Hello, everybody. I hope everybody can hear and see me well, presenting from a beautiful autumn in Germany. Let's talk about the third quarter 2026 of Iochpe-Maxion. As usual, I want to start with an executive overview. We believe we had a strong performance in the third quarter. That's the first bullet point we want to stress here, that our profitability gains that we have been showing, I think they reflect the overall strong operational execution that we have in the company, and it's coupled with commercial execution. What I mean by that is how we buy versus how we sell. I think that also was executed in a very good way in the third quarter. All of that is combined with the strength of our global footprint, as you guys know, and we will come back to that in a little bit.
Second bullet point is the financial stability and the shareholder focus. I think our EBITDA performance showed strong resilience, supporting the financial discipline that we have in the company. I would also say the leverage, it even improved slightly while we were absorbing the Germany accrual that you may all be aware about. We'll talk about that a little bit later about our leverage. We had some key growth drivers supporting our revenue in the third quarter. Of course, India, as we talked about it, I think the last one or two calls, it remains a key growth engine for us, supported by the local market expansion over there, coupled with new programs that we won and that are now ramping up. It's not only India, of course. It's also strong LV in South America.
That includes meaningful new business that we won in Brazil that I've talked about before as well, and that continued recovery in commercial vehicle in North America. If we look on the overall market on the next slide, as we talked last time, basically we can say from an LV point of view, the market is kind of flattish, right? Minus 2% including China, excluding China, plus 1%. It's a zero. Next year should be zero. So it's a flat market, I would say, right now and also for the short-term future. On the contrary, if you look at the right side, you look at truck, that picture looks different, right? It's plus 6% including China, plus 7% excluding China. In our company, that is meaningful. Our percentage business that we have in commercial vehicle is about 35%-40% of the overall.
That number on the right side is not of small importance. It's a meaningful graph that we always need to have a good eye on. So very flattish on the LV side and more meaningful growth in the overall market in the world in trucks. We go to the next slide. We show you our highlights of the third quarter. Net revenue, BRL 4.4 billion, an increase of almost 16% year-over-year. I think that's a very good number. It's a number that we targeted and that we realized. That is, again, it's supported, of course, by that CV growth in North America that is especially beneficial for our components group. Also LV in South America and Asia overall is beneficial to our company. I would say a very solid year-over-year growth in the third quarter from a revenue point of view.
Gross profit as well, 13.3% margin, which is a 1.2% margin increase over the same quarter last year. We would say, we consider that a very solid gross margin that we delivered in the third quarter of this year. We look at EBITDA, BRL 480 million and a little bit. That represents a margin of 10.9%, and that's an increase of 0.6% versus the same quarter last year. We had good demand, good sales. We had margin improvement in important segments where we operate, and we couple that with a continued discipline on cost and expenses. We are quite happy being able to present this margin for the third quarter of the year. Leverage, as I said, it's pretty stable. If you compare it with the last quarter, you compare it with the same quarter one year ago, 2025.
But, of course, we've had to book this accrual here in Germany. Excluding that accrual, of course, we would have a meaningful increase in decrease in the leverage, a meaningful improvement in our leverage. But even taking up that accrual, our leverage is kind of stable, actually still improving slightly versus the prior quarter or the same quarter last year. If we look a little bit closer on the revenue, as we usually do by product here on this slide, you can see that clearly our structural components CV business is growing as a percentage of our total business. That makes sense because of what's happening in North America. We've been talking about North America a couple of times. The market is coming back. I would now say the market is back.
We see that on this slide, where now structural components CV is making up 19% of our total business, and the total components group makes up 22% of our overall business. Also noteworthy here is the growth in aluminum wheels in our total portfolio. That makes sense. Partially, of course, that's because of LME, the London Metal Exchange, the aluminum pricing for aluminum going up, but also we are growing from a units point of view in this important segment for us. I would say light vehicle aluminum wheels and structural components CV products or side rails are growing as a total percentage of revenue in our company in the third quarter, and also year-to-date, nine months 2026 versus the same period last year. We go to the next slide.
