Good evening, and thank you for joining Gestamp first half 2026 results presentation. Thanks for joining, especially in this very busy evening for you.

This call will be led by our Executive Chairman, Mr. Francisco Riberas.

I'm delighted to join him today and honored to participate in my first earnings call as CFO of the company. As usual, let me refer you to the disclaimer on the slide number 2 of this presentation, and also, as usual, at the end of the call, we will open the floor for a Q&A session.

Now let me hand over the call to our Executive Chairman. Okay.

Good afternoon, and thanks for attending our call in which we will be presenting our first-half results. Again, in a very challenging scenario, Gestamp has been able to deliver very solid results in the first half of 2026.

With auto manufacturing decreasing from H1 2025, especially in China, our revenues at FX constant have increased by 2.9% in Q2 versus Q2 2025 and by 1.3% in H1 versus H1 2025. During the first half of the year, our EBITDA has reached €651 million, improving our EBITDA margin and reaching, excluding Phoenix plan cost, an 11.6% margin in Q2 and an 11.2% in H1, better than in H1 2025.

Our free cash flow generation in the period has reached, excluding Phoenix, €86 million, with a very solid cash flow conversion. Strong results which is supporting our full-year 2026 visibility.

If we go to the market, and as I already stated, the light vehicle production has suffered during this first half of the year. In fact, in H1 2026, in Gestamp footprint, light vehicle manufacturing has reached 41.1 million units, which is 0.9% lower than previous year and close to the production level in H1 2019 before COVID.

During last months, the main negative impact has been in China, with -5.3% reduction compared with H1 2025. China manufacturing in this half of the year has been very much impacted by weak domestic demand, which has been partially offset by increasing exports.

Moving to slide 6, in a market declining by 0.9%, Gestamp revenues at FX constant have been able to improve by 1.3%, which means an outperformance of 2.1 percentage points versus the market. In Western Europe and North America, we have registered a moderate outperformance.

In Eastern Europe, in line with previous years, we have a relevant outperformance of 9.3 percentage points, while some underperformance in Mercosur due to some specific programs, and also a limited underperformance in Asia driven by China, but with a very solid performance in other Asian countries such as India. Very solid revenues in H1 of close to €5.8 billion, which has been supported by a healthy organic growth in our auto sales, outperforming the market, and also a good recovery of sales in Gescrap.

Still impacted by FX. In this sense, in H1 2026, our revenues have been impacted negatively by €157 million, and in the second half, we expect that impact to be lower.

Gestamp is very focused in enhancing our profitability in a market with low volumes. In H1 2026, our EBITDA margin in the auto business has reached 11.4%, with lower sales than in H1 2025.

Also, a relevant margin increase from H1 2024 EBITDA margin of 10.8%, and the same EBITDA margin as our record H1 in 2023, with €445 million lower sales. We have been able to deliver those good results due to all efforts that we are deploying in different kind of cost reduction initiatives, implementing flexibility and restructuring measures, with all kind of constructive customer negotiations, and with a very good execution on our Phoenix plan in North America.

H1 results, which is showing that Gestamp is on track to reach at our full-year '26 guidance of more than 11.9% EBITDA margin. In terms of Phoenix, we are already in the third and last year of our plan.

Even if the market environment in terms of volumes is worse than the one considered when we elaborated the plan, we are clearly on track to achieve the target of more than 10% EBITDA margin in full year 2026. In fact, in H1 2026, light vehicle production volumes in North America has been flat compared with previous year, with a negative performance in the Mexican market.

In H1 2026, we have incurred in around 50% of the total extraordinary impacts forecasted for the year. In Q2, we have been able to improve our EBITDA margin from Q1, and already reaching 8.8%.

In Gescrap, following a difficult second half of 2025, during H1, Gescrap performance has improved substantially. Part of this improvement comes from scrap prices recovery in 2026 in the different global markets, but also thanks to an increase of the amount of tons processed.

