Nemak: GF acquisition adds diversity; still caution until USMCA future certain – remain UW

Research evidence excerpt

Nemak: GF acquisition adds diversity; still caution until USMCA future certain – remain UW

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Nemak

GF acquisition adds diversity; still caution

until USMCA future certain – remain UW

Company Update

GF’s auto business acquired for US$336mm; net lev. 3.1x 18 May 2026

Nemak acquired Georg Fischer Casting Solutions’ auto business, valued at US$336mm, Global Emerging Markets | Corporate

Feb. 1st. Funding paid thus far includes US$216mm upfront cash (US$113mm GF cash), Credit

with the remaining US$188mm to be assumed in operating & financial liabilities payable LatAm | Mexico

Automotive Suppliersover 5 yrs. We like the expansion of Nemak’s global footprint (+53 facilities) & high-

value EV/SC applications, plus exp. synergies once integrated. However, deleveraging to Caroline Rudge

2.0x net is further delayed, with 1Q26 gross & net leverage were 3.6x & 3.1x, reflecting Research Analyst

BofAS

US$2.0bn debt (+8% YoY) & US$256mm cash (-14% YoY). +1 646 855 2665

caroline.rudge@bofa.com

Soft EBITDA margins 9% (vs 12% avg) as GF integrated Anne Milne

Research Analyst

Revenue increased +15% YoY in 1Q26, reflecting EV/SC growth (+72% YoY) post- BofAS

acquisition. LTM EBITDA was US$570mm (-11% LTM), 26E guided at US$630-650mm +1 646 855 4096 anne.milne@bofa.com

as GF is integrated (GF YE24: US$707mm rev & US$91mm EBITDA). Nemak no longer

reports volumes or EBITDA/ equiv. unit, citing comparability difficulty, which reduces

visibility. EBITDA margins declined to 9% (vs 12% avg), reflecting FX, extraordinary

expenses & GF integration cost. Integration +26% YoY 26E capex guidance of US$385-

395mm. Also, as part of succession plans, Hervé Boyer became CEO April 1st. Exhibit 1: LatAm Peer Bond Pricing Table

We maintain TNEMAK ‘28s and ‘31s UW.