conducting today's video conference. Present today and available for the question-and-answer session are Mr.

Pieter Klinkers, CEO, and Mr. Renato Salum, CFO.

Please be advised that this video conference is being recorded and will be made available in the company's investor relation website along with the presentation. Mr.

Pieter will be conducting the presentation in English. For your convenience, simultaneous translation into Portuguese and English are available and can be accessed in the globe-shaped icon called Interpretation in the lower central part of your screen.

You have the option of original audio, Portuguese, and English. Please select the option that best suits your needs.

For the Q&A session, we recommend that you participate via the Q&A icon at the bottom of your screen, and by default of the dynamics, your name will be announced so you can ask your question live. At this point, you will receive a notification to activate your microphone.

It is important to note that some questions will be answered in English, and for that, we ask you all to use the translation tool if needed. Before proceeding, we would like to clarify that any statements made during this video conference regarding the company's business prospects, projections, and operational and financial targets constitute the beliefs and assumptions of Iochpe-Maxion's management as well as information currently available to the company.

Forward-looking statements are not guarantee of performance because they involve risks, uncertainties, and assumptions, and refer to future events that, in circumstances that may or may not occur. I would like pass the floor to Mr.

Pieter Klinkers, CEO of Iochpe-Maxion. You may proceed, sir.

Hello to everybody and thank you, first of all, very much for participating in in in this call. We've decided to start with an executive summary this time.

There's a lot of things going on in the world, and we wanted to talk about a few of the highlights on the very first slide. We believe, given all the dynamics in the in the world, in the automotive world and in the overall world, we believe Iochpe was able to have relatively stable sales in the first quarter of 2026 when we compare to the same quarter 1 year earlier, a little bit down including FX impact, a little bit up excluding FX impact.

Those numbers need to be seen in the perspective of the North American and Brazilian CV market being down versus the same quarter last year. Even though these markets are now showing signs of recovery, especially in North America, the numbers that we had to deal with in the first quarter of 2026 were significantly below 2025 in North America truck.

In spite of that, we had relatively stable sales globally. With that, we were able to, even being it modest, modestly increase our profitability.

We will come back to that in next slides. Of course, that has to do with the restructuring measures that we took in North America last year.

It also has to do with our resilience that we talked about in prior calls in in Europe. More and more, it also has to do with the market in Asia, particularly India, doing well for us, and and Maxion doing well in that in that market.

We will come back to that as well. Not unimportant to mention in today's times is also that our teams are being able to navigate very well through all the supply chain issues that could be there or are there.

Given all the challenges that we see in the world, I think we can be proud on our teams to be able to ensure flawless customer service. We have been able to manage through any supply chain issues flawlessly, and we have been able to supply our customers without any interruption, and we plan to do so going forward as well.

Last but not least on this slide, I think one important highlight also is that we were able We are able to keep our operational discipline. All plants are performing around the globe.

It's not an easy globe, but [laughs] sometimes, but but our plants are performing in this environment. Also at the same time, we are continuing to to win important new business wins and create value to the company as well.

We go to the next slide. We look a little bit more on that market, and it's really different, the way we see it, the way it's being forecasted by the official institutions between light vehicles and commercial vehicles.

Let's not forget, in our company, Iochpe-Maxion, commercial vehicles is an other important It's today it's about 35% of our total turnover, with North America hopefully coming back anytime soon in the commercial vehicle segment, that that should be rather like 40% of our total turnover. Both pictures are important to to look at.

If you look at light vehicle, it's pretty stable. It's not a disaster, but it's also not very exciting: 93 million vehicles last year; this year, actually a little bit lower, 91 million is the projection; and next year back to 93, 94 in in 2028.

It's it's pretty stable, and it doesn't matter, really, if you look at those numbers including or excluding China. A stable market, let's say, on the pass car side.

On the commercial vehicle side, though, the picture looks different, especially when you look at it excluding China, which is for us a more relevant trend to look at than including China. Even though we are present in China with truck wheels as well, it's relatively small to what we do in the rest of the world.

You see some more meaningful growth there already in 2026, continuing in '27, and accelerating in 2028. We will come back to that in some of the next slides.

Different picture between pass car and truck. We go to the next slide.

We come back to the highlights for Maxion of the first quarter 2026. How do we do?