Gescrap revenues in Q2 have reached €161 million, 2.4% increase from Q1 revenues, and in terms of profitability, EBITDA in Q2 reaching already €12.2 million, a 7.6% EBITDA margin, improving the 6.4 margin in Q1. Very solid figures in H1, which provide also a very good visibility to be enabled to achieve full-year target.

Now with this, I hand it over to Ana.

Thank you, Paco. As we have previously explained, this first half have been affected by a negative forex evolution, particularly during Q1, and also a tough comparison base coming from second Q 2025, which was particularly strong.

We have achieved revenues of €5,794 million and EBITDA of €640 million, leading to a margin of 11.1%. This is a 10 bps improvement on a reported basis.

Excluding the €11 million of Phoenix costs, EBITDA would be standing at €651 million, which is pretty much flat to last year, and with a profitability of 11.2%, already improving 10 bps again, and providing good visibility to achieve the guidance provided for full year. EBIT has reached €265 million, showing some margin deterioration year-on-year, explained by the forex impact and the write-downs booked in half one, sorry, booked in Q1, as we will recall later.

Net profit for our for the first half is back to over €100 million, reaching €110 million, and free cash flow generation has reached €65 million, or €86 if excluding extraordinary Phoenix costs. As a result, net debt is falling below €2 billion, standing at €1,771 million.

As said and turning into slide number 13, this half one has been affected by two extraordinary impacts at net profit level: the €15 million asset write-down related to the EV realignment strategy that the group started in fourth quarter last year, and €23 million positive impact coming from IFRS 9 accounting on our financial expenses related to the extension of the €1.7 billion syndicated loan facility agreed in January this year. This has a net €6 million impact at net profit, and would lead, but excluding this extraordinary cost, would have a net profit of around €104 million, which is more in line with the with the net profit levels achieved in previous years and representing a 40% increase on a year-on-year basis.

Looking at different regions on slide 14, the key contributors to revenue performance this this first half has been Eastern Europe, Mercosur, and Gescrap, with EBITDA also supported by our North America performance. In Western Europe, revenue, excluding a negative forex evolution from UK, would have dropped by less than the 1.3 1.3% we are reporting.

Performance in the region is pretty much affected by a weak market momentum in key countries such as Germany or France, and within this context, Gestamp continue to be focused on cost control and improving efficiency to offset the limited revenue growth while preserving margins. As a result, we are we are reaching a profitability which is standing in levels of 10%, which is only 30 bps below last year, and which is a good proof of the success of our strategy.

Eastern Europe revenues remains a solid region for Gestamp, with flat organic growth, but preserving best-in-class profitability with an EBITDA margin above 15%. Not much to add in North America as Paco has already give you the details on Phoenix, and you should be already aware, improvement in this region is one of our key levers to deliver on our guidance for the year.

As for Mercosur, revenues have grown 2%, with Brazil growing above, but Argentina a bit weaker. Thanks to the restructuring done last year that we said, and the improved operating leverage in Brazil, and thanks also to some to an easier comparison facing in Brazil, profitability is back to more normalized levels in level in in the region of 13%.

Lastly, in the auto business in Asia, revenue performance has been affected by a weak China market and forex, essentially. Markets like India are conversely growing above, at most pretty much at double digit.

Despite the lack of revenue growth, and similar to what we are doing in other regions, is we are continue to be focused on cost competitiveness, and to this end, we have implemented different measures in this region to remain with a profitability above 14%, which is the second best-in-class for the group despite the tough market momentum. Lastly, on Gescrap, as we have previously seen, this the first this first half has been affected by the integration of Industrial de Chatarras del Ebro, coupled with sustained price increases, as well as some volume growth, as our Chairman has previously explained.

All this has led to double-digit revenue and EBITDA growth, which shows good visibility to achieve the target we have given for full year. Overall, half one delivered very solid results, demonstrating the company's ability to remain cost competitive and preserve a strong financial position despite a challenging market environment.

Moving to our free cash flow generation on slide 15, net debt has dropped by almost €50 million, thanks to €65 million of free cash flow generation in the quarter, sorry, in the period. Despite limited EBITDA growth, lower capex and a positive working capital evolution, after some an extraordinary impact a negative impact that we have during Q1, all this has allowed Gestamp to deliver a very solid free cash flow generation in the in the period.

