Q2 2026 Iochpe Maxion SA Earnings Call

August 6, 2026

Speaker #1: You have joined the meeting as an attendee and will be muted throughout the meeting.

Speaker #2: Resultados do segundo trimestre de 2026 da Iochpe Maxion. Eu sou Rodrigo Caraa, gerente sênior de Relações com Investidores, e irei conduzir a videoconferência de hoje.

Rodrigo Caraça: Resultados do Q2 2026 da Iochpe-Maxion. Eu sou Rodrigo Caraça, Gerente Sênior de Relações com Investidores, e irei conduzir a videoconferência de hoje. Presentes na videoconferência e disponíveis para a sessão de perguntas e respostas estão o senhor Pieter Klinkers, CEO, e o senhor Renato Salum, CFO. Informamos que essa videoconferência está sendo gravada e será disponibilizada no site de Relações com Investidores da companhia, junto com a respectiva apresentação. Ressaltamos que o senhor Pieter conduzirá a apresentação em inglês. Para sua conveniência, estão disponíveis traduções simultâneas para português e inglês. Elas podem ser acessadas por meio do ícone em forma de globo, identificado como Interpretation, localizado na parte inferior central da tela. Ao clicar nesse ícone, serão apresentadas três opções: áudio original, português e inglês. Selecione aquela que melhor atende a sua necessidade.

Speaker #2: Presentes na videoconferência e disponíveis para a sessão de perguntas e respostas estão o senhor Pieter Klinkers, CEO, e o senhor Renato Salum, CFO. Informamos que esta videoconferência está sendo gravada e será disponibilizada no site de Relações com Investidores da companhia, junto com a respectiva apresentação.

Speaker #2: Ressaltamos que o senhor Pieter conduzirá a apresentação em inglês. Para sua conveniência, estão disponíveis traduções simultâneas para português e inglês. Elas podem ser acessadas por meio do ícone em forma de globo, identificado como "Interpretation", localizado na parte inferior central da tela.

Speaker #2: Ao clicar nesse ícone, serão apresentadas três opções: áudio original, português e inglês. Selecione aquela que melhor atende à sua necessidade. Para o Q&A, a sessão de perguntas e respostas, orientamos que se manifestem via ícone de Q&A no botão inferior de sua tela.

Rodrigo Caraça: Para o Q&A, a sessão de perguntas e respostas, orientamos que se manifeste via ícone de Q&A no botão inferior de sua tela. Por padrão da dinâmica, seus nomes serão anunciados para que façam sua pergunta ao vivo. Nesse momento, uma solicitação para ativar seu microfone aparecerá na tela. Vale ressaltar que parte das perguntas serão respondidas em inglês. Mais uma vez pedimos a todos que utilizem a ferramenta de tradução, caso sintam necessidade. Antes de prosseguir, gostaríamos de esclarecer que eventuais declarações que possam ser feitas durante essa videoconferência, relativas às perspectivas de negócios da companhia, projeções e metas operacionais e financeiras, constituem-se em crenças e premissas da diretoria da Iochpe-Maxion, bem como informações atualmente disponíveis para a companhia. Considerações futuras não são garantias de desempenho, envolvem riscos, incertezas e premissas, pois referem a eventos futuros e, portanto, dependem de circunstâncias que podem ou não ocorrer.

Speaker #2: Por padrão da dinâmica, seus nomes serão anunciados para que façam sua pergunta ao vivo. Nesse momento, uma solicitação para ativar seu microfone aparecerá na tela.

Speaker #2: Vale ressaltar que parte das perguntas serão respondidas em inglês, e mais uma vez pedimos a todos que utilizem a ferramenta de tradução caso sintam necessidade.

Speaker #2: Antes de prosseguir, gostaríamos de esclarecer que eventuais declarações que possam ser feitas durante esta videoconferência relativas às perspectivas de negócios da companhia projeções e metas operacionais e financeiras constituem-se em crenças e premissas da diretoria da Iochpe Maxion, bem como informações atualmente disponíveis para a companhia.

Speaker #2: Considerações futuras não são garantias de desempenho; envolvem riscos, incertezas e premissas. Pois referem a eventos futuros e, portanto, dependem de circunstâncias que podem ou não ocorrer.

Speaker #2: Gostaria agora de passar a palavra ao senhor Pieter Klinkers, CEO da Iochpe Maxion. Senhor Pieter, por favor, pode prosseguir.

Rodrigo Caraça: Gostaria agora de passar a palavra ao senhor Pieter Klinkers, CEO da Iochpe-Maxion. Senhor Pieter, por favor, pode prosseguir.

Speaker #3: Hello, good morning to everybody. Good afternoon to everybody here on in Belgium, where we're meeting with the global team to talk about the future.

Pieter Klinkers: Hello. Good morning to everybody. Good afternoon to everybody here in Belgium, where we're meeting with the global team to talk about the future. We're taking a break here to do this conference and talk a little bit about the recent past, the Q2 for Iochpe-Maxion. Also at the end of the presentation, as you will see in a few moments, we will try to take you with us a little bit into the future. Let's talk about what has been happening in the Q2. We go to the next slide. First of all, the executive overview. I think from what you could see maybe already from our numbers, again, we believe that we have been able to show a pretty resilient performance. We were disciplined on some of the cost savings that we were targeting.

Speaker #3: But we're taking a break here to do this conference and talk a little bit about the recent past, the second quarter, for Iochpe Maxion.

Speaker #3: But also, at the end of the presentation, as you will see, in a few moments, we will try to take you with us a little bit into the future.

Speaker #3: Let's talk about what has been happening in the second quarter. If we go to the next slide. First of all, the executive overview. I think from what you could see, maybe already from our numbers, again, we believe that we have been able to show a pretty resilient performance.

Speaker #3: We were disciplined on some of the cost savings that we were targeting. We realized them, and I think it will come back more often in this presentation and maybe in other presentations as well.

Pieter Klinkers: We realized them, I think it will come back more often in this presentation and maybe in other presentations as well. North America clearly is recovering. That is supporting our CV demand or CV performance there. At the same time, we are seeing some strong aluminum wheel performance in North America that has been helping our performance. That was, as we call, resilient. Financial discipline, shareholder focus. I think you will see from the numbers, we believe we have a solid liquidity and on top of that, we are showing a lower net debt, which should reinforce our financial flexibility, and the outlook for the mid and the long term for our shareholders. Last but not least, we do have not only resilience, we also see some growth drivers, and we will talk about it a little bit more at the end of this presentation.

Speaker #3: But North America, clearly, is recovering. That is supporting our CV demand or CV performance there. And at the same time, we are seeing some strong aluminum wheel performance in North America that has been helping our performance that was, as we call, resilient.

Speaker #3: Financial discipline, shareholder focus. I think you will see from the numbers, we believe we have a solid liquidity and, on top of that, we are showing a lower net debt which should reinforce our financial flexibility and the outlook for the mid and the long term for our shareholders.

Speaker #3: And last but not least, we do have not only resilience, we also see some growth drivers. And we will talk about it a little bit more.

Speaker #3: At the end of this presentation, but for us, clearly, Asia has outperforming. We've talked about that a little bit also in prior presentations, but we start to see it more and more now.

Pieter Klinkers: For us, clearly Asia is outperforming. We've talked about that a little bit also in prior presentations, we start to see it more and more now. Within Asia, of course, for us, India is a growth engine in all the segments that we are present there. I'm happy to talk about that a little bit more at the end of the presentation. It's not only Asia or India, also Brazil LV is strong and very strong for Maxion. As I said, North American truck trending upwards is very helpful as well. We go to the next slide. Look a little bit more in detail on the market. It's really different between LV and CV, not only right now, but also if we look at the immediate future, let's say the rest of this year or next year or even the year after that.

Speaker #3: And within Asia, of course, for us, India is a growth engine in all the segments that we are present in there. And so I'm happy to talk about that a little bit more at the end of the presentation.

Speaker #3: It's not only Asia or India; also, Brazil LV is strong—very strong for Maxion. And, as I said, the North American truck market trending upwards is very helpful as well.

Speaker #3: We go to the next slide. Look a little bit more in detail on the market. It's really different between LV and CV. Not only right now, but also if we look at the immediate future, let's say the rest of this year or next year or even the year after that, it's very little growth on the LV side.

Pieter Klinkers: It's very little growth on the LV side. On top of that, remember, the exports from China still continue to grow. Everything that you don't produce in China and put on vehicles in China that are being produced in China and then exported, you will miss as a growth. For many suppliers, I think there will be a slow growth, no growth scenario in LV in the next one to three years. At the same time, commercial vehicles is a positive market. We see North America coming back. We believe Europe will be stronger the next 2 years than what we've seen this year or the last 2 years. India will be growing, we believe Brazil is not so favorable right now, but should be stabilizing H2 of this year, next year.

Speaker #3: And on top of that, remember, the exports from China still continue to grow. And so everything that you don't produce in China and put on vehicles in China that are being produced in China, and then exported, you will miss, as a growth.

Speaker #3: And so for many, many, many suppliers, I think it will be a slow growth, no growth scenario in LV, in the next one, two, three years.

Speaker #3: Same time, commercial vehicles is a positive market. We see North America coming back. We believe Europe will be stronger the next two years than what we've seen this year or the last two years.

Speaker #3: India will be growing and we believe Brazil is not so favorable right now, but should be stabilizing second half of this year, next year.

Speaker #3: And so overall, the truck market for us, we believe, is showing a very positive outlook. If we go to the next slide. Talk a little bit coming back to the second quarter, talk a little bit about the highlights from financial KPIs point of view.

Pieter Klinkers: Overall, the truck market for us, we believe is showing a very positive outlook. We go to the next slide. Talk a little bit, coming back to Q2, talk a little bit about the highlights from a financial KPIs point of view, how are we doing in that market? Our net revenue around BRL 4 billion in Q2, that's a little bit lower than what we saw last year. We all know FX, the BRL has been appreciating to many other currencies. If we exclude that, actually, we would have been showing 5% to 6% growth year-over-year, which is not bad in a market that is showing negative growth in the passenger side and still recovering in North America on the truck side.

Speaker #3: How are we doing in that market? And so our net revenue was around $4 billion in the second quarter. That's a little bit lower than what we saw last year, but we all know that ethics, the REI, has been appreciating compared to many other currencies.

Speaker #3: And so if we exclude that, actually, we would have been showing 5, 6 percent growth year over year, which is not bad. In a market that is showing negative growth in the past side and still recovering in North America on the truck side.

Speaker #3: So overall, we are happy with the performance that we show on the net revenue side. Gross profit, not a bad number, 12.1 percent, but still having some impact from lower fixed cost absorption in markets that are recovering, like North America.

Pieter Klinkers: Overall, we are happy with the performance that we show on the net revenue side. Gross profit, not a bad number, 12.1%, but still having some impact from lower fixed cost absorption in markets that are recovering, like North America. Also suffering a little bit still from the temporary raw material pass-through timing effects. We believe whatever is a negative for us there in H1, which clearly is, that should be a positive in H2 for our company. We look at EBITDA. You can see negative. It's not as good as it was last year, Q2. Keep in mind, North America was a lot better at that time, and it's coming back. You can see it positive. It's 1% better than in Q1.

Speaker #3: Also suffering a little bit still from the temporary raw material pass-through timing effects. And so we believe whatever is a negative for us there in the first half of the year, which clearly is, that should be a positive in the second half of the year for our company.

Speaker #3: We look at EBITDA. You can see negative. It's not as good as it was last year, the second quarter, but keep in mind, North America was a lot better at that time.

