These negative factors were partially offset by an increase in tooling sales of $48.3 million, which are typically dependent on the timing of tooling construction and final acceptance by the customer; higher year-over-year production volumes of certain platforms including the Ford Mustang Mach E, General Motors' Equinox/Terrain, General Motors' large pick-up truck and SUV platforms, Mercedes' electric vehicle platform (EVA2), a transmission for the ZF Group, and the Lucid Air; the launch and ramp up of new programs during or subsequent to the second quarter of 2024, including General Motors' new electric vehicle platforms (BEV3/BET), and the Toyota Tacoma; and the impact of foreign exchange on the translation of U.S. denominated production sales, which had a positive impact on overall sales for the second quarter of 2025 of $25.7 million. This Press Release and the documents incorporated by reference therein contains forward-looking statements within the meaning of applicable Canadian securities laws including those related to the Company’s expectations as to, or its views or beliefs in or on, the impact of, or duration of, or factors affecting, or expected response to or growth of, improvements in, expansion of and/or guidance or outlook (including for 2025) as to future results, revenue, sales, margin, gross margin, earnings, and earnings per share, adjusted earnings per share, free cash flow, volumes, adjusted net earnings per share, operating income margins, operating margins, adjusted operating income margins, leverage ratios, net debt to adjusted EBITDA(1), debt repayment, Adjusted EBITDA(1), capex levels, working capital levels, cash tax levels, progress on commercial negotiations, the growth of the Company and pursuit of, and belief in, its strategies, the strength, recovery and growth of the automotive industry and continuing challenges, the impact of and/or uncertainty of tariffs and trade issues in the Company’s business and its industry, as well as other forward-looking statements. June 30, 2024 CASH PROVIDED BY (USED IN): OPERATING ACTIVITIES: Net income for the period $ 38,091 $ 40,979 $ 55,565 $ 84,629 Adjustments for: Depreciation of property, plant and equipment and right-of-use assets 77,182 80,867 154,317 161,904 Amortization of development costs 2,014 2,594 3,809 5,088 Unrealized loss (gain) on foreign exchange forward contracts (222 ) 4,265 (674 ) 3,469 Finance expense 16,760 19,488 33,448 39,661 Income tax expense 15,204 16,531 23,119 30,449 Loss on disposal of property, plant and equipment 86 1,115 135 1,227 Deferred and restricted share units expense 5,213 3,552 2,127 3,368 Stock options expense 177 42 354 84 Share of loss of equity investments 538 823 1,335 1,457 Pension and other post-retirement benefits expense 612 567 1,215 1,131 Contributions made to pension and other post-retirement benefits (575 ) (600 ) (1,164 ) (1,168 ) 155,080 170,223 273,586 331,299 Changes in non-cash working capital items: Trade and other receivables (50,757 ) 33,376 (166,439 ) (84,836 ) Inventories 36,812 (14,869 ) 24,722 3,738 Prepaid expenses and deposits (6,525 ) (1,046 ) (2,686 ) 937 Trade, other payables and provisions 44,980 (32,995 ) 122,813 (11,599 ) 179,590 154,689 251,996 239,539 Interest paid (18,511 ) (22,789 ) (36,628 ) (43,467 ) Income taxes paid (28,580 ) (23,566 ) (54,453 ) (48,684 ) NET CASH PROVIDED BY OPERATING ACTIVITIES $ 132,499 $ 108,334 $ 160,915 $ 147,388 FINANCING ACTIVITIES: Increase (decrease) in long-term debt (net of deferred financing fees) (31,886 ) (1,523 ) 6,628 47,941 Equipment loan repayments (4,701 ) (1,860 ) (7,848 ) (4,570 ) Principal payments of lease liabilities (14,033 ) (13,432 ) (28,132 ) (25,756 ) Dividends paid (3,640 ) (3,839 ) (7,279 ) (7,746 ) Exercise of employee stock options - 270 - 270 Repurchase of common shares - (24,012 ) - (39,922 ) NET CASH USED IN FINANCING ACTIVITIES $ (54,260 ) $ (44,396 ) $ (36,631 ) $ (29,783 ) INVESTING ACTIVITIES: Purchase of property, plant and equipment (excluding capitalized interest)* (59,374 ) (52,594 ) (121,604 ) (110,867 ) Capitalized development costs (4,937 ) (2,099 ) (6,597 ) (3,144 ) Increase in investments (190 ) - (1,249 ) (8,130 ) Proceeds on disposal of property, plant and equipment 614 211 650 1,189 NET CASH USED IN INVESTING ACTIVITIES $ (63,887 ) $ (54,482 ) $ (128,800 ) $ (120,952 ) Effect of foreign exchange rate changes on cash and cash equivalents (2,870 ) (1,712 ) (3,405 ) (2,019 ) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 11,482 7,744 (7,921 ) (5,366 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 148,548 173,694 167,951 186,804 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 160,030 $ 181,438 $ 160,030 $ 181,438
Author: Martinrea International Inc.
Published at: 2025-08-12 21:01:00
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