How did we do in in this market? From a revenue point of view, roughly R$3.8 billion, we would say it grew slightly excluding FX effects, but the FX impacts FX were meaningful, and so including those effects, it was a minus 3.3% minus 3.3%, mainly, again, due to the fact that in North America, even though we see some signs of recovery, the truck market was very, very much down versus 2025 first quarter.

Now in 2026, as a contrast to 2025, when South America was able to mitigate some of that effect in North America, in the first quarter of 2026, also South America was was was down. Now we have been able to mitigate that through better numbers around the world, and some highlights there, I would say, our South America light vehicles and Asia light vehicles.

Overall, we would say a pretty stable revenue despite those impacts in in truck in North and South America. We look at gross profit, the absolute numbers pretty much the same as what we generated last year, but our margin did increase slightly to 11.6%.

I think, again, this shows our resilience to global uncertainty and some markets, being meaningfully meaningfully down. Same is true for for EBITDA: 357 million in the first quarter, with a margin of 9.4%, 9.5% excluding restructuring.

That's an increase of 0.4%. It's it's not huge, but it's it's meaningful, we believe, especially given the the market dynamics that we that we are dealing with.

Then from a leverage point of view, we'll come back to that as well, of course, here FX plays a positive role, but but a meaningful reduction quarter-over-quarter, with or without FX, if you compare the first quarter 2026 with the last quarter of 2025. We look at the next slide.

You see our revenue by product. This is pretty much the same as what we showed in the last two earnings calls.

Since the North American truck market was declining so much, structural components, especially the heavy vehicle sales that we have in that unit, is down as a percentage of your of our overall turnover. Normally, I would say it should be 75% wheels and 25% components, and today, it's more like 20% components and and 80% wheels.

Basically, aluminum wheels for light vehicles is making up what we're losing in components in the heavy truck market in North and South America. We go to the next slide.

We can we can look at how that looks by customer. Of course, what you see here is, if you look at the left there, customer like Daimler, that is very important for us in North America for components, it's down quarter-over-quarter compared to last year.

Then you see several of the pass car accounts being up, and so that is mitigating, offsetting that impact that we see in in in the Americas truck market. Overall, I would say, pretty stable picture with light vehicle outperforming and therefore mitigating what has been happening the last couple of quarters in North America and now also in in South America truck.

We go to the next slide. We can look a little bit more on the different regions.

South America, very important for our company, of course, I would say stable revenue despite that Brazilian truck market contraction that we clearly saw in the first quarter of 2026 versus prior year. I would say we were able to to offset that somehow within the commercial vehicle segment, a little bit better mix than what the overall market was was showing.

Then we are performing well with the market doing well on the on the light vehicle segment. Overall, for our company, that meant a stable revenue in in Brazil, in South America, versus the first quarter of of 2025.

We go to the next slide. We go to North America.

Here you see a clear reduction in turnover in the first quarter of '26 versus the first quarter of '25, and that has all to do with commercial vehicles. The official numbers, when you look at overall commercial vehicles, down 19.2% in the first quarter of this year versus last year.

As we talked about in the last earnings call already, we need to look a little bit more specifically on the heavy trucks, the Class 7 and Class 8, that's called, and and there, what you see is more like 25%, 26% reduction, and we are aligned with with that was that reduction. We were able also here to make it up partially.

Of course, that drop is too too much to make up completely, but partially we made it up in in light vehicle because that market also was a little bit down in North America, but we were having a a slightly higher turnover in light vehicle. A partial mitigation, I would say, in light truck in light vehicle compared to what was happening on the heavy vehicles, heavy truck vehicles in North America.

Now, one important picture here on this slide is in the middle bottom part of the slide, and and you see some pretty big increases there year-over-year when you look at North American commercial vehicles. Already this year, plus 7%, and next year plus 9%, the year after plus plus 17%.

These are big, big increases. I would say we are very ready to support that kind of market.

We could do even a little bit more than that, but I would say even if we do only half of that, even if the market only grows half of that, our company, that would be very good for our company, and we would be in a very good position with those kind of of of increases. We go to the next slide.

Looking at Europe, EMEA, Europe and Africa, we see a slight reduction in in turnover this quarter versus last year first quarter. I would say on the light vehicle, we did some portfolio cleanup.