Speaker #3: And it's coming back. You can see it positive. It's a percent better than in the first quarter. Overall, we believe this is a very decent number and a good base for us to build on for the next coming quarters and years.

Pieter Klinkers: Overall, we believe this is a very decent number and a good base for us to build on for the next coming quarters and years. You look at the leverage. We have been able to reduce net debt, that's a very positive one for our company in Q2 2026. Our long-term multiple on the EBITDA side is still not there where we need it to be, where we think it will be. We will get there. That's our belief. Overall, our leverage was pretty stable compared to Q1 2026, and our target will remain to get that leverage further down from the 2.52x, where we were at the end of June. We go to the next slide. We look at our revenue by product.

Speaker #3: You look at the leverage, we have been able to reduce net debt, and that's a very positive one for our company. In the second quarter of 2026, our long-term multiple on the EBITDA side is still not there where we needed to be, where we think it will be.

Speaker #3: We will get there. That's our belief. But overall, our leverage was pretty stable compared to the first quarter of 2026, and our target will remain to get that leverage further down from the 2.52 where we were at the end of June.

Speaker #3: We go to the next slide. We look at our revenue by product. It's a little bit still the same number as what you guys saw in prior presentations, where still our components unit is lagging behind the past performance that it has from a percentage revenue within the company.

Pieter Klinkers: It's a little bit still the same number as what you guys saw in prior presentations, where still our components unit is lagging behind the past performance that it had from a percentage revenue within the company. We believe this will come back to prior numbers pretty quickly now. You can still see in H1, even in Q2, lagging a little bit behind the normal 22% to 23%, maybe even getting up to 24% to 25% that components has in the total of Iochpe-Maxion. That lagging behind has been made up by wheels, especially aluminum wheels was strong again and has been offsetting the revenue drop that we saw year-over-year in components. You go to the next slide. We look at that a little bit more detail by customer.

Speaker #3: We believe this will come back to prior numbers pretty quickly now, but you can still see in the first half, even in the second quarter, lagging a little bit behind the normal 22, 23 percent, maybe even getting up to 24, 25 percent, that components has in the total of Iochpe Maxion.

Speaker #3: That lagging behind has then been made up by wheels, especially aluminum wheels, was strong again. And has been offsetting the revenue drop that we saw year over year in components.

Speaker #3: You go to the next slide. We look at that a little bit more detail by customer. And even though the numbers are getting closer than what we saw in prior presentations, where we saw truck going down and passcar going up, still some truck being down quarter this year, quarter versus last year, quarter.

Pieter Klinkers: Even though the numbers are getting closer than what we saw in prior presentations, where we saw truck going down and PACCAR going up, still some truck being down this year Q2 versus last year Q2. I would say not so much anymore. We still see PACCAR revenues. Some of the big customers that we have there are still increasing revenue this year Q2 versus last year Q2. You look at a company like Stellantis, or you look at Toyota, it is clear that we are gaining some momentum there. If you combine that with the truck coming back, which is what we see happening, and what we also foresee for the next 2 years, that could be a good story. We go to the next slide. We look a little bit more in the regions in the next 4 slides.

Speaker #3: But I would say not so much anymore. We still see passcar revenues some of the big customers that we have, they are still increasing revenue this quarter, this year, quarter two versus last year, quarter two.

Speaker #3: You look at the company like Stellantis, or you look at Toyota, it's clear that we're gaining some momentum there. And so if you combine that with the truck coming back, which is what we see happening, and what we also foresee for the next coming two years, that would be a good that could be a good story.

Speaker #3: We go to the next slide. We look a little bit more in the regions. In the next four slides, we look at South America.

Pieter Klinkers: We look at South America. I would say it's a very different picture between LV and CV. In CV, the market clearly is down, our numbers, it's not huge numbers for us if we compare to the rest of the world. Still, this is not helpful. When the Brazilian market comes back and stabilizes, which is what we hope, what we believe will happen, that would be helpful for us. We really have some momentum on the light vehicle market where the market is strong and we see momentum with customers, both traditional customers as well as new customers that are coming into the market. We go to North America on the next slide. Our revenue is still slightly down, but it's coming back. That's what we say. This is a combination of our aluminum wheels doing very well in North America.

Speaker #3: I would say it's a very different picture between LV and CV. In CV, the market clearly is down. And so our numbers, it's not huge numbers for us if we compare to the rest of the world.

Speaker #3: But still, this is not helpful. And so when the Brazilian market comes back and stabilizes, we just what we hope, what we believe will happen that would be helpful for us.

Speaker #3: But on the we really have some momentum on the light vehicle market where the market is strong and we see momentum with customers, both traditional customers as well as new customers that are coming into the market.

Speaker #3: We go to North America on the next slide. Our revenue is still slightly down, but it's coming back. It's what we say. And so this is a combination of our aluminum wheels doing very well in North America.

Speaker #3: We have some new business wins. We're doing good with margin there as well. But also we see this truck market clearly coming back. More in June than we had in April.

Pieter Klinkers: We have some new business wins. We're doing good with margin there as well. Also we see this truck market clearly coming back more in June than we had in April. During the quarter, we saw improvements there, and that is also our expectation for the rest of this year. We go to the next region, EMEA. We see a contraction of our revenue. Europe, I think, is a more complicated story, especially from an LV point of view. Now, the good thing is for Maxion, we are strong in Europe. We are a very competitive company. We have had some market share gains in the past, and we're still profiting from that, but we cannot have market shares every quarter. We are okay in our plants, but Europe is a little bit tougher environment from an LV point of view.

Speaker #3: But during the quarter, we saw improvements there. And that is also our expectation for the rest of this year. We go to the next region.

Speaker #3: EMEA. We see contraction of our revenue. And so Europe, I think, is a more complicated story, especially from an LV point of view. Now, the good thing is for Maxion, we are strong in Europe.

Speaker #3: We are a very competitive company. We have had some market share gains in the past and we're still profiting from that. But we cannot have market shares every quarter.

Speaker #3: We're okay with our plans, but Europe is a little bit tougher environment from an LV point of view. Truck also was not great, but here we continue to profit from our more recent market share gains.

Pieter Klinkers: Truck also was not great, here we continue to profit from our more recent market share gains, and we also believe that will be the case during the rest of the year. In the out years, 2027, 2028, let's see how the market develops. There is a more positive tone that we hear in the market than what we have been hearing during the last 2 years. If that happens, when that happens, Maxion will be ready to fully profit from that increasing trend in the market. We go to Asia on the next slide. Really, this is a growth area for Maxion. Of course, as you know, the major region where we are within Asia for us is India, where we are making passenger car steel wheels, passenger car aluminum wheels, and truck wheels.

Speaker #3: And we also believe that will be the case during the rest of the year. And then in the out years, 2027, 2028, let's see how the market develops but there is more positive a more positive tone that we hear in the market than what we've been hearing during the last two years.

Speaker #3: And so if that happens, when that happens, Maxion will be ready to fully profit from that increase in trend in the market. We go to Asia on the next slide.

Speaker #3: Really, this is a gross area for Maxion. And of course, as you know, major region where we are within Asia for us is India, where we are making passenger cars, steel wheels, passenger car, aluminum wheels, and truck wheels.

Speaker #3: And so what we see is the market is doing well and Maxion is actually doing a little bit better than the market. And again, I've been talking about, we've been talking about it in the prior calls.

Pieter Klinkers: What we see is the market is doing well, Maxion is actually doing a little better than the market. Again, I've been talking about it, we've been talking about it in the prior calls, and I look forward to talk about this in not only on the next slides but also on some of the next calls, because we believe this can really be a very good story for our operations in India and for our company overall. Let's go to next slide. Gross profit, gross margin, we talked about it. It's down, but if you look at the H1 here, now we're very close to where we were 2023. Keep in mind, 2023 we had that North American truck market that was very significantly better overall in the H1 than what it was 2024.

Speaker #3: And I look forward to talk about this in not only on the next slides, but also on some of the next calls because we believe this can really be a very good story for our operations in India and for our company overall.

Speaker #3: Let's go to next slide. Gross profit, gross margin. We talked about it. It's down, but if you look at the first half of the year here now, we're very close to where we were last year.

Speaker #3: Keep in mind, last year we had that North American truck market that was very significantly better overall in the first half than what it was this year.

Speaker #3: So keeping this margin close to where we were last year in the first half for us is a good outcome. And again, good basis for the rest of the year.

Pieter Klinkers: Keeping this margin close to where we were 2023 in the H1 for us is a good outcome and again, good basis for the rest of the year. You look at the next slide. We talk about EBITDA. It's pretty much the same story. As I said in the beginning, we are lower in the Q2 than where we were 2023, but we believe that 10.4% is a good outcome for us in this quarter. If you look at the H1, similar story than what I said on the gross profit. We're very close to 2023 with the expectation and the hope that the H2 for us will be better. Go to the next slide. Net income, not a bad story at all.

Speaker #3: You look at the next slide. We talk about EBITDA. It's pretty much the same story. As I said in the beginning, we are lower in the second quarter than where we were last year, but we believe the 10.4% is a good outcome for us in this quarter.

Speaker #3: If you look at the first half of the year, similar story than what I said on the gross profit, we're very close to last year.

Speaker #3: With the expectation and the hope that the second half of the year for us will be better. Go to the next slide. Net income.

Speaker #3: Not a bad story. At all. I think the number still too low. But we're happy with the outcome of 87 million and the second quarter and the 90 million as a base for the first half going into the second half of the year.

Pieter Klinkers: I think the number still too low, but we're happy with the outcome of BRL 87 million in the Q2 and the BRL 90 million as a base for the H1, going into the H2. This is a good base for us to have a decent year from a net income point of view. Go to the next slide, Ina. Looking at our investments now, these are meaningfully lower than what we were doing in the H1 of 2023. This is mainly timing. We have been trying to manage timing for investments over the whole year since we believe our earnings will be a little bit better in the H2 than the H1. We've also been trying to move our CapEx in line with that timing.

Speaker #3: And so this is a good base for us to have a decent year from a net income point of view. Go to the next slide, Aina.

Speaker #3: Looking at our investments. Now, these are meaningfully lower than what we were doing in the first half of last year. But this is mainly timing.

Speaker #3: We have been trying to manage timing for investments over the whole year. Since we believe our earnings will be a little bit better in the second half of the year than the first half of the year, we've also been trying to move our capital expenditures in line with that timing.

Speaker #3: And so we believe overall we will be in line with our yearly targets from a capital expenditures point of view. But with a managed timing, between the first half of the year and the second half of the year.

Pieter Klinkers: We believe overall we will be in line with our yearly targets from a CapEx point of view, but with a managed timing between the H1 and the H2. Okay, next slide, Ina. Leverage, pretty stable, I would say, quarter-over-quarter. Again, we are decreasing our net debt, and we are looking for the long-term multiple on the EBITDA side to pick up in the coming months, in the coming years, of course. That combination should drive our leverage then to be meaningfully lower than what we're looking at right now, step by step. We go to the next slide. We look at our gross debt.

Speaker #3: Okay. Next slide, Aina. Leverage. Pretty stable, I would say. Quarter over quarter. And again, we are decreasing our net debt and we are looking for the long-term multiple on the EBITDA side to pick up in the coming months in the coming years, of course.

Speaker #3: And that combination should drive our leverage down to be meaningfully lower than what we're looking at right now step by step. We go to the next slide.

Speaker #3: We look at our gross debt. There is new news here. And so on the top right side, you see how our maturity looked before we refinance some of our liabilities or good part of our liabilities.

