Conducting today's video conference. Present today and available for the question and answer session are Mr. Pieter Klinkers, CEO, and Mr. Renato Salum, CFO. Please be advised that this video conference is being recorded and will be made available in the company's investor relations website, along with the presentation. Mr. Pieter will be conducting the presentation in English. For your convenience, simultaneous translation into Portuguese and English are available and can be accessed in the globe-shaped icon called Interpretation in the lower central part of your screen. You have the option of regional audio, Portuguese and English. Please select the option that best suits your needs. For the Q&A session, we recommend that you participate via the Q&A icon at the bottom of your screen, and by default of the dynamics, your name will be announced so you can ask your question live.
At this point, you'll receive a notification to activate your microphone. It is important to note that some questions will be answered in English, for that we ask you all to use the translation too, if needed. Before proceeding, we would like to clarify that any statements made during this video conference regarding the company's business prospects, projections, and operational and financial targets constitute the beliefs and assumptions of Iochpe-Maxion's management, as well as information currently available to the company. Forward-looking statements are not guarantee of performance because they involve risks, uncertainties, and assumptions, and refer to future events and circumstances that may or may not occur. I would now pass the floor to Mr. Pieter Klinkers, CEO of Iochpe-Maxion. You may proceed, sir.
Hello to everybody, thank you, first of all, very much for participating in this call. We've decided to start with an executive summary this time. There's a lot of things going on in the world, we wanted to talk about a few of the highlights on the very first slide. We believe, given all the dynamics in the world, in the automotive world and in the overall world, we believe Iochpe-Maxion was able to have relatively stable sales in the first quarter of 2026, when we compare it to the same quarter one year earlier. A little bit down, including FX impact. A little bit up, excluding FX impact.
Those numbers need to be seen in the perspective of the North American and Brazilian CV market being down versus the same quarter last year. Even though these markets are now showing signs of recovery, especially in North America, the numbers that we had to deal with in the first quarter of 2026 were significantly below 2025 in North America truck. In spite of that, we had relatively stable sales globally. With that, we were able to even modestly increase our profitability. We will come back to that in next slides. Of course, that has to do with the restructuring measures that we took in North America last year.
It also has to do with our resilience that we talked about in prior calls in Europe. More and more it also has to do with the market in Asia, particularly India, doing well for us and Maxion doing well in that market. We'll come back to that as well. Not unimportant to mention in today's times is also that our teams are being able to navigate very well through all the supply chain issues that could be there or are there. Given all the challenges that we see in the world, I think we can be proud in our teams to be able to ensure flawless customer service.
We have been able to manage through any supply chain issues flawlessly, and we have been able to supply our customers without any interruption, and we plan to do so going forward as well. Last but not least, on this slide, you know, I think one important highlight also is that we are able to keep our operational discipline. Our plants are performing around the globe. It's not an easy globe sometimes, but our plants are performing in this environment. Also at the same time, we are continuing to win important new business wins and create value to the company as well. If you go to the next slide, we look a little bit more on that market.
It's really different, the way we see it, the way it's being forecasted by the official institutions between light vehicles and commercial vehicles. Let's not forget, in our company, Iochpe-Maxion, commercial vehicles is not unimportant. Today it's about 35% of our total turnover with North America hopefully coming back, anytime soon in the commercial vehicle segment. That should be rather like 40% of our total turnover. Both pictures are important to look at. If you look at light vehicle, it's pretty stable. It's not a disaster, but it's also not very exciting. 93 million vehicles last year. This year actually a little bit lower, 91 million is the projection. Next year back to 93, 94, and in 2028.
It's pretty stable. It doesn't matter really if you look at those numbers, including or excluding China. A stable market, let's say, on the passenger side. On the commercial vehicle side though, the picture looks different, especially when you look at it excluding China. Which is for us a more relevant trend to look at than including China. Even though we are present in China with truck wheels as well, it's relatively small to what we do in the rest of the world. You see some more meaningful growth there, already in 2026 continuing 2027 and accelerating in 2028. We will come back to that in some of the next slides. Different picture between pass car and truck. We go to the next slide.