We see the revenue by customer, and obviously what we see here is that I would say LVs remain solid overall. Some customers a little bit up, some customers a little bit down, but overall, LV is pretty solid in our company. We see the CV customers coming back. You look here at the Daimler Truck or the Traton, you clearly see that as a percentage of revenue, of our total revenue, these customers are increasing. Of course, again, that has all to do with not only North America, but primarily North America truck business. We go to the next slide. We start to look a little bit more into the regions, and I think these are important slides to explain our story, even more important than usual.
In South America, we all know commercial vehicles, it's kind of flattish, kind of sluggish. We've been able to make up that market performance by outperforming what I would say already is a good light vehicle market. Light vehicle market production was up 9.1% year-over-year this quarter. Our sales are up 18% in that quarter, and that made up more than the soft CV market. Overall, we have been growing quarter-over-quarter in South America. Go to next slide. We come to North America, and here we see a big increase. I take a little bit more time to explain this slide. We've talked about it before, but this is important to understand if you really want to interpret well our numbers. Let's start with truck here. We see the commercial vehicle market increasing by 20.9%.
That's the number on the far right on the bottom, 20.9%. For our business, particularly the components business that is more important than the wheels business here in this region, we need to look at more at Class 8, the heavy trucks, right? That's where we sell most of our product. Not only there, but that's most of our product goes to these vehicles. That's a 54%, so that's a big increase in Q3 2026 versus the Q3 2025, which is when the downturn actually hit us really hard. We have been improving in this market 65.7%. You see that number on the bottom left side. I would say we have been able to outperform what is already a strong market. That's one match. The quarter-over-quarter numbers were really, really very strong.
If you look in the bottom middle, then you see 2026 versus 2025, and you see 2027. What's happening is that 2026 is now already becoming stronger than 2025. Remember, we started 2025 really strong in this market, and then we tanked really strong in the third quarter and also in the fourth quarter. I would say after a slow start in 2026, the market has been picking up really fast, and that means that the overall year 2026, coming from a very low point and ending at a high point. That also means that 2027 growth still is very strong, is very good, is a very good number. Of course, we start with a much higher baseline, and so we see our year 2026 ending stronger than maybe people thought three, four, five months ago.
We still expect to grow also in 2027, but at a lower rate versus a much better number that we will end up in 2026. That's the truck story. On the PC side, the market is going down by 4% versus the same quarter last year. We've been able to have our revenue go up, and that has to do with new product launches, and it has to do with right mix, it has to do with the commercials. A combination of a very good, strong truck market that we're outperforming and the soft light vehicle market that we also have been able to outperform, giving us this 30+% increase in the third quarter of 2026 versus the same number or the same period one year ago. With that, let's go to the next region, Rodrigo.
We go to EMEA, basically Europe, plus a small plant in South Africa in our case. I would say this is a kind of flattish, very competitive market. In commercial vehicles, the last quarters, last one year or so, we have been doing very well, and we have been increasing our market share. We are not losing market share, but I also said already before, we cannot continue to gain market share. We are thriving on that higher volume that we established, and we are now following more or less the market. On the PC side, also here, we have been able to outperform the market. The market was up 2%, 3%. Our sales were up like 10%, 11%. I would say Maxion is in a good position in a very competitive market.
Our overall sales were up year-over-year 8.3% in this European market. If we look at Asia, I would say the last region, but not the least region. We have been announcing several times that Asia is becoming more important for us. I am not saying it is going to be the most important region, but we are growing in Asia. Asia is growing, and we are growing in Asia. I think we are in the right region, and we are with the right products, and we are with the right customers. Things are working out very well for us in Asia, particularly, but not only in India.
If India is growing 20% kind of in LV, 18%, 19% in CV, we are growing in this region 30% plus in commercial vehicles and 70% plus in light vehicles, which are fantastic numbers, I would say. I would like to stress, this is not only because of India. We are also doing good in China, in our truck wheel plant that is driving an export to replace some volumes from competitors that are struggling. Even in Thailand, we are seeing some volume coming back in our plan there. Overall, Asia has been and will be good for us in this quarter and going forward. Next slide. We look more specifically on gross profit. As I said, on a quarter-over-quarter basis, we have been growing 1.2%, now reaching 13.3%.