We've been gaining considerable market share the last 12 to 18 months, and so that gives you the chance to do some cleaning up of your portfolio, but we were able to very much mitigate that by strong truck performance. The market is doing well in Europe from a commercial vehicle point of view in the first quarter, and Maxion was able to do even a even a little bit better.

Overall, I would say pretty resilient in in Europe. Also here, if you look on the middle section on the on the bottom, you see that production forecast for commercial vehicles, that's pretty significant.

Again, if this happens, we are very well positioned, we are very ready to support this, but even if only half of that happens, that would be very beneficial for our company. We don't need to do any investments to supply these kind of volumes.

We go to the next slide. We look at Asia.

You may remember, in some of the prior calls, I said, Asia will be there, and we see that happening. Our turnover increased by roughly 10% in the first quarter of 2026 versus the same period in the prior year.

That's very helpful to mitigate some of the impacts that we talked about regarding North America and also a little bit South America. Our focus in Asia is mostly on India.

That market is doing well, and I would say Maxion is doing well in that in in that market, and so we are completely, enjoying the momentum in the business in Asia, particularly in in India. We go to the next slide.

We look at our gross profit and our gross margin. I would say absolute number pretty much the same quarter-over-quarter compared to last year first quarter.

Then from a margin point of view, 0.3% up. I would say, good job on repricing, as we usually do, favorable sales mix, and and some good operational efficiency, as we talked about as we talked about before.

A positive number here. Next slide.

Same is true for EBITDA and EBITDA margin: slight increase in the overall number, but pretty stable, I would say, and then from a margin point of view, 0.4% or, excluding restructuring, 0.5% increase, which is, again, not huge, modest, but but meaningful, especially when you take into consideration that the North America truck market is still very much down was still very much down in the first quarter of 2026 versus the same quarter last year. Go to the next slide.

Look at net income. Not a lot of net income last year in the first quarter; also not a lot of net income in the first quarter of of this year.

Losing my screen. Okay.

[laughs] But we are confident that we will be okay for the for the whole year. We had some positive impact from Mover in the first quarter of last year, and so our numbers are pretty much in line year-over-year if you take that out.

We go to the next slide. Looking at investments, a little bit more in the first quarter of this year compared to last year, but mainly because of good news: we have been winning new business, we are investing in that in that new business to make it work, to supply the products that the customers nominated us for, and we believe we can be confident that we will manage the yearly numbers as we targeted for 2026 when we talked to you guys at the end of at the end of last year.

On track here, I would say. We go to the next slide.

Our leverage, as we saw in in the second slide already, [coughs] a meaningful reduction year-over-year, and I would say, or quarter-over-quarter, and I would say even if you exclude FX, there would still be a meaningful reduction quarter-over-quarter. We are pretty happy with that reduction in debt that we saw there, and, with the markets hopefully coming back as the official institutions are forecasting, that long-term multiple could be a little bit more up, with our debt, of course, not increasing, that's not our target.

I would say on track with the targets that we put to ourselves and that we talked to you about in the recent calls. We go to the next slide.

Our gross debt, not a lot of change in the composition there. I think it's a it's a fair mix.

If you want, from a short-term, long-term perspective, even a little bit less short-term debt, and then, of course, we have this bar in 2028 where our bonds will expire, and that's something that we will work on in the in the near future. If we go to the next slide.

Going from numbers to people, one of the reasons why we are able to continue to show modest margin improvement, even if there was not a lot of traction in the market or there are some challenges in the market, is because we have a lot of people around the world working on smaller and bigger projects to get better every day. It's not not meaningful.

We have an event that we call Maxion Team Awards, and last year, there was more than 1,700 projects, more than 10,000 people working on this, wheels people from the wheels unit, people from the components unit, 34 plants in the world, and we just congratulated the 19 team winners. This is super important in this competitive world, in this dynamic world, to have all these people so engaged and coming up with so many small and big ideas for improving our business that we and that makes us feel confident to be competitive also going going forward.

We go to the next slide. Of course, the reward for that is we can't we cannot talk about too many new business wins that we have.

Many customers don't allow to talk too early, too much about what they do with their suppliers. I can tell you that we feel very proud about our teams receiving important new business wins with global OEMs, with local OEMs across the regions in the Americas, in Europe, and in Asia, of course.