We come back to the highlights for Maxion of the first quarter 2026. How do we do? How did we do in this market? From a revenue point of view, roughly BRL 3.8 billion realized, we would say it grew slightly, excluding FX effects. The FX impacts effects were meaningful, and so, including those effects, it was a -3.3%. Mainly again, due to the fact that in North America, even though we see some signs of recovery, the truck market was very, very much down versus 2025 first quarter.
Now in 2026, as a contrast to 2025 when South America was able to mitigate some of that effect in North America, in the first quarter of 2026, also South America was down. Now we have been able to mitigate that through better numbers around the world, and some highlights there, I would say are South America light vehicles, and Asia light vehicles. Overall, we would say a pretty stable revenue despite those impacts in truck in North and South America. We look at gross profit, the absolute number is pretty much the same as what we generated last year, but our margin did increase slightly to 11.6%.
I think again, this shows our resilience to global uncertainty and some markets, you know, being meaningfully down. Same is true for EBITDA, BRL 357 million in the first quarter with a margin of 9.4%, 9.5% excluding restructuring. That's an increase of 0.4%. It's not huge, but it's meaningful, we believe, especially given the market dynamics that we are dealing with. From a leverage point of view, we'll come back to that as well.
Of course, here FX plays a positive role, but a meaningful reduction quarter-over-quarter with or without FX, if you compare the first quarter 2026 with the last quarter of 2025. We look at the next slide. You see our revenue by product. This is pretty much the same as what we showed in the last two earnings calls. Since the North American truck market was declining so much, you know, structural components, especially the heavy vehicle sales that we have in that unit, is down as a percentage of our overall turnover.
Normally I would say it should be 75% wheels and 25% components, and today it's more like 20% components and 80% wheels. Basically, aluminum wheels for light vehicles is making up what we're losing in components in the heavy truck market in North and South America. We go to the next slide. We can look at how it looks by customer. Of course, you know, what you see here is you look at the left there, a customer like Daimler that is very important for us in North America for components. It's down quarter-over-quarter compared to last year.
You see several of the passenger car accounts being up, so that is mitigating, offsetting, that impact that we see in the Americas truck market. Overall, I would say, you know, a pretty stable picture with light vehicle outperforming and therefore mitigating what has been happening the last couple of quarters in North America, and now also in South America truck. We go to the next slide. You can look a little bit more on the different regions and South America, very important for our company, of course. You know, I would say stable revenue despite that Brazilian truck market contraction that we clearly saw in the first quarter of 2026 versus prior year.
I would say we were able to offset that somehow within the commercial vehicle segment, a little bit better mix than what the overall market was showing. We are performing well with the market doing well on the light vehicle segment. Overall, for our company, that meant a stable revenue in Brazil, in South America, versus the first quarter of 2025. We go to the next slide. We go to North America. Here you see a clear reduction in turnover in the first quarter of 2026 versus the first quarter of 2025, and that has all to do with commercial vehicles.
The official numbers, when you look at overall commercial vehicles, down 19.2% in the first quarter of this year versus last year. As we talked about, in the last earnings call, already, you know, we need to look a little bit more specifically on the heavy trucks, the Class seven and Class eight, that's called. There, what you see is more like 25%-26% reduction. We are in line with that, with that reduction. We were able also here to make it up partially. Of course, that drop is too much to make up completely. Partially we made it up in light vehicle because that market also was a little bit down in North America.
We were having a slightly higher turnover in light vehicles. You know, a partial mitigation, I would say, in light vehicle compared to what was happening on the heavy vehicles, heavy truck vehicles in North America. Now, one important picture here on this slide is in the middle bottom part of the slide, and you see some pretty big increases there year-over-year when you look at North American commercial vehicles. Already this year, + 7%, and next year + 9%, the year after, + 17%. These are big increases. I would say we are very ready to support that kind of market. We could do even a little bit more than that.
I would say even if we do only half of that, even if the market only grows half of that, our company. That would be very good for our company, and we would be in a very good position with those kind of increases. We go to the next slide. Looking at Europe, EMEA, Europe and Africa, we see a slight reduction in turnover this quarter versus last year first quarter. I would say on the light vehicle, we did some portfolio cleanup. We've been gaining considerable market share the last 12-18 months, that gives you the chance to do some cleaning up of your portfolio. We were able to very much mitigate that by strong truck performance.