Pieter Klinkers: There is new news here. On the top right side, you see how our maturity looked before we refinance some of our liabilities or a good part of our liabilities. We had some maturities in 2028, and the team was able to refinance those and to extend the maturity mainly until 2030. Therefore, our average debt maturity, instead of being 3 years now, is about 4 years. That's a good thing for our company. Never easy, sometimes more difficult because of external factors. Overall, we're happy to be able to have realized these new maturities from a financing point of view. I would say if you combine that with our liquidity, I would say this company certainly is in a stable position from a financial point of view. We go to the next slide.

Speaker #3: We had some maturities in 2028 and the team was able to refinance those and to extend the maturity mainly until 2030. And therefore, our average debt maturity instead of being three years now is about four years.

Speaker #3: And so that's a good thing for our company. Never easy. Sometimes more difficult because of external factors. But overall, we're happy to be able to have realized this new maturities from a financing point of view.

Speaker #3: And so I would say if you combine that with our liquidity I would say this company certainly is in a stable position from a financial point of view.

Speaker #3: We go to the next slide. Talk a little bit more as I said in the beginning, besides all the financials about some of the projects that we are doing.

Pieter Klinkers: Talk a little bit more, as I said in the beginning, besides all the financials, about some of the projects that we are doing. We've been talking quite a bit over time about our investments in Mexico for structural components, the rails and the frames that we supply to our North American truck customers. On the top right there, you see our new facility. We call it Plant 3. It's a new facility. Bottom right you see some pictures of that facility. The most important point is that, and the good news is that we are starting to produce product in this plant.

Speaker #3: And we've been talking quite a bit over time about our investments in Mexico, for structural components, the rails and the frames that we supply to our North American truck customers.

Speaker #3: On the top right there, you see our new facility. We call a plantry. It's a new facility. Bottom right, you see some pictures of that facility.

Speaker #3: But the most important point is that and the good news is that we are starting to produce product in this plant. And so of course, that's still testing right now.

Pieter Klinkers: Of course, they're still testing right now, but we're getting ready to serve that North American market that is coming back from the very low numbers that we saw in the beginning of this and the last year and the beginning of this year. We are getting ready to serve our customers in H2 2026 with volume from this plant. I think that's a major good news for our operation, for our company. Also, if you look on the 2027 projections there, you look at the 2028 projections there, it's a very good thing to have the plant. We will need it, as we thought when we made the investment, and we're looking forward to make the best use of it.

Speaker #3: But we're getting ready to serve that North American market that is coming back from the very low numbers that we saw in the beginning of this and the last year and the beginning of this year.

Speaker #3: We are getting ready to serve our customers in the second half of 2026 with volume from this plant. So, I think that's major good news for our operation and for our company.

Speaker #3: And so also if you look on the 2027 projections there, you look at the 2028, the 28 projections there, that's it's a very good thing to have the plant.

Speaker #3: We will need it as we thought when we made the investment and we're looking forward to make the best use of it. From a supporting our customers volume point of view, but also from a productivity point of view because of course, the equipment that we put in here is state of the art, is the latest of the latest.

Pieter Klinkers: From a Supporting our customers' volume point of view, but also from a productivity point of view, because of course, the equipment that we put in here is the state-of-the-art, is the latest of the latest. We look forward to a good situation for this operation that we have established in Mexico Castaños. You go to the next slide, Ina. Staying with components, but moving to Brazil. This is our beautiful Cruzeiro location that you see in the middle, and you see some of our products on the left and on the right. I think the main news here that we wanted to share is that we did win meaningful new business, very significant new business, and we're co-developing a product with a very big pickup customer that we serve, have been serving, and will be serving from Cruzeiro.

Speaker #3: And so we look forward to a good situation for this operation that we have established in Mexico, Castañas. You go to the next slide, Aina.

Speaker #3: Staying with components, but moving to Brazil. This is our beautiful Cruzeiro location that you see in the middle. And you see some of our products on the left and on the right.

Speaker #3: But I think the main news here that we wanted to share is that we did win meaningful new business, very significant new business. And we're co-developing a product with a very big pickup customer that we serve have been serving and will be serving from Cruzeiro.

Speaker #3: And so this again, it's a combination of sustaining the very profitable operation that we have in Cruzeiro and combining that with further automation. And so all of this will be executed we're actually starting that already at the end of 2026.

Pieter Klinkers: This, again, it's a combination of sustaining the very profitable operation that we have in Cruzeiro, combining that with further automation. All of this will be executed. We're actually starting that already at the end of 2026, and we will run this throughout 2027, 2028. It will be a very good thing to secure the short- and mid-term future of Cruzeiro. We go to the next slide. Looking at the other side of the world, I will have two slides on India Truck. I could have more slides on India, but we have one for Truck and one for PASC Aluminum Wheels. This is part of our truck wheel plant that you see in the middle. We have decided to expand our capacity in this plant to be serving already sold additional volume. We are doing that right now.

Speaker #3: And we will run this through how 2027, 2028, and it will be a very good thing to secure the short and mid-term future of Cruzeiro.

Speaker #3: We go to the next slide. Looking at the other side of the world, I will have two slides on India truck. It could have more slides on India, but we have one for truck and one for Pascal aluminum wheels.

Speaker #3: This is our part of our truck wheel plant that you see in the middle. And we have decided to expand our capacity in this plant to be serving already sold additional volume.

Speaker #3: And so we are doing that right now. We will complete this somewhere in the middle of 2027. It's part of the CAPEX that we all have in our budgets, in our forecast.

Pieter Klinkers: We will complete it somewhere in the middle of 2027. It's part of the CapEx that we all have in our budgets, in our forecast. It's a very good thing. The volume is already sold, and we're preparing to get ready to do that. These are projects that I talked about in prior calls where I said, "Instead of doing one big one, let's do 10 small ones." We're not going to do all the 10 small ones in one quarter or not even in one year. We are opening up the drawer and picking out the best projects, the projects that have the highest priority. We are starting to execute on those. This one in India Truck is a very good example of that. If we go to the next slide, we look again at India.

Speaker #3: And so it's a very good thing the business is the volume is already sold and we're preparing to get ready to do that. These are projects that I talked about in prior calls where I said instead of doing one big one let's do 10 small ones.

Speaker #3: We're not going to do all the ten small ones in one quarter, or not even in one year. But we are opening up the drawer and picking out the best projects—the projects that have the highest priority.

Speaker #3: And we are starting to execute on those. And so this one in India truck is a very good example of that. If we go to the next slide, we look again at India.

Speaker #3: We look at our light vehicle aluminum wheel facility in Kent City, Pune, Maharashtra. We are expanding the new plant. I still call it a new plant, but the new plant in the meantime is 10 years old.

Pieter Klinkers: We look at our light vehicle aluminum wheel facility in Chakan City, Pune, Maharashtra. We are expanding the new plant. I still call it the new plant, but the new plant in the meantime is 10 years old. This is the first expansion after filling up the existing capacity in the new plant that is 10 years old. It's a modest expansion. Again, this is in the range of the three, four, $5 million projects that I talked about before, not $50 million or $100 million. It's to serve our customers. It's to produce wheels that have already been sold and that we will launch in the next one and a half year. We will execute this in the remainder of 2026, and in the first half of 2027. It's a very good project at the existing location in Pune, India.

Speaker #3: But this is the first expansion after filling up the existing capacity in the new plant, which is 10 years old—10 years old. And so it's a modest expansion.

Speaker #3: Again, this is in the range of the 3, 4, 5 million dollar projects that I talked about before, not 50 million dollars or 100 million dollars.

Speaker #3: And it's to serve our customers. It's to produce wheels that have already been sold and that we will launch in the next one, one and a half years.

Speaker #3: So we will execute this in the remainder of 2026 and in the first half of 2027. It's a very good project at the existing location in Pune.

Speaker #3: India. We go to the last one. And this in this row. In South Africa. We have a beautiful plant over there, but there's a new couple of things happening over there.

Pieter Klinkers: We go to the last one in this row, in South Africa. We have a beautiful plant over there, but there's a couple of things happening over there. We have one meaningful new business. We're launching, I think it's a total number of about 27 new wheels. Some have very low volume, some have a little bit higher volume, but 27 new wheels over the next 18 months in South Africa, which is fantastic. At the same time, we're putting in place some new equipment. The capacity, the base capacity is in place, so we're just filling up what we already have. We're working a little bit on energy and more efficient energy. A new heat room facility is being put in place that is already almost completed. No additional CapEx. That was in our 2026 numbers.

Speaker #3: We have one meaningful new business. And so we're launching I think it's in total number of about 27 new wheels. Some have very low volume, some have a little bit higher volume, but 27 new wheels over the next 18 months in South Africa.

Speaker #3: Which is fantastic. And at the same time, we're putting in place some new equipment. The base capacity is in place, so we're just filling up what we already have.

Speaker #3: But we're working a little bit on energy and more efficient energy. And so new heat treatment facility is being put in place that is already almost completed.

Speaker #3: So no additional CAPEX that was in our 2026 numbers. And on top of that, we're putting solar energy in place. Everywhere where we can in and around the location.

Pieter Klinkers: On top of that, we're putting solar energy in place everywhere where we can in and around the location. About 25% of our energy will then come from solar energy, which is not only cheaper, better for the environment, but also makes us less dependable on other sources that sometimes have been a problem for us in South Africa. With the additional volumes, we didn't want to have that anymore. Taking care of this plant, and even though it's a small facility, it's a very good story that I wanted to share with you guys, as one of those projects where we say these are more digestible and we're making use of our existing facilities instead of building new facilities. We go to the next slide. Trying to wrap it up.

Speaker #3: And so about 25% of our energy will then come from solar energy. Which is not only cheaper, better for the environment, but also makes us less dependable on other sources that sometimes have been a problem for us in South Africa.

Speaker #3: And with the additional volumes, we didn't want to have that anymore. And so taking care of this plant and even though it's a small facility, it's a very good story that I wanted to share with you guys as one of those projects where we say these are more digestible and we're making use of our existing facilities instead of building new facilities.

Speaker #3: We go to the next slide. Trying to wrap it up. If I look at the 2026 second quarter, I think we talked enough about the global resilience and discipline.

Pieter Klinkers: If I look at the Q2 2026, I think we talked enough about the global resilience and discipline. That was the case, it is the case. I think we've delivered another quarter. We've shown another quarter where we can say we were resilient. At the same time, resilience is nice, we do want to have some growth, even if the LV market is showing no growth overall and truck is showing some growth, of course, it is not exploding. We think we are looking at a more favorable scenario maybe going forward than what we have been looking at in the last one or two years. Keep in mind, North America is coming back and we are very well positioned. I showed you the pictures on our new facility in Castaños there, but also wheels is well positioned there. In South America, LV is strong.

Speaker #3: That was the case. It is the case. I think we've delivered another quarter we've shown another quarter where we can say we were resilient.

Speaker #3: Now, at the same time, resilience is nice, but we do want to have some growth. Even if the LV market is showing no growth overall and truck is showing some growth, but of course it's not exploding. We think we're looking at a more favorable scenario, maybe going forward, than what we have been looking at in the last one or two years.

Speaker #3: And so keep in mind, North America is coming back and we are very well positioned. I showed you the pictures on our new facility in Castañas there.

Speaker #3: But also wheels is well positioned there. In South America, LV is strong. Truck should be stabilizing, right? And so I think in the LV and truck we take what we get but in LV in that strong market we are having momentum with customers, good momentum with customers.

