For those looking to find strong Auto-Tires-Trucks stocks, it is prudent to search for companies in the group that are outperforming their peers. Has BorgWarner (BWA) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.BorgWarner is one of 103 companies in the Auto-Tires-Trucks group. The Auto-Tires-Trucks group currently sits at #12 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measu ...

Core Insights - Cooper-Standard reported fourth-quarter 2025 sales of $672 million, a 1.8% increase from the previous year, driven by favorable foreign exchange effects that offset production volume reductions due to customer supply chain disruptions [1][8] - The company achieved its best operational performance in history in 2025, with significant improvements in safety, quality, and cost efficiency despite late-year production disruptions [3][6] Financial Performance - Fourth-quarter adjusted EBITDA decreased to $34.9 million (5.2% of sales) from $54.3 million (8.2% of sales) due to customer production disruptions and inflationary pressures [5][6] - For the full year 2025, sales totaled $2.74 billion, up 0.4% from 2024, with adjusted EBITDA rising to $209.7 million from $180.7 million in 2024 [8][9] - GAAP net loss improved to $4.2 million from a loss of $78.7 million in 2024, while adjusted net loss was $30.9 million, or $1.73 per diluted share [10][7] Cost Management and Efficiency - The company generated $64 million in savings from plant efficiency improvements and lean supply-chain initiatives, alongside an additional $18 million from salaried reductions [2][6] - Operating income improved by 24% year-over-year, despite facing inflationary headwinds and production disruptions [2][6] Future Outlook - Management anticipates approximately 3% sales growth and aims for a double-digit EBITDA margin in 2026, supported by $298 million in net new business, primarily related to electric and battery platforms [4][15] - The company expects revenue from Chinese OEMs to exceed 60% of its China revenue by 2030, with a projected compound annual growth rate of over 15% from 2025 to 2028 [17][16] Business Development - Cooper-Standard reported $298 million in net new business awards in 2025, with 74% related to value-add innovation and battery platforms [16][17] - The company has identified over 90% of its cost improvement commitments for 2026, marking the highest level in a decade [18] Operational Highlights - The company achieved a safety incident rate of 0.24 per 200,000 hours worked, below the world-class benchmark of 0.47, with 31 plants finishing the year with zero reportable incidents [2][6] - The top 10 programs for 2026 are expected to represent about 45% of planned revenue, with seven of those programs offering multiple powertrain options to mitigate risks [19]

Core Insights - The company reported strong operational performance in 2025, achieving a record operational performance despite facing inflationary pressures and supply chain disruptions [1][5] - The company received $298 million in net new business awards in 2025, which is expected to support profitable growth in the coming years [1][27] - The company achieved a 24% improvement in operating income for the year due to efficiency improvements and cost savings [2] Financial Performance - Fourth quarter 2025 sales reached $672 million, a 1.8% increase from 2024, despite production disruptions [7] - Full year 2025 sales totaled $2.74 billion, a 0.4% increase compared to 2024, driven by favorable foreign exchange and customer pricing adjustments [9][10] - Adjusted EBITDA for the full year 2025 was $209.7 million, up from $180.7 million in 2024, reflecting improved efficiencies and cost savings [10] Safety and Operational Excellence - The company achieved a safety incident rate of 0.24 per 200,000 hours worked in 2025, surpassing the previous best and well below the world-class benchmark [3] - 31 plants completed the year with a perfect safety record of zero reportable incidents, affirming the company's commitment to safety [3] Strategic Outlook - The company expects to continue building on its successes in 2025 to drive margin expansion and value for stakeholders in 2026 and beyond [5] - The company is optimistic about its growth strategy, particularly in the Fluid Handling Systems and Sealing Systems segments, with a focus on geographic expansion and innovation [21][22] - The company anticipates that revenue from Chinese OEMs will grow significantly, aiming to increase their share of total revenue from 36% to over 60% by 2030 [24][57] Cash Flow and Liquidity - The company ended 2025 with strong free cash flow of $44.6 million in the fourth quarter and positive free cash flow for the full year of $16.3 million [15] - Total liquidity at year-end was over $352 million, with cash on hand of $191.7 million and an undrawn revolving credit facility of $160.9 million [16][17] New Business and Innovation - The company received nearly $300 million in net new business awards in 2025, with 74% related to value-add innovations and battery electric or hybrid vehicle platforms [27][28] - The company expects to triple total sales to Chinese OEMs over the next five years, leveraging established relationships and technology [26][60]