The market is doing well in Europe from a commercial vehicle point of view in the first quarter, Maxion was able to do even a little bit better. Overall, I would say pretty resilient in Europe. Also here, if you look on the middle section on the bottom, you see that production forecast for commercial vehicles. That's pretty significant. Again, if this happens, we are very well-positioned. We are very ready to support this. Even if only half of that happens, that would be very beneficial for our company. We don't need to do any investments to supply these kind of volumes. We go to the next slide.
We look at Asia, and you may remember in some of the prior calls I said, you know, Asia will be there, and we see that happening. You know, our turnover increased by roughly 10% in the first quarter of 2026 versus the same period in the prior year. That's very helpful to mitigate some of the impacts that we talked about regarding North America and also a little bit South America. So, you know, our focus in Asia is mostly on India. That market is doing well, and I would say Maxion is doing well in that in the market. So we are completely, you know, enjoying the momentum in the business in Asia, particularly in India. We go to the next slide.
We look at our gross profit and our gross margin. I would say absolute number, pretty much the same quarter-over-quarter, compared to last year first quarter. Then, from a margin point of view, 0.3% up. I would say, you know, good job on repricing as we usually do, favorable sales mix and some good operational efficiency as we talked about, as we talked about before. A positive number here. Next slide. Same is true for EBITDA and EBITDA margin. Slight increase in the overall number, but pretty stable I would say.
From a margin point of view, 0.4% or excluding restructuring 0.5% increase, which is, you know, again, not huge, modest, but meaningful, especially when you take into consideration that the North America truck market is still very much down, was still very much down in the first quarter of 2026 versus the same quarter last year. Go to the next slide. Look at net income. Not a lot of net income last year in the first quarter. Also, not a lot of net income in the first quarter of this year. Losing my screen. Okay. We are confident that we will be okay for the whole year.
We had some positive impact from MOVER in the first quarter of last year, our numbers are pretty much in line year-over-year, if you take that out. We go to the next slide. Looking at investments, a little bit more in the first quarter of this year compared to last year, because of good news. We have been winning new business. We are investing in that in that new business to make it work, to supply the products that the customers nominated us for. We can be confident that we will manage the yearly numbers as we targeted for 2026, when we talked to you guys at the end of last year. On track here, I would say.
We go to the next slide. Our leverage, as we saw in the second slide already, a meaningful reduction year-over-year and I would say, or quarter-over-quarter. I would say even if you exclude FX, there would still be a meaningful reduction quarter-over-quarter. We are pretty happy with that reduction in debt that we saw there and, you know, with the markets hopefully coming back, as the official institutions are forecasting, you know, that long-term multiple could be a little bit more up, with our debt, of course, not increasing. That's not our target. I would say on track with the targets that we put ourselves and that we talk to you about in the recent calls.
We go to the next slide. Our gross debt, not a lot of change in the composition there. I think it's a fair mix. If you want from a short-term, long-term perspective, even a little bit less short than that, and then of course, we have this bar in 2028, where our bonds will expire, and that's something that we will work on in the near future. If we go to the next slide.
Going from numbers to people, you know, one of the reasons why we are able to continue to show modest margin improvement even if there is not a lot of traction in the market or there are some challenges in the market, is because we have a lot of people around the world working on smaller and bigger projects to get better every day. It's not meaningful. We have an event that we call Maxion Team Awards, and last year there was more than 1,700 projects, more than 10,000 people working on this. Wheels, people from the wheels unit, people from the components unit, 34 plants in the world, and we just congratulated the 19 team winners.
This is super important in this competitive world, in this dynamic world, to have all these people so engaged and coming up with so many small and big ideas for improving our business. That makes us feel confident to be competitive also going forward. We go to the next slide. Of course, the reward for that is we cannot talk about too many new business wins that we have. Many customers don't allow to talk too early, too much about what they do with their suppliers. I can tell you that we feel very proud about our teams receiving important new business wins with global OEMs, with local OEMs, across the regions in the Americas, in Europe, and in Asia, of course.
We're also being recognized by our customers very, very much for the good quality, for the good service, for the good partnership that we have with them. All of that hard work that the people are doing in the plants, with the support of management, I think it's paying off when you see on how many awards, how many recognition we get from our customers. With that, I would open it for questions and answers.
