Denise Reyes : Good morning, everyone, and welcome to Nemak's Second Quarter 2026 Earnings Webcast. I am Denise Reyes, Nemak's Investor Relations Officer, and I am pleased to host today's call along with Herve Boyer, Nemak's CEO; and Alberto Sada, CFO; who are here this morning to discuss the company's business performance and answer any questions that you may have. As a reminder, today's event is being recorded and will be available on the company's Investor Relations website. Herve Boyer, our CEO, will lead off today's call by providing an overview of business and financial highlights for the quarter. Alberto Sada, our CFO, will then discuss our financial results in more detail. Afterwards, we will open for a Q&A session, which participants may join live or submit written questions using the Q&A function. Before we get started, let me remind you that information discussed on today's call may include forward-looking statements regarding the company's future financial performance and prospects, which are subject to risks and uncertainties. Actual results may differ materially, and the company cautions you not to place undue reliance on these forward-looking statements. Nemak undertakes no obligation to publicly update or revise any forward-looking statements whether because of new information, future events or otherwise. I will now turn the call over to Herve Boyer.

Herve Paul Boyer : Thank you, Denise. Hello, everyone, and welcome to Nemak's Second Quarter 2026 Earnings Webcast. During the period, our revenue increased 19% year-over-year, primarily driven by contributions from the recently acquired operations and higher aluminum prices. While our underlying business remained broadly stable across key regions and customers. This solid top line performance highlights the resiliency of our ICE powertrain business and the execution of our growth strategy alongside a clear focus on translating this momentum into improved earnings generation. Within our global operations, we observed a particular dynamic in North America, where results reflected the ongoing adaptation of our operations to a changing production mix with higher ICE volumes than originally anticipated, primarily driven by market conditions. This shift has resulted in temporary extraordinary expenses as we align resources accordingly. Going forward, we expect these nonrecurring items to gradually taper off. Within this context, EBITDA declined 6% year-over-year, reflecting the impact of these temporary factors in North America, a negative ForEx exchange effect related to the Mexican peso and a high comparison base that included onetime effects. On a sequential basis, however, our financial performance improved with the EBITDA margin expanding from 9% in the first quarter to 11% in the second quarter, reflecting the initial benefits of our improvement plans and greater production stability. We are also advancing targeted initiatives to further optimize our manufacturing footprint, particularly in Europe with the objective of enhancing efficiency, adjusting capacity utilization and strengthening our overall cost structure. As we pursue these objectives, we remain confident in our ability to deliver improved margin performance. As I continue to deepen my understanding of Nemak, my initial positive impressions have been borne out, particularly regarding our technical capabilities, long-standing customer relationships and the strength of our operations. From a strategic perspective, Nemak is well positioned to capture value on both fronts, the resiliency and scale of our core ICE powertrain business and the long-term growth opportunity in e-mobility, structure and chassis applications. Our ICE powertrain business remains solid, supported by long-term customer programs, efficient use of existing assets and a strong cash generation profile. Due to the strong and sustained demand of ICE vehicle, we are confident this segment will remain highly relevant over the next decade. We are also making consistent progress in expanding our presence in e-mobility, structure and chassis application. In recent years, we have built a strong strategic foundation to capitalize on this opportunity, which is further enhanced by our recent acquisition. We are taking disciplined steps to continue developing our capabilities, improving our commercial position and scaling our participation in these technologies. Overall, our strategy is to maximize the value of our ICE powertrain business while advancing our position in e-mobility, structure and chassis applications, translating this dual positioning into improved margins, stronger cash flow and sustainable long-term value creation. Turning to the recently acquired operations. We continue to make solid progress across all work streams, with successful conclusion of the initial 100-day integration phase. During this period, we ensured full business continuity and maintain seamless customer deliveries while successfully onboarding new colleagues into the organization. In parallel, we have begun integrating global systems and sharing best practices across operations. We have identified a number of synergistic opportunities across all work streams, and that will allow us to pursue the long-term value creation potential of the transaction. We now estimate these synergies to be in the range of $20 million to $40 million and expect to capture the full benefit by 2027. As we move forward, our focus turns to execution with emphasis on capturing synergies, advancing systems and process harmonization and strengthening our joint value proposition. Integration is progressing as expected, and we remain confident in delivering the anticipated strategic and financial benefits. Building on this progress, one of the key assets within the acquisition is our facility in Augusta, Georgia. This project is an important milestone in expanding our manufacturing footprint and advancing our capabilities in structural castings. The site has been developed as a highly automated