We're also being recognized by our customers very, very much for the good quality, for the good service, for the good partnership that we have with them. All of that hard work that the people are doing in the plants with the support of of of management, I think is it's paying off when you when you see on how many awards, how many recognition we get from our from our customers.

With that, I would open it for questions and answers.

Now, we are going to start the Q&A session. We ask you to ask all your questions at once and wait for the answer from the company.

Please place your questions using the Q&A icon. We will then call your name, ask you to open your mic.

Our first question comes from Andressa Varotto from UBS. Andressa, you can proceed.

Thank you very much for those questions. All relevant.

[laughs] Let me start with aluminum price increases. As you said, yes, we have a pass-through mechanisms, formulas in place with all of our customers.

Usually what happens is, when prices go up or prices go down, there is a delay in application of these new prices. When prices continue to go up, as you saw end of last year, when we talk about aluminum, and as we saw in the first quarter, that does not help margin because you only pass on these higher prices a little bit later, usually something like 3, 4 months.

Of course, whenever they go down, then you see the opposite positive effect, [laughs] right, because you only adapt prices 3 or 4 months later as well. We are not worried about that.

We see some impact already end of last year when they went up, and we saw some impact in the first quarter, so that's embedded in our numbers. There may be some impact in the second quarter based on what happened in the first quarter.

It all depends, I think, here on the geopolitics. Right now, aluminum prices are very, very high, are at record levels.

We have already embedded those impacts in our numbers, and so if anything, I think the chance is there that our first half will be negatively impacted by that, but then you should see that coming back to us in the second half of the year. For energy, it's a little bit different, as you say.

We don't have these automatic pass-through with all of the customers, but we do have long-term contracts with our suppliers. We don't see those impacts that we now see in energy prices, for instance in Europe, immediately impacting our numbers.

By the way, it's very different than what we saw in couple of years ago when Russia and Ukraine were at the beginning of the war. It's very less meaningful, but still, there is an impact, and to the extent that it will hold, and it will then impact our costs after our contracts run out, we will talk with customers and go for recovery, as we always do.

I'm not worried about that too much. Right now, not so much impact from that.

When it will hold and it would impact us, then we would go back to customers. Let's hope that energy prices and aluminum prices will come down because the world gets a little bit more stable in the Middle East than what it is right now.

When you talk about new contracts, I'm in a constant fight with our public relations department, what I can say or what I can't say. I want to say more, but I'm not allowed to say a lot.

I understand customers that don't want to talk about stuff like wheels, especially because it's a styling element, etc. I can't give a lot of details.

I can just tell you that these new business wins are for sure with the incumbent OEMs, the traditional OEMs, but they're also with the new OEMs. We are having orders with 16 Chinese OEMs all around the world, in Asia, in Europe, and in the Americas, including in Brazil, and including with some of the largest Chinese OEMs.

I hope that gives you some insight without me being in trouble with the people that tell me not to talk too much. You're welcome.

Our next questions comes from Gabriel Tinem from Santander. Gabriel, you can proceed.

Gabriel, do you hear us? Our next question comes from Gabriel Rezende from Itaú BBA.

Gabriel, you may proceed.

Hi, Gabriel. Thank you for the question.

From a CV point of view, I think I share some of your thoughts because you heard me say even if these numbers will only become truths for half of it, right? [laughs] And so I think the numbers that are being forecasted officially are very optimistic, and we can hope that they will materialize.

What we believe is that we will need a little bit more time to see how things develop in the world. Will they de-escalate or will they further escalate?

That can change a lot, including inflation and including impact on overall economy, which has always a big impact on truck sales and truck production. I'm cautious to say we are counting on all these increases to happen as they are projected, but I'm also optimistic enough to say that there should be growth because right now, especially North American market is as an absolute record low level, and I think there's many, many more reasons to say that market will go up meaningfully than it will stay at these low levels.

That's in fact also what we see happening in our releases. It may not be as optimistic as the official numbers show, but we do believe there will be meaningful growth.

It all depends a little bit on how things play out in a part of the world where we are not now. From a mix point of view, that's difficult to say.

I think in the second quarter, we will see a similar pattern, but of course, mix is difficult to project longer term. We will work on that.

I think we will count on that in the second quarter, but I'm not sure if that positive mix effect will be something that we can count on forever. Is that okay?