Now we are going to start the Q&A session. We ask you to ask all your questions at once and wait for the answer from the company. Please place your questions using the Q&A icon. We will then call your name, ask you to open your mic. Our first question comes from Andressa Varotto from UBS. Andressa, you can proceed.
Thank you very much for those questions. All relevant. Let me start with aluminum price increases. As you said, yes, we have pass-through mechanisms formalized in place with all of our customers. Usually what happens is there is a delay in application of these new prices when prices go up or prices go down. When prices continue to go up, as you saw end of last year, when we talk about aluminum and as we saw in the first quarter, that does not help margin because you only pass on these higher prices a little bit later, usually something like three, four months. Of course, whenever they go down, then you see the opposite positive effect because you only adapt prices three or four months later as well.
We are not worried about that. We see some impact already end of last year when they went up, and we saw some impact in the first quarter, that's embedded in our numbers. And there may be some impact in the second quarter based on what happened in the first quarter. You know, it all depends, I think, here on the geopolitics. Right now aluminum prices are very, very high, are record levels, we have already embedded those impacts in our numbers. If anything, I think the chance is there that our first half will be negatively impacted by that, you should see that coming back to us in the second half of the year. For energy, it's a little bit different.
As you say, we don't have this automatic pass-through with all of the customers. But we do have long-term contracts with our suppliers. We don't see those impacts that we now see in energy prices, for instance, in Europe, immediately impacting our numbers. By the way, it's very different than what we saw in couple of years ago when Russia and Ukraine were at the beginning of the war. It very less meaningful, but still there is an impact. To the extent that it will hold, and it will then impact our costs after our contracts run out, we will talk with customers and go for recovery, as we always do. I'm not worried about about that too much right now. Not so much impact from that.
When it will hold and it would impact us, then, we would go back to customers. Let's hope that energy prices and aluminum prices will come down because the world gets a little bit more stable in the Middle East than what it is right now. When you talk about new contracts, I'm in a constant fight with our public relations department, what I can say or what I can't say. I wanna say more, but I'm not allowed to say a lot. I understand customers that don't wanna talk about, you know, stuff like wheels, especially because it's a styling element, et cetera. I can't give a lot of details.
I can just tell you that these new business wins are for sure with the incumbent OEMs, the traditional OEMs, but they're also with the new OEMs. We are having orders with 16 Chinese OEMs all around the world, in Asia, in Europe and in the Americas, including in Brazil and including with some of the largest Chinese OEMs. I hope that gives you some insight without me being in trouble with the people that tell me not to talk too much. You're welcome.
Our next question comes from Gabriel Tinem from Santander. Gabriel, you can proceed. Gabriel, do you hear us? Our next question comes from Gabriel Rezende from Itaú BBA. Gabriel, you may proceed.
Hi, Gabriel. Thank you for the question. From a CV point of view, I think I share some of your thoughts because you heard me say even if these numbers will only become truth for half of it, right? I think the numbers that are being forecasted officially are very optimistic and, you know, we can hope that they will materialize. What we believe is that we will need a little bit more time to see how things develop in the world. You know, will they deescalate or will they further escalate? That can change a lot, including inflation and including impact on overall economy, which has always a big impact on truck sales and truck production.
I'm cautious to say we are counting on all these increases to happen as they are projected. I'm also optimistic enough to say that there should be growth because right now, especially North American market is as an absolute record low level. I think there's many, many more reasons to say that market will go up meaningfully than it will stay at these low levels. That's in fact also what we see happening in our releases. It may not be as optimistic as the official numbers show, but we do believe there will be meaningful growth. It all depends a little bit on how things play out in a part of the world where we are not now.
From a mixed point of view, that's difficult to say. I think in the second quarter, we will see a similar pattern, but of course mix is difficult to project longer term. We will work on that. I think we will count on that in the second quarter, but I'm not sure if that positive mix effect will be something that we can count on forever. Is that okay? You're welcome.
Our next question now comes from Gabriel Tinem from Santander. Gabriel, you may proceed.