Group 1 - The core viewpoint of the article indicates that U.S. light vehicle sales are projected to decline by 2.5% in 2026, totaling 15.89 million units, primarily due to cautious consumer behavior and potential price increases by automakers [1] - The electric vehicle (BEV) market is experiencing a significant slowdown after an initial surge at the beginning of the year, attributed to a "pull-forward" effect where demand was accelerated to take advantage of federal tax incentives before they expire [1] - The report highlights that the affordability of vehicles remains a core issue suppressing overall market momentum, with high purchase costs over the past two years continuing to weaken market growth [1] Group 2 - The article lists several automotive companies as key players in the industry, including Toyota, Tesla, General Motors, Honda, Ferrari, Ford, Nissan, Mercedes-Benz, Volkswagen, BMW, Stellantis, Rivian, and Subaru [2] - It also identifies various parts manufacturers as significant entities, such as Adient, Allison Transmission, American Axle & Mfg, Aptiv, Autoliv, BorgWarner, and others [2]

Core Insights - Cooper-Standard Holdings Inc. has been recognized as a finalist for the 2025 Society of Plastics Engineers (SPE) Automotive Innovation Award for its quick connector with an integrated temperature sensor used in a General Motors electric vehicle [1][2] Group 1: Innovation and Design - The quick connector innovation integrates a coolant temperature sensor directly into the plastic connector, combining two components into one modular solution, which reduces part count and eliminates potential leak paths [2][3] - This design improves assembly efficiency and reliability while also reducing packaging space in the powertrain environment [2][3] Group 2: Benefits and Performance - The integrated temperature sensor allows for precise, real-time monitoring of coolant system conditions, optimizing performance and protection in vehicles [3] - The compact and robust design of the sensor supports accurate thermal control, enhancing efficiency and reliability across various vehicle applications [3] Group 3: Company Overview - Cooper Standard is a leading global supplier of sealing and fluid handling systems, headquartered in Northville, Michigan, with operations in 20 countries [5] - The company employs approximately 22,000 team members and focuses on creating innovative and sustainable engineered solutions for diverse transportation and industrial markets [5]

Core Viewpoint - Adient's recent earnings report shows a mixed performance, with adjusted EPS falling short of expectations while net sales exceeded estimates, raising questions about future performance leading up to the next earnings release [1][2]. Financial Performance - Adient reported adjusted EPS of 52 cents for Q4 fiscal 2025, down from 68 cents in the same period last year and below the Zacks Consensus Estimate of 55 cents [2]. - The company generated net sales of $3.69 billion, a 3.5% year-over-year increase, surpassing the Zacks Consensus Estimate of $3.63 billion [2]. Segmental Performance - The Americas segment recorded revenues of $1.79 billion, a 3.9% increase year-over-year, exceeding the Zacks Consensus Estimate of $1.76 billion, but adjusted EBITDA fell to $111 million from $116 million due to unfavorable net commodity costs [4]. - The EMEA segment achieved revenues of $1.15 billion, also up 3.9% year-over-year, surpassing the Zacks Consensus Estimate of $1.1 billion, with adjusted EBITDA rising to $31 million from $28 million [5]. - The Asia segment reported revenues of $783 million, up from $765 million in the previous year, exceeding the Zacks Consensus Estimate of $771 million, but adjusted EBITDA decreased to $106 million from $112 million due to lower equity income and unfavorable volume/mix [6]. Financial Position - As of September 30, 2025, Adient had cash and cash equivalents of $958 million, an increase from $945 million a year earlier, while long-term debt stood at $2.39 billion [7]. - Capital expenditures totaled $79 million, up from $72 million in the prior-year quarter [7]. Guidance for FY26 - Adient projects fiscal 2026 revenues to be $14.4 billion, a decrease from $14.54 billion in fiscal 2025, with adjusted EBITDA estimated at $845 million, down from $881 million [8]. - Free cash flow is anticipated to be $90 million, with capital expenditures estimated at $300 million [8]. Estimate Trends - Estimates for Adient have trended downward over the past month, with a significant shift of -58.02% in consensus estimates [9][10]. VGM Scores - Adient currently holds a Growth Score of B, a Momentum Score of D, and a Value Score of A, resulting in an aggregate VGM Score of A, indicating strong value potential [11]. Industry Performance - Adient operates within the Zacks Automotive - Original Equipment industry, where competitor Cooper-Standard has seen a 4.6% gain over the past month, despite reporting a loss of $0.24 per share compared to a loss of $0.68 a year ago [13].

