Martinrea International Inc. · TSX:MRE
Martinrea International — Q2 2025 Earnings Presentation
25 slides from Martinrea International's earnings presentation, August 2025
Slide 1: Q2 2025 Results
Q2 2025 RESULTS ©2025 Martinrea International Inc. | Do Not Copy or Distribute CONFIDENTIAL www.martinrea.com
Slide 2: Rob Wildeboer, Executive Chairman
ROB WILDEBOER EXECUTIVE CHAIRMAN ©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: 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 | 5
Slide 6: Q2 2025 Highlights
Q2 2025 HIGHLIGHTS $86.1M ADJUSTED OPERATING $1,275.5M $165.4M INCOME (6.8% MARGIN) TOTAL SALES ADJUSTED EBITDA (13.0% MARGIN) $1,199.2M PRODUCTION SALES 1.50x NET DEBT TO ADJUSTED EBITDA (Excluding IFRS-16 Lease Liabilities) ©2025 Martinrea International Inc. | Do Not Copy or Distribute CONFIDENTIA
Slide 7: Machine Learning and AI
MACHINE LEARNING AND AI ©2025 Martinrea International Inc. | Do Not Copy or Distribute CONFIDENTIAL www.martinrea.com | 7
Slide 8: Fred Di Tosto, President
FRED DI TOSTO PRESIDENT ©2025 Martinrea International Inc. | Do Not Copy or Distribute CONFIDENTIAL www.martinrea.com | 8
Slide 9: Status of Operations
STATUS OF OPERATIONS • We are executing very well, driving results through: – Operating improvements and efficiencies – Cost reductions – Investments in machine learning and other innovations • Solid results in North America with strong margins. • Operating profit in Europe, with results much improv
Slide 10: New Business Awards
NEW BUSINESS AWARDS LIGHTWEIGHT STRUCTURES FLEXIBLE MANUFACTURING GROUP $18M In Annualized Sales $22M In Annualized Sales 2026 - 2027 Start of Production 2027 - 2028 Start of Production TOTAL AWARDS OVER LAST FOUR QUARTERS $175M In Annualized Sales ©2025 Martinrea International Inc. | Do Not Copy or
Slide 11: Peter Cirulis, Chief Financial Officer
PETER CIRULIS CHIEF FINANCIAL OFFICER ©2025 Martinrea International Inc. | Do Not Copy or Distribute CONFIDENTIAL www.martinrea.com | 11
Slide 12: Year-over-Year Comparison
YEAR-OVER-YEAR COMPARISON In Canadian Dollars Q2 2025 Q2 2024 Production Sales $1,199.2M $1,263.7M Production sales were down approximately 5% year over year on lower vehicle production volumes. Tooling Sales $76.3M $38.1M Total Sales $1,275.5M $1,301.8M Adjusted Operating Income $86.1M $81.6M Adjus
Slide 13: Balance Sheet
BALANCE SHEET NET DEBT - Excluding IFRS-16 ($ Millions) $1,000.0 $900.0 $800.0 $955.9 Q2 2025 net debt (excluding IFRS-16 lease $937.4 $700.0 $857.7 $908.7 $889.2 $856.5 $852.1 $820.1 $813.5 $864.9 liabilities) decreased by approximately $73 $782.4 $792.4 $662.6 $682.4 million compared to Q1 2025, r
Slide 14: 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 15: Rob Wildeboer, Executive Chairman
ROB WILDEBOER EXECUTIVE CHAIRMAN ©2025 Martinrea International Inc. | Do Not Copy or Distribute CONFIDENTIAL www.martinrea.com | 15
Slide 16: Trade and Tariffs
TRADE AND TARIFFS ©2025 Martinrea International Inc. | Do Not Copy or Distribute CONFIDENTIAL www.martinrea.com | 16
Slide 17: 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 18: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Invest to Maintain and Maintain Strong Return Capital to Grow Our Business Balance Sheet Shareholders • Organic opportunities • Targeted Net Debt/Adjusted • Repurchase shares with • Invest in R&D and new products EBITDA ratio of ~1.5x or better excess liquidity (at the •
Slide 19: Thank You
THANK YOU Q&A ©2025 Martinrea International Inc. | Do Not Copy or Distribute CONFIDENTIAL www.martinrea.com
Slide 20: Appendix
APPENDIX ©2025 Martinrea International Inc. | Do Not Copy or Distribute CONFIDENTIAL www.martinrea.com
Slide 21: Q2 Sales
Q2 SALES • Total sales down 2.0% year over year: $1,400 – Production sales down 5.1% $1,200 – Tooling sales up 100.3% -2.0% YoY $1,000 • North American production sales were down 5.4%, reflecting: – Lower year-over-year production volumes on certain vehicle platforms Sales ($ Millions) $800 includin
Slide 22: Q2 Adjusted Operating Income Margin
Q2 ADJUSTED OPERATING INCOME MARGIN • Adjusted Operating Income Margin increased 50bps year over 7.0% year. 6.0% • North American margin increased year over year, reflecting: Adjusted Operating Income Margin (%) − Productivity and efficiency improvements. − Higher year-over-year favourable commercia
Slide 23: Q2 Adjusted Net Earnings per Share
Q2 ADJUSTED NET EARNINGS PER SHARE • Adjusted Net Earnings per Share of $0.66 increased $0.80 year over year, reflecting: – The factors affecting sales and Adjusted Adjusted Net Earnings Per Share ($) Operating Income Margin explained earlier. $0.60 – Lower year-over-year finance expense owing to lo
Slide 24: Q2 Free Cash Flow
Q2 FREE CASH FLOW $80 • Free Cash Flow increased year over year, reflecting: – A positive year-over-year change in non-cash working capital. Free Cash Flow ($ Millions) $60 – Lower interest paid. – Partially offset by higher capex and $40 $72.0 higher income taxes paid. $51.7 $20 $0 Q2 2024 Q2 2025
Slide 25: Stay Connected
STAY CONNECTED ©2025 Martinrea International Inc. | Do Not Copy or Distribute CONFIDENTIAL www.martinrea.com | 25
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