Nemak Sales Jump 22% as Profit Falls to Zero
Nemak sales rose 22% to US$1.5 billion in the third quarter, the Mexican car-parts maker said on 20 October, but net profit fell to about zero. The post Nemak Sales Jump 22% as Profit Falls to Zero appeared first on The Rio Times .
In the third quarter of 2026, Mexican car-parts supplier Nemak reported a 22% jump in sales, reaching US$1.5 billion. However, the company's net profit fell to near zero, from US$25 million in the same quarter last year. Net income was marginally better than last year's US$25 million, and earnings per share were below analyst expectations.
The revenue growth can be attributed to GF Casting Solutions, a Swiss group company, which contributed significantly to Nemak's sales. The company's sales in North America rose by 15% to US$747 million, while the Rest of the World grew by 32% to US$231 million. Higher aluminium prices also impacted sales, as the metal costs were passed onto customers.
Nemak's financial expenses increased by 45% to US$42 million due to higher interest costs. The company booked asset write-downs of US$24 million as part of its footprint optimization strategy, which involved reshaping or closing some plants. Nemak's debt increased by 10.3% to US$1.76 billion. The company scheduled a webcast for the release of its fourth-quarter earnings, which are expected to provide more insights into whether EBITDA can reach the full-year target.
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