Excluding the €20 million of Phoenix costs invested in the period, which more or less are 50% opex and 50% capex, free cash flow would have amount to €86 million. It is important to say that group operating cash flow conversion has stand stood at 36% in first half, which, as I said, is the result of also a lower capex invested on absolute terms, which is providing good visibility to achieve the target and our market commitments of being less capital intensive going forward.

Lastly, net debt has stand has stood at €1,771 million, the lowest net debt figure for a first half and below full-year 2025, as we have previously seen. This reduction in terms of net debt, despite the limited EBITDA growth, has driven us to report a leverage of 1.4, a healthy balance sheet, which give us flexibility and optionality within a market with a market of limited visibility as of today.

This is all on my side, and I will hand over the call to our Chairman.

Thank you, Ana. Assuming the latest S&P forecast for full-year 2026, this is now showing a manufacturing of 91.1 million light vehicles, which is representing a decrease of 2.1% compared with full-year 2025.

In fact, since February, the market context has been continuously worsening, impacted by different geopolitical issues, as you know. In terms of geographies, the main impact is coming from China, where now we are assuming 31.3 million vehicles manufactured this year, which is 1.1 million less than the volumes that we were expecting some months ago.

Moving to slide number 19, in a market which is not growing globally, Gestamp is clearly adapting a differentiated geographical strategy for the future. That means that in the low-growth markets, we are very much focused in improving profitability and rightsizing, and pushing for reducing fixed expenses, and also increasing flexibility.

In the case of high-growing regions, we are still adding capacity to capture growth and leveraging our technology advantages, increasing customer diversification, and also building strong local teams. Good examples are Brazil, where light vehicle manufacturing is expected to grow from 2.5 million units in 2025 to 3.1 in 2029, and in Brazil, we have just opened a new plant in Piracicaba.

Or in India, where light vehicle manufacturing is expected to grow from 6.1 million units in 2025 to 7.4 in 2029, and in September, we will be opening our fifth plant. Moving to slide 20, and following H1 solid results and the expected positive dynamics of our operations for the rest of the year, we are reiterating our guidance for full-year 2026, which means that we are expecting that our group EBITDA margin will be more than 11.7% in full-year 2026, and also, in terms of our auto business a margin of more than 11.9%, and in the case of Gescrap, an EBITDA margin of more than 7.4%.

Also, that we are going to be able to have a group operating cash flow conversion in the range of 35% at the end of 2026. With this, and just to conclude, basically, very solid set of results in H1, which is giving us a very good visibility to achieve the targets for the full-year 2026 guidance.

Phoenix plan is still a very important priority for us, and we are in the last year of the plan, and we have a very good visibility to achieve the target of more than 10% EBITDA margin. Of course, due to our profitability and the efforts in our looking for our financial, we have a very solid financial position, which is giving us an optionality to capture future opportunities.

Now with this, we are open to your questions. Thank you.

Hi, this is Mira Wiegratz from Deutsche Bank. Thanks for taking my questions.

I have two, if I may. The first one would be, as North American EBITDA margin, excluding Phoenix, improved sequentially from 7.1% in Q1 to 8.8 in Q2, could you bridge that 170 basis points improvement and indicate how much came from structural cost savings, customer negotiation, mix, and normal seasonality?

Then, also regarding North America, the Q2 Q2 margin at 8.8, what needs to improve in H2 to deliver the above 10% full-year target, and how much of that step-up is already secured through completed Phoenix actions? Thank you.

Thank you for your questions. Then, if I understood well, it's true that we have improved our EBITDA margin in North American operations from 7.1% in the first quarter to 8.8% in the second one.

Of course, it's very difficult now to provide you with a clear bridge, but what is true is that most of this improvement is coming from actions which are very sustainable. It's true that during the last two years, we had all different kind of negotiations with customers, with suppliers.

We have been able also to do some restructuring of operations. We have been working also with our labor force.

