Martinrea International Inc. · TSX:MRE
Martinrea International — Q1 2025 Earnings Presentation
22 slides from Martinrea International's earnings presentation, 2025
Slide 1: Q1 2025 Results
Q1 2025 RESULTS ©2025 Martinrea International Inc. | Do Not Copy or Distribute CONFIDENTIAL www.martinrea.com
Slide 2: Pat D'Eramo, Chief Executive Officer
PAT D’ERAMO CHIEF EXECUTIVE OFFICER ©2025 Martinrea International Inc. | Do Not Copy or Distribute CONFIDENTIAL www.martinrea.com | 2
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of applicable securities laws (“forward-looking statements”), including, but not limited to, statements relating to the Company’s beliefs or views or expectations of, improvements in, expansion of and
Slide 4: Agenda
AGENDA PAT D’ERAMO CHIEF EXECUTIVE OFFICER FRED DI TOSTO PRESIDENT PETER CIRULIS CHIEF FINANCIAL OFFICER ROB WILDEBOER EXECUTIVE CHAIRMAN Q&A ©2025 Martinrea International Inc. | Do Not Copy or Distribute CONFIDENTIAL www.martinrea.com | 4
Slide 5: Q1 2025 Highlights
Q1 2025 HIGHLIGHTS $61.9M ADJUSTED OPERATING $1,168.2M $140.9M INCOME (5.3% MARGIN) TOTAL SALES ADJUSTED EBITDA (12.1% MARGIN) $1,125.7M PRODUCTION SALES 1.64x NET DEBT TO ADJUSTED EBITDA (Excluding IFRS-16 Lease Liabilities) ©2025 Martinrea International Inc. | Do Not Copy or Distribute CONFIDENTIA
Slide 6: Fred Di Tosto, President
FRED DI TOSTO PRESIDENT ©2025 Martinrea International Inc. | Do Not Copy or Distribute CONFIDENTIAL www.martinrea.com | 6
Slide 7: Status of Operations
STATUS OF OPERATIONS • We are executing well in a tough market. • Solid results in North America with strong margins. • Operating income in Europe much improved over the fourth quarter. • Rest of World operating income improved year over year and quarter over quarter. ©2025 Martinrea International I
Slide 8: New Business Awards
NEW BUSINESS AWARDS LIGHTWEIGHT STRUCTURES FLEXIBLE MANUFACTURING GROUP $55M In Annualized Sales $5M In Annualized Sales 2026 - 2027 Start of Production 2027 Start of Production TOTAL AWARDS OVER LAST FOUR QUARTERS $260M In Annualized Sales ©2025 Martinrea International Inc. | Do Not Copy or Distrib
Slide 9: Peter Cirulis, Chief Financial Officer
PETER CIRULIS CHIEF FINANCIAL OFFICER ©2025 Martinrea International Inc. | Do Not Copy or Distribute CONFIDENTIAL www.martinrea.com | 9
Slide 10: Year-over-Year Comparison
YEAR-OVER-YEAR COMPARISON In Canadian Dollars Q1 2025 Q1 2024 Production sales were down approximately 10% year Production Sales $1,125.7M $1,257.5M over year on lower volumes, in part due a continuation of the OEM inventory correction in North America. Tooling Sales $42.6M $66.4M Total Sales $1,168
Slide 11: Balance Sheet
BALANCE SHEET NET DEBT - Excluding IFRS-16 ($ Millions) $1,000.0 Q1 2025 net debt (excluding IFRS-16 lease $900.0 liabilities) increased by approximately $51 $800.0 $955.9 $937.4 million compared to Q4 2024, reflecting a $908.7 $700.0 $857.7 $889.2 $856.5 $852.1 $820.1 $813.5 $864.9 seasonal build i
Slide 12: 2025 Outlook
2025 OUTLOOK 2025F 2024A FREE CASH FLOW $125-$175M $183.8M (before IFRS 16 lease payments) ($75-$125M including IFRS-16 lease ($131.5 including IFRS-16 lease payments) payments) CAPEX Approximately $300M $275.5M TOTAL SALES $4.8-$5.1B $5.014B ADJUSTED OPERATING 5.3%-5.8% INCOME MARGIN 5.3% Outlook e
Slide 13: Rob Wildeboer, Executive Chairman
ROB WILDEBOER EXECUTIVE CHAIRMAN ©2025 Martinrea International Inc. | Do Not Copy or Distribute CONFIDENTIAL www.martinrea.com | 13
Slide 14: Trade and Tariffs
TRADE AND TARIFFS ©2025 Martinrea International Inc. | Do Not Copy or Distribute CONFIDENTIAL www.martinrea.com | 14
Slide 15: Five Point Plan
FIVE POINT PLAN Free trade in autos and parts Direct Chinese investment in North between the U.S., Canada, Higher penalties for non- American auto or auto parts and Mexico compliance with Rules of Origin companies should not be supported Measures to incentivize non-North Higher North American conten
Slide 16: Thank You
THANK YOU Q&A ©2025 Martinrea International Inc. | Do Not Copy or Distribute CONFIDENTIAL www.martinrea.com
Slide 17: Appendix
APPENDIX ©2025 Martinrea International Inc. | Do Not Copy or Distribute CONFIDENTIAL www.martinrea.com
Slide 18: Q1 Sales
Q1 SALES $1,400 • Total sales down 11.8% year over year: $1,200 – Production sales down 10.5% -11.8% YoY – Tooling sales down 35.9% $1,000 • North American production sales were down 9.4%, reflecting: Sales ($ Millions) $800 $1,323.9 – Programs that ended production during or subsequent to Q4 2024,
Slide 19: Q1 Adjusted Operating Income Margin
Q1 ADJUSTED OPERATING INCOME MARGIN • Adjusted Operating Income Margin declined 70bps year over 7.0% year. 6.0% • North American margin was consistent year over year, Adjusted Operating Income Margin (%) reflecting: − Productivity and efficiency improvements. 5.0% • Offset by: − Decremental margins
Slide 20: Q1 Adjusted Net Earnings per Share
Q1 ADJUSTED NET EARNINGS PER SHARE • Adjusted Net Earnings per Share of $0.41 $0.80 decreased year-over-year, reflecting: – The factors affecting sales and Adjusted Adjusted Net Earnings Per Share ($) $0.60 Operating Income Margin explained earlier, – A net foreign exchange loss of $2.1 million in Q
Slide 21: Q1 Free Cash Flow
Q1 FREE CASH FLOW $0 • Free Cash Flow declined year-over-year, reflecting: ($1.4) – Lower Adjusted EBITDA. Free Cash Flow ($ Millions) – Higher cash capex. ($10) – Partially offset by lower interest paid ($25.4) and a decrease in cash used in non- cash working capital. ($20) ($30) Q1 2024 Q1 2025 ©2
Slide 22: Stay Connected
STAY CONNECTED ©2025 Martinrea International Inc. | Do Not Copy or Distribute CONFIDENTIAL www.martinrea.com | 22
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