Company Overview - China Yuchai International Limited (CYD) holds a 76.4% equity interest in Guangxi Yuchai Machinery Company Limited (GYMCL)[9] - Yuchai has a total engine production capacity of 600,000 units per annum[11] - Yuchai has over 3,000 domestic service stations throughout China[11] Market and Sales - China's GDP is targeted to grow approximately 5% for 2025[20] - In 2024, commercial vehicle industry unit sales reached 1 million, a YoY decrease of 9.9%[20] - In 2024, total truck sales increased by 15% YoY, with the HD segment accounting for 43% of total truck sales[24] - In 2024, total bus sales approximated 300,000 units, an increase of 28% YoY[24] - China Yuchai's total unit sales in 2024 (excluding NEV) were 344,486 units[31] Financial Performance - In 2024, the company's revenue reached RMB 19.1 billion[128] - The gross profit percentage in 2024 was 14.7%[136] - The profit after tax in 2024 was RMB 0.5 billion[136] - As of 2024, the company's cash and bank balance was RMB 6.4 billion[137] - In 2024, a share buyback was conducted for approximately US$ 39.8 million[142]

Financial Data and Key Metrics Changes - Year-on-year revenue growth of 7.8% and adjusted EBITDA growth of 15.7% were reported for the second quarter [5][19] - Net sales for the second quarter were $173 million, up from $160 million, reflecting both organic and acquisition-related growth [16] - Adjusted EBITDA increased to $39.9 million, with an adjusted EBITDA margin of 23.1%, a 160 basis point improvement [19][20] Business Line Data and Key Metrics Changes - In-ground pool sales were $79 million, down 2.9%, impacted by adverse weather conditions [17] - Cover sales increased to $37 million, reflecting a 46% growth due to acquisitions and organic growth [17] - Liner sales grew by 5.8% to $57 million, driven by the adoption of the proprietary AI measuring tool [17][18] Market Data and Key Metrics Changes - Fiberglass pools are projected to account for approximately 75% of in-ground pool sales for the full year [6] - The company expects fiberglass pools to gain another 1% market penetration in 2025 [7] - The Sand States (Florida, Texas, Arizona, California) represent a substantial growth opportunity, accounting for two-thirds of annual new pool starts in the U.S. [12] Company Strategy and Development Direction - The company is focused on increasing awareness and adoption of fiberglass pools and auto covers, particularly in the Sand States [12][14] - Recent acquisitions have strengthened the margin profile and contributed to sales growth [6][22] - Lean manufacturing and value engineering initiatives are expected to drive production efficiencies and margin improvements [6][14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the second half of the year despite challenging market conditions [24] - The company reconfirmed its 2025 guidance of 8% net sales growth and 19% adjusted EBITDA growth at the midpoint [23][24] - Management noted that the current pool market is in a trough period, with expectations of a rebound as conditions improve [26] Other Important Information - The company has integrated recent acquisitions fully and is seeing anticipated benefits in sales and margins [22] - The balance sheet remains strong, with cash of $27 million at the end of the quarter and a net debt leverage ratio of 3.0 [20][21] - The company plans to invest between $27 million to $33 million in capital expenditures for 2025 [21] Q&A Session Summary Question: How is the company measuring success in marketing campaigns? - Management indicated that the focus is on driving brand awareness and dealer capacity, with significant increases in website activity and leads generated from marketing efforts [34][36] Question: Update on the Sand State strategy? - Management reported good progress in recruiting new dealers and entering master plan communities, with expectations for increased revenue from these markets [38][41] Question: Were fiberglass pool sales affected by weather? - Management confirmed that fiberglass pool sales were impacted but showed a positive trajectory in June and July as weather improved [46][48] Question: What is the outlook for gross margins? - Management expressed satisfaction with the gross margin performance, attributing improvements to acquisitions and lean manufacturing initiatives [49][50] Question: How is labor availability affecting installation? - Management noted no issues with labor availability for fiberglass pool installations, highlighting the efficiency of fiberglass compared to traditional materials [70][72] Question: What are the capital allocation priorities going forward? - Management outlined priorities as investing in the business, pursuing M&A opportunities, and debt repayment [88][90]

