Financial Data and Key Metrics Changes - In Q4 2025, sales totaled $672 million, a 1.8% increase compared to Q4 2024, despite disruptions from a customer supply chain issue [9] - Full year 2025 sales reached $2.74 billion, a 0.4% increase from 2024, primarily driven by favorable foreign exchange and net customer pricing [11] - Adjusted EBITDA for Q4 2025 was $34.9 million, or 5.2% of sales, down from $54.3 million, or 8.2% of sales in Q4 2024 [10] - Full year adjusted EBITDA was $209.7 million, up from $180.7 million in 2024, reflecting improved manufacturing efficiencies and cost savings [12] Business Line Data and Key Metrics Changes - The company achieved $298 million in net new business awards in 2025, supporting future growth [7] - Cost savings of $64 million were generated from efficiency improvements and lean initiatives in the supply chain [6] - The company reported a 24% improvement in operating income for the year, despite inflationary pressures [6] Market Data and Key Metrics Changes - The company expects total revenue attributable to China to grow at a CAGR of over 15% between 2025 and 2028, with plans to increase revenue from Chinese OEMs to over 60% by 2030 [25][24] - North American production volumes are projected to decrease from 15.3 million in 2025 to 15 million in 2026, while European volumes are expected to decline from 17 million to 16.9 million [72] Company Strategy and Development Direction - The company aims to leverage growth trends in hybrid vehicles and expand geographically with key fast-growing customers [22] - The strategy for the fluid handling systems segment focuses on launching innovative products and technologies [22] - The sealing systems strategy emphasizes operational excellence and leveraging global expertise to drive profitable growth [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting increased profitability and margin expansion despite a challenging production environment [30] - The company is confident in its ability to expand margins even in a stable production environment, with a target of achieving a double-digit EBITDA margin for the full year [30] - Management highlighted the importance of volume and mix as key factors influencing guidance for 2026 [91] Other Important Information - The company ended 2025 with total liquidity of over $352 million, including $191.7 million in cash and $160.9 million available on its revolving credit facility [18] - Capital expenditures for 2025 were $48 million, consistent with the previous year, focusing on customer launch readiness and new business growth [14] Q&A Session Summary Question: Is Lean a big contributor to the Adjusted EBITDA guidance? - Management indicated that it is more business as usual, with continuous improvement efforts ongoing [38] Question: Are new products included in the volume, mix, and price adjustments? - Yes, all new business booked in 2025 is included in the adjustments [39] Question: Is the F-Series production back to normal? - Management noted that production is ramping up, but specifics were not disclosed [44][45] Question: What is the urgency for refinancing before debt maturities? - Management prefers to complete refinancing before the first lien and third lien notes come current [62] Question: What are the key variables impacting guidance for 2026? - Volume and mix are the primary factors, with raw material fluctuations being less of a concern due to effective contracts [91]

Financial Data and Key Metrics Changes - In Q4 2025, sales totaled $672 million, an increase of 1.8% compared to Q4 2024, despite production disruptions [10] - Full year 2025 sales reached $2.74 billion, a 0.4% increase from 2024, primarily due to favorable foreign exchange and net customer pricing [12] - Adjusted EBITDA for Q4 2025 was $34.9 million, or 5.2% of sales, down from $54.3 million, or 8.2% of sales in Q4 2024 [11] - Full year adjusted EBITDA for 2025 was $209.7 million, up from $180.7 million in 2024 [13] - The net loss for the full year improved to $4.2 million from a net loss of $78.7 million in 2024 [13] Business Line Data and Key Metrics Changes - The company achieved $64 million in cost savings from efficiency improvements and lean initiatives in 2025 [6] - The fluid handling systems segment is focused on geographic expansion and innovation, particularly in hybrid vehicles [22] - The sealing systems segment aims to leverage engineering expertise for profitable growth in existing and new markets [24] Market Data and Key Metrics Changes - Chinese OEMs currently represent approximately 36% of revenue, with a target to increase this to over 60% by 2030 [25] - The company expects total revenue attributable to China to grow at a CAGR of over 15% between 2025 and 2028 [26] Company Strategy and Development Direction - The company is focused on operational excellence and margin expansion, with a strategic plan that includes geographic expansion and innovation [21] - Investments in new products and technologies are expected to drive growth, particularly in the hybrid and electric vehicle segments [27] - The company aims to triple its Return on Invested Capital by 2028 [31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting increased profitability and margin expansion despite a predicted decline in industry production volumes [30] - The company is confident in its ability to leverage future increases in production volume and expand into high-growth markets [31] Other Important Information - The company ended 2025 with total liquidity of over $352 million, including $191.7 million in cash [19] - Capital expenditures for 2025 were $48 million, or 1.8% of sales, consistent with the previous year [14] Q&A Session Summary Question: Is Lean a big contributor to the Adjusted EBITDA guidance? - Management indicated that it is more business as usual, with continuous improvement efforts ongoing [37] Question: Are new products included in the volume, mix, and price adjustments? - Yes, all new business booked in 2025 is included in the projections [38] Question: What is the status of the F-Series production? - Management noted that production is ramping up, but specifics were not disclosed [43] Question: What are the expectations for free cash flow in 2026? - Management expects positive free cash flow, with some working capital tied up due to new business launches [76] Question: What contract protections exist with Chinese customers? - The company has built strong relationships with Chinese OEMs, ensuring product quality and innovation [89]

Financial Data and Key Metrics Changes - The company reported net sales of $107.9 million for Q2 2025, a decline of approximately $15.1 million compared to the previous year [29] - Adjusted EBITDA for the quarter was $13.2 million, with an adjusted EBITDA margin of 12.2%, reflecting an increase of 130 basis points year-over-year [29] - Adjusted operating income increased to $4.9 million, marking a strong increase of $2.8 million compared to the prior year [29] Business Line Data and Key Metrics Changes - In the Power Solutions segment, net sales were $44.6 million, down $5.5 million year-over-year, primarily due to the sale of the Lubbock operations [30] - The Mobile Solutions segment reported net sales of $63.4 million, a decrease from $72.9 million in the previous year, impacted by rationalized business and lower automotive volume [32] - Adjusted EBITDA in the Mobile Solutions segment was $8.6 million, reflecting a slight year-over-year growth due to cost control actions [33] Market Data and Key Metrics Changes - The automotive market accounted for 39% of the company's revenue, with overall light vehicle production remaining flat globally [12] - The U.S. GDP-linked businesses showed a rebound in the second quarter after a weak first half, although trade uncertainty continues to impact demand [14] - The medical equipment market is growing, with the company increasing its participation significantly above market growth [18] Company Strategy and Development Direction - The company aims to achieve approximately 20% gross margin as part of its long-term plan, with a focus on margin expansion and operational efficiency [22] - A commitment to increase personnel in specialized growth areas, including the hiring of a new Chief Commercial Officer, indicates a strategic focus on expanding into electrical and medical markets [38] - The company is actively pursuing M&A opportunities to enhance its growth strategy and improve its operational footprint [90] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth despite uncertainties in the automotive market, emphasizing the importance of new business launches [41] - The company is leaning towards the lower end of its revenue guidance due to macroeconomic uncertainties and customer feedback [41] - The outlook for the electrical market remains positive, with growth opportunities identified in power generation and distribution sectors [50] Other Important Information - The company plans to launch approximately 112 new programs in 2025, contributing an estimated $48 million in annual revenue at peak run rate [36] - The company is preparing for an Investor Day in December 2025 to provide further insights into its strategy and performance [42] Q&A Session Summary Question: Can you remind us about the incremental margin from new business wins? - New business wins are accretive by three to four points on the EBITDA line overall, with a focus on existing open capacity and strategic investments [46] Question: What are the growth opportunities in the electrical market? - The company is seeing growth in power generation, particularly with customers like Cummins, while residential distribution has been softer [50] Question: How does the company plan to achieve its revenue guidance? - The company expects to benefit from new business launches and a consistent performance from its base business, without relying on market rebounds [55] Question: What is the status of the Group of Five facilities? - All facilities are on track to be profitable this year, with expectations for run rate profitability by the end of the year [60] Question: Can you provide details on the M&A program? - The company is actively pursuing specific acquisitions that align with its strategy, focusing on synergies and operational improvements [90]