state-of-the-art mega casting facility in the United States, supporting the production of large structural components. Construction of this facility is substantially completed. Key equipment has been installed, and the first production shot successfully achieved, marking an important step forward operational readiness. This phase is critical to ensuring consistent quality, operational efficiency and cost performance as volumes increase. We expect to begin operations in the second half of this year and will focus on ramping up production and achieving stable operations through 2027 and 2028. Turning to commercial activity. Year-to-date, we have secured approximately $400 million of annual revenue in awarded contracts. Of this amount, around 60% corresponds to ICE powertrain programs, while the remaining 40% relates to E-Mobility, structure and chassis applications. This is consistent with our balanced positioning and reflects the continued relevancy of the ICE segment alongside the growth potential of our E-Mobility, structure and chassis applications segment, which accounted for 13% of consolidated revenue during the quarter. In terms of customer engagement and recognition, I am pleased to highlight that Nemak received Porsche supplier quality rating for 2025, achieving an A-grade classification at our Altenmarkt and Dillingen facilities in Europe. This recognizes our ability to constantly meet demanding standards across quality, delivery and operational reliability. It also highlights the breadth of our capabilities in ICE powertrain and e-mobility, structure and chassis applications, reinforcing our position as a trusted partner to a leading premium OEM. We are also actively engaging with emerging OEMs, particularly in China, as reflected in the organization of two recent technology days with some of our new Chinese customers. These events provided a focused platform to showcase our comprehensive portfolio of solutions across ICE powertrain and e-mobility, structure and chassis applications as well as our multi-material capabilities. Throughout these interactions, we held multiple high-level meetings with senior leadership and engineering teams with in-depth discussions on application development, further technologies and potential areas of collaboration. This engagement translated into tangible outcomes, including multiple commercial leads, technical inquiries and follow-up activities such as plant visit and additional meetings. We believe that strengthening our relationships with Chinese OEMs will reinforce our presence in key markets and position Nemak to capture further growth opportunities. During the quarter, we made solid strides in the e-Mobility, structure and chassis applications segment, supporting customers across multiple regions with the start of production of several key programs. In Europe, we advanced important structural applications, including starting production of a mega brace for Ford, which is manufactured using high-pressure die casting technology. In addition, production of a full EV battery housing for Mercedes-Benz EQ platform is ramping up at our new facility in the Czech Republic. This multimaterial solution leverages our recently integrated joining and assembly capabilities and highlights our ability to deliver complex integrated systems. In China, we continued to expand our presence with leading OEMs through multiple program launches. We started production of a shock tower, marking our first aluminum high-pressure die casting component for SAIC. We also initiated production of an EV differential case for BYD at our facility in Kunshan, leveraging the capabilities of our recently acquired operations. And in addition, we began production of a large shock tower for Li Auto at one of our facilities in Suzhou, further improving our position in high-growth EV platform. Overall, these program launches reflect the breadth of our capabilities from large structural components to complex multi-material systems and show our progress in scaling our participation in the e-Mobility, structure and chassis applications segment across regions and customers. Turning to innovation. R&D and product development are highly active with a strong pipeline of projects across key areas of the business. Our development initiatives are further strengthened by the combined platform resulting from the recent acquisition. Our current portfolio project focuses on four main areas. First, we are advancing differentiated product with existing assets, while we continue to see ample opportunities, particularly in high pressure die casting and structural components. Second, we are driving improvement in margin and competitiveness across our core processes, including optimizing cycle times and enhancing process parameters, thus improving overall efficiency and cost performance. Third, we are leveraging sustainability as a commercial differentiator. We've continued progress in developing low-carbon alloys and solutions aligned with our customers' decarbonization goals. And finally, we are exploring opportunities to expand our market participation supported by our growing technology portfolio and our ability to extend our capabilities across a broader range of components and applications. Together, these efforts reflect our commitment to innovation as a key driver of competitiveness, profitability and long-term value creation. In sustainability matters, I am pleased to share that Nemak was included in the Dow Jones best-in-class indices for the seventh consecutive year. This recognition reflects our excellent environmental, social and governance practices as well as our commitment to integrate sustainability into our strategy and operation. In particular, it highlights our focus on operational efficiency, emissions reduction and responsible resource management, along with our dedication to transparency and strong governance standards. This concludes my remarks. Thank you for your attention, and I will now hand the call over to Alberto. Thank you.