Financial Performance - Latham Group reported net sales of $172.6 million for Q2 2025, an increase of $12.5 million or 7.8% from $160.1 million in Q2 2024, driven by both organic and acquisition-related growth [6][7] - Gross profit for Q2 2025 was $64.0 million, up 20.6% from $53.0 million in the prior year, with a gross margin expansion of 400 basis points to 37.1% [9][10] - Net income for Q2 2025 was $16.0 million, or $0.13 per diluted share, compared to $13.3 million, or $0.11 per diluted share in Q2 2024 [11][12] Product Line Performance - In-ground swimming pools generated $78.6 million in sales for Q2 2025, a slight decrease from $80.9 million in Q2 2024, while covers sales increased by 46% to $37.2 million [9][10] - Liner sales grew by 6% year-over-year, contributing to the overall growth in Q2 [4][9] - Fiberglass pools are projected to represent approximately 75% of the company's full-year 2025 in-ground pool sales, supported by targeted marketing initiatives [3][4] Strategic Initiatives - The company is focusing on increasing awareness and adoption of fiberglass pools and autocovers, particularly in the Sand State markets, which has led to a significant increase in dealer additions [2][3] - Marketing campaigns have successfully driven substantial increases in website traffic and consumer engagement in key target locations [3][4] - The acquisition of Coverstar businesses has contributed to the growth in autocover sales and overall market presence [4][5] Margin and Expense Management - Adjusted EBITDA for Q2 2025 was $39.9 million, reflecting a 15.7% increase from $34.5 million in Q2 2024, with an adjusted EBITDA margin of 23.1% [12][16] - Selling, general, and administrative expenses rose to $31.9 million, primarily due to increased marketing and personnel investments related to the Sand State strategy [10][15] Outlook and Guidance - The company reaffirms its full-year guidance of 8% net sales growth and 19% adjusted EBITDA growth at the midpoints, driven by category share gains in fiberglass pools, autocovers, and liners [19][22] - Latham anticipates approximately 60,000 new U.S. pool starts in 2025, aligning with original estimates despite challenging market conditions [19][20]

Summary of Latham's Conference Call Company Overview - Latham is a leading producer of inground residential pools, specializing in fiberglass pools, vinyl liners, and pool covers [2][4] - The company is the largest manufacturer of inground swimming pools in North America, Australia, and New Zealand [4] Industry Insights - Fiberglass pools are gaining market share over concrete pools due to lower costs and faster installation [2][12] - The U.S. market for inground pools is currently at 62,000 pools sold in 2024, with expectations of a flat market in 2025 [15][42] - Fiberglass pools represent 23% of all pools installed in the U.S., a number that has increased from 16% in 2019 [14][48] - The company holds a 50% market share in the fiberglass category and is the market leader in other categories with shares of 30-40% [6][7] Growth Strategies - Focus on expanding market share in the "sand states" (Florida, Texas, Arizona, California) where fiberglass pools are underrepresented [4][8] - Strategic priorities include increasing customer awareness, expanding the dealer base, and tailoring products to regional market needs [9][24][30] - The company aims to increase fiberglass pool adoption in the sand states, leveraging demographic similarities to Australia, where fiberglass pools hold a 70% market share [23][24] Financial Performance - The company has implemented restructuring projects to improve operating efficiencies and reduce costs [5][41] - Guidance for 2025 includes an 8% increase in net sales, driven by organic growth and contributions from recent acquisitions [42][43] - EBITDA is projected to increase by 19% compared to 2024, with a target of $95 million in EBITDA for 2025 [44] Market Dynamics - The company has seen a consistent annual conversion rate of 100 basis points towards fiberglass pools [48] - Tariffs are expected to create a $20 million headwind in 2025, but the company has mitigated some of this impact through supply chain strategies and price increases [50][51] - There are no significant cancellations or delays reported, as current installations are based on long-term decisions made by cash buyers [52] Key Takeaways - Latham is well-positioned for growth in the fiberglass pool market, particularly in underrepresented regions - The company is actively managing costs while pursuing strategic growth initiatives - Financial projections indicate a strong outlook for the coming years, despite market challenges and external pressures like tariffs [41][44]

