Financial Data and Key Metrics Changes - Sales for Q3 2025 were $1.917 billion, an increase of $20 million compared to Q3 2024, reflecting currency recoveries offsetting lower demand [12] - Adjusted EBITDA improved by $51 million year-over-year to $162 million, with a margin expansion of 260 basis points to 8.5% due to cost-saving actions and operational efficiencies [12][13] - EBIT improved significantly to $53 million from a loss of $8 million in the prior period, while net income attributable to Dana was $13 million compared to a loss of $21 million in Q3 2024 [12][13] Business Line Data and Key Metrics Changes - Volume and mix in Q3 2025 were $66 million lower, driven by lower demand in commercial vehicle markets, partially offset by higher sales in light vehicles [14] - Cost savings contributed $73 million in profit, bringing the total to $183 million year-to-date, with an increased target of $235 million for the full year 2025 [16][18] Market Data and Key Metrics Changes - Commercial vehicle demand in North America is deteriorating, with a current annualized run rate of around 200,000 units, and no signs of improvement expected until mid-2026 [30][90] - Light vehicle demand remains stable, with production disruptions having minimal impact on light vehicle system sales [10][12] Company Strategy and Development Direction - The company is focused on restructuring initiatives that are expected to turn from headwinds to tailwinds, with an emphasis on cost-saving measures and operational improvements [5][10] - The off-highway divestiture is on track to close in Q4 2025, with most regulatory approvals received [8][10] - The company plans to continue investing in automation and efficiency improvements to enhance margins and shareholder value [60][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the full-year guidance, with an expectation of improved performance in Q4 driven by cost-saving initiatives and better product mix [18][84] - The outlook for commercial vehicles remains cautious, with no immediate signs of recovery, while light vehicle programs are expected to drive volume growth [30][48] Other Important Information - The company repurchased approximately 9.5 million shares, representing 7% of outstanding shares, and plans to complete the share repurchase program soon [9] - Adjusted free cash flow for Q3 2025 was $101 million, a $109 million improvement year-over-year, driven by higher profitability and better working capital management [17] Q&A Session Summary Question: Impact of tariff policy changes on U.S. OEMs - Management noted that U.S. OEMs are likely benefiting more from recent tariff policy changes compared to European counterparts, as the rebate is based on vehicles assembled in the U.S. [26][27] Question: Deterioration in commercial vehicle market - Management indicated no signs of improvement in the commercial vehicle market, expecting a soft market through mid-2026 [30] Question: Drivers of Q4 performance - Management highlighted continued cost-saving improvements and better product mix as key drivers for expected Q4 performance [36][38] Question: Performance drivers and pricing improvements - Management confirmed that pricing improvements and new platform launches are contributing to performance, with a focus on productivity and efficiency [44][46] Question: Backlog and EV program cancellations - Management acknowledged that the backlog has been impacted by EV program cancellations, but expects increases in internal combustion engine (ICE) programs [107][108]