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• Net Operating Revenue: BRL3.8 billion, growth of 1.1% compared to Q2 2023.

• Gross Profit: BRL476.6 million, growth of 12.2% with a gross margin of 12.4%.

• EBITDA: BRL388 million, growth of 7% with an EBITDA margin of 10.7%.

• Recurring EBITDA Growth: 14.1% in Q2 2024.

• Net Profit: BRL36.9 million in Q2 2024.

• Financial Leverage: Net debt to EBITDA ratio of 2.97 times.

• Liquidity Ratio: 2.52 times in Q2 2024.

• Investment: BRL142 million in Q2 2024.

• Revenue by Region - South America: 6.2% growth, BRL1,069 million.

• Revenue by Region - North America: 13.6% growth, BRL1,201 million.

• Revenue by Region - Europe: BRL1,251 million, decrease in share to 32.5%.

• Revenue by Region - Asia and Other Markets: BRL323 million, reduction of 6.4%.

• Warning! GuruFocus has detected 4 Warning Signs with IOCJY.

Release Date: August 06, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Iochpe-Maxion SA (IOCJY) reported a 1.1% increase in net operating revenue for Q2 2024, reaching BRL3.8 billion.

• The company's gross profit grew by 12.2% in Q2 2024 compared to the same period last year, with a gross margin increase to 12.4%.

• Recurring EBITDA for Q2 2024 increased by 14.1%, with an EBITDA margin improvement to 10.7%.

• The company is expanding its capacity to meet demand, including the construction of a new aluminum truck wheel plant in Europe.

• Iochpe-Maxion SA (IOCJY) is gaining traction in the electrification market, with new product launches and partnerships for electric vehicles.

Negative Points

• The company's financial leverage increased to 2.97 times in Q2 2024, up from 2.72 times in Q2 2023.

• Net profit for Q2 2024 decreased to BRL36.9 million from BRL59 million in Q2 2023, impacted by non-cash deferred income tax provisions.

• Vehicle production in Europe faced challenges, with a 7% drop in light vehicle production and a 9.6% drop in commercial vehicle production in Q2 2024.

• Asia and other markets saw a 6.4% reduction in net operating revenue in Q2 2024 compared to the same period in 2023.

• The company faces ongoing challenges with raw material price fluctuations, impacting pricing strategies and profitability.

Q & A Highlights

Q: Can you provide more details on the outlook for commercial and light vehicles in Europe and Brazil for the second semester? Also, how do you see the profitability trend for the next semester? A: We expect the third semester to be consistent with the second, with better performance in Brazil for light and commercial vehicles. In Europe, we anticipate a smaller drop in light and commercial vehicle production compared to earlier in the year. Overall, we foresee a 3% growth in light vehicle production for 2024 compared to 2023. For commercial vehicles, the second half should mirror the first, with a significant growth expected due to low productivity in the first half of 2023. We aim to maintain two-digit EBITDA margins and return to historical margins by 2025.