Market Position and Strategy - Latham is the largest manufacturer of in-ground swimming pools in North America, Australia, and New Zealand[6] - The company holds the number one share in every subcategory in which it competes[8] - A key strategic priority is accelerating fiberglass share gain in the Sand States[20] - The company aims to outperform the market and achieve significant long-term growth in Net Sales & Adjusted EBITDA[20] Product Portfolio and Market Share - In-Ground Swimming Pools account for 51% of net sales, Liners 23%, and Covers 26%[8] - Fiberglass constitutes 75% of Latham's fiberglass pool sales, while Packaged Pools make up 25%[10] - Latham holds approximately 50% share of the fiberglass category in North America[9] - Replacement sales account for 51% of Liners & Covers sales[12] Financial Outlook - The company's full year 2025 outlook projects net sales between $535 million and $565 million, representing 8% year-over-year growth at the midpoint[49] - Adjusted EBITDA for 2025 is projected to be between $90 million and $100 million, a 19% year-over-year increase at the midpoint[49]

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $111.4 million, slightly above $110.6 million in Q1 2024, reflecting positive momentum in fiberglass pools and auto covers [18] - Gross margin increased by 190 basis points to approximately 30% from 28% in the prior year, driven by lean manufacturing and value engineering initiatives [19][20] - SG&A expenses rose to $31 million, up from $26 million in Q1 2024, primarily due to strategic investments in sales and marketing [20] - Net loss narrowed to $6 million or $0.05 per diluted share from a net loss of $8 million or $0.07 per diluted share in the prior year [20] Business Line Data and Key Metrics Changes - Inground pool sales were $58 million, down 4% from Q1 2024, impacted by soft industry conditions and adverse weather [19] - Cover sales increased by 18% to $32 million, benefiting from organic growth and acquisitions [19] - Liner sales decreased by 8% to $22 million compared to Q1 2024 [19] Market Data and Key Metrics Changes - Fiberglass pools are expected to gain an additional 1% market share in the in-ground pool sector in 2025, driven by cost advantages and eco-friendly attributes [6][7] - Labor scarcity is seen as a tailwind for fiberglass pools due to lower labor intensity compared to concrete pools [8] Company Strategy and Development Direction - The company is focusing on expanding its presence in Florida, Texas, Arizona, and California, which account for about two-thirds of annual new pool starts [13] - Key priorities include expanding the dealer base, targeting master plan communities, aligning product offerings with market demand, and targeted marketing campaigns [13] - The company aims to significantly increase its market share in the Sand States through strategic partnerships and new product launches [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the market, noting a slight improvement in industry conditions compared to the previous year, but still expecting trough market conditions to persist in 2025 [5][23] - The company maintains its revenue growth expectation of 8% for 2025, with approximately 5% organic growth and 3% from acquisitions [23] Other Important Information - The company has implemented targeted price increases to mitigate the impact of tariffs on raw materials, which represent about 15% to 20% of the materials used in manufacturing [22] - The company is confident in its ability to offset raw material cost increases through strategic pre-purchasing and operational adjustments [22] Q&A Session Summary Question: Outlook for margin expansion and SG&A leverage - Management indicated that SG&A leverage is expected to increase as year-over-year growth sets in, with sales projected to increase by about 8% [27] Question: Reaction to new molds and marketing efforts in Sand States - Management reported positive trends in sales and strong progress in aligning with builders in the Sand States, with expectations for continued improvement [29][30] Question: Risks and opportunities in fiberglass pool demand - Management noted that while fiberglass pools can be installed quickly, the buying decision is a longer process, and they have not seen any slowdown in trends [36][39] Question: Impact of tariffs on pricing and margins - Management quantified the tariff headwind at approximately 350 to 400 basis points, with pricing increases aimed at mitigating the remaining impact [41][42] Question: Strength in auto covers and organic growth - The auto cover business outperformed primarily due to acquisitions, but there was also a positive organic impact [76] Question: Demand environment and potential marketing expense adjustments - Management plans to maintain marketing expenses as part of a long-term strategy, despite potential fluctuations in discretionary spending [78][81]