Group 1 - Cooper-Standard (CPS) reported disappointing Q3 earnings, with revenue and earnings falling below guidance [1] - Management has reduced the revenue and adjusted EBITDA guidance for 2025 due to production disruptions at Ford [1] Group 2 - The article reflects a long-term investment strategy focused on identifying companies with high potential for revenue and earnings growth [1] - The author emphasizes a preference for investing in less cyclical and higher growth sectors, with a geographical bias towards the United States [1]

Core Insights - The company continues to achieve profitable growth and margin expansion despite market headwinds, with $96 million in net new business awards in 2025, totaling nearly $229 million for the first nine months [1][20] - Safety performance is highlighted, with 60% of production facilities achieving a perfect safety score and a total incident rate of 0.28, significantly below the world-class benchmark [2][3] - Financial results for Q3 2025 show sales of $695.5 million, a 1.5% increase from 2024, and an adjusted EBITDA of $53.3 million, up 15.6% year-over-year [5][6] Financial Performance - Gross margin improved by 140 basis points to 12.5% of sales in Q3 2025, driven by cost optimization and revenue growth [5][6] - Adjusted net loss for Q3 2025 was $4.4 million, a significant improvement from a loss of $12 million in 2024 [7] - For the first nine months of 2025, adjusted EBITDA increased by over $48 million or more than 38% compared to the same period in 2024 [11][12] Operational Efficiency - The company achieved $18 million in savings through lean initiatives and cost-saving programs in Q3 2025 [2][9] - 97% of new program launches are performing well, with 99% of customer scorecards for quality and service rated green [3][4] - The company maintains a disciplined approach to capital expenditures, totaling $11.2 million or 1.6% of sales in 2025 [7][14] Strategic Outlook - The company is focused on expanding relationships with fast-growing Chinese OEMs, which presents significant growth opportunities [21][22] - 87% of new business awards are related to value-add innovations, particularly in battery electric and hybrid vehicle platforms [20][21] - Despite anticipated production volume headwinds in Q4 2025, the company expects to achieve positive free cash flow for the full year [14][24] Challenges and Adjustments - The company is facing temporary production disruptions due to supply chain issues, particularly affecting aluminum supply for a major customer [23][24] - Full-year guidance for sales and adjusted EBITDA has been revised downward to reflect these expected impacts [25][26] - The company remains optimistic about the underlying demand for new light vehicles and plans to maintain operational excellence [24][26]