Thank you everyone. Good morning. My first question has more to do with restructuring and capacity. I would like to comment on what stage we are at at this point. I would also talk a little bit more about other initiatives. The second point has to do with the notification on the antitrust in Germany, if there has been any development compared to the last quarter, and how we could see this event, how you're dealing with it. Any information you might share would be useful for us. Thank you.
Thank you, Gabriel Tinem. From a restructuring point of view, if you mean operational restructuring, we had some meaningful restructuring going on last year in North America. A little bit in Brazil, but that was more shift management. Right now we're not counting on any meaningful restructuring going forward because if the markets develop as they are being projected and as we see them, which means increase in truck and flat in passenger car, we think we have the right structuring. If your question is are you gonna spend a lot of money on restructuring beyond what we have done, I would say that's not our plan. On the contrary.
When we talk about the German antitrust case, I think we talked about it in the last earnings call because there was some news, but there was no update since then. I think this will take a little bit longer time. We continue to work with the authorities through the process, but there is not a formal update between last quarter and this quarter. Is that okay?
Gabriel, thank you for your question. Your observation is very interesting. In your first question, if you're talking about effective rate, here we can analyze in two ways. The accounting rate and what was actually paid. When you look at indirect cash flow, we see an increase in the payment of taxes of about BRL 98 million when you compare to the last quarter, and this effect is explained mainly by two specific effects related to our controlled companies in Turkey. We have today what we call global minimum tax, which is 15% with the initiative from the OECD, created to prevent multinational companies from paying too low tax. You know, we should pay at least, companies should pay at least 15% tax.
If the company pays less than that in a specific jurisdiction, if the company pays less, we have that top-up tax. Compared to that, we have made payment of BRL 35 million in January, which were forecast for December 2025, and was not realized due to the unavailability of the local Turkish tax system. The local authorities postponed the payment deadline to January 30th, and we made that payment in January. Also, until 2024, the Turkish tax authority accepted the inflation accounting, which is, would be the correction of financial statements according to the inflation. If you look at Turkey, it is a company with high inflation, and that is why you have the inflation account. Every time you do that, it affects your tax base.
In 2025, there was a decision made by the government in Turkey with immediate effects for 2025 that caused an accounting impact that was acknowledged in December 2025 with a value of BRL 45 million with the adjustment of these taxes due to this inflation. We did have a payment of BRL 45 million in the first quarter. When you add these two events, we explain that basically BRL 80 million of the BRL 90 million that we see in the cash flow are explained by that. What happens with that? Since your effective rate is closer to 15%, it means the global minimum tax that will be paid for December 2025 should compensate for what we paid in excess already in the first quarter. This would be basically your first question.
When we talk a little bit about working capital, I think our industry knows that the first quarter seasonably weaker for Iochpe-Maxion. It reflects the normalization of demand of the last quarters. We have less working days and all that. I bring all this context, so to say that it's important to evaluate properly our working capital. When you look at the indirect cash flow that excludes the effects of exchange variations and comparing apples with apples, we see a working capital compared to 12.7% for the first quarter of 2026. Finishing the month of March in 11.8%, the lowest best level in our last 10 years comparing to our history. When we compare the last three years, this is the working capital ratio level that we have delivered.
The dynamics is compensated by indirect cash flow. When you look at stocks, accounts paid, receivable and all that, you see that the working capital used BRL 312 million last year, and this year we are only at BRL 45 million. It's worth mentioning that we had, in the first quarter of 2025, we had operations that were much higher than the first quarter of 2026. If I am to normalize my operating cash flow, we see in the indirect cash flow BRL 337 million compared to BRL 100 million in the seven last same period. This BRL 337 should be adjusted by the BRL 62 million in our operational cash flow. In the investment activities, you see this BRL 45 million of CapEx, which is BRL 6 million higher than the first quarter.
At the end of the day, this is not an indication of 4x the value. At the end of the day, this is not a trend that should be multiplied by four, but we are still aligned with what we have done last year. Finally, just to close the dynamics of cashflow, when we look at the financing activity, we see an addition of cash of BRL 145 million, and this is explained by the release of 137 lines in that FINEP line with this, related to the strategic innovation plan that was approved last year with a value of BRL 357, and we still have BRL 126 million debit to be released in the next years. It has a TR, a cost of 2.3.