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $111.4 million, slightly above $110.6 million in Q1 2024, reflecting positive momentum in fiberglass pools and auto covers [18] - Gross margin increased by 190 basis points to approximately 30% compared to 28% in the prior year, driven by lean manufacturing and value engineering initiatives [19][20] - SG&A expenses rose to $31 million, up from $26 million in Q1 2024, primarily due to strategic investments in sales and marketing [20] - Net loss narrowed to $6 million or $0.05 per diluted share from a net loss of $8 million or $0.07 per diluted share in the prior year [20] Business Line Data and Key Metrics Changes - Inground pool sales were $58 million, down 4% from Q1 2024, impacted by soft industry conditions and adverse weather [19] - Cover sales increased by 18% to $32 million, benefiting from organic growth and acquisitions [19] - Liner sales decreased by 8% to $22 million compared to the first quarter of 2024 [19] Market Data and Key Metrics Changes - Fiberglass pools are expected to gain an additional 1% market share in the inground pool sector in 2025 due to cost advantages and easier installation compared to concrete pools [6][7] - Labor scarcity is seen as a tailwind for fiberglass pools, with 46% of pool builders citing limited access to qualified labor as a significant issue [8] Company Strategy and Development Direction - The company is focusing on expanding its presence in Florida, Texas, Arizona, and California, which account for about two-thirds of annual new pool starts [13] - Key priorities include expanding the dealer base, targeting master plan communities, aligning product offerings with market demand, and targeted marketing campaigns [13] - The company aims to significantly increase its market share in the Sand States through strategic partnerships and new product launches [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the market, noting a slight improvement in industry conditions compared to the previous year, but still expecting trough market conditions to persist in 2025 [5][23] - The company maintains its revenue growth expectation of 8% for 2025, with approximately 5% organic growth and 3% from acquisitions [23] - Management highlighted the importance of brand visibility and engagement, noting that Latham is the most searched brand among major fiberglass manufacturers [12] Other Important Information - The company announced the resignation of its Chief Commercial Officer, but emphasized the strength of its commercial team [17] - Capital expenditures are expected to range between $27 million and $33 million in 2025, reflecting investments in new production modes and facility expansions [22] Q&A Session Summary Question: Outlook for margin expansion and SG&A leverage - Management indicated that SG&A leverage is expected to increase as year-over-year sales grow, with a focus on maintaining flat SG&A expenses in the latter part of the year [27][28] Question: Reaction to new molds and marketing efforts in Sand States - Management reported positive trends in sales and strong progress in aligning with builders in the Sand States, with expectations for continued improvement [30][31] Question: Risks and opportunities in the fiberglass pool market - Management noted that while the decision to purchase a pool is a long-term process, they have not seen any significant slowdown in consumer interest or buying decisions [39][41] Question: Impact of tariffs on costs and pricing strategy - Management quantified the tariff headwind at approximately 350 to 400 basis points, with pricing strategies aimed at mitigating the remaining impact [43][44] Question: Strength of auto cover sales and organic growth - The auto cover business outperformed primarily due to acquisitions, but also saw positive organic growth, with a significant portion of sales coming from existing pools [77] Question: Demand environment and potential adjustments to marketing expenses - Management plans to maintain marketing investments despite potential changes in discretionary spending, emphasizing a long-term growth strategy [80][81]

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $111.4 million, slightly above $110.6 million in Q1 2024, reflecting positive momentum in fiberglass pools and auto covers [17] - Gross margin increased by 190 basis points to approximately 30% from 28% in the prior year, driven by lean manufacturing and value engineering initiatives [18][19] - SG&A expenses rose to $31 million, up from $26 million in Q1 2024, primarily due to strategic investments in sales and marketing [19] Business Line Data and Key Metrics Changes - Inbound pool sales were $58 million, down 4% from Q1 2024, impacted by soft industry conditions and adverse weather [18] - Cover sales increased by 18% to $32 million, benefiting from organic growth and acquisitions [18] - Liner sales decreased by 8% to $22 million compared to the previous year [18] Market Data and Key Metrics Changes - Fiberglass pools are expected to gain an additional 1% market share in the in-ground pool sector in 2025, driven by cost advantages and easier installation compared to concrete pools [6] - Labor scarcity is seen as a tailwind for fiberglass pools, with 46% of pool builders citing limited access to qualified labor as a significant issue [7] Company Strategy and Development Direction - The company is focusing on expanding its presence in Florida, Texas, Arizona, and California, which account for about two-thirds of annual new pool starts [13] - Key priorities include expanding the dealer base, targeting master plan communities, aligning product offerings with market demand, and targeted marketing campaigns [13] - The company aims to significantly increase its market share in the Sand States through strategic partnerships and new product launches [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the pool market, maintaining expectations for 2025 revenue growth of 8% at the midpoint [23] - The company anticipates continued progress in fiberglass awareness and adoption initiatives, supported by positive feedback from dealers and increased consumer engagement [22] - Management noted that the current business trends are encouraging, with a solid start to 2025 and expectations for higher year-on-year comparisons in the stronger second and third quarters [24] Other Important Information - The company announced the resignation of its Chief Commercial Officer, with confidence in the strength of its commercial team to continue executing the sales and marketing strategy [16] - Capital expenditures are expected to range between $27 million and $33 million in 2025, reflecting investments in new production modes and facility expansions [21] Q&A Session Summary Question: Outlook for margin expansion and SG&A leverage - Management indicated that SG&A leverage is expected to increase as year-over-year growth sets in, with sales projected to increase by about 8% [27] Question: Reaction to new molds and marketing efforts in Sand States - Management reported positive trends in sales and strong progress with builders in Florida, indicating an acceleration in market share gains [28][30] Question: Risks and opportunities in the fiberglass pool market - Management noted that while the decision to purchase a pool is a long-term process, they have not seen any slowdown in consumer interest or buying decisions [36][39] Question: Impact of tariffs on costs and pricing strategy - Management quantified the tariff headwind at approximately 350 to 400 basis points, with pricing increases aimed at mitigating the remaining impact [41][42] Question: Demand environment and consumer appetite for automatic safety covers - Management confirmed strong demand for auto covers, with high attachment rates on new pools and significant interest in safety features [75][72]