To be honest, right now, most of the all the achievements that we have been able to do in the last two years now are sustainable. During the second quarter, we have quite reasonable volumes in some plants which are performing well, and some of the plants that still have lower margins are already moving to a better margin.

This is basically what is happening, something which is sustainable and is not any kind of one-off. That's why we feel very comfortable in order to be able to reach this 10%, because basically all the volumes, all the orders that we have are already booked.

We know that we are in control of all the different expenses, and of course always anything can happen, but we are quite convinced that we are going to be able to reach this more than 10% EBITDA margin by the end of the year.

Hi. Good evening.

I've got a few questions, I'll ask them one by one. Starting off with Brazil, or Mercosur, Brazil has done very well, or Mercosur has done very well, but what about the persistent risks or weakness in Argentina?

Can that have an effect in the coming quarters or semesters? That'll be my first question.

Okay. If we focus in Mercosur, it's true that whenever we refer to the figures of Mercosur, we are including Brazil, which is our main area, a main focus in the area, but also we have some operations in Argentina.

In Argentina, during the first half of the year, our volumes has been lower than the ones expected because we had a large program in Argentina which is now phasing out, and we are already launching the new successor vehicle. Everything is more or less under control, but it's true that volumes in Argentina during first half of the year have been lower than expected.

To be honest, following difficult years, we now have a little bit better expectations for Argentina, not only for this new program, but for other programs of some of our customers.

Okay. Second question is related to India.

You mentioned that you're going to ramp up your fifth plant in India. Can you give us more details in terms of the timing, how long it'll take, and any sort of how relevant it is in terms of your set up in India?

It is true that we are going to do the opening of this plant, which is a plant that is already starting and doing a ramp-up, we will do that in September. This plant is a further step in our strategy to grow in India.

We have already done a very important increase of our footprint in India in the last years, especially in some specific technologies like in hot stamping that we are the absolute leaders in that market. A market that some years ago were not using this kind of, let's say, more expensive technologies, and now, as far as they're looking for more requirements in terms of safety and lightweight, now is more and more used.

We have a good opportunity to grow in this kind of technology. This fifth plant is already doing a ramp-up.

We are expecting the full ramp-up to happening in the beginning of 2027. Again, is a step towards our strategy in India, which is still aggressive, and we are expecting to do more in the future.

India is still not that relevant to compensate any weakness that we've seen in Asia yet.

Sorry, Robert, we did not catch up that question. Can you repeat it?

Yeah.

India's growing, but we've seen that Asia's sales and revenues and EBITDA fell. India's still not relevant enough to compensate weakness in China.

Still not. Still, even though the Indian market is growing, and now is already the third-largest market in the world, still our volumes in India, even if they are growing in percentage terms a lot, I think we are still not able to compensate what we are losing in China.

Even if this is the case, we're still doing not so badly in China, even though the market, as mentioned, is pretty much impacted by a low domestic demand. Still, our sales in India are lower than the ones we have in China, it's not so easy to compensate that impact.

Okay.

Final question. I just wanted your thoughts on the agreement between Geely and Ford to join forces to build vehicles in Spain.

What sort of impact, or in looking mid- to longer term, how do you see that panning out for Gestamp, those type of agreements?

I think theoretically we are talking about good news, because we are talking about increasing capacity utilization in a market like the Spanish one, which is relevant for us. Far, we are starting already to receive request for quotation for programs of Geely and the additional vehicle from Ford.

That is going to be good news, but still we need to understand a little bit more details. As when it refers to any kind of new vehicles to be produced in Europe, what we are all aiming that the rate of localization of these new vehicles to be manufacturing in Spain should be high.

We still need to understand a little bit more whether it's going to be the case or not. In any case, good news for us because there's a potential opportunity to load a plant like Almussafes, one of Ford in Valencia, which is a very very good plant.

Okay. Thank you very much.

Thank you.

Thank you very much for having joined us today. As usual, if there is any pending questions, the IR team remains at your disposal, and we wish you a very good summer for those of you who are going to enjoy it, okay?

Thank you.

Thank you. Thank you very much.

Bye-bye.