Financial Data and Key Metrics Changes - For the first half of 2025, the company reported net revenues of approximately €74.3 billion and adjusted operating income (AOI) of approximately €540 million, with a net loss of approximately €2.3 billion, including unusual items [6][10] - Industrial free cash flow was reported as a €3 billion outflow, which was attributed to insufficient AOI generation to cover capital expenditures and R&D spending [12][13] Business Line Data and Key Metrics Changes - The company experienced lower than expected volumes, particularly in the European light commercial vehicle (LCV) market, which was down about 13% year-to-date [21][22] - The ramp-up of newly launched products was slower than anticipated, impacting overall shipments [20][21] - The company noted a significant impact from higher industrial costs, including warranty costs and fixed asset absorption due to lower volumes [9][10] Market Data and Key Metrics Changes - The company reported a €1 billion to €1.5 billion net tariff impact for the full year 2025, with approximately €330 million felt in the first half [5][10] - Foreign exchange impacts were noted at just under €1 billion year-over-year, primarily due to the strengthening of the euro against the U.S. dollar and Brazilian real [9] Company Strategy and Development Direction - The company plans to reestablish current period financial guidance during the H1 2025 update call on July 29, which will encapsulate expected improvements in the second half [16][58] - The management emphasized the importance of product launches, including new B and C segment entries in Europe, to drive recovery and improve market share [15][16] Management Comments on Operating Environment and Future Outlook - Management acknowledged the challenging operating environment, citing economic and regulatory uncertainties that have led commercial customers to delay fleet renewals [22] - The company expressed optimism about the potential for improvement in the second half of 2025, driven by new product launches and a focus on regaining market share, particularly in the fleet segment [34][37] Other Important Information - The company noted that total vehicle inventories at the end of the first half of 2025 were unchanged, with OEM inventories up by about 60,000 units and dealer inventories down by about 60,000 units [13][14] - Management highlighted the need for continued investment in the business despite cash outflows in the first half [54] Q&A Session Summary Question: Continued share losses in the U.S. and Europe - Management indicated that market share in Europe increased by about 130 basis points compared to the second half of the previous year, despite challenges in the LCV market [20][21] Question: Operating leverage and margins in Middle East and LatAm - Management confirmed strong performance in the Middle East and LatAm, with expectations for positive traction in operating leverage and margins [24][25] Question: Gap between operating cash flow and free cash flow - Management explained that the negative cash flow was influenced by increased capital use in the financial services business, which is growing rapidly [29][30] Question: Regaining market share in fleet, particularly for Ram - Management highlighted the reintroduction of the V8 engine in the Ram pickup and plans to improve production numbers to regain lost market share [34][37] Question: Competitive pressure in Europe - Management acknowledged increased competitive pressure in Europe but noted that new product launches are expected to help mitigate this [42][43] Question: Tariff impacts and expectations for the second half - Management indicated that the €330 million tariff impact in the first half is not representative of what is expected in the second half, with potential for that figure to double [46][47] Question: Liquidity and cash generation outlook - Management reassured that liquidity remains sufficient, targeting 25% to 30% of trailing twelve months revenues, and emphasized the need to turn positive in industrial free cash flow [52][54]

Group 1 - The global zinc market is experiencing downward pressure due to increased zinc ore production and a generally bearish outlook on zinc prices, despite low social inventory and some price rebounds around the 21600 level [1] - The trade dispute between the US and other countries has seen a temporary easing, which has improved market sentiment, but the potential impact of tariffs on inflation and the US economy remains a concern [1][2] - Geopolitical tensions in the Middle East have raised concerns about zinc supply disruptions, particularly from Iran, which exports a small percentage of zinc to China [2] Group 2 - Zinc ore processing fees are rebounding, with significant increases in domestic zinc ore supply expected in June due to improved mining conditions and increased imports [3][4] - Domestic zinc smelting plants are showing renewed production enthusiasm as processing fees rise, with expectations of a notable increase in refined zinc output in June and July [4] - Despite weak seasonal demand and some decline in downstream operations, low inventory levels are providing support for zinc prices [5] Group 3 - The overall macroeconomic environment remains uncertain, with global trade dynamics still in flux and domestic policies needing to provide more support [6] - The combination of increased zinc ore supply and uncertain downstream demand suggests that zinc prices will continue to face downward pressure, although there are vulnerabilities in the supply chain that could affect this trend [6]

Financial Data and Key Metrics Changes - Revenue for Q3 FY 2025 was $113 million, up 12% year-over-year and up 14% on a constant currency basis [16] - Adjusted EBITDA for the quarter was $6 million, compared to $1.1 million in the prior year, driven by higher volume, pricing, and operational improvements [8][19] - Operating income for the quarter was $1 million, compared to an operating loss of $4.6 million from the prior year [19] Business Line Data and Key Metrics Changes - Product revenue for Q3 was $57 million, up 16% year-over-year, reflecting a 23% increase in unit volume [17] - Service revenue for the quarter was $56 million, up 9% year-over-year [17] - The service business represented approximately 49% of total revenue and 59% of gross margin for the quarter [8] Market Data and Key Metrics Changes - Book to bill ratio was over 1.2, indicating healthy customer demand across both developed and emerging markets [9] - Approximately 35% of order growth was driven by the replacement of aged equipment [9] - The company reported a backlog of approximately $452 million, with zero order cancellations in the quarter [18] Company Strategy and Development Direction - The company aims to be the most reliable global partner in radiation therapy treatment technology, focusing on operational efficiency and customer partnerships [6][7] - Investments in ERP and talent are expected to enhance adaptability and capabilities in a rapidly changing global market [7] - The service business is anticipated to be a growth engine and primary catalyst for expanding margins [10] Management's Comments on Operating Environment and Future Outlook - Management noted lower visibility on near-term growth in revenues and earnings due to global trade circumstances [5] - Despite challenges, management expressed confidence in emerging stronger and more resilient from the current environment [6] - The company expects a potential negative impact of $10 million to $15 million in Q4 revenue due to tariffs, primarily affecting product sales in China [12][21] Other Important Information - The company is exploring various mitigation actions to offset tariff impacts, including establishing a foreign trade zone and developing secondary domestic sources [11] - Total cash and cash equivalents amounted to $79 million, up from $64 million at the end of the last quarter [20] Q&A Session Summary Question: Impact of deferred China adjusted EBITDA - Management confirmed that product margins were affected by higher margin deferral on China, with product margins at 22.7% for the quarter [26][27] Question: Potential impact in markets like India and South America - Management indicated that while the China impact is significant, they see strength in other regions, including India and non-China APAC markets [28][29] Question: Scenarios regarding tariff exemptions for medical products in China - Management is working closely with their China JV to seek a tariff exemption but noted uncertainty regarding the timeline and probability of success [31][34] Question: Future activity in China and potential impacts - Management stated that they are conducting internal scenario planning and will provide more clarity in future calls [38] Question: Focus on emerging markets - Management confirmed a strategic focus on both developed and emerging markets, leveraging opportunities in regions like the UK and non-China APAC [39][41]