Q1 2025 Earnings Presentation May 6, 2025 Disclaimer Forward-looking Statements Certain statements in this presentation constitute forward-looking statements under federal securities laws. These forward-looking statements reflect our views with respect to future events and financial performance as of the date of this presentation or otherwise specified herein. Actual events and results may differ materially from those contemplated by such forward-looking statements due to risks and other factors that are se ...

Core Insights - Cooper-Standard Holdings Inc. has experienced a significant stock price increase of 43.8% since reporting first-quarter 2025 results, outperforming the S&P 500 index's 1.5% rise, with a remarkable 77% gain over the past month compared to the S&P 500's 12.4% increase [1] Revenue & Earnings - For the quarter ended March 31, 2025, Cooper-Standard reported revenues of $667.1 million, a decrease of 1.4% from $676.4 million a year earlier, primarily due to unfavorable foreign currency exchange rates [2] - The company achieved a net income of $1.6 million, reversing a net loss of $31.7 million from the previous year, with adjusted net income at $3.5 million or 19 cents per diluted share, compared to an adjusted loss of $30.6 million or $1.75 per diluted share last year [2] Profitability Metrics - Gross profit increased to $77.2 million from $61.6 million, raising the margin from 9.1% to 11.6% [3] - Adjusted EBITDA rose to $58.7 million from $29.3 million, increasing the margin from 4.3% to 8.8%, driven by cost efficiencies and restructuring savings [3] Operational Performance - Cooper-Standard achieved a 99% green quality scorecard and a 97% green scorecard for customer service, with 47 plants recording a perfect safety record [4] - Lean manufacturing and purchasing initiatives resulted in $20 million in savings, while restructuring activities contributed an additional $8 million in cost reductions [4] Business Development - The company secured $55 million in net new business awards during the quarter, validating its value proposition across various vehicle platforms [5] Leadership Insights - CEO Jeff Edwards highlighted the quarter as one of the best in terms of operations and customer service, attributing improvements to the alignment around four strategic imperatives [6] - CFO Jon Banas noted improved profitability despite inflationary pressures and consistent cash usage in operations, with capital expenditure of $17.5 million focused on new customer programs [7] Factors Influencing Results - The revenue decline was largely due to a $15 million impact from foreign exchange, partially offset by a favorable $6 million volume and mix shift [8] - EBITDA gains were driven by $20 million in lean savings, $8 million from restructuring, and additional benefits from lower SG&A and favorable FX impacts [8] Financial Position - Cooper-Standard ended the quarter with $140 million in cash and $160 million in undrawn ABL availability, with a net leverage ratio of 4.6X, targeting a reduction below 2X by 2027 [9] Guidance & Outlook - Management reaffirmed expectations for double-digit adjusted EBITDA margins and improving cash flow, while acknowledging potential macro uncertainties related to tariffs and trade policies [10][11] - The company anticipates strong tailwinds from increasing hybrid vehicle production, estimating an 80% surge in content per vehicle opportunity in this segment [12] Product Development - The ongoing commercialization of the eCoFlow Switch Pump, designed for hybrid and electric vehicle thermal management systems, is expected to support long-term growth as production ramps up [13] Summary - Cooper-Standard's first-quarter 2025 results indicate a significant turnaround in profitability and operational execution, supported by lean initiatives, innovation, and trends in hybrid vehicle growth [14]