Alberto Sada Medina : Thank you, Herve. Good morning, everyone. I will begin with an overview of automotive industry developments across our key regions followed by a review of our consolidated and regional financial results for the second quarter of 2026. During the quarter, revenue increased 19% year-over-year, mainly reflecting the incorporation of the recently acquired operations and higher aluminum prices. EBITDA declined 6% compared to the same period of last year, primarily due to lower amount of commercial compensations, foreign exchange effect from the Mexican peso appreciation as well as extraordinary operating costs associated with adjustments in some production lines in North America, which are running at high utilization rates. Turning to the automotive industry. In North America, market conditions remain generally resilient. Vehicle inventories remain largely unchanged between 49 and 50 days of supply, reflecting a balanced supply and demand environment. On the production side, output decreased 1% year-over-year to 3.9 million units, while OEMs continued awaiting initial discussions regarding the renewal of the USMCA. Regarding the USMCA, Mexico and Canada both confirmed support for extending the agreement while the U.S. opted to continue working toward an updated version rather than renew the current terms. This opens an annual review process as the parties work toward alignment ahead of the treaty's 2036 term. Importantly, the agreement remains fully enforced today with existing preferential tariffs across North America continuing without interruption. Talks between the parties continue with topics like automotive content rules and Section 232 tariffs on steel and aluminum reportedly among the areas under discussion. We reiterate that under Nemak's commercial agreements, our customers take possession of the products on an ex work basis at our facilities, taking full responsibility for all logistics, export and import activities including duties. We remain confident in the strength of our North American operations, and we'll continue to monitor the process closely. In Europe, sales have been supported by electrification increasing 3% year-over-year to 16.9 million units, also on the back of vehicle imports, mainly from Asian OEMs. In turn, production decreased 6% to 3.9 million units due mainly to lower exports to the United States and China, which may benefit our American customers. In China, market conditions remained challenging during the quarter, contracting 22% year-over-year on a SAAR basis to 22 million units, mostly related to reduced subsidy programs and recent policy changes that introduce caps on incentives, which have influenced consumer behavior. Despite softer domestic demand, production has remained supported by strong export activity, decreasing only 3% year-over-year to 7.5 million vehicles. In South America, industry conditions remain positive supported by favorable lending activity, fleet renewal programs and resilient consumer demand, increasing sales on a SAAR basis to 3.1 million units. In parallel, production in the region grew 4% to 700,000 units, supported by strong export activity. Turning to our financial results. Please note that all 2026 results include the consolidation of Georg Fischer Casting Solutions operations. Revenue was $1.5 billion, representing a 19% increase versus the second quarter of last year. This improvement is driven by the incorporation of the recently acquired operations contributing with $157 million and higher aluminum prices and to a lesser extent, to favorable foreign exchange effects in Europe and rest of the world. ICE powertrain revenue totaled approximately $1.3 billion, while e-mobility, structure and chassis revenue amounted to approximately $197 million, representing 13% of consolidated revenue. EBITDA was $171 million, below the $182 million reported in the second quarter of 2025. The year-over-year decline reflects the high comparison base associated with onetime compensations recorded last year as well as increased operating expenses in North America related to higher production at