The integrated temperature sensor provides precise, real-time monitoring of coolant system conditions to optimize performance and protection in any vehicle. Designed for seamless integration into fluid connectors and tubing, the sensor eliminates the need for separate in-line components, reducing complexity, weight and potential leak paths. Its compact, robust design supports accurate thermal control, improving efficiency and reliability across a wide range of vehicle applications. About the SPE Automotive ...

A month has gone by since the last earnings report for Adient (ADNT) . Shares have lost about 0.1% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Adient due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.Adient Q4 Earnings Miss Exp ...

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]

Core Insights - Allison Transmission Holdings (ALSN) reported Q3 2025 earnings of $1.63 per share, missing the Zacks Consensus Estimate of $1.95 and declining 28% year over year. Quarterly revenues were $693 million, down 16% from the previous year and also below the Zacks Consensus Estimate of $756 million [1][10]. Segment Performance - Net sales in the North America On-Highway end market decreased by 28% year over year to $327 million, missing the Zacks Consensus Estimate of $368 million, primarily due to soft demand for Class 8 vocational and medium-duty trucks [2]. - Outside North America, net sales in the On-Highway end market were $122 million, a decline of 3% from the same quarter in 2024, missing the Zacks Consensus Estimate of $130.83 million due to lower demand in Asia [3]. - Global Off-Highway end market net sales fell to $7 million from $20 million in the prior year, missing the Zacks Consensus Estimate of $17.77 million, attributed to weaker demand from the energy, mining, and construction sectors outside North America [3]. - The Defense end market saw a 47% year-over-year increase in net sales to $78 million, driven by higher demand for tracked vehicle applications and price increases, surpassing the Zacks Consensus Estimate of $60 million [4]. - Net sales in the Service Parts, Support Equipment & Other end markets decreased by 5% year over year to $159 million, missing the Zacks Consensus Estimate of $169 million due to lower demand for aluminum die cast components and support equipment [5]. Financial Position - Gross profit for the quarter was $329 million, down from $396 million in the previous year due to lower volumes and unfavorable direct material costs [6]. - Adjusted EBITDA was $256 million, a decrease from $305 million reported a year ago [6]. - Selling, general and administrative expenses were $82 million, down 4% year over year, while engineering, research, and development expenses decreased to $43 million from $51 million [7]. - Cash and cash equivalents stood at $902 million as of September 30, 2025, an increase from $781 million at the end of 2024. Long-term debt remained unchanged at $2.39 billion [7]. - Net cash provided by operating activities totaled $228 million, with adjusted free cash flow at $184 million, down from $210 million generated a year ago [8]. 2025 Outlook - The company revised its full-year 2025 outlook, now expecting net sales between $2.975 billion and $3.025 billion, down from the previous projection of $3.075 billion to $3.175 billion. Net income is anticipated in the range of $620 million to $650 million, compared to the prior estimate of $640 million to $680 million [11]. - Adjusted EBITDA is now expected to be between $1.09 billion and $1.13 billion, down from the previous estimate of $1.13 billion to $1.18 billion [11]. - Net cash provided by operating activities is projected to be between $765 million and $795 million, with capital expenditures estimated at $165 million to $175 million. Adjusted free cash flow is now expected to be between $600 million and $620 million, down from the previous range of $620 million to $660 million [12].

Core Insights - Allison Transmission reported quarterly earnings of $1.63 per share, missing the Zacks Consensus Estimate of $1.95 per share, and down from $2.27 per share a year ago, representing an earnings surprise of -16.41% [1] - The company posted revenues of $693 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 8.32%, and down from $824 million year-over-year [2] - Allison Transmission shares have declined approximately 24% year-to-date, contrasting with the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.74 on revenues of $739.65 million, while for the current fiscal year, the estimate is $8.13 on revenues of $3.08 billion [7] - The estimate revisions trend for Allison Transmission was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Automotive - Original Equipment industry, to which Allison Transmission belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, Cooper-Standard, is expected to report quarterly earnings of $0.50 per share, reflecting a year-over-year increase of +173.5% [9]