Considering the entire dynamics of cashflow that I have just explained and aligned to the increased value of the reais compared to dollars, this has contributed to what Pieter had commented in the increase of our leverage, despite all the challenges of the sector that we see some regions where we have seen the best results in the last quarter.
Thank you.
Our next question comes from Fernanda Urbano from XP. Fernanda, you may proceed.
Good morning.
Yeah, Fernanda, thank you very much for the question. If you look on the sales numbers of trucks in North America, there are some pretty meaningful increases there, pretty steep increases there that have been reported recently. Whatever is being sold, we don't see that directly back in what we are selling. Because of course then the trucks need to be produced and the production volumes need to go up. Of course, that's a good indication of what will probably happen to production. Ultimately, what you sell, you need to produce. That gives us an optimistic view on what's going to happen over the next coming months. We already see that happening. Keep in mind, that the beginning of 2025, let's say the first half, was pretty good. It was pretty good numbers.
This market tanked in the third quarter with about 50%, and in the fourth quarter over quarter. Or quarter, like fourth quarter 2025 to fourth quarter 2024, another 25%-30% negative. If we say that the year 2026 overall should be the same or slightly increased versus 2025, that means for that to happen, that the second half of the year needs to be pretty strong, because you have this U-curve. You come from a high level, you go way down, it means if you wanna have the same number at the end of the year, you need to go way up as well. That's what we are seeing, is starting to happen.
It's happening already in the second quarter, that's true, but the bulk of that still needs to come. Our only indication there is that the sales are up, indeed to these kind of levels. Again, if the sales are there, then the production should follow. Therefore, our estimate is that, yes, the year 2026 should be pretty close, maybe even a little bit better than 2025. That means the second half needs to be pretty strong, because that's what the first half of 2025 was as well. For Brazil, it's a little bit more difficult for us to predict. We were actually thinking initially that the first quarter would be better than what it resulted in.
We are still hopeful that the rest of the year will be better than what we saw in the first quarter. Of course, the whole macroeconomics, the interest rates, et cetera, it's not helping the overall situation. Hopefully, because of some of the government measures, the market will be better than what we saw in the first quarter. It's more difficult to predict. I would say some of the positive factors that we were counting on in 2026, for instance, reduced interest rates, that's not happening, at least not to the extent that people were expecting it. Very hopeful on North America, but it needs to be happening.
South America, we need to watch a little bit more before we can make more realistic comments. Is that okay? You're welcome.
Our next question comes from Luiza Mussi from Safra. Luiza, you may proceed.
Hi, Luiza. Thank you for the question. I can comment here that the non-controlling shareholders, we have two main areas: Turkey, that has 40% of profits, and India. These are the main highlights. This is a dynamics when you compare to last year. They have a higher profit, I think resulting also from tariffs issues that we have all over the world. This is a region where until now we could export directly from there to Europe and other countries in the region. With that, they had better profits. Every time they have better profits, I have to highlight here the 40% of the profit that do not belong to us. That is why you see the increase of in the non-controlling shareholders.
As for the second question, could you repeat it?
I did. Second question was about the CVA ramp-up, the commercial vehicle aluminum wheels ramp-up, if I understood correctly. No, that's not part of the increase that you see in Europe. That is totally based on our commercial vehicle steel wheels. That's not being supported artificially by aluminum wheels for commercial vehicles ramping up. That is still to come, and it will come. We are homologating product. We are getting first orders. As you can imagine, when you ramp up, this is very, very minimal volume at this stage. That has not been one of the reasons why we have been outperforming the market in Europe in the first quarter. It will come.
Now if I can ask you a follow-up question. There is a tariff issue related to the increase. Is that something that we could expect to continue this dynamic for the rest of the year?
The microphone is off.
We can't know what's going to happen in the second semester, the second half of the year. I believe not. I think this is a thing for the first quarter that resulted in higher profits. That's why you see this BRL 9 million when you exclude non-controlling shareholders. Okay, thank you.
Our next question comes from Andre Mazini from Citi. Andre, you may proceed.
Hello, Andre Mazini. Yes, that's a valid question. Now, first of all, when we talk about the health of our customers, you know, we are kind of lucky that, you know, 95% plus of our sales is to OEMs, and usually the financial health of the OEMs is a lot better than what you see in many of the aftermarket in automotive. From that point of view, you know, we are in a very favorable position.