Pieter Klinkers: Truck should be stabilizing. I think in truck we take what we get, in LV, in that strong market, we are having good momentum with customers. In Europe, the market is more challenging, the good thing for us is, we are a very competitive company in Europe, we will manage our way through that, even in LV, which is more challenging than CV. Then Asia. Asia is growing. India is growing more than average in Asia, and Maxion Asia is growing more than average in India. All of that, I would say in the most important regions where we operate, I would say the glass is more than half full. Overall, of course, we do that in order to deliver value.

Speaker #3: In Europe, the market is more challenging, but the good thing for us is we are a very competitive company in Europe. And so we will manage our way through that even in LV, which is more challenging than CV.

Speaker #3: And then Asia. Asia is growing. India is growing more than average in Asia. And Max in Asia is growing more than average in India.

Speaker #3: And so all of that, I would say in the most important regions where we operate, I would say the glass is more than half full.

Speaker #3: Overall, of course, we do that in order to deliver value. And I think by keeping our strong liquidity, keeping the cost discipline, which is definitely our target, generating cash and lowering our debt, I think we have a plan to make sure that our company can thrive.

Pieter Klinkers: I think by keeping our strong liquidity, keeping the cost discipline, which is definitely our target, generating cash and lowering our debt, I think we have a plan to make sure that our company can thrive. With that, I would like to open it up for questions and answers through Rodrigo.

Speaker #3: And with that, I would like to open it up for questions and answers through Rodrigo.

Speaker #1: Agora daremos início à sessão de perguntas e respostas. Pedimos, por gentileza, que façam todas as perguntas de uma só vez, aguardando a resposta da companhia.

Renato Jorge Salum: Agora daremos início à sessão de perguntas e respostas. Pedimos, por gentileza, que façam todas as perguntas de uma só vez, aguardando a resposta da companhia. Lembrando que para fazer perguntas, orientamos que sejam enviadas via ícone de Q&A, no botão inferior de sua tela. Por padrão da dinâmica, seus nomes serão anunciados para que façam sua pergunta ao vivo. Nesse momento, uma solicitação para ativar seu microfone aparecerá na tela. A nossa primeira pergunta é da Luiza Mussi, do Safra. Luiza, por favor, pode prosseguir.

Renato Salum: Agora daremos início à sessão de perguntas e respostas. Pedimos, por gentileza, que façam todas as perguntas de uma só vez, aguardando a resposta da companhia. Lembrando que para fazer perguntas, orientamos que sejam enviadas via ícone de Q&A, no botão inferior de sua tela. Por padrão da dinâmica, seus nomes serão anunciados para que façam sua pergunta ao vivo. Nesse momento, uma solicitação para ativar seu microfone aparecerá na tela. A nossa primeira pergunta é da Luiza Mussi, do Safra. Luiza, por favor, pode prosseguir.

Speaker #1: Lembrando que, para fazer perguntas, orientamos que sejam enviadas via ícone de Q&A no botão inferior de sua tela. Por padrão da dinâmica, seus nomes serão anunciados para que façam sua pergunta ao vivo.

Speaker #1: Nesse momento, uma solicitação para ativar seu microfone aparecerá na tela. A nossa primeira pergunta é da Luisa Mussi do Safra. Luisa, por favor, pode prosseguir.

Speaker #2: Hi, can you hear me? Yeah? Okay. So, hi everyone. Thanks for the space here. I have two questions. First, I want to better understand the revenue decline in Europe.

Luiza Mussi: Hi, can you hear me? Yeah, okay. Hi, everyone. Thanks for the space here. I have two questions. First, I want to better understand the revenue decline in Europe. Revenue was down a little bit more than volumes during this quarter. Could you walk us through the main factors behind that performance? Was this gap entirely explained by FX or there was also some impact from Volkswagen plants closing? Also, if you could elaborate a little bit more on the quarter and, more importantly, on how we should think about cash generation, working capital, and liability management going forward, it would be very helpful for our modeling here. Thank you.

Speaker #2: Revenue was down a little bit more than volumes during this quarter. So could you walk us through the main factors behind that performance? Was this gap entirely explained by FX or there was also some impact from Volkswagen plants closing?

Speaker #2: And also, if you could elaborate a little bit more on the quarter and more importantly on how we should think about cash generation, working capital and the liability manager going forward, it would be very, very helpful for our modeling here.

Speaker #2: Thank you.

Speaker #3: Okay, Luisa. I will answer the first question and then Renato Salum will take the second question. So on the revenue, in Europe, this can vary quarter by quarter.

Pieter Klinkers: Okay, Luiza. I will answer the first question and then Renato Salum will take the second question. On the revenue in Europe, this can vary quarter by quarter, depending on the mix. I would not be too hung up on one quarter. This has nothing to do with Volkswagen closing plants. One quarter you can be a little bit more lucky than another quarter with your wheels being more demanded on a certain vehicle or for a certain customer than other wheels. Overall, I think, as I said, we are in a strong position in Europe. Of course, we can't change the market, I think our position in that market, whatever it will be, is pretty strong. I would look at that over a longer period of time instead of just one quarter.

Speaker #3: Depending on the mix, I would not be too hang up on one quarter. This has nothing to do with Volkswagen. Closing plans. And so one quarter you can be a little bit more lucky than another quarter with your wheels being more demanded on a certain vehicle or for a certain customer than others.

Speaker #3: But overall, I think, as I said, we are in a strong position in Europe. Of course, we can't change the market, but I think our position in that market, whatever it will be, is pretty strong.

Speaker #3: So I would look at that over a longer period of time instead of just one quarter. And as I said, on the commercial vehicle side, we're actually outperforming the market.

Pieter Klinkers: As I said on the commercial vehicle side, we're actually outperforming the market. My expectation is that we will be able to continue to do that for some more time. Is that okay for the first question?

Speaker #3: And my expectation is that we will be able to continue to do that for some more time. Is that okay for the first question?

Speaker #2: Yeah, that's clear. Thank you.

Luiza Mussi: Yeah, that's clear. Thank you.

Speaker #3: Thank you. Renato? Luisa?

Pieter Klinkers: Thank you, Renato.

Renato Jorge Salum: Oi, Luiza. Bom dia, obrigado pela pergunta. Acho que começando aqui pelo working capital, uma das suas perguntas, é importante falar que desde 2023, a companhia vem rodando o seu working capital ratio aqui abaixo de 13%. A gente novamente fecha o trimestre aqui com um ratio em torno de 12.4% no mês de março, desculpa, mas se a gente comparar aqui o average do Q2, nós tivemos 12.7%. No fluxo de caixa acumulado do Q1, a gente também consegue aqui ver facilmente nas demonstrações financeiras, principalmente no fluxo de caixa indireto, que o nosso capital de giro consumiu aproximadamente BRL 90 million, o que é uma melhora bastante relevante quando a gente compara com o semestre anterior, que foi um consumo de BRL 343 million. O nosso ciclo de conversão de caixa, a gente mantém ainda em 45 days.

Renato Salum: Oi, Luiza. Bom dia, obrigado pela pergunta. Acho que começando aqui pelo working capital, uma das suas perguntas, é importante falar que desde 2023, a companhia vem rodando o seu working capital ratio aqui abaixo de 13%. A gente novamente fecha o trimestre aqui com um ratio em torno de 12.4% no mês de março, desculpa, mas se a gente comparar aqui o average do Q2, nós tivemos 12.7%. No fluxo de caixa acumulado do Q1, a gente também consegue aqui ver facilmente nas demonstrações financeiras, principalmente no fluxo de caixa indireto, que o nosso capital de giro consumiu aproximadamente BRL 90 million, o que é uma melhora bastante relevante quando a gente compara com o semestre anterior, que foi um consumo de BRL 343 million. O nosso ciclo de conversão de caixa, a gente mantém ainda em 45 days.

Speaker #4: Bom dia, obrigado pela pergunta. Eu acho que começando aqui pelo working capital, uma das suas perguntas. É importante falar aqui que desde 2023 a companhia vem rodando o seu working capital ratio aqui abaixo de 13%.

Speaker #4: A gente novamente fecha o trimestre aqui com ratio em torno de 12,4% no mês de março, mas se a gente comparar aqui o mês de junho, desculpa, mas se a gente comparar aqui o average do segundo quarter, nós tivemos 12,7%.

Speaker #4: No fluxo de caixa, acumulada do primeiro trimestre, a gente também consegue aqui ver facilmente nas demonstrações financeiras principalmente no fluxo de caixa indireto, que o nosso capital de giro consumiu aproximadamente 90 milhões o que é uma melhora bastante relevante quando a gente compara com o semestre anterior que foi consumo de 343 milhões.

Speaker #4: O nosso ciclo de conversão de caixa a gente mantém ainda em 45 dias. Então a gente segue aqui concentrados na gestão de estoque, bem como na manutenção de condições sustentáveis com os nossos fornecedores, para preservar a geração de caixa e eficiência do capital de giro.

Renato Jorge Salum: A gente segue aqui concentrados na gestão de estoque, bem como na manutenção de condições sustentáveis com os nossos fornecedores, para preservar a geração de caixa e eficiência do capital de giro. Acho que quando a gente fala um pouquinho aqui do fluxo de caixa novamente. Quando a gente olha sobre a questão do quanto que foi gerado das atividades operacionais da companhia, a gente vê no H1 em torno de BRL 455 million, comparado a um consumo de BRL 3 million no mesmo período do ano passado. Também a melhora foi impulsionada, principalmente, pela evolução do capital de giro, como menor consumo de stocks, a menor compra de stocks e contribuição favorável de fornecedores. A gente vê que, de certa forma, isso ajudou muito a companhia em relação à redução e à manutenção da alavancagem.

Renato Salum: A gente segue aqui concentrados na gestão de estoque, bem como na manutenção de condições sustentáveis com os nossos fornecedores, para preservar a geração de caixa e eficiência do capital de giro. Acho que quando a gente fala um pouquinho aqui do fluxo de caixa novamente. Quando a gente olha sobre a questão do quanto que foi gerado das atividades operacionais da companhia, a gente vê no H1 em torno de BRL 455 million, comparado a um consumo de BRL 3 million no mesmo período do ano passado. Também a melhora foi impulsionada, principalmente, pela evolução do capital de giro, como menor consumo de stocks, a menor compra de stocks e contribuição favorável de fornecedores. A gente vê que, de certa forma, isso ajudou muito a companhia em relação à redução e à manutenção da alavancagem.

Speaker #4: Acho que quando a gente fala pouquinho aqui do fluxo de caixa novamente, e quando a gente olha sobre a questão de o quanto que foi gerado aqui das atividades operacionais da companhia, a gente vê no primeiro semestre aqui em torno de 455 milhões, comparado a consumo de 3 milhões de reais no mesmo período do ano passado.

Speaker #4: Também a melhora foi impulsionada principalmente pela evolução do capital de giro, como menor consumo no final do dia que de estoques, a menor compra de estoques e contribuição favorável de fornecedores.

Speaker #4: Então a gente vê aqui de certa forma isso ajudou muito a companhia em relação à redução e à manutenção da alavancagem. A alavancagem ela fecha aqui 2,52 vezes como o Peter já comentou, mas obviamente aqui a gente adiciona em torno de 40 milhões aqui da Polymetal que acaba sendo consolidada a partir desse momento.

Renato Jorge Salum: A alavancagem fecha 2.52 vezes, como o Pieter já comentou, mas obviamente a gente adiciona em torno de BRL 40 million da Polimetal, que acaba sendo consolidada a partir desse momento dentro das nossas demonstrações financeiras. Se não fosse esse evento, nós estaríamos com a mesma alavancagem que nós tivemos no trimestre anterior. Referente à questão de liability management, eu acho que esse é um ponto bastante importante. Em julho, a gente conclui uma importante operação na gestão dos passivos da companhia, onde a gente acaba captando um empréstimo sindicalizado em duas moedas. Primeira moeda em EUR 123 million a um custo de Euribor mais 2.55%, ou seja, nesse momento, se a gente fosse fazer uma simples conversão exatamente agora, nós teríamos em torno de 5.04% ao ano. Também a gente fecha USD 180 million a SOFR mais 2.75%, que é equivalente nesse momento a 6.51%.

Renato Salum: A alavancagem fecha 2.52 vezes, como o Pieter já comentou, mas obviamente a gente adiciona em torno de BRL 40 million da Polimetal, que acaba sendo consolidada a partir desse momento dentro das nossas demonstrações financeiras. Se não fosse esse evento, nós estaríamos com a mesma alavancagem que nós tivemos no trimestre anterior. Referente à questão de liability management, eu acho que esse é um ponto bastante importante. Em julho, a gente conclui uma importante operação na gestão dos passivos da companhia, onde a gente acaba captando um empréstimo sindicalizado em duas moedas. Primeira moeda em EUR 123 million a um custo de Euribor mais 2.55%, ou seja, nesse momento, se a gente fosse fazer uma simples conversão exatamente agora, nós teríamos em torno de 5.04% ao ano. Também a gente fecha USD 180 million a SOFR mais 2.75%, que é equivalente nesse momento a 6.51%.

Speaker #4: Dentro das nossas demonstrações financeiras. E, se não fosse esse evento, nós estaríamos com a mesma alavancagem que tivemos aqui no trimestre anterior. Referente à questão de liability management, acho que esse é um ponto bastante importante.

Speaker #4: Então em julho a gente conclui uma importante operação na gestão dos passivos da companhia. Onde a gente acaba captando aqui empréstimo sindicalizado em duas moedas: primeira moeda aqui em euro, 123 milhões de euros a custo de Euribor mais 2,55%.

Speaker #4: Ou seja, nesse momento se a gente fosse fazer uma simples conversão exatamente agora, nós teríamos em torno de 5,04% ao ano. E também a gente fecha aqui 180 milhões de dólares a sofrer mais 2,75%, que é equivalente nesse momento a 6,51%.

Speaker #4: Então também nós fizemos uma debênture emitimos uma debênture a 17a debênture da companhia, 400 milhões de reais. É CDI mais 1,60. E no final do dia a gente acaba utilizando parte do nosso próprio caixa além desses dessas linhas que nós captamos para reforçar também parte aí do nosso capital de giro.

Renato Jorge Salum: Também nós emitimos uma debênture, a 17th debênture da companhia, BRL 400 million, é um CDI mais 1.60. No final do dia, a gente acaba utilizando parte do nosso próprio caixa, além dessas linhas que nós captamos pra reforçar também parte do nosso capital de giro, e a gente faz o resgate total do nosso bond no dia 24 July. Até mesmo pra te ajudar um pouco na projeção, no final do dia, nós vamos ter aqui, eu diria, BRL 73 million de impacto nas despesas financeiras em 2026. Parte desses BRL 73 million, BRL 41 million, é a questão de juros adicionais, porque a gente sai de um bond de 3.5.

Renato Salum: Também nós emitimos uma debênture, a 17th debênture da companhia, BRL 400 million, é um CDI mais 1.60. No final do dia, a gente acaba utilizando parte do nosso próprio caixa, além dessas linhas que nós captamos pra reforçar também parte do nosso capital de giro, e a gente faz o resgate total do nosso bond no dia 24 July. Até mesmo pra te ajudar um pouco na projeção, no final do dia, nós vamos ter aqui, eu diria, BRL 73 million de impacto nas despesas financeiras em 2026. Parte desses BRL 73 million, BRL 41 million, é a questão de juros adicionais, porque a gente sai de um bond de 3.5.

Speaker #4: E a gente faz o resgate total aí dos nossos bonds no dia 24 de julho. Então em termos aqui até mesmo para te ajudar pouco na projeção, nós no final do dia nós vamos ter aqui eu 73 milhões de impacto na despesa financeiras em 2026.

Speaker #4: Parte desses 73, 41 milhões de reais ele é a questão de juros adicionais, porque a gente sai de bonde de 3,5. E para essas dois instrumentos que eu te falei, obviamente se a gente fosse a mercado a gente no momento que nós pesquisamos a gente tinha visto algo em torno de high 8.

Renato Jorge Salum: Pra esses dois instrumentos que eu te falei, obviamente, se a gente fosse a mercado, no momento que nós pesquisamos, a gente tinha visto algo em torno de high eight, então a gente entende que o processo que nós decidimos seguir traz benefícios pra companhia. Como a gente também liquida o bond antes do momento, a gente tem a questão de enviar, de acelerar a amortização dos custos da dívida, dos custos de captação desse bond. Também, parcialmente, o resgate tem um prêmio que foi pago, 0.62% em cima do par. No final do dia, a gente tem esse todo liability management concluído.

Renato Salum: Pra esses dois instrumentos que eu te falei, obviamente, se a gente fosse a mercado, no momento que nós pesquisamos, a gente tinha visto algo em torno de high eight, então a gente entende que o processo que nós decidimos seguir traz benefícios pra companhia. Como a gente também liquida o bond antes do momento, a gente tem a questão de enviar, de acelerar a amortização dos custos da dívida, dos custos de captação desse bond. Também, parcialmente, o resgate tem um prêmio que foi pago, 0.62% em cima do par. No final do dia, a gente tem esse todo liability management concluído.

Speaker #4: Então a gente entende que o processo que nós decidimos seguir aqui ele traz benefícios para a companhia. E como a gente também liquida o bonds antes do momento, a gente tem a questão de enviar, de acelerar a amortização dos custos da dívida dos custos de captação desse bonde.

Speaker #4: E também parcialmente aqui o resgate também ele tem aqui prêmio que foi pago 0,62%. Em cima aí do par. Então no final do dia a gente tem esse todo liability management concluído.

Renato Jorge Salum: Em termos de caixa, a gente não tem um impacto significativo nesse ano, porque embora a gente incremente BRL 46 million no nosso pagamento de juros, a gente também teve o unwind dos nossos instrumentos financeiros, que resultou numa entrada de caixa de BRL 40 million, ou seja, nós tivemos um impacto de -BRL 6 million dentro do nosso caixa. Pra 2027, tirando aquilo que nós tínhamos num bond cujo vencimento já seria May 2028, a gente tem um acréscimo de BRL 71 million, considerando a taxa que nós temos nesse momento numa base anual. Apesar do maior custo da dívida anterior, a estrutura executada foi mais eficiente do que uma nova emissão, eu diria, nas condições de mercado que estavam disponíveis naquele momento.

Renato Salum: Em termos de caixa, a gente não tem um impacto significativo nesse ano, porque embora a gente incremente BRL 46 million no nosso pagamento de juros, a gente também teve o unwind dos nossos instrumentos financeiros, que resultou numa entrada de caixa de BRL 40 million, ou seja, nós tivemos um impacto de -BRL 6 million dentro do nosso caixa. Pra 2027, tirando aquilo que nós tínhamos num bond cujo vencimento já seria May 2028, a gente tem um acréscimo de BRL 71 million, considerando a taxa que nós temos nesse momento numa base anual. Apesar do maior custo da dívida anterior, a estrutura executada foi mais eficiente do que uma nova emissão, eu diria, nas condições de mercado que estavam disponíveis naquele momento.

Speaker #4: Em termos de caixa a gente não tem impacto significativo nesse ano, porque embora a gente incremente a 46 milhões de reais no nosso pagamento de juros, a gente também teve o one wind dos nossos entrada de caixa de 40 milhões de reais.

Speaker #4: Ou seja, nós tivemos aqui impacto de 6 milhões de reais negativo dentro do nosso caixa. E para 2027, tirando aquilo que nós temos que nós tínhamos num bonde cujo vencimento já seria maio de 2028, a gente tem aqui acréscimo de 71 milhões de reais considerando a taxa que nós temos nesse momento aqui numa base anual.

Speaker #4: Então apesar do maior custo da dívida anterior, a estrutura executada foi mais eficiente do que uma nova emissão, eu diria, nas condições de mercado que estavam disponíveis naquele momento.

Speaker #4: E ao mesmo tempo a gente reduz o risco de refinanciamento da companhia, ampliamos a previsibilidade do cronograma de vencimentos e também a gente preserva aqui a flexibilidade financeira da companhia.

Renato Jorge Salum: Ao mesmo tempo, a gente reduz o risco de refinanciamento da companhia, ampliamos a previsibilidade do cronograma de vencimentos e também a gente preserva a flexibilidade financeira da companhia. Obrigado pela pergunta.

Renato Salum: Ao mesmo tempo, a gente reduz o risco de refinanciamento da companhia, ampliamos a previsibilidade do cronograma de vencimentos e também a gente preserva a flexibilidade financeira da companhia. Obrigado pela pergunta.

Speaker #4: Obrigado aí pela pergunta.

Speaker #1: Obrigada, Renato. Super claro aí como sempre.

Luiza Mussi: Obrigada, Renato. Super claro, como sempre.

Speaker #2: A nossa próxima pergunta é do André Mazzini do Citi. André, por favor, pode prosseguir.

Rodrigo Caraça: A nossa próxima pergunta é do Andre Mazzini, do Citigroup. Andre, por favor, pode prosseguir.

Speaker #5: Yes. Hello, Peter, Renato, Rodrigo. Thanks for the call. So my question is on the Chinese OEMs presence in Brazil. So for the Chinese branded cars, sold in Brazil today, which percentage do you think use Brazil produced wheels versus wheels produced elsewhere, likely China?

André Mazzini: Yes. Hello, Pieter, Renato, Rodrigo. Thanks for the call. My question is on the Chinese OEMs presence in Brazil. For the Chinese branded cars sold in Brazil today, which percentage do you think use Brazil produced wheels versus wheels produced elsewhere, likely China? I know there's a lot of imports. If our understanding that the CKDs and SKDs of Chinese vehicles, which are going to be assembled here, of course, are going to be using more Brazil produced wheels, right? This penetration, if you will, of Brazil produced wheels in the Chinese cars would increase with greater CKDs and SKDs. Thank you so much.

Speaker #5: I know there's a lot of imports. And if our understanding that the CKDs and SKDs of Chinese vehicles, which are going to be assembled here of course, are going to be using more Brazil produced wheels, right?

Speaker #5: So I mean the penetration if you will of Brazil produced wheels in the Chinese cars would increase with greater CKDs and SKDs. Thank you so much.

Speaker #4: Thank you very much, for the question. I will take that one. So unfortunately on Chinese cars being imported in Brazil, we believe there's a very stable round number of percentage of wheels being produced in Brazil on those cars.

Pieter Klinkers: Thank you very much for the question. I will take that one. Unfortunately on Chinese cars being imported in Brazil, we believe there's a very stable round number of percentage of wheels being produced in Brazil on those cars. It's close to 0%. Right now we believe all these cars are being assembled with wheels coming from China. Now that picture, we believe, and to a certain extent we know, will change very significantly when localization comes in and that localization will come in. May not come in this month or next month, but we believe this will happen next year. We are actually working on producing wheels for Chinese OEM. That's why I say we know it's happening. Can't give you more details there.

Speaker #4: It's close to zero. And so right now we believe all these cars are being assembled with wheels coming from China. Now that picture we believe and to a certain extent we know will change very significantly when localization comes in.

Speaker #4: And that localization will come in may not come in this month or next month, but we believe this will happen next year. And so we are actually working on producing wheels for Chinese OEMs.

Speaker #4: So that's why I say we know it's happening. Can't give you more details there. I wish I could give you names and brands and numbers, but I'm not allowed to do that.

Pieter Klinkers: I wish I could give you names and brands and numbers, I'm not allowed to do that, I won't do that. I can tell you that our belief is that there's a big opportunity there to supply these wheels for the vehicles being produced in Brazil from one of our facilities, or from our facilities. Is that okay?

Speaker #4: So I won't do that. But I can tell you that our belief is that there's a big opportunity there to supply these wheels for the vehicles being produced in Brazil from our from one of our facilities from our facilities.

Speaker #4: Is that okay?

Speaker #5: Thank you, Peter.

Rodrigo Caraça: Thank you, Pieter.

Pieter Klinkers: You're welcome.

Speaker #4: You're welcome.

Rodrigo Caraça: A nossa próxima pergunta é da Andressa Varotto do UBS. Andressa, por favor, pode prosseguir.

Speaker #2: A nossa próxima pergunta é da Andressa Varotto do UBS. Andressa, por favor, pode prosseguir.

Speaker #1: Hi, good morning, Peter, Renato and Rodrigo. Thank you for taking my question. I'd like to talk a little bit about the North American commercial vehicles market.

Andressa Varotto: Hi. Good morning, Pieter, Renato and Rodrigo. Thank you for taking my question. I would like to talk a little bit about the North American commercial vehicles market. We already saw an improvement this quarter that should continue in the upcoming quarters, and just wondering how are you seeing this impacting profitability for the H2 of the year? I noted that when you presented some estimates, you are expecting growth for 2027. I just wanted you to talk a little bit about your expectations for this market since we are seeing an important surge in the orders. We see some discussion of whether this is purely pre-buy driven or what are the other underlying drivers that could sustain this demand beyond a pre-buy. If you could also talk a little bit about that.

Speaker #1: So we already saw an improvement this quarter that should continue in the upcoming quarters. And just wondering how are you seeing this impacting profitability for the second half of the year?

Speaker #1: And also, I noted that when you presented some estimates, you are expecting growth for 2027. So I just wanted you to talk a little bit about your expectations for this market, since we are seeing an important surge in the orders.

Speaker #1: And we see some discussion of whether this is purely pre-buy driven or what are the other underlying drivers that could sustain this demand beyond a pre-buy.

Speaker #1: So if you could also talk a little bit about that. And a second question would be if you have any updates on the antitrust disputes in Germany that you released.

Andressa Varotto: A second question would be if you have any updates on the antitrust dispute in Germany that you released to be an ongoing thing in some results ago, and if there are any updates on this front. Thank you.

Speaker #1: To be an ongoing thing in some results ago. And if there are any updates on this front. Thank you.

Speaker #4: Yeah, no problem, Andrea. So I will take all three of those questions. So, the North American truck rebound—we clearly see it happening now. To what extent this will continue, and at what rate, that's difficult to say at this stage.

Pieter Klinkers: Yeah, no problem, Andressa. I will take all three of those questions. The North American truck rebound, we clearly see it happening now. To what extent this will continue, at what rate? That's difficult to say at this stage, but we clearly see a very positive trend now, which wasn't too difficult after the disaster at the end of 2024 and the beginning of 2025. It comes back as strong as we were targeting, as strong as we were hoping. For our profitability, I would say that's a very positive thing. Now, of course, when you start a new plant, like the one that I've been showing 15 minutes ago in one of my slides, you cannot run that plant immediately super efficient because you're starting it up with one shift one day and then one shift one week.

Speaker #4: But we clearly see a very positive trend now, which wasn't too difficult after the disaster at the end of 2024, the beginning of 2025.

Speaker #4: But it comes back as strong as we were targeting, as strong as we were hoping. And so for our profitability I would say that's a very positive thing.

Speaker #4: Now of course when you start a new plant right like the one that I've been showing 15 minutes ago in one of my slides you cannot run that plant immediately super efficient because you're starting it up with one shift one day and then one shift one week and so there is a gradual ramp up of that plant.

Pieter Klinkers: There is a gradual ramp-up of that plant. You will not see immediately the full extent of that good news in your profitability. For sure, profitability will be supported, is already being supported during the course of Q2, and we expect that to continue in H2 of this year as well, even though we need to keep in mind we have that new operation that we're starting up from 0 to 10 to 20, and not from 0 to 80 or 90 immediately. That starting up, to come to your second question on 2027, we expect and we count on that continuing and not to be only a pre-buy in 2026 and early 2027.

Speaker #4: So, you will not see the full extent of that good news reflected immediately in your profitability. But for sure, profitability will be supported by this; it is already being supported during the course of the second quarter, and we expect that to continue in the second half of this year as well.

Speaker #4: Even though we need to keep in mind we have that new operation that we're starting up from zero to 10 to 20 and not from zero to 80 or 90 immediately.

Speaker #4: Now that starting up to come to your second question on 2027 we expect and we count on that continuing and not to be only a pre-buy in 2026 and early 2027.

Pieter Klinkers: We think there's more underlying reasons like the need for freight picking up and also the replacement cost of trucks becoming less than maybe the increasing maintenance cost of all the trucks that were bought during COVID, when people got a lot of incentives. There's more reasons for the North American truck market coming back, and that's what we are counting on. That's what we are prepared for. That's what we also expect to be able to see back not only in our revenue but also in our profitability. I hope that answers those two questions. From an antitrust proceedings point of view, I have no update for you guys. There's no new news after what we talked about in the last earnings call. Is that okay?

Speaker #4: We think there are more underlying reasons, like the need for freight picking up and also the replacement cost of trucks becoming less than, maybe, the increasing maintenance cost of older trucks that were bought during COVID, when people got a lot of incentives.

Speaker #4: And so there's more reasons for the North American truck market coming back. And that's what we are counting on. That's what we are prepared for.

Speaker #4: And that's what we also expect to be able to see back in our not only in our revenue but also in our profitability. So I hope that answers those two questions from an antitrust proceedings point of view.

Speaker #4: I have no update for you guys. There's no new news after what we talked about in the last earnings call. Is that okay?

Speaker #1: Very, very clear, Peter. Thank you very much.

Andressa Varotto: Very clear, Pieter. Thank you very much.

Speaker #4: Thank you.

Pieter Klinkers: Thank you.

Speaker #2: A nossa próxima pergunta é da Fernanda Urbano, da XP. Fernanda, pode prosseguir.

Rodrigo Caraça: A nossa próxima pergunta é da Fernanda Urbano da XP. Fernanda, pode prosseguir.

Speaker #1: Good morning, Pieter, Renato, and thank you for taking our questions. First, just to follow up on the domestic light vehicle market—you've discussed a bit about the domestic market outlook, especially in light of new OEMs gaining share here.

Fernanda Urbano: Good morning, Pieter, Renato. Thank you for taking our questions. First, just a follow-up on the domestic light vehicle market. You've discussed a bit about the domestic market outlook, especially in light of new OEMs gaining share here. Looking at industry data, we see better points for light vehicles, both sales and production. We also see this performance as supported by incentives such as Move Aplicativos and other subsidies here in the industry. I just wanted to see how do you see the sustainability of domestic demand, especially once these support mechanisms normalize. Do you see the current growth as mostly subsidy-driven, or do you see a better underlying demand, especially given that financing rates are still high and may be higher for longer? This would be our first question. Just a second question about profitability drivers.

Speaker #1: But looking at industry data, we see better points for light vehicles both sales and production. But we also see this performance as supported by incentives such as MOVI aplicativos and other subsidies here in the industry.

Speaker #1: So I just wanted to see how do you see this sustainability of domestic demand especially once this support mechanisms normalize? Do you see the current growth as mostly subsidy driven or do you see a better underlying demand especially given that financing rates are still high and maybe higher for longer?

Speaker #1: So this would be our first question. And just a second question: about profitability drivers, you have flagged a temporary lag between raw material costs and price adjustments.

Fernanda Urbano: You have flagged a temporary lag between raw material costs and price adjustments, which may have been a margin headwind this quarter. Just to understand, can we think about this reversing as a margin tailwind already in Q3? Besides from this pass-through and better operating leverage, are there any other drivers that you see as positive for profitability going forward, especially looking in H2? Thank you.

Speaker #1: Which may have been a margin headwind this quarter. So just to understand can we think about this reversing as a margin tailwind already in 3Q?

Speaker #1: And besides from this pass-through and better operating leverage are there any other drivers that you see as positive for profitability going forward especially looking in the second half?

Speaker #1: Thank you.

Speaker #4: Thank you, Fernanda. So taking your first question on Brazil LV, yes, it's a very positive situation especially if you compare it with some other regions or Europe where we are sitting now here and of course subsidy plays a role there not only in the LV but also on the CV and we hope in the CV it will help to stabilize the market.

Pieter Klinkers: Thank you, Fernanda. Taking your first question on Brazil, LV, yes, it's a very positive situation, especially if you compare it with some other regions or Europe, where we are sitting now here. Of course, subsidy plays a role there, not only in the LV, but also on the CV, and we hope in the CV it will help to stabilize the market. I think on LV, it's supporting more growth than what you would have otherwise. I do believe still that there is more room to grow for the Brazilian LV market. Many OEMs have been investing big time, and not only the Chinese will invest big time, but many OEMs have been investing money in Brazil because they believe there's more potential in Brazil than what we have seen the last couple of years.

Speaker #4: I think on LV, it's supporting more growth than what you would have otherwise. I do believe still that there is more room to grow for the Brazilian LV market. Many OEMs haven't been investing big time—not only the Chinese will invest big time, but many OEMs have been investing money in Brazil because they believe there's more potential in Brazil than what we have seen in the last couple of years.

Speaker #4: And so I think it's a mixed bag. A positive mixed bag where on the one hand subsidies help but also I think just generally the market in Brazil can do a little bit better.

Pieter Klinkers: I think it's a positive mix back, where on the one hand subsidies help, but also I think, just generally the market in Brazil can do a little bit better. Of course, Brazil, for us, as part of our LV portfolio, is relatively small. Truck is bigger because we have both components and wheels being big in their components, has a share in LV, but is much bigger in CV in Brazil. Still, it's an important market for us. It's nice to have, and we believe that this momentum that we see right now will remain there for the near future. So we're positive about it. On top of that, we are positive that once the wheels are now being imported on cars or on CKDs from China, we can participate in that growth in the Brazilian market even better from Brazil.

Speaker #4: Of course Brazil for us as part of our LV portfolio is relatively small right truck is bigger because we have both components and wheels being big in there components has a share in LV but it's much bigger in CV in Brazil.

Speaker #4: But still we it's an important market for us. It's nice to have and we believe that this momentum that we see right now will remain there for the near future.

Speaker #4: And so we're positive about it. And on top of that, we are positive that once the wheels are not being imported on cars or on CKDs from China, we can participate in that growth in the Brazilian market even better.

Speaker #4: From Brazil. So that's all good. I see that positive even though I agree with you part of that is related to subsidies. On the profitability, I think North America we've been talking about it so much over the last three, four earnings calls because there was a big drop, a big headache for our North American operations mainly components but I say I use the word was.

Pieter Klinkers: That's all good. I see that positive, even though I agree with you, part of that is related to subsidies. On the profitability, I think North America, we've been talking about it so much over the last three, four earnings calls because it was a big drop, a big headache for our North American operations, mainly components. I say I use the word was because we truly believe that we are out of the woods now. How far will this continue to go upwards? Let's see, but we are clearly away from the very dramatic numbers that we saw end of last year, beginning of this year in that region. So, that's one growth factor in profitability. We talked about some of the other regions, so I don't want to repeat that, but for sure Asia is something that will drive not only growth but also profitability.

Speaker #4: Because we truly believe that we are out of the woods now. How far will this continue to go upwards? Let's see. But we are clearly away from the very dramatic numbers that we saw end of last year beginning of this year.

Speaker #4: In that region. And so that's one growth factor and profitability. We talked about some of the other regions. So I don't want to repeat that but for sure Asia is something that will drive not only growth but also profitability.

Speaker #4: And then, I think, as you said, the metal story—yes, overall, that should be a positive for us in the second half compared to the first half.

Pieter Klinkers: Then I think, as you said, the metal story, yes, overall, that should be a positive for us in H2 compared to H1. Part of that is already happening in Q2, more than what you saw in Q1. Still, we believe there are some more good news for us in Q3, in H2 of the year, compared to what we started seeing in Q2. If you look at the overall H2 of the year, yes, that should be a positive for us compared to what we have been going through in H1 of the year. Fair enough?

Speaker #4: Part of that is already happening in the second quarter, more than what you saw in the first quarter. But still, we believe there is some more good news for us in the third quarter.

Speaker #4: In the second half of the year, compared to what we started seeing in the second quarter, but if you look at the overall second half of the year, yes, that should be a positive for us compared to what we have been going through in the first half of the year.

Speaker #4: Fair enough?

Speaker #1: Yes. Very clear. Thank you, Peter. Good morning.

Fernanda Urbano: Yes. Very clear. Thank you, Pieter. Good morning.

Pieter Klinkers: Thank you. Mm-hmm.

Speaker #4: Thank you.

Speaker #2: A nossa próxima pergunta é do Gabriel Rezende do Itaú BBA. Gabriel, por favor, pode prosseguir.

Rodrigo Caraça: A nossa próxima pergunta é do Gabriel Rezende do Itaú BBA. Gabriel, por favor, pode prosseguir.

Speaker #5: Thank you, Rodrigo. Hi, Pieter. Hi, Renato. Two questions on our side as well. Just a quick follow-up on the volume dynamics that you are foreseeing in the coming quarters.

Gabriel Rezende: Obrigado, Rodrigo. Hi, Pieter. Hi, Renato. Two questions on our side as well. Just a quick follow-up on the volume dynamics that you are foreseeing into the coming quarters, especially into 2027. Just trying to understand a little bit more about all the moving pieces that you are seeing that can potentially increase the estimates at this point or create some volatility, both on the global side, the way that things are moving, so interest rates lingering higher for longer. Also on the same side, you are actually capturing market share. Just trying to understand At this point, how you see the asymmetry when we talk about volumes into 2027? And a second point here regarding capital allocation. Both of you have mentioned about Iochpe's planned expansions, investments being made. Renato went through the cash flow for this past quarter.

Speaker #5: Especially into 2027. Just trying to understand a little bit more about all the moving pieces that you are seeing that can potentially increase the estimates at this point or create some volatility.

Speaker #5: Both on the global side the way that things are moving so interest rates lingering higher for longer but also on the same side you should be capturing market share just trying to understand at this point how you see the asymmetry when we talk about volumes into 2027.

Speaker #5: And a second point here regarding capital allocation. Both of you have mentioned about your planned expansions investments being made. Renato went through the cash flow for these past quarter.

Speaker #5: But just trying to understand the marginal capital allocation that companies foreseen for 2027 as well. You just did an M&A so perhaps exploring more opportunities in the front whether the company is exploring perhaps increasing shareholder remuneration because of the relevant liability management the company has been achieving.

Gabriel Rezende: Just trying to understand the marginal capital allocation that companies foresee for 2027 as well. You just did an M&A, so perhaps exploring more opportunities in that front or whether the company is exploring perhaps increasing shareholder remuneration because of the relevant liability management the company has been achieving. These two points. Thank you very much.

Speaker #5: So these two points. Thank you very much.

Speaker #4: Hi Gabriel. Thank you for the questions. So on the second question let me start with that one. We continue to want to look in a very different way on our capital expenditures.

Pieter Klinkers: Hi, Gabriel. Thank you for the questions. On the second question, let me start with that one. We continue to want to look in a very disciplined way on our capital expenditures. Even though, of course, we will have CapEx to be spent both in our current operations, as well as in tooling and productivity projects, et cetera, we do not foresee right now a very big capital expenditure in a new operation. Nothing like the investment that we did in Castaños or that we did in CVA. Of course, we will look, especially when our leverage improves. What are the best next priorities for the company?

Speaker #4: And so even though of course we will have CapEx to be spent both in our current operations as well as in tooling and in projects that productivity projects etc.

Speaker #4: We do not foresee right now a very big capital expenditure in a new operation so nothing like the investment that we did in Castaños or that we did in CVA.

Speaker #4: But of course we will look especially when our leverage improves. What are the best next priorities for the company. In the meanwhile I think we have enough of those smaller projects still in the drawer even after what I presented in this conference call to make sure that we continue to grow steadily.

Pieter Klinkers: In the meanwhile, I think we have enough of those smaller projects still in the drawer, even after what I presented in this conference call, to make sure that we continue to grow steadily, that we can produce the wheels and the components that we try to win, and we are winning in the market, but in a disciplined way, I would say. I think from a percentage of EBITDA, we have those kind of KPIs in place. You will not see something very different from us than what you've been seeing or what we've been talking about the last two years. Can you repeat the first question, please? I wrote it down, but I can't read my own handwriting.

Speaker #4: That we can produce the wheels that and the components that we try to win and we are winning in the market. But in a disciplined way.

Speaker #4: I would say, and so I think from a percentage of EBITDA, we have those kinds of KPIs in place. You will not see something very, very different from us than what you've been seeing.

Speaker #4: We've been talking about the last two years. Can you repeat the first question please? I wrote it down but I can't read my own handwriting.

Speaker #5: Thank you, Peter. I'll ask about the asymmetry that you see into your volumes forecast for 2027. Both considering the higher market share as well as potential macroeconomic challenges into the year.

Gabriel Rezende: Thank you, Pieter. I asked about the asymmetry that is seen to your volumes forecast for 2027, both considering the higher market share as well as potential macroeconomic challenges into the year.

Speaker #4: Yeah. Yeah. Right. Now I can read my own handwriting again. I remember what you said.

Pieter Klinkers: Yeah. Right. Now I can read my own handwriting again. I remember what you said. I talked about the market, right? If you only depend on the global market on LV, right, there is no growth. On the CV, there is growth. On the CV, we're gaining market share in a growing market. There, I think it's a matter of being prepared for that growth. I think on the CV side, from a components point of view, this Castaños thing, and also some of the investments that we have been making, and we're making small investments in Brazilian components, it will take care of us being able to serve the market and to be acting at or better than the market is providing for us.

Speaker #5: So I talked about the market, right? If you only depend on the global market on LV, right? There is no growth. On the CV there's growth.

Speaker #4: So on the CV we're gaining market share in a growing market. And so there I think it's a matter of being prepared for that growth.

Speaker #4: And so I think on the CV side from a components point of view this Castaños thing and also some of the investment that we haven't making and we're making small and smaller investments in Brazilian components.

Speaker #4: It will take care of us being able to serve the market and to be acting at or better than the market is providing for us.

Speaker #4: On the wheel side I would say we will try to continue to gain more than what the market is showing us. And so in 2026 we will grow.

Pieter Klinkers: On the wheel side, I would say we will try to continue to gain more than what the market is showing us. In 2026, we will grow our volumes over 2025. I don't know exactly what will happen over the next 5 months, but unless something very strange happens, we will have more volume in 2026 in LV and wheels than what we had in 2025. If that is the case, and the market is like 1.8% to 2% down, it means that you have been gaining share. First of all, we don't want to lose that share. Second, based on our portfolio, based on our global leverage, based on our innovations that we are bringing to the market, I think we have a fair chance to continue to outperform the market.

Speaker #4: Our volumes over 2025. I don't know exactly what will happen over the next five months but unless something very strange happens we will have more volume in 2026 in LV in wheels than what we had in 2025.

Speaker #4: So if that is the case and the market is like 1.8% 2% down, right? It means that you have been gaining share. First of all we don't want to lose that share.

Speaker #4: And second, based on our portfolio, based on our global leverage, based on our innovations, that we are bringing to the market, I think we have a fair chance to continue to outperform the market.

Speaker #4: I'm not saying when the market is zero we will do plus 10%. But I think if the market is zero we want to have two or three.

Pieter Klinkers: I'm not saying when the market is zero, we will do +10%, but I think if the market does zero, we want to have two or three. If the market does -2, we want to have at least stability, right? That is a little bit our target. For that, we don't need to do a huge investment. For that, we can do small investments or make sure that we produce more efficiently and therefore generate a little bit more capacity to continue to serve these additional volumes, additional tonnages that the market could require from us. Now, that being said, if there is a major opportunity in a region, and we feel it's the right thing to do for the company, we will look at that. I don't think we're talking about that in the very near future, 2026, 2027. Does that answer your question?

Speaker #4: And if the market does minus two we want to have at least stability, right? That is a little bit our target. And so for that we don't need to do a huge investment for that.

Speaker #4: We can do small investments. I'll make sure that we produce more efficiently and, therefore, generate a little bit more capacity to continue to serve these additional volumes—additional tonnages—that the market could require from us.

Speaker #4: Now, that being said, if there is a major opportunity in a region and we feel it's the right thing to do for the company, we will look at that.

Speaker #4: I don't think we're talking about that in the very near future 2026 2027. Does that answer your question?

Speaker #5: It does, Peter. Thank you very much.

Gabriel Rezende: It does, Pieter. Thank you very much.

Speaker #4: You're welcome.

Pieter Klinkers: You're welcome.

Rodrigo Caraça: Our next question is from Marcelo Motta of J.P. Morgan. Marcelo, go ahead.

Speaker #1: A nossa próxima pergunta é do Marcelo Mota do JP Morgan. Marcelo, por favor. Pode prosseguir.

Speaker #4: Hey. Hi Peter. Renato. Thank you for taking the question. Two questions here. The first kind of a follow-up on the CapEx. The level of this quarter was exceptionally low.

Marcelo Motta: Hey. Hi, Pieter, Renato. Thank you for taking the question. Two questions here. The first kind of a follow-up on the CapEx. The level this quarter was exceptionally low. Just trying to understand if BRL 80 million per quarter is kind of the minimum for maintenance. Could it be like a run-rate CapEx if there is a more stable market with no growth? Just to understand the breakdown in CapEx between whatever is maintenance, whatever is really expansion. The second question more, let's say a strategic one regarding Europe. We have been reading the news, OEM is shutting down plants, situation doesn't look great. We look at the numbers, not great. 5 years down the road, what happens? It continues to be a lower representation on our revenue mix, it's going to be, I don't know, 20, it's going to be 10.

Speaker #4: So just trying to understand if, like, $80 million per quarter is kind of the minimum for maintenance. That would be, could it be like a run-rate CapEx if there is a more stable market with no growth, right?

Speaker #4: Just to understand the breakdown in CapEx between whatever is maintenance, whatever is really expansion. And the second quarter more let's say strategic one regarding Europe, right?

Speaker #4: I mean we're having reading the news. OEM is shutting down plans. Situation doesn't look great. We look at the numbers not great. So five years down the road what happens?

Speaker #4: It continues to be a lower representation in the revenue mix. It's going to be, I don't know, 20. It's going to be 10. Are you moving capacity away from Europe to Asia?

Marcelo Motta: Are you moving capacity away from Europe to Asia? Is it easy to travel? The machinery is not easy, different models. I don't know, just trying to understand what could be the size of the change that we could see in Europe in the, let's say, mid to long term. Thank you.

Speaker #4: I mean, is it easy to move the machinery? It's not easy. Different models. I don't know; just trying to understand what could be the size of the change that we could see in Europe in the, let's say, mid to long term.

Speaker #4: Thank you. Hi Marcelo. Thank you for the questions. I will start with the second one. And so yes. Europe is in a more difficult spot when it comes to industry automotive industry.

Pieter Klinkers: Hi, Marcelo. Thank you for the questions. I will start with the second one. Yes, Europe is in a more difficult spot when it comes to automotive industry, and there is a lot of debate, a lot of press about that. I don't think it is a disaster by the way. People restructuring and people trying to speed up with keeping their competitiveness or improving their competitiveness compared to new competitors. I think it is not the first time we see that, but I think Europe is clearly in a bit different spot, more tougher spot than some of the other regions that we are looking at. Even though I believe, even if you look in 5 years, it will not be a disaster.

Speaker #4: And there's a lot of debate a lot of press about that. I don't think it's a disaster. By the way, people restructuring and people trying to speed up with keeping their competitiveness or improving their competitiveness compared to new competitors.

Speaker #4: I think it's not the first time we see that. But I think Europe is in a clearly in a bit different spot. More tougher spot than some of the other regions that we're looking at.

Speaker #4: Even though I believe even if you look in five years it will not be a disaster. But I can also tell you that in the past a little bit longer ago I'm not talking last quarter or last year a little bit longer ago our company already has been reacting to this future.

Pieter Klinkers: I can also tell you that in the past, a little bit longer ago, I'm not talking last quarter or last year, a little bit longer ago our company already has been reacting to this future. We have been restructuring plants, we have been closing plants, and we have been moving equipment. I remember a time starting with this company, we had three plants in Italy. Now Italy is beautiful if it is not too hot like right now. Three plants may be too much. We closed two plants and we built one new plant to Turkey based on the equipment of those two plants that we closed in Italy. Then we built another one in Turkey in order to make sure that we are competitive in Europe.

Speaker #4: And so we have been restructuring plans. We have been closing plans. And we have been moving equipment, right? And so I remember a time starting with this company we had three plans in Italy.

Speaker #4: Now Italy is beautiful, if it’s not too hot, like right now. But three plants may be too much, right? And so we closed two plants, and we moved one—we built one new plant—in Turkey, based on the equipment of those two plants that we closed in Italy.

Speaker #4: And then we built another one in Turkey in order to make sure that we are competitive. In Europe. So what I'm trying to say is that this company has done already a lot of homework to be ready for a future that we're seeing happening right now.

Pieter Klinkers: What I'm trying to say is that this company has done already a lot of homework to be ready for a future that we are seeing happening right now. Now, do we have to do more if things really go south? Yes, we can, and yes, we would. I believe right now we are in a competitive position, of course, depending on how things go, you ask about five years from now, that's nowadays an even longer time than it was 10 years ago. If you look over the next five years, I think we are okay. If we need to do more, we can and we will, and especially when you talk about aluminum wheel plant which we have much more in Europe than steel wheel.

Speaker #4: Now, do we have to do more if things really go south? Yes, we can, and yes, we would. I believe right now we are in a competitive position.

Speaker #4: But of course, depending on how things go, you ask about five years from now. That's nowadays an even longer time—a longer time than it was 10 years ago.

Speaker #4: But if you look over the next five years I think we're okay. But if we need to do more we can. And we will.

Speaker #4: And especially when you talk about aluminum wheel plant which we have much more in Europe. Then steel wheel equipment of those kind of plants is much easier to move around the world there where you need it.

Pieter Klinkers: Equipment of those kind of plants is much easier to move around the world there where you need it than it is for steel wheels. In steel wheels, you have PACCAR and you have truck. I believe in truck which is a significant part of our wheel production in Europe. We will rather see good years coming at us. I'm not sure if everything that Standard and Poor's is projecting right now is really going to happen in 2027, 2028, 2029. I say to the team, even if half of that happens, we are in a good position and we are prepared for it. Aluminum and PACCAR steel, I think we have done our homework to cope with what is going on in Europe right now. If we need to do more, I think it would be on the aluminum side, and we will, and we can.

Speaker #4: Than it is for steel wheels. And in steel wheels, you have PASCA and you have truck. I believe in truck, which is a significant part of our wheel production in Europe, we will rather see good years coming at us.

Speaker #4: I'm not sure if everything that's done at Empour is projecting right now is really going to happen in 2027 2028 2029. But even I say to the team even if half of that happens we're in a good position and we're prepared for it.

Speaker #4: So aluminum and PASCA steel I think we've done our homework to cope with what's going on in Europe right now. If we need to do more I think it would be on the aluminum side and we will and we can.

Speaker #4: On the truck side, I feel we're okay. Does that answer your question on Europe? Yes, super clear. Thank you. Thank you. Then I’ll pass on to Renata Salum for your first question on the CapEx.

Pieter Klinkers: On the truck side, I feel we are okay. Is that answering your question on Europe?

Marcelo Motta: Yes, super clear. Thank you.

Pieter Klinkers: Thank you. I pass on to Renato Salum for your first question on the CapEx.

Speaker #1: Renata bom dia. Obrigado aí pela pergunta. Mota eu acho que em relação ao CapEx a questão que a gente vê CapEx menor no trimestre é muito mais uma questão de calendarização aqui.

Renato Jorge Salum: Oi, Motta. Bom dia. Obrigado pela pergunta. Motta, eu acho que em relação ao CapEx, a questão que a gente teve um CapEx menor no trimestre é muito mais uma questão de calendarização aqui. A gente está focado ainda naquela questão de CapEx, muito em linha com aquilo que nós investimos no ano passado. Só pra relembrar que nós investimos em torno de BRL 520 million. Desses BRL 520 million, eu diria que 50% se refere à manutenção. Obviamente que dentro dessa manutenção a gente sempre tem uma questão de sensorização, robotização, que acaba no final do dia melhorando um pouco a produtividade de cada uma das nossas fábricas. E o restante do CapEx, nós diríamos que são CapEx realmente de investimentos, e eles são mais focados nas 33 plants que nós temos. Se a gente alocar BRL 5 to 7 million, a gente já completa esse restante dos BRL 150 million.

Renato Salum: Oi, Motta. Bom dia. Obrigado pela pergunta. Motta, eu acho que em relação ao CapEx, a questão que a gente teve um CapEx menor no trimestre é muito mais uma questão de calendarização aqui. A gente está focado ainda naquela questão de CapEx, muito em linha com aquilo que nós investimos no ano passado. Só pra relembrar que nós investimos em torno de BRL 520 million. Desses BRL 520 million, eu diria que 50% se refere à manutenção. Obviamente que dentro dessa manutenção a gente sempre tem uma questão de sensorização, robotização, que acaba no final do dia melhorando um pouco a produtividade de cada uma das nossas fábricas. E o restante do CapEx, nós diríamos que são CapEx realmente de investimentos, e eles são mais focados nas 33 plants que nós temos. Se a gente alocar BRL 5 to 7 million, a gente já completa esse restante dos BRL 150 million.

Speaker #1: A gente está focado ainda naquela questão de CapEx muito em linha com aquilo que nós investimos no ano passado. Só para relembrar que nós investimos em torno de 520 milhões desses 520 milhões eu diria que 50% ele se refere à manutenção obviamente que dentro dessa manutenção a gente sempre tem uma questão de sensorização robotização ali que acaba no final do dia melhorando pouco a produtividade.

Speaker #1: De cada uma das nossas fábricas. E o restante do CapEx aqui nós diríamos que são CapEx realmente de investimentos e eles são mais focados na 33 plantas que nós temos ali.

Speaker #1: Se a gente alocar 5 a 7 milhões a gente já completa esse restante de 250 milhões. Obviamente que aqui o que eu e o Pieter temos aprovado de CapEx são aqueles investimentos que qual o retorno cujo payback será menor que dois anos.

Renato Jorge Salum: Obviamente que aqui, o que eu e o Pieter temos aprovado de CapEx são aqueles investimentos e qual retorno, cujo payback será menor que 2 years. Essa é a disciplina, e isso é o que a gente tem como expectativa para o resto do ano. Espero que tenha respondido sua pergunta, Motta.

Renato Salum: Obviamente que aqui, o que eu e o Pieter temos aprovado de CapEx são aqueles investimentos e qual retorno, cujo payback será menor que 2 years. Essa é a disciplina, e isso é o que a gente tem como expectativa para o resto do ano. Espero que tenha respondido sua pergunta, Motta.

Speaker #1: Então essa é a disciplina e isso é o que a gente tem como aqui expectativa aqui para o resto do ano. Espero que tenha respondido sua pergunta Mota.

Speaker #4: Não. Super claro. Obrigado Renata.

Marcelo Motta: Superclaro. Obrigado, Renato.

Speaker #1: Obrigado.

Renato Jorge Salum: Obrigado.

Renato Salum: Obrigado.

Speaker #2: Bom, devido ao tempo, encerramos a sessão de perguntas e respostas e agora gostaríamos de passar a palavra para o senhor Pieter Klinkers para as considerações finais da companhia.

Rodrigo Caraça: Bom, devido ao tempo, encerramos a sessão de perguntas e respostas e agora gostaríamos de passar a palavra para o senhor Pieter Klinkers para as considerações finais da companhia.

Speaker #4: Okay. Thank you very much. All of you for listening to us and for supporting us. Let me finish by saying this. I think if you look at the world what you read is a lot more dynamics.

Pieter Klinkers: Okay, thank you very much all of you for listening to us and for supporting us. Let me finish by saying this. I think if you look at the world, what you read is a lot more dynamics, let me call it positively, dynamics in the world than what we maybe would have thought, would have hoped for. Some things are good, but many things are not so good. I think keeping that in mind, the way this company, this team is being able to manage through is what we need to do, what we targeted to do. I'm happy to say that I believe that is what we're doing. Let's hope the world will become a little bit more stable. We can always hope for that. If that happens, that would be fantastic in many ways.

Speaker #4: Let me call it positively. Dynamics in the world are not what we maybe would have thought or would have hoped for. Some things are good, but many things are not so good.

Speaker #4: I think keeping that in mind the way this company this team is being able to manage through is what we need to do. What we target to do.

Speaker #4: And I'm happy to say that I believe that is what we're doing. So, let's hope the world will become a little bit more stable.

Speaker #4: We can always hope for that. And if that happens that would be fantastic in many ways. But even if it doesn't I think this company will be able to show solid numbers and shareholder value going forward.

Pieter Klinkers: Even if it doesn't, I think this company will be able to show solid numbers and shareholder value going forward. Thank you very much again, and bye-bye.

Speaker #4: So thank you very much again. And bye bye.

Speaker #2: Vídeo conferência de resultados do segundo trimestre de 2026 da Iochpe Maxion está encerrada. O departamento de relações com investidores está à disposição para responder às demais dúvidas e questões.

Rodrigo Caraça: A videoconferência de resultados do Q2 de 2026 da Iochpe-Maxion está encerrada. O Departamento de Relações com Investidores está à disposição para responder às demais dúvidas e questões. Muito obrigado aos participantes e tenham um ótimo dia.

Speaker #2: Muito obrigado aos participantes e tenham ótimo dia.

Marcelo Motta: Goodbye.

Operator: Goodbye.

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