some facilities and the adverse effect of the Mexican peso appreciation against the U.S. dollar, which more than offset the contribution of the acquisition. Operating income totaled $49 million compared to $77 million in the same period of last year, mainly reflecting the lower EBITDA performance, extraordinary costs related to the acquisition and higher depreciation and amortization from the integrated assets. It's worth noting that SG&A this quarter includes these extraordinary costs as well as the reclassification of costs from cost of goods sold to SG&A related to the previous quarter, which altogether add up to approximately $15 million. Excluding these extraordinary effects, we expect recurring SG&A to be in the range of $110 million per quarter. Net result was a $13 million loss, driven by the lower operating income and higher income tax, partially offset by lower noncash foreign exchange losses. Turning to the balance sheet. Net debt stood at approximately $1.76 billion at the end of June. As anticipated, net debt levels remained stable despite the normal seasonality of working capital requirements during the first half of the year, combined with financing needs associated with higher business activity and the integration of acquired operations. Importantly, we expect working capital consumption to normalize progressively during the second half of the year. On a pro forma basis, the net debt-to-EBITDA ratio stood at approximately 2.9x versus 2.4x at the year-end, reflecting the seasonal working capital increase as well as the debt incurred for the acquisition of GF Casting Solutions. Despite this increase, our commitment to deleveraging remains unchanged. We continue targeting leverage levels closer to 2.0x over the medium term through a combination of EBITDA growth, disciplined capital allocation and free cash flow generation. In turn, interest coverage ratio was 5.2x which compares versus 4.9x last year. Cash and cash equivalents totaled approximately $284 million, providing ample liquidity and financial flexibility. In turn, capital expenditures totaled $110 million during the quarter, above the same period of last year. The increase was mainly driven by investments associated with the Georgia facility which remains a strategic priority as we continue preparing for future structural and e-mobility programs. We continue applying a disciplined approach to capital allocation, prioritizing projects with attractive returns and leveraging existing assets whenever possible. Moving to our regional results. In North America, revenue increased 2.5% year-over-year to $704 million, supported by stable volume and higher aluminum prices. In turn, EBITDA declined 31% compared to the same period of last year to $61 million, largely affected by the appreciation of the Mexican peso as well as higher operating costs associated with elevated production levels in certain programs. In Europe, revenue increased 39% year-over-year to $571 million, primarily due to the incorporation of GF Casting Solutions operations and favorable foreign exchange effects. EBITDA increased 17% compared to last year to $80 million, reflecting the contribution from the acquired operations, partly offset by one-off commercial items. In the rest of the world, revenue increased 34% year-over-year to $229 million, benefiting from the additional operations incorporated through the acquisition and a favorable product mix. EBITDA improved 21% to $30 million as a result of the contribution from the expanded operations. Overall, we remain focused on executing our strategic priorities while maintaining financial discipline. The integration of GF Casting Solutions continues progressing according to plan, and we remain committed to accelerating synergy capture, improving profitability and strengthening free cash flow generation. Supported by our diversified footprint, solid liquidity position and proactive approach to capital management, we believe Nemak remains well positioned to continue creating sustainable long-term value for our stakeholders. With this, I would like to turn the call back over to Denise.