Core Insights - U.S. stock futures showed a mostly positive trend, with Nasdaq futures increasing by over 1% on Friday [1] - Roku Inc experienced a significant decline in pre-market trading following its third-quarter earnings report [1] Company Performance - Roku reported third-quarter net revenue of $1.211 billion, reflecting a 14% year-over-year increase, surpassing the Street consensus estimate of $1.206 billion [2] - The company's platform revenue reached $1.06 billion, up 17% year-over-year, while devices revenue fell to $146 million, down 5% year-over-year [2] - Roku shares dropped 5% to $94.99 in pre-market trading following the earnings announcement [2] Other Company Movements - SPS Commerce Inc saw a 32.1% decline in pre-market trading to $70.57 after mixed third-quarter results and lower fourth-quarter guidance [4] - Corbus Pharmaceuticals Holdings Inc's shares fell 16.4% to $13.74 due to a public offering announcement [4] - Onespan Inc's shares decreased by 16.1% to $13.02 after reporting disappointing third-quarter sales and lowering FY25 guidance [4] - Savers Value Village Inc's shares dipped 15% to $11.25 following worse-than-expected third-quarter sales and lowered FY25 GAAP EPS guidance [4] - GSI Technology, Inc. shares fell 14.1% to $9.50 after second-quarter results [4] - Newell Brands Inc's shares declined 13.1% to $4.10 due to downbeat third-quarter results and lowered FY25 guidance [4] - DexCom Inc's shares dropped 12.1% to $59.97 after announcing third-quarter results [4] - Site Centers Corp's shares declined 11.2% to $7.44 ahead of its third-quarter earnings release [4] - Aptiv PLC and Ventas Inc saw declines of 7.6% to $75.88 and 7.5% to $68.77, respectively [4] - Cooper-Standard Holdings Inc's shares fell 6.3% to $33.52 after reporting disappointing third-quarter results and lowering FY25 sales guidance [4]

Core Insights - BorgWarner (BWA) reported adjusted earnings of $1.24 per share for Q3 2025, exceeding the Zacks Consensus Estimate of $1.16 and up from $1.09 in the prior-year quarter, driven by strong performance in the Turbos & Thermal Technologies segment [1][10] - The company reported net sales of $3.59 billion, a 4.1% year-over-year increase, but fell short of the Zacks Consensus Estimate of $3.63 billion [1] Segment Performance - **Turbos & Thermal Technologies**: Net sales reached $1.44 billion, up from $1.39 billion year-over-year, surpassing the Zacks Consensus Estimate of $1.38 billion. Adjusted operating income increased to $219 million from $202 million, exceeding the estimate of $213.3 million [2] - **Drivetrain & Morse Systems**: Net sales were $1.45 billion, up from $1.37 billion year-over-year, beating the Zacks Consensus Estimate of $1.36 billion. Adjusted operating income rose to $267 million from $251 million but missed the estimate of $299.4 million [3] - **PowerDrive Systems**: Sales totaled $582 million, an increase from $512 million year-over-year, but missed the Zacks Consensus Estimate of $670 million. The segment reported an adjusted operating loss of $35 million, wider than the loss of $19 million in the prior year [4] - **Battery & Charging Systems**: Sales were $132 million, down from $197 million a year ago, missing the Zacks Consensus Estimate of $172 million. The segment incurred an adjusted operating loss of $7 million, which was narrower than the loss of $8 million in the previous year [5] Financial Overview - As of September 30, 2025, BorgWarner had $2.17 billion in cash and equivalents, up from $2.09 billion at the end of 2024. Long-term debt increased to $3.9 billion from $3.8 billion [6] - Net cash provided by operating activities was $368 million, with capital expenditures totaling $111 million and free cash flow at $266 million [6] 2025 Guidance - The company revised its full-year 2025 net sales guidance to a range of $14.1-$14.3 billion, down from the previous estimate of $14-$14.4 billion. Adjusted operating margin is now expected to be between 10.3-10.5%, an increase from the earlier guidance of 10.1-10.3% [7] - Adjusted earnings per share are now estimated to be in the range of $4.60-$4.75, up from $4.45-$4.65. Operating cash flow is forecasted to be between $1,434-$1,484 million, an increase from the prior range of $1,368-$1,418 million. Free cash flow is projected to be $850-$950 million, up from the previous forecast of $700-$800 million [8]