Now of course, as you say, the OEMs have been writing off a lot recently and the combination of having to invest, continue to invest in ICE and having to invest in electrification and having to invest in autonomous driving, et cetera, et cetera. Yeah, this has been a burden for our customers. We do not believe there is a risk for us in that aspect. A risk meaning they will not be able to continue or pay their bills. But of course, this is putting pressure on the profitability of our customers, and when customers are under pressure, then of course they will look for cost savings, et cetera. This is not new.
This has been happening, I would say the last 100 years. It is happening in the last couple of years and now as well. I believe our company has a very, very good track record in being able to recover in a fair way from a pricing point of view, what we need to recover. Yes, it's something that we see, but we believe we are in a good position when it comes to the financial health of our customers and their ability to do business with us and pay for that. When you talk about indeed, about, you know, are our products relevant, given, you know, new mobility, et cetera.
We talked about that in prior presentations and calls, and we believe we are in a fortunate position there too. That, you know, it doesn't really matter what propulsion the vehicle has as long as it stays on the ground. We believe for many years all of that will stay on the ground. Wheels and also chassis are very relevant. Certainly things that we monitor, but it's not things that we worry explicitly about. Is that okay?
Thank you.
Our next question comes from Marcelo Motta from JP Morgan. Marcelo, you may proceed.
Thank you, Rodrigo.
Yeah. Marcelo, thank you very much, for the question. On, on the CapEx, I would say it's more positive news. Normally, we have a little bit more CapEx at the end of the year, but when we need to make investments for new business, right? That's not something that you can manage from a timing point of view, et cetera. We knew that. This was planned, budgeted, known. Therefore, we don't think it's something that should worry us and that should hinder reaching our target for 2026. Sometimes you can postpone things or manage things from a timing point of view.
When you have to manage an SOP, start of production, or a new business, you know, you just need to make it happen at the right moment. That's the main reason for that. On the restructuring, yeah, there was still some stuff to be done, rolling over, let me say, from 2025 into 2026. As I said, we do not have any meaningful plans for this to continue during the rest of this year, of course, given the markets stay as they are being projected right now. Is that okay? Thank you, Marcelo.
We have time for one more question. There is a question from Declan Hanlon from Santander. He asks about the strategy for financing bonuses for 2028.
Thank you, Declan, for the question. I think in general, the company has a very solid liquidity, BRL 1.9 billion in cash, plus the lines that are already compromised. When we look at the term profile, when you look at our justifications, you will see the amount for the next BRL 12 million and the BRL 287 million raise for 2027, volumes that are fully manageable and that we hope to cover with our liquidity and our cash flow for 2026 and 2027. Addressing directly your question, most of our debts are concentrated in 2028, especially considering the term of the bonds.
The point is that we still have time, flexibility, and access to the market to address that efficiently. At the proper time, we will review infrastructure, funding alternatives, always seeking the best way to optimize things and provide the best results for the company. It is prudent that the company will start analyzing with enough time in advance and analyzing alternatives to try to address this term. In a summary, we have a comfortable structure with investment profile that is well-managed with. Bring us tranquility to do our liability management that is to come in the future. With that, we are closing the Q&A session, and we will now like to give the floor to Mr. Pieter Klinkers for the company's final remarks.
Okay. Thank you, once again for participating in the call. I hope it was helpful. We think that Maxion had a decent quarter one, especially given the global circumstances, market circumstances. We believe we managed through very well. With all the information that we have about some of the markets coming back that are relevant for us, you know, we believe we are on the right track to have a year as we targeted in 2026. Of course, there are certain things that can still impact this year. It's only the first quarter call, not the third quarter call or the fourth quarter call, so a lot can still happen.
Let's hope that some of those things, will actually stabilize more than what they have done in the first quarter. When that happens, you know, we believe we are well-positioned to be on track with our targets in 2026. Thank you very much for participating and looking forward to talk to you in a few months. Bye-bye.
Iochpe-Maxion's first quarter earnings video conference is now ended. The Investor Relations department is available to answer any further questions. Thank you all participants.