Core Insights - CNH Industrial reported second-quarter 2025 adjusted earnings per share (EPS) of 17 cents, down from 38 cents in the prior-year quarter, but above the Zacks Consensus Estimate of 16 cents [1][10] - Consolidated revenues for the second quarter declined nearly 14% year-over-year to $4.71 billion, exceeding the Zacks Consensus Estimate of $4.53 billion [2] Segment Performance - Agriculture segment net sales fell 17% year-over-year to $3.25 billion due to lower shipment volume, but exceeded the estimate of $3 billion; adjusted EBIT decreased 48% to $263 million, surpassing the estimate of $235.9 million [3] - Construction segment sales declined 13% year-over-year to $773 million, missing the estimate of $803.5 million; adjusted EBIT fell 42% to $35 million, beating the estimate of $23.2 million [4] - Financial Services segment revenues decreased 0.3% to $685 million, surpassing the estimate of $657.7 million; net income from this segment dropped from $91 million to $87 million [5] Financial Overview - As of June 30, 2025, CNH Industrial had cash and cash equivalents of $2.51 billion, down from $3.19 billion at the end of 2024; total debt increased to $27.41 billion from $26.9 billion [6] - The company reported net cash provided by operating activities of $934 million, compared to a net cash used of $515 million in the prior year [6] - Free cash flow from industrial activities was $451 million, up from $140 million in the second quarter of 2024 [7] Guidance for 2025 - CNH Industrial expects Agriculture sales to decrease by 12-20% year-over-year, with adjusted EBIT margin projected between 7-9%; Construction sales are anticipated to decline by 4-15%, with adjusted EBIT margin expected between 2-4% [8] - The company forecasts free cash flow from industrial activities in the range of $100-$500 million and adjusted EPS between 50 cents and 70 cents for 2025 [8][10]

Core Insights - BorgWarner reported adjusted earnings of $1.21 per share for Q2 2025, exceeding the Zacks Consensus Estimate of $1.06 and increasing from $1.19 in the prior-year quarter [1] - The company achieved net sales of $3.64 billion, a 1% year-over-year increase, surpassing the Zacks Consensus Estimate of $3.55 billion [1] Segmental Performance - **Turbos & Thermal Technologies**: Net sales were $1.48 billion, down from $1.5 billion year-over-year, but above the Zacks Consensus Estimate of $1.47 billion. Adjusted operating income rose to $227 million from $224 million, exceeding the estimate of $218 million [2] - **Drivetrain & Morse Systems**: Net sales totaled $1.43 billion, slightly down from $1.44 billion year-over-year, yet above the Zacks Consensus Estimate of $1.41 billion. Adjusted operating income decreased to $260 million from $266 million but surpassed the estimate of $257 million [3] - **PowerDrive Systems**: Sales increased by 25% year-over-year to $581 million, exceeding the Zacks Consensus Estimate of $464 million. The segment reported an adjusted operating loss of $33 million, improved from a loss of $49 million in the same period of 2024 [4] - **Battery & Charging Systems**: Sales were $159 million, down from $193 million year-over-year, missing the Zacks Consensus Estimate of $217 million. The segment incurred an adjusted operating loss of $12 million, wider than the $10 million loss in the previous year but narrower than the estimate of a $17.17 million loss [5] Financial Overview - As of June 30, 2025, BorgWarner had $2 billion in cash and equivalents, down from $2.09 billion at the end of 2024. Long-term debt increased to $3.9 billion from $3.76 billion [6] - Net cash provided by operating activities was $579 million, with capital expenditures totaling $77 million and free cash flow at $507 million [6] Dividend and Buyback - The company declared a quarterly cash dividend of 17 cents per share, a 55% increase from the previous payout, to be paid on September 15, 2025 [7] - BorgWarner also increased its buyback authorization to $1 billion [7] 2025 Guidance - BorgWarner raised its full-year 2025 net sales guidance to a range of $14-$14.4 billion, up from $13.6-$14.2 billion. Adjusted operating margin is now expected to be between 10.1-10.3%, an increase from the previous guidance of 9.6-10.2% [8] - Adjusted earnings per share are now estimated to be in the range of $4.45-$4.65, up from $4-$4.45. Operating cash flow is projected between $1,368-$1,418 million, and free cash flow is expected to be $700-$800 million, an increase from the previous forecast of $650-$750 million [10]

