Release 1Q24

Strong operating cash generation.
Reduction of costs & expenses and efficiency gains.

Revenues: R$2.6 billion in 1Q24 (-7% vs 1Q23). Impact of the 5% appreciation of the Brazilian real vs. the U.S. dollar on revenues in foreign currency (64% of the total) and the drop in physical sales volumes, mainly due to the stabilization of demand for commercial vehicle in the foreign market and the performance of off-road applications related to agribusiness and sectors with higher sensitivity to interest rates, mitigated by price adjustment initiatives.

Operating cash generation: R$121 million (vs. a consumption of R$132 million in 1Q23), reaching the highest level in the Company’s history in a first quarter. The performance was due to initiatives in working capital management, operational efficiency, and asset optimization.

EBITDA Margin: 11.9%, vs. 11.2% in 1Q23. Increase from efficiency gains, cost reductions and reimbursement of claims regarding the accident that occurred in 2022.

Adjusted EBITDA: R$308 million. Synergies captured and actions to reduce costs and expenses mitigated impacts from the drop in volumes and the appreciation of the Brazilian real and the Mexican peso, which, combined, impacted EBITDA by more than R$130 million. Decrease of 2% vs the previous year.

Net Income: R$112 million (vs. R$145 million in 1Q23), with a net margin of 4.3%. The variation was due to the operating result and the currency variation effect on the tax bases in foreign currency (positive impact of R$49 million in 1Q23 and R$28 million in 1Q24, due to higher appreciation of the Mexican peso compared to the previous quarter).

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