Gestamp H1 revenue dips 0.9% to €5.7B but net income jumps 47%
Auto parts maker Gestamp posted €5.7 billion first-half revenue, down 0.9%, while net income rose 47% to €110 million and it reaffirmed full-year targets.
- €5.7bn
- €110m (+47% YoY)
- 11.2%
- €1.7bn (down 17% YoY)
What Happened
Gestamp reported revenues of €5.7 billion for the first half of 2026, a year-on-year decrease of 0.9%, which it attributes mainly to adverse foreign exchange rates in certain markets. Global light vehicle production fell 0.9% in the period, according to S&P Global Mobility. Net income rose 47% to €110 million, boosted by positive non-recurring items including lower foreign exchange rate differences and one-off impacts related to financial expenses. EBITDA was €651 million excluding the Phoenix Plan impact, in line with last year, and the EBITDA margin improved 10 basis points to 11.2%.
Profitability improvements have been particularly significant in North America, where Gestamp operates in the US and Mexico and is executing the 'Phoenix Plan' to bring the region's margins closer to its other markets. The region closed the first half with an EBITDA margin of 8.0%, up from 7.1% a year earlier, and reached 8.8% in the second quarter alone, allowing the company to reaffirm its goal of double-digit profitability by year-end. Operational efficiency initiatives continue to support margin expansion, with light vehicle production in the region broadly flat during the first half, according to S&P Global Mobility.
- 8.0%
- 7.1%
- 8.8%
Gestamp's net debt stood at €1.7 billion at the end of June, down 17% from €2.1 billion a year earlier, and its leverage ratio declined to 1.4x EBITDA. Both net debt and leverage ratio reached their lowest first-half levels since 2017, the year the company became publicly listed. Free cash flow was €86 million in the first half excluding the Phoenix Plan impact, compared with €99 million a year earlier.
The company reiterated its full-year guidance targeting an EBITDA margin above 11.7% and an operating cash flow conversion ratio in the 35% range. According to S&P Global Mobility, global light vehicle production is expected to decline to 91.1 million units by year-end, a 2.1% decrease, and the outlook has been revised down 1.7 million units compared with February, mainly due to China. Gestamp said volatility continues to shape production, but its first-half performance keeps it on track to deliver its targets.
“The company remains focused on its strategy of enhancing efficiency and operational flexibility in mature markets while selectively expanding industrial capacity in the high-growth regions where we operate to capture their development potential. At the same time, we continue to strengthen our financial position, enabling us to maintain our leadership and competitiveness in a challenging environmen”
“The results for the first half are in line with Gestamp's guidance and demonstrate that our ability to anticipate market developments and adapt accordingly continues to enable us to generate sustainable value for our stakeholders.”
Previously from Gestamp
In 2025, Gestamp reported revenue of €11.3 billion, down 5.4% amid weak vehicle production and slower EV adoption. In the first quarter of 2026, revenue fell 5% to €2.8 billion while net income jumped 81% to €49 million, and the company reaffirmed its 2026 guidance. Today's H1 results show the decline narrowing to 0.9% and net income up 47%, in line with that guidance.
- Gestamp Q1 revenue falls 5% to €2.8B but net income surges 81%; reaffirms 2026 targets
- Gestamp reports €11.3 billion revenue in 2025, down 5.4% amid challenging market
Background drawn from MotorClaw's earlier coverage of Gestamp's official releases.
Why this matters
The results show an auto supplier holding margins steady even as global light vehicle production falls, thanks to cost controls and a turnaround in North America. Gestamp's US and Mexico plants are central to the Phoenix Plan, which aims to bring the region's EBITDA margin to double digits by year-end. The reaffirmed full-year guidance gives investors confidence the company can manage a market that S&P Global Mobility expects to shrink further.
Terms in This Story
- EBITDA
- Earnings before interest, taxes, depreciation, and amortization; a measure of a company's operating profitability.
- EBITDA margin
- EBITDA as a percentage of revenue, showing how much of each sales euro is left as operating profit before non-cash deductions.
- Leverage ratio
- A measure of debt relative to earnings, here net debt divided by EBITDA, indicating how many years of earnings would be needed to repay debt.
- Free cash flow
- Cash a company generates after capital expenditure, used for debt repayment, dividends, or reinvestment.
Summarised from the linked release; details can be imperfect — always verify against the original source.