Core Insights - Merck (MRK) reported Q2 2025 adjusted EPS of $2.13, exceeding estimates, but a 7% decline year-over-year on a reported basis due to a $200 million upfront payment for a license agreement with Hengrui Pharma [2][9][17] - Revenues decreased 2% year-over-year to $15.81 billion, aligning with consensus estimates [3][9] Sales Performance of Oncology Drugs - Keytruda sales reached $7.96 billion, a 9% increase, driven by strong uptake in various cancer indications, surpassing estimates [4][9] - Alliance revenues from Lynparza and Lenvima contributed positively, with Lynparza sales up 15% to $370 million and Lenvima revenues totaling $265 million, up 5% [5] Sales Performance of Other Key Products - HPV vaccine sales (Gardasil and Gardasil 9) fell 55% to $1.13 billion due to reduced demand in China, missing estimates [7] - Sales of other vaccines showed mixed results, with Vaxneuvance increasing 20% to $229 million, while Rotateq and Pneumovax 23 saw significant declines [8][10] Animal Health Segment - The Animal Health segment generated $1.65 billion in revenues, an 11% increase year-over-year, driven by higher demand and the inclusion of Elanco aqua business sales [12] Cost and Margin Discussion - Adjusted gross margin improved to 82.2%, up 130 basis points year-over-year, attributed to a favorable product mix [13] - Adjusted R&D spending rose 15% to $3.99 billion, influenced by the upfront payment to Hengrui Pharma and increased compensation costs [14] 2025 Guidance - Merck narrowed its 2025 revenue guidance to $64.3-$65.3 billion, reflecting a less negative currency impact [15] - Adjusted EPS guidance is now between $8.87 and $8.97, accounting for a revised negative impact from foreign exchange [16] Acquisition Plans - Merck announced plans to acquire Verona Pharma for approximately $10 billion, expected to close in Q4 2025, which will enhance its portfolio in chronic obstructive pulmonary disease [19]

Core Insights - Lear Corp. (LEA) reported Q2 2025 adjusted earnings per share of $3.47, exceeding the Zacks Consensus Estimate of $3.23, driven by strong performance in the Seating and E-Systems segments, although down from $3.60 in the same quarter last year [1][9] - Total revenues for the quarter were flat year-over-year at $6.03 billion, surpassing the Zacks Consensus Estimate of $5.89 billion [1][9] Segmental Performance - The Seating segment generated sales of $4.47 billion, slightly up from $4.45 billion year-over-year, and exceeded the Zacks Consensus Estimate of $4.37 billion. Adjusted segment earnings were $298.9 million, down from $302.1 million year-over-year but above the estimate of $276 million, with adjusted margins at 6.7% [2] - The E-Systems segment reported sales of $1.56 billion, a 0.6% decline year-over-year, but still above the Zacks Consensus Estimate of $1.52 billion. Adjusted earnings were $75.8 million, down from $82.2 million year-over-year, yet surpassing the estimate of $67 million, with adjusted margins at 4.9% [3] Performance by Region - North America sales decreased by 1.3% year-over-year to $2.52 billion, exceeding the Zacks Consensus Estimate of $2.44 billion [4] - Europe and Africa region sales fell by 0.39% year-over-year to $2.16 billion, beating the Zacks Consensus Estimate of $2.13 billion [4] - Asia region sales increased by 6.5% year-over-year to $1.14 billion, surpassing the Zacks Consensus Estimate of $1.13 billion [4] Financial Position & Other Tidbits - As of June 28, 2025, the company had $888 million in cash and cash equivalents, down from $1.05 billion at the end of 2024. Long-term debt increased to $2.76 billion [6] - Net cash used in operating activities for the quarter was $296.2 million, with a free cash flow (FCF) of $170.8 million [6] - During the quarter, Lear repurchased 271,117 shares for a total of $25 million, with nearly $1 billion remaining in share repurchase authorization [7] 2025 Guidance - Lear projects full-year net sales between $22.47 billion and $23.07 billion, with core operating earnings expected in the range of $955 million to $1,095 million. Operating cash flow is anticipated to be between $1.01 billion and $1.11 billion, with FCF projected between $420 million and $520 million and capital spending estimated at $590 million [9][10]