Denise Reyes : Thank you, Alberto. We are now ready to move on to the Q&A portion of the event. The first question is from Isaac Gonzalez Coppel from GBM.

Isaac Gonzalez Coppel : Just a quick question. Could you elaborate on the extraordinary expenses associated with the high production levels servicing the North America facilities? Should we expect this cost to continue in the upcoming quarters?

Alberto Sada Medina : Yes, this is Alberto. Yes, as highlighted, we have been for this present year, ongoing with extraordinary additional expenses at certain operations in North America, primarily driven by increases in certain platforms. As we know, North America market has been focusing on maintaining for longer term, the ICE applications, particularly the high displacement type of components, so that is unfortunately having extra cost on our operations that have been there for the first quarter and second quarter. The amount of those extraordinary expenses range between $7 million to $10 million for the region, and we expect those to gradually be phasing off in the next quarters as we stabilize and as we move forward with certain adaptations on the equipment to handle the new variance requirements by our customers.

Denise Reyes : The next question is from Emilio Fuentes also from GBM.

Emilio Fuentes De Leon : EBITDA guidance, currently, it's around $640 million. How comfortable do you see yourself reaching this target especially since you would have to see a meaningful acceleration in the second half given your first half performance?

Herve Paul Boyer : Herve speaking. Thanks for the question, Emilio, and I will let certainly Alberto complement. I think the guidance is still there. If you look at our performance for the first half, you see a difference between Q1 and Q2. Q1 was particularly low, so Q2 is more reflective of what we are capable to do, and as we just mentioned, we are also gradually getting better in our North American operations, which has had to adapt to this new business environment, so we are still on track to deliver the guidance. Alberto, can you comment?

Alberto Sada Medina : Yes. No. I mean, it's totally in alignment with that. And as you can see, the sequential improvement is quite visible, and we'll start also seeing more contribution for the integration of Georg Fischer as well as stabilization on these extraordinary costs, so yes, at this point, we'll be comfortable with the guidance.

Emilio Fuentes De Leon : And if I may add, you mentioned the contribution of GF Casting on revenue for the quarter. I don't know if I heard it right, was it $157 million?

Alberto Sada Medina : Yes.

Denise Reyes : The next question that we have is from Jonathan Koutras from JPMorgan.

Jonathan Koutras : I have three quick questions. First, just to confirm the extraordinary expenses for higher volumes in North America, those are $7 million to $10 million per quarter, just to confirm that it's per quarter. The second question is if you could share a little bit more on the expected synergies from GF, the $20 million to $40 million, where are they stemming from? And the third one, the company has mentioned a lot the investments made in the new Georgia facility, but if you could share what is the expected top line tailwind or maybe what is the improvement or increase in capacity volumes that is expected from this facility? .

Herve Paul Boyer : Okay. Thanks for the question, Jonathan. So the improvement that Alberto mentioned, yes, is a quarterly -- of the costs, sorry, is the cost for the quarter, so that's -- we don't expect that to go down to zero this quarter, but to significantly reduce already in the third quarter, and we are monitoring it and I am personally monitoring it very closely, almost on a daily basis, at least on a weekly basis, so I can confirm and can be extremely confident on our ability to reduce those extra costs in the third quarter. The second question relates to the synergies, and we have already announced some restructuring in Europe, right? So the consolidation of the production is one, obviously, streamlining the fixed cost in order to maximize the marginal improvement coming from this incremental revenue is another area which we are addressing in order to generate those synergies on top of many other aspects, and we have a very structured program management integration process, where we really tackle all the facets of the businesses. We don't -- we try not to leave anything uncovered in order to really maximize the synergies, and something I can tell you, I'm still in my discovery phase of this company, but it is extremely clear for me that this deal is highly synergistic for us. And the last question relates to the top line of Georgia factory, so midterm. Obviously, all this is based on the volume of our customer, but we expect revenue to top at a level of $170 million to $200 million a year.

Denise Reyes : The next question is from Isaac Gonzalez Coppel from GBM. The next question we have is from David Cervantes from Actinver.

David Cervantes : Well, you have said that you do not expect any negative impact from the USMCA review and that current contracts pass through any tariff cut to customers, but the specific proposal on the table during this week in this turnaround is not a new tariff, it's a tightening of the rules of origin to require a higher share of U.S. specific content with interregional value content calculations. Can you walk us to Nemak's current sourcing mix by country within North America, specifically what share of your regional content today will still count if the U.S. pushes for a U.S. origin threshold rather than a North American-wide one, and whether your pass-through contracts cover a scenario where you lose duty-free access rather than face a new duty?