You're welcome.

Our next question now comes from Gabriel Tinem from Santander. Gabriel, you may proceed.

Thank you, everyone. Good morning.

My first question has more to do with restructuring and capacity. I would like you to comment on what stage we are at this point, and I would also talk a little bit more about other initiatives.

The second point has to do with the notification on the antitrust in Germany, if there has been any development compared to the last quarter, and how we could see this event, how you're dealing with it. Any information you might share would be useful for us.

Thank you.

Thank you, Gabriel. From a restructuring point of view, if you mean operational restructuring, we had some meaningful restructuring going on last year in North America, a little bit in Brazil, but that was more shift management.

Right now, we're not counting on any meaningful restructuring going forward because if the markets develop as they are being projected and as we see them, which means increase in truck and flat in pass car, we think we have the right structuring. If your question is, 'Are you going to spend a lot of money on restructuring beyond what we have done?'

I would say that's not our plan, on the contrary. When we talk about the German antitrust case, I think we talked about it in the last earnings call because there was some news, but there is no update since then.

I think this will take a little bit longer time. We continue to work with the authorities through the process, but there is not a formal update between last quarter and this quarter.

Is that okay?

Gabriel, thank you for your question. Your observation is very interesting.

In your first question, if you're talking about effective rate here, we can analyze in two ways: the accounting rate and what was actually paid. When you look at indirect cash flow, we see an increase in the payment of taxes of about R$98 million when you compare to the last quarter, and this effect is explained mainly by two specific effects related to our controlled companies in Turkey.

We have today what we call global minimum tax, which is 15%, with an initiative from the OECD created to prevent multinational companies from paying too low tax. A company should pay at least 15% tax if the company pays less than that in a specific jurisdiction.

If the company pays less, we have that top-up tax. Compared to that, we have made payment of R$35 million in January, which were forecast for December 2025 and was not realized due to the unavailability of the local Turkish tax system.

The local authorities postponed that payment deadline to January 30th, and we made that payment in January. Also, until 2024, the Turkish tax authority accepted the inflation accounting, which would be the correction of financial statements according to the inflation.

If you look at Turkey, it is a company with high inflation, and that is why you have the inflation account. Every time you do that, it affects your tax base.

In 2025, there was a decision made by the government in Turkey with immediate effects for 2025 that caused the accounting impact that was acknowledged in December 2025 with the value of R$45 million with the adjustment of these taxes due to this inflation, and then we did have a payment of R$45 million in the first quarter. When you add these two events, we explain that basically R$80 million of the R$90 million that we see in the cash flow are explained by that.

What happens with that? Since our effective rate is closer to 15%, it means the global minimum tax that will be paid for December 2025 should compensate for what we paid in excess already in the first quarter.

This would be basically your first question. When we talk a little bit about working capital, I think our industry knows that the first quarter seasonally weaker for Iochpe.

It reflects the normalization of demand of the last quarters. We have less working days and all that.

I bring all this context so to say that is important to evaluate properly our working capital. When you look at the indirect cash flow that excludes the effects of exchange variations and comparing apples with apples, we see a working capital compared to 12.7% for the first quarter of 2026, finishing the month of March in 11.8%, the lowest, best level in our 10 less 10 years comparing to our history.

When we compare the last 3 years, this is the working capital ratio level that we have delivered. The dynamics is compensated by the indirect cash flow.

When you look at stocks, accounts paid, receivable, and all that, you see that the working capital used R$312 million last year, and this year, we are only at R$45 million. It's worth mentioning that in the first quarter of 2025, we had operations that were much higher than the first quarter of 2026.

If I am to normalize my operating cash flow, we see in the indirect cash flow of R$337 million compared to R$100 million in the same period, this R$337 million should be adjusted by this R$62 million in our operational cash flow. In the investment activities, you see this R$45 million of capex, which is R$6 million higher than the first quarter, but at the end of the day, this is not an indication of 4 times the value.

At the end of the day, this is not a trend that should be multiplied by 4, but we are still aligned with what we have done last year. Finally, just to close the dynamics of cash flow, when we look at the financing activity, we see an addition of cash of R$145 million, and this is explained by the release of R$137 lines in that FINAME line with related to the strategic innovation plan that was approved last year with a value of 357, and we still have R$126 million debit to be released in the next years, but it has a TR cost of 2.3.

