% in 2024 with a margin of 10.2%, representing an increase of 1.6 p.p. and 1.9 p.p. ¹, respectively
• Net income of R$ 68.4 million in 4Q24 and R$ 264.7 million in 2024 (earnings per share of R$ 0.45728 in 4Q24 and R$ 1.76635 in 2024)
• Financial leverage³ of 2.39x in 4Q24, compared to 2.93x in 4Q23 and 2.59x in 3Q24, showing a downward trend
• Declared distribution of R$ 99.3 million in earnings for 2024, of which R$ 70.2 million in interest on equity net of taxes and R$ 29.1 million in dividends

MESSAGE FROM THE CEO 

In 2024, we achieved important results, reflecting our commitment to normalizing profitability, sustainable growth and discipline in capital allocation and structure. With a significant increase in gross profit and EBITDA, the Company demonstrated its ability to adapt, improve operational efficiency with productivity gains, adjust prices to costs and effectively launch our products in new vehicle programs around the world. 

Regarding vehicle production volumes, in 2024 we saw an increase in production in Brazil, especially in commercial vehicles, and a significant drop in production volumes in Europe and to a lesser extent in North America. It is worth highlighting the strong progress made in the productivity of our operations in this region, even in this scenario of falling production volumes. 

As far as our balance sheet is concerned, we have taken a significant step towards reducing leverage, driven by better cash generation and strict control of financial costs. In this regard, we have reduced spreads through debt restructuring, while optimizing debt maturities and conditions (liability management). 

According to S&P Global, global light vehicle production grew by 0.6% in 4Q24 (or a fall of 3.6% excluding China) and fell by 1.1% in 2024 (or 3.3% excluding China), compared to 4Q23 and 2023. Global Data, meanwhile, reported that global commercial vehicle production fell by 13.5% in 4Q24 (or 11.4% excluding China) and registered a decrease of 5.2% (or 6.4% excluding China) compared to 4Q23 and 2023.

The company's net operating revenue grew by 12.2% in 4Q24, reaching R$ 3.9 billion, and by 2.5% in 2024, totaling R$ 15.3 billion. This increase reflects the readjustment of prices in line with product costs and the conversion of the results of our sales abroad into Brazilian Real. 

Once again, we saw an increase in gross profit compared to the same period last year, with growth of 27.0% in 4Q24 and a gross margin of 12.4%, representing an increase of 1.5 p.p. In 2024, gross profit grew by 20.8%, with a gross margin of 11.9%, or an increase of 1.8 p.p. This improvement was driven by the stabilization of raw material prices, improvement in the company's operational efficiency and better pricing of products due to inflation in recent periods. 

EBITDA showed significant progress compared to the previous year, with growth of 30.7% and a margin of 9.7% in 4Q24. In 2024, growth was 21.6%, with a margin of 9.9%. Excluding non-recurring events in both periods, we had Page 3 of 15 ADR: IOCJY EBITDA growth of 26.3% in 2024, with a recurring margin of 10.2% compared to 8.3% in 2023. 

Financial leverage, measured by the ratio between net debt and EBITDA for the last 12 months, was 2.39x in 4Q24, compared to 2.93x in 4Q23 and 2.59x in 3Q24. Net debt reached R$ 3,637.2 million in 4Q24, a reduction of 1.0% compared to 4Q23 and 2.0% compared to 3Q24, having been negatively impacted by the devaluation of the Real in 4Q24 (27.9% versus 4Q23 and 13.6% versus 3Q24). 

The cash position at the end of 4Q24 was R$ 2,463.5 million compared to R$ 2,962.4 million at the end of 4Q23. In addition, we have undrawn committed credit lines in the amount of R$ 760.0 million. 

During the fourth quarter of 2024, we were again recognized by automakers and industry associations, reaffirming our commitment to quality, technology, competitiveness, delivery, sustainability and overall customer satisfaction. Our steel wheel plant for commercial vehicles in India received the 'Daimler India Supplier Quality Excellence' award from Daimler India. And the steel wheel factory for light vehicles in Brazil received the 'Excellence Quality Award' from Hyundai Motor Brasil and the 'GM Brazil Customer Care and Aftersales On-Time Shipping Award' from GM Brasil. 

In 2024, we reinforced our commitment to sustainability by winning important accolades. The company's debut on B3's Carbon Efficient Index (ICO2) and Diversity Index (IDIVERSA) reflects the solid practices we have adopted to reduce emissions and promote inclusion in all spheres. We advanced towards our carbon neutrality targets, reducing approximately 38% of the intensity of Greenhouse Gas (GHG) emissions in scopes 1 and 2, compared to the 2019 base year. In addition, we achieved 75% use of electricity from renewable sources. 

Faced with market changes, geopolitical issues, inflationary pressures and variations in our customers' production volumes, we quickly adapted our operations in different countries to meet current vehicle demand, mitigating impacts on the profitability of our business units. 

We continue to focus on gains in productivity and operational efficiency, the launch of new products, advances in engineering, digitalization and innovation, and strengthening our balance sheet. Our commitment is to continue generating value sustainably over time.