With that good quarter, you now also see that on a year-to-date basis, our gross profit is higher than what we had last year. In the first half, we were a little bit below, but in the third quarter, we made up and surpassed what we did year to date last year. I think a good progress in gross margin. We go to the next slide. Similar picture in adjusted EBITDA. You may remember, in the first half, we were not too far behind, but we were a little bit behind, but we made it all up in the third quarter. Of course, these are adjusted numbers for the accrual in Germany that we sent a relevant fact about. But our adjusted margin is now 10.9% in the third quarter, and it is 10.2% equal year-over-year.
Our absolute EBITDA actually is up instead of below, as it was in the first half of the year. Go to the next one, Rodrigo. Look at net income. On the left side, you see here what we reported in the third quarter of 2025. You see what we reported in the third quarter and how we look year to date, and then if you adjust that for the Germany accrual, you see that actually our adjusted net income numbers are better, both in the third quarter of 2026 as well as from a year-to-date point of view. Go ahead. You look at our investments, actually, we are spending less money. You may say that's good and that's not so good. I would say, we are on track with our targets.
Of course, if we can spend the money a little bit later, we will do that. Overall, we're very much on track with all the projects that we want to implement. It may be that we spend some money a little bit later, but all the projects that we have on our list are being executed and are on target. If anything, we're doing some things maybe a little bit smarter, and therefore, we spend a little bit less money. Overall, we are on track from an investments point of view, with a little bit less money being spent year to date. I think we'll catch up there a little bit in the fourth quarter and the first quarter. Again, we're very much on track with executing everything according to our targets.
If you look on the leverage and the net debt to EBITDA here, like I said before, third quarter 2025, we were at 2.55, and then last quarter, we were at 2.52. Now we're at 2.50. The number would be somewhere around 2.36, 2.35, if we would adjust this for the Germany accrual. We want to focus here on the 2.50 as the reported number, which, given the impact of the accrual, we're not too unhappy about to still be able to slightly decrease our leverage while booking that accrual for us is a good outcome for the quarter and gives us a good hope to be able to truly decrease that leverage further in the near future. We look at gross debt. There's not a lot of new news here, so I don't want to dwell out too much on this time.
We talked about it a little bit more last time when we did our refinancing. You can clearly see that we have more cash in hand than we need to spend on, than we would have to spend on paying back debt in the next two years. I think from a financial management point of view, this company is in a solid position. I want to thank again the finance team for doing a good job in a very dynamic year and giving us the possibility to talk about it in this way. I think we're in a solid position here from a debt point of view, from a financing point of view. Now, a few more slides before I come to the end on other stuff than numbers. We've been talking about CVA commercial vehicle aluminum wheels for quite a while.
I am happy to say that for the first time now, we have shown wheels that we produced during the IAA Transportation. That is the world's largest commercial vehicle trade show. It happens every two years in Hannover in Germany. We did that just over a month ago, and I can tell you, the customers were very, very enthusiastic about our products, just like we are. More importantly, on the next slide, you can see that we did not only show product, but we actually inaugurated our plant now officially in Turkey. So the equipment is in place, we are starting producing, and we are homologating product along the way. I would say we are on track to start selling product, start producing and start selling product from this, I would say, state-of-the-art factory.
Not only in Turkey did we integrate a new plant, but we also made use of the momentum to open a new school, Formare. You know we have many Formare schools with many other partners around South America, Latin America. We have this in Brazil, of course, we have it in Argentina, we have it in Mexico, and we rolled out this program two years ago in India. Now we have our first school, let me say, in Europe, close to Europe, we are debuting in Turkey. It was a fantastic momentum to not only open a new plant, which we really believe will be very successful in the future, but couple that with a very nice event, opening of first Formare school in Turkey at the same day. With that, I come to the third quarter 2026 business summary.
I hope we can take away, we had strong operational performance, and the teams are managing through industry dynamics. The industry dynamics are not gone, but we manage through and we deliver results. When there are issues, there are always issues, but we fix them. When there are opportunities, there are also always opportunities, we try to deliver on those as well. The regional momentum we talked about in North America, CV, but also LV aluminum wheels, South America, LV, Europe, very resilient in a flattish and competitive market. We are in a good position in that market. We are taking share sometimes on CV than on LV, but we are doing a good job in this market. Asia, I would say we are accelerating our revenue growth and our profitability growth.
When we do that, we create value for the company and we keep the company on track for what I would say is a positive outlook. With that, I would like to turn it back to Rodrigo for questions and answers.