Considering the entire dynamics of cash flow that I have just explained, and aligned to the increased value of the real compared to dollars, this has contributed to what Pieter had commented in the increase of our leverage despite all the challenges of the sector that we see in some regions, where we have seen the best results in the last quarter.

Thank you. Thank you.

Our next question comes from Fernanda Urbano from XP. Fernanda, you may proceed.

Fernanda. Thank you very much for the question.

If you look on the sales numbers of trucks in North America, there are some pretty meaningful increases there, pretty steep increases there that have been reported recently. Whatever is being sold, we don't see that directly back in what we are selling because, of course, then the trucks need to be produced, and the production volumes need to go up.

Of course, that's a good indication of what will probably happen to production, because ultimately, what you sell, you need to produce. That gives us an optimistic view on what's going to happen over the next coming months.

We already see that happening. Now, keep in mind that the beginning of 2025, let's say the first half, was pretty good.

It was pretty good numbers. Then this market tanked in the third quarter with about 50%, and in the fourth quarter, quarter-over-quarter, right, or quarter fourth quarter 2025 to fourth quarter 2024, another 25%, 30% negative.

If we say that the year 2026 overall should be the same or slightly increased versus 2025, that means, for that to happen, that the second half of the year needs to be pretty strong, [laughs] because you have this U-curve. You come from a high level, you go way down, and so it means if you want to have the same number at the end of the year, you need to go way up as well.

That's what we are seeing is starting to happen. It's happening already in the second quarter, that's true, but the bulk of that still needs to come.

Our only indication there is that the sales are up indeed to these kind of levels. Again, if the sales are there, then the production should follow.

Therefore, our estimate is that, yes, the year 2026 should be pretty close, maybe even a little bit better than 2025. That means the second half needs to be pretty strong, because that's what the first half of 2025 was as well.

For Brazil, it's a little bit more difficult for us to predict. We were actually thinking initially that the first quarter would be better than what it resulted in.

We are still hopeful that the rest of the year will be better than what we saw in the first quarter, but of course, the whole macroeconomics, the interest rates, etc., it's not helping the overall situation. Hopefully, because of some of the government measures, the market will be better than what we saw in the first quarter, but it's more difficult to predict.

I would say some of the positive factors that we were counting on in 2026, for instance, reduced interest rates, that's not happening, at least not to the extent that people were expecting it. Very hopeful on on North America, but it needs to be happening, and then South America, we need to to watch a little bit more before we can make more realistic comments.

Is that okay? You're welcome.

Our next questions comes from Luiza Mussi from Safra. Luiza, you may proceed.

Hi, Luiza. Thank you for the question.

I can comment here that the non-controlling shareholders, we have two main areas: Turkey, that has 40% of profits, and India. These are the main highlights.

This is a dynamics when you compare to last year. They have a higher profit, I think resulting also from tariffs issues that we have all over the world.

This is a region where, until now, we could export directly from there to Europe and other countries in the region, and with that, they had better profits. Every time they have better profits, I have to highlight here the 40% of the profit that do not belong to us.

That is why you see the increase in the non-controlling shareholders. As for the second question, could you repeat it?

Hi, there. Second question was around the CVA ramp-up, the commercial vehicle aluminum wheels ramp-up, if I understood correctly.

No, that's not part of the increase that you see in Europe. That is totally based on our commercial vehicle steel wheels, and so that's not being supported artificially by aluminum wheels for commercial vehicles ramping up.

That is still to come, and it will come. We are homologating product, we are getting first orders, but of course, as you can imagine, when you ramp up, this is very, very minimal volume at this stage.

That has not been one of the reasons why we have been outperforming the market in Europe in the first quarter. It will come.

If I can ask a follow-up question, there's a tariff issue related to the increase. Is that something that we could expect to continue, this dynamic, for the rest of the year?

The microphone is off.

We can't know what's going to happen in the second half of the year, but I believe not. I think this is a thing for the first quarter that resulted in higher profit.

That's why you see this R$9 million when you exclude non-controlling shareholders. Okay.

Thank you.

Our next question comes from Andre Mazini from Citi. Andre, you may proceed.

Hello, Andre. Yes, that's a valid question.

