4/22/2026

speaker
Denise Reyes
Investor Relations Officer

Good morning everyone and welcome to NIMAC's first quarter 2026 earnings webcast. I am Denise Reyes, NIMAC's investor relations officer and I am pleased to host today's call along with Albert Guayer, NIMAC's CEO and Alberto Sada, CFO who are here this morning to discuss the company's business performance and answer any questions that you may have. As a reminder, today's event is being recorded and will be available on the company's investor relations website. Herve Wajer, our CEO, will lead off today's call by providing an overview of business and financial highlights for the quarter. Alberto Sala, our CFO, will then discuss our financial results in more detail. Afterwards, we will open for a Q&A session which participants may join live or submit written questions via the Q&A function. Before we get started, let me remind you that information discussed on today's call may include forward-looking statements regarding the company's future financial performance and prospects, which are subject to risks and uncertainties. Actual results may differ materially, and the company cautions you not to place undue reliance on these forward-looking statements. NIMA undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise. I will now hand the call over to Hervé Boyer.

speaker
Hervé Boyer
Chief Executive Officer

Alright, thank you Denise and hello everyone and welcome to NEMAX first quarter 2026 earnings webcast. It is a privilege to address you today in my first earnings call as NEMAX CEO. I am honored by the board's confidence in appointing me to this role and I look forward to building on the company's strong strategic and operational foundation. I would also like to recognize Armando Tamez for his long tenure and the solid base he helped establish for NEMAX's ongoing development and success. Throughout the transition period and in my initial days as CEO, my focus has been on listening and gaining a deeper understanding of the business by spending time across our operations, visiting different NEMAX sites and engaging with our teams and customers. What stands out is the high level of commitment across the organization, the depth of our operational capabilities, and the quality of our long-standing customer relationships. From a strategic perspective, our main focus at this stage is clear, to deliver a seamless integration of the recently acquired Gauche Fisher Casting Solutions operations. From a financial standpoint, our objectives are clearly defined and embedded in our day-to-day activities. Our priorities remain unchanged. Discipline execution, profitability, cash flow generation, and deliveraging. These goals are supported by a prudent and selective approach to capital allocation, ultimately maximizing shareholder returns. Such principles are well understood across the company and guide decision making process throughout the organization. I would also like to thank our investors and the financial community for your continued engagement and interest in NEMA. We value the ongoing dialogue and the opportunity to discuss our performance and priorities with you. I would like to turn to our first quarter 2026 results and give you an overview of our performance during the period. During the quarter, our top line increased by 15%, outperforming the underlying markets. This growth, primarily reflected in Europe and the rest of the world, was driven by the integration of GEF Casting Solutions automotive business, which was effective on February 1st of this year. EBITDA declined by 15%, mainly reflecting extraordinary effects, including a reduction in one-time commercial compensations, extraordinary expenses in North America, and the impact of the Mexican peso's appreciation against the US dollar. Nonetheless, as these extraordinary effects subside, we remain highly focused on translating revenue growth into improved profitability, while continuing to strengthen free cash flow generation and deliveraging. Turning to a key strategic milestone in February, the acquisition of GF Casting Solutions Automotive Business received full regulatory approval and closed successfully. With the transaction complete, our focus is now on disciplined integration, ensuring continuity for customers, and executing the value creation priorities of the acquisition. As we integrate GF Casting Solutions into NEMAC, we are pleased to welcome 2,500 highly skilled employees. Their talent, expertise, and deep industry experience strengthen our organization and knowledge base. Following this acquisition, NIMAC's global manufacturing footprint has expanded to a total of 53 facilities worldwide. The addition of operations in Austria, Germany, Romania, China and the United States enhances our presence in key automotive regions and strengthens proximity to customers, supporting disciplined execution across our global operations. These additional facilities also support the ongoing evolution of our product portfolio with growth in the e-mobility, structure and chassis applications segment, roughly doubling its revenue contribution from 9% to approximately 18%. The complementary nature of NIMAC and GF Casting Solutions capabilities expands our reach and our ability to support customers across a broader range of vehicle architectures. The development of our product portfolio further strengthens our positioning in higher value segments and supports long-term growth opportunities. In parallel, the acquisition enhances our material capabilities with advanced solutions across aluminium, magnesium and other materials. We are now able to address an even wider range of customer requirements from lightweighting and structural performance to strength, precision and efficiency using the most appropriate material for each application. Building on this combined strength, NIMAC now offers a unique range of advanced casting and assembly solutions across multiple processes and applications. Our capabilities span high pressure and low pressure die casting, proprietary technologies, ductile iron casting, and integrated assembly. In particular, within high pressure die casting, the combined platform provides broader capabilities for complex giga castings used in structural components and battery housing. As we move forward, we are working diligently to capture the synergies associated with the acquisition as quickly as possible. This effort involves structured and detailed work streams across the organization focused on cost efficiencies, operational alignment, and leveraging the combined platform to expand outreach and value proposition with both existing and new customers. As these initiatives advance, they are expected to progressively support profitability, free cash flow generation, and long-term value creation. Turning to new business, we continue to pursue a robust pipeline of approximately $1.9 billion in annual revenue for potential opportunities across key segments. This pipeline reflects ongoing customer engagement and positions us to capture further growth in a disciplined manner. In parallel, we are continuing to see extended IC power train contracts, supporting the long-term use of existing assets and reinforcing the free cash generation profile of the business. During the period, we advanced several strategic programs that reflect the strength of our product portfolio and our presence in the immobility, structure and chassis application segments. For BMW's Neue Klasse platform, NIMAC is a key supplier supporting multiple components, including the battery management system bottom and the stepper sleeve, leveraging our high pressure and gravity casting processes to support BMW's new engineering designs. These programs incorporate advanced In parallel, we have begun producing a longitudinal member for the Porsche Cayenne EV, making our first application for this component for Porsche, and reinforcing our position in premium vehicle architectures for high-pressure die-cast body in white parts. Moving on to sustainability, NIMAC continues to be recognized by the Carbon Disclosure Project, having achieved an A-minus company rating, placing us once again within the leadership band. In addition, I'm really pleased to share that NIMAC earned an A score in CDP's supplier engagement rating, reflecting our strong engagement with suppliers on climate-related risks and emissions reduction initiatives. Moreover, we remain well on track with the objectives established under the Science-Based Targets Initiative to reduce greenhouse gas emissions by 2030. For scope 1 and 2, our target is a 28% reduction in emissions, while for scope 3, we are aiming for a 14% reduction. Together, these actions underscore our commitment to disciplined execution and long-term value creation through responsible operations. As I look ahead, I am highly encouraged by what I see at NEMAD. Spending time with our teams, visiting our operations and engaging closely with customers has really reinforced my confidence in the strength of our capabilities and the depth of our talent across the organization. I have been particularly impressed by the commitment the resiliency and the problem solving mindset of our people who continue to deliver in a dynamic and very demanding environment. From an operating perspective, I have also been very positively impressed by the range and sophistication of the product processes and technologies across the company. The wide set of manufacturing capabilities we have developed across casting, machining Joining an advanced assembly represents a clear and valuable competitive advantage in the market. This depth of know-how allows us to support customers with greater flexibility, scale solutions across regions, and consistently deliver complex, high-value products. With this foundation, I am confident that NEMAC is well positioned to navigate challenges and continue building long term value. This concludes my remarks. Thanks for your attention. And I now end the call over to Alberto.

speaker
Alberto Sala
Chief Financial Officer

Thank you.

Disclaimer

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