Core Insights - Asbury Automotive (ABG) reported Q3 2025 adjusted earnings per share of $7.17, exceeding the Zacks Consensus Estimate of $6.80 and up from $6.35 in the previous year, driven by strong gross profits from new vehicle sales, finance and insurance, and parts and service [1][9] - Total revenues for the quarter reached $4.80 billion, marking a nearly 13% year-over-year increase and surpassing the Zacks Consensus Estimate of $4.69 billion [1][9] Segment Performance - New vehicle revenues increased by 17% year over year to $2.53 billion, exceeding the Zacks Consensus Estimate of $2.44 billion, supported by a higher number of units sold, totaling 48,070 (up 13% year over year) [2] - The average selling price (ASP) for new vehicles was $52,609, up 4% year over year, also beating the consensus mark of $52,259 [2] - Gross profit from new vehicle sales was $161 million, a 7% increase from the prior year, surpassing the Zacks Consensus Estimate of $157 million [2] Used Vehicle Performance - Used vehicle retail revenues rose 7% year over year to $1.23 billion but fell short of the Zacks Consensus Estimate of $1.24 billion due to lower unit sales, totaling 37,696 (up 1% year over year) [3] - The ASP for used vehicles was $32,543, up 6% year over year, exceeding the consensus estimate of $31,576 [3] - Gross profit from used vehicles was $61.5 million, a 10% year-over-year increase, but missed the Zacks Consensus Estimate of $63 million [3] Wholesale and Finance Performance - Revenues from the used vehicle wholesale business increased by 27% to $185.5 million, beating the consensus mark of $160 million, although gross profit of $3.8 million fell short of the estimate of $4.15 million [4] - Net revenues from the finance and insurance business reached $200.3 million, an 8% increase year over year, surpassing the Zacks Consensus Estimate of $187 million [5] - Gross profit from finance and insurance was $187.1 million, up 9% year over year, exceeding the consensus estimate of $178 million [5] Parts and Service Performance - Revenues from the parts and service business were $659.4 million, up from $593.1 million in the prior year but missed the Zacks Consensus Estimate of $661 million [6] - Gross profit from this segment was $389.1 million, surpassing the consensus mark of $388 million and reflecting a 9% year-over-year increase [6] Financial Metrics - Selling, general & administrative expenses as a percentage of gross profit rose to 65.7%, an increase of 70 basis points year over year [7] - As of September 30, 2025, the company had cash and cash equivalents of $32.2 million, down from $69.4 million as of December 31, 2024, with long-term debt increasing to $3.6 billion from $3.14 billion [7]

Core Insights - Group 1 Automotive (GPI) reported Q3 2025 adjusted earnings per share (EPS) of $10.45, missing the Zacks Consensus Estimate of $10.64 but increasing by 5.6% year over year [1][10] - The company achieved net sales of $5.8 billion, exceeding the Zacks Consensus Estimate of $5.63 billion and up from $5.2 billion in the same quarter last year [1][10] Q3 Highlights - New vehicle retail sales rose 9.3% year over year to $2.81 billion, surpassing projections of $2.78 billion, with total retail new vehicles sold at 57,269 units, a 6.5% increase year over year [2] - Used-vehicle retail sales increased by 11.8% to $1.85 billion, exceeding the forecast of $1.80 billion, with total retail used vehicles sold at 59,574 units, up 6.6% year over year [3] - Average selling prices for new and used vehicles increased by 5% year over year, reaching $50,816 and $31,112 respectively [2][3] Segment Performance - U.S. business segment revenues grew 6.5% year over year to $4.28 billion, exceeding the forecast of $4.10 billion, with gross profit rising 5.4% to $715 million [5] - The U.K. business segment saw revenues jump 20.4% year over year to $1.50 billion, although it missed the estimate of $1.51 billion, with gross profit increasing 17.3% to $204.7 million [6] Financial Position - Selling, general and administrative expenses rose 10.7% year over year to $654.9 million [7] - Cash and cash equivalents decreased to $30.8 million from $34.4 million as of December 31, 2024, while total debt increased to $3.47 billion from $2.91 billion [7] Share Repurchase - During the quarter, GPI repurchased 185,788 shares at an average price of $443.18 per share, totaling $82.5 million, with $226.3 million remaining on its authorized stock buyback program [8]