Hi, guys. Good morning. My first question is about the aluminum wheels factory for commercial vehicles. Can you give us an update on that operation in terms of the expected margin progression, and when do you expect to reach a more normalized level? With that, what can we think in terms of consolidating margins going forward? The second question is on India. It has been of your main highlights. Here, can you walk us through about how the utilization levels in your factories have been evolving? I am just wondering how much room there is for further growth without requiring meaningful CapEx in that region. These are my two questions, guys. Thank you. That was great. Thank you, guys.
Good morning, guys. Pieter, Renato, Rodrigo, thank you for the space, and congratulations on the results. First, one question about North America. We understand that structural components performance in the region was a clear highlight this quarter. I know it is difficult to isolate drivers, but could you help us split how much of the improvement came from market recovery and how much is it the capacity ramp-up that we are seeing? We are seeing some news about still some uncertainty in the region, especially in the U.S., given the EPA change. Just trying to understand what we can think of this region going forward. This is one question, and just a second, a shorter one on non-recurring effects. It is clear that most of the effects this quarter were related to the antitrust provision, and we understand that were some small restructuring costs.
Can we think about a cleaner P&L going forward? Just trying to understand if you are seeing any non-recurring effects in the pipeline for the next quarters. Thank you. Yes, very clear. Thank you.
[Foreign language] Rodrigo. [Foreign language] Just switching to English. Just one question on our side, actually. As we walk into perhaps more FX volatility considering BRL's recent depreciation, it would be great if you guys could remind us, how does the company perceive a potentially weaker BRL moving forward? Is it right to assume that we will be talking about a higher revenue in BRL terms, higher EBITDA, considering that 70%-75% of our revenues comes from external markets, but you also have some debt linked to hard currency. Just trying to understand how does the company perceive the net effect of this BRL recent depreciation? [Foreign language] Renato, [Foreign language] Renato. [Foreign language] Pieter, [Foreign language].
Bom dia, Rodrigo. Obrigada. Bom dia, Pieter and Renato too. Switching to English here as well. Two questions from our side. The first one would be to get into more detail about the light vehicle aluminum wheels that we had a strong performance across different regions. If we could just have more details in a breakdown. What was volume? What was market share gains? Also pricing and the pass-through of aluminum prices and any eventual new business, if you are already supplying to any Chinese OEMs in any region in the world. My other question would be about margin. When we look at the EBITDA level adjusted for the non-recurring in the quarter, we were already pretty close to what is the company's normalized level. We know that the third quarter is a seasonally stronger quarter.
Maybe we could expect some decrease, I mean, the fourth quarter with seasonality. What do you see could be structural drivers for margin in the coming year? Do we have a good match between price and costs already? Do you also see any ramp-ups in any plants that could have a positive impact on margins as well? These are my two points. Thank you. Yes. That was very helpful, Pieter. Thank you.
Yes. Good morning, everyone. Good afternoon for Pieter too. Two questions. The first one on the light vehicle production in India, which increased approximately 21% year-over-year during the quarter. How much of the company's growth in the region was driven by market expansion, and how much can be attributed to market share gains and/or new product launches? The second one, pretty related. With India and the U.S. commercial vehicles representing a growing share of consolidated revenue, should we expect this geographic mix to continue supporting margins over the next few quarters? In other words, how could the company's expansion in Asia and the recovery in the U.S. commercial vehicle market affect profitability going forward? Thank you. It does, Pieter. Thank you so much.
Obrigado, Rodrigo. I'll also switch to English. I have two questions on my side as well. First one, maybe if you could talk a little bit about the outlook for commercial vehicles, but in Brazil, especially given the, let's say, developments in the macroeconomic front. This is a segment that is highly levered, as you know, and correlates a lot to GDP growth. Given the new scenario, should we see a rebound into next year, given 2026 was very low, or again, another lackluster year is the base case? The second question, good to see the resolution of the antitrust case. Maybe this is for Salum. Reading the financial statement, I got the impression that it's not 100% defined yet. I just want to understand if this provision could change or not, or maybe even be reverted.
In other words, what is your confidence level on the amount that was provisioned this quarter, and if it could change, let's say. When is the cash out as well, if there's any expected timing on that end? Thank you so much.