Alberto Sada Medina : Yes, David, thanks for the question. I think as highlighted, certainly, the situation on the USMCA discussions is quite fluid, and we'll have to see how things evolve. But for sure, the content of origin is something that's on the table, and that relates certainly to what took place even on this renegotiation of USMCA that took place a few years ago under the first administration of President Trump. And there, you may recall that the rules of origin changed from North America percentage content of 62.5% to 75%. At the end, that I believe turned to be very positive in general for the industry, altogether as there was more regionalization of production and therefore, for the supply base as well. Going forward, it's still to be seen what that regional content may look like. There could be some U.S. content, which is already included in this USMCA negotiation, but applies specifically to assembly of vehicles. It doesn't apply to particular components assembly, so certainly, that drives certain localization to the U.S. of assembly operations of vehicles, not necessarily production. At the end, I think we do have the means to support the current levels of regional content. And certainly, they need to be increased. Certainly, we will find ways how to do that. Recall that most of our cost is on one side is the aluminum, which gets sourced regionally in most cases. But to the extent that we need to source more, certainly, we will move in that direction with the adequate commercial adjustments to our customers if that represents any type of incremental costs. But at the end, as highlighted also, the ex works component of our commercial agreement gives full responsibility of our customers to any situation related to duties and tariffs. So we don't -- this is not a pass-through. This is essentially their work. They are the ones that do the whole import process. We don't do any import process. And they are the ones that if they need to pay any duties, it would be paid by them. It's not us going back and asking for a refund, but it's them doing the whole import activity themselves, so we feel confident on that. Certainly, we work together with our customers to minimize the impact. If at the end, this means, let's say, fulfilling certain regional contents, and if that means additional cost for us, we will certainly pass it on to the customers.

Denise Reyes : There are no more live questions, so we will now move on to the written questions. The first question is from Declan Hanlon from Santander. Can you provide a same-store sales comparison, excluding the GF business for the second quarter or provide a pro forma comparison as if the GF business was owned the second quarter of 2026. 2025, I guess it was.

Alberto Sada Medina : Yes. I think this was already explained. I mean we have revenue from Georg Fischer of $157 million on the second quarter, so if we compare legacy business quarter-over-quarter, that is an increment of close to $80 million on a revenue basis.

Denise Reyes : The next question is also from Declan Hanlon from Santander. Could you please quantify the working capital impact during the quarter?

Alberto Sada Medina : Yes. Working capital, as discussed, has a seasonality effect. You can see that from the fourth quarter of last year to the first quarter, there was an increase in working capital from the first to the second quarter working capital stayed, I would say, in all practical means fairly stable. We should be seeing that working capital going forward reduced, particularly as we end the year in 2026.

Denise Reyes : The next question is from Oleksiy Soroka from ING. Is there an impact of the aluminum prices on the profitability?

Alberto Sada Medina : Yes, I think aluminum prices, as noted, these are full pass-through components to our customers, so certainly, we have different means of acquiring aluminum to the extent that the formulas reflect correctly our costs, we're fine. If the formulas don't reflect the cost, we certainly sit down with our customers to negotiate any potential adjustments that we have done in the past. For now it's a full pass-through.

Denise Reyes : And I will switch back to the live questions, since we have an additional question from Jonathan Koutras from JPMorgan.

Jonathan Koutras : Just because nobody asked before, if the team could share what was the EBITDA margin at GF during the quarter. And Alberto mentioned the reclassification of costs towards SG&A, if you could share a little bit more color on that as well, please? .

Alberto Sada Medina : Second one, yes, we had -- I mean, as we're going through the integration of Georg Fischer, we have unfortunately an issue last quarter where we had certain cost of goods sold, or let's say, SG&A costs book on cost of goods sold. So we had to reverse that effect. And we also have a little bit of -- a lot of it, we had also extraordinary expenses of the integration in the second quarter, so altogether, that was $15 million. So about half of that is the reclassification, the other half are integration costs. And that's why when you normalize for those effects, the ongoing SG&A costs should be in the neighborhood of $110 million with the SG&A cost of Georg Fischer integration.

Jonathan Koutras : And the EBITDA margin at GF, is that something you're opening or...

Alberto Sada Medina : No. Actually not -- we are not providing yet guidance but I think at the end, GF margin is consistent with what we are expecting from the company with what we had in the past, so it won't deviate too much from the average that you see on our consolidated figures. I mean a little bit plus, depending on certain seasonality effects, but in general, I think we are quite satisfied with the way that the EBITDA performance has taken place in Georg Fischer, which is consistent with what we had seen during the due diligence phase.

Denise Reyes : Thank you. There are no further questions at this time, and with that, we can conclude today's event. I would just like to take this opportunity to thank everyone for participating. Please feel free to contact us if you have any follow-up questions or comments. This concludes today's earnings webcast. Have a good day.