Methode Electronics (MEI) 2025 Conference August 12, 2025 12:40 PM ET Speaker0Once again, I'm Ryan Brinkman at JPMorgan and The U. S. Automotive Equity Research Analyst here. Thanks for joining us for the next presentation. We have John DeGaener, Methode Electronics, relatively new President and Chief Executive Officer and Rob Jerry, their Vice President of Investor Relations.I'm going to turn it over to John for some remarks, and then we'll engage in a fireside chat. Thank you. Great.Speaker1Thanks, Ryan, ...

Financial Performance & Guidance - Methode Electronics reported FY25 sales of $1.05 billion[13, 30] and adjusted EBITDA of $43 million[30] - The company's Q4 FY25 free cash flow reached $26 million, the highest since FY23[8, 30] - FY26 guidance projects sales between $900 million and $1 billion[36], with a midpoint of $950 million[34], and EBITDA between $70 million and $80 million[30, 36], with a midpoint of $75 million[34], representing a 100%+ increase in EBITDA despite ~$100 million lower sales[10, 37] - The company anticipates $58 - $63 million in Depreciation and Amortization, $24 - $29 million in CapEx, $21 - $23 million in Interest Expense and $17 - $21 million in Tax Expense for FY26[36] Business Segments & Growth - In FY25, Automotive segment accounted for 45% of sales, Industrial 40%, and Interface 15%[13] - User Interface solutions represented 45% of sales, Lighting 27%, Power 24%, and Sensors 2%[13, 19] - The company achieved record power product sales in data centers exceeding $80 million in FY25, with similar or greater sales expected in FY26[8, 37] Market & Strategic Outlook - A reset of EV sales is expected in FY26 due to a slowdown in the North American market, particularly driven by Stellantis, with a return to growth anticipated in FY27[9] - Awards of $1.0+ billion in annual sales were secured from FY22 to FY25[30] - The company is focused on transformation, prioritizing improved execution before growth, emphasizing "Earning the Right"[8, 26, 37]

Summary of Magna International (MGA) Conference Call Company Overview - **Company**: Magna International (MGA) - **Industry**: Automotive Parts Supplier - **Position**: One of the largest auto parts suppliers globally, with significant sales in North America Key Points Tariff