Now, first of all, when we talk about the health of our customers, we're kind of lucky that 95% plus of our sales is to OEMs, and usually the financial health of the OEMs is a lot better than what you see in many of the aftermarket in automotive. From that point of view, we are in a very favorable position.

Now, of course, as you say, the OEMs have been writing off [laughs] a lot recently, and the combination of having to continue to invest in IC and having to invest in electrification and having to invest in autonomous driving, etc., etc. This has been a burden for our customers.

We do not believe there is a risk for us in that aspect, a risk meaning they will not be able to continue or pay their bills. Of course, this is putting pressure on the profitability of our customers.

When customers are under pressure, then of course they will look for cost savings, etc. This is not new.

This has been happening, I would say the last 100 years, [laughs] but it is happening in the last couple of years and now as well. I believe our company has a very, very good track record in being able to recover in a fair way, from a pricing point of view, what we need to recover.

Yes, it's something that we see, but we believe we are in a good position when it comes to the financial health of our customers and their ability to do business with us and pay for that. When you talk indeed about, are our products relevant given new mobility, etc., we talked about that in prior presentations and calls, and we believe we are in a fortunate position there too that it doesn't really matter what propulsion the vehicle has as long as it stays on the ground, and we believe for many, many, many, many years, all of that will stay on the ground, [laughs] wheels and also chassis are very relevant.

It's certainly things that we monitor, but it's not things that we worry explicitly about. Is that okay?

Thank you.

Our next question comes from Marcelo Motta from J.P. Marcelo Motta, you may proceed.

Thank you, Rodrigo.

Marcelo. Thank you very much for the question.

On the capex, no, I would say it's more positive news. Normally, we have a little bit more capex at the end of the year, but when we need to make investments for new business, right, that's not something that you can manage from a timing point of view, etc.

We knew that, and so this was planned, budgeted, known, and therefore we don't think it's something that should worry us and that should hinder reaching our target for 2026. Sometimes you can postpone things or manage things from a timing point of view, but when you have to manage an SOP, start of production, or new business, then you just need to make it happen at the right moment.

That's the main reason for that. On the restructuring, yeah, there was still some stuff to be done, rolling over, let me say, from 2025 into 2026, but as I said, we do not have any meaningful plans for this to continue during the rest of this year, of course, given the markets stay as they are being projected right now.

Is that okay? Thank you, Marcelo.

We have time for one more question. There is a question from Declan Hanlon from Santander, and he asks about the strategy for refinancing bonuses for 2028.

Thank you, Declan, for the question. I think, in general, the company has a very solid liquidity, 1.9 billion in cash, plus the lines that are already compromised.

When we look at the term profile, when you look at our justifications, we see the amount for the next 12 million and the 287 reais for 2027, volumes that are fully manageable and that we hope to cover with our liquidity and our cash flow for 2026 and 2027. Addressing directly your question, most of our debts are concentrated in 2028, especially considering the term of the bonds.

The point is that we still have time, flexibility, and access to the market to address that efficiently. At the proper time, we will review infrastructure, funding alternatives, always seeking the best way to optimize things and provide the best results for the company.

It is prudent, and the company will start analyzing with enough time in advance and analyzing alternatives to try to address this term. In a summary, we have a comfortable structuring with investment profile that is well managed, with bring us tranquility to do our liability management that is to come in the future.

With that, we are closing the Q&A session, and we'll now like to give the floor to Mr. Pieter Klinkers for the company's final remarks.

Okay. Thank you once again for participating in the call.

I hope it was helpful. We think that Maxion had a decent quarter 1, especially given the global circumstances, market circumstances.

We believe we managed through very well, and so with all the information that we have about some of the markets coming back that are relevant for us, we believe we are on the right track to have a year as we targeted in 2026. Of course, there are certain things that can still impact this year.

It's only the first-quarter call, not the third-quarter call or the fourth-quarter call, a lot can still happen. Let's hope that some of those things will actually stabilize more than what they have done in the first quarter.

When that happens, we believe we are well positioned to be on track with our targets in 2026. Thank you very much for participating, and looking forward to talk to you in a few months.

Bye-bye.

Iochpe-Maxion's first quarter earnings video conference is now ended. The investor relation department is available to answer any further questions.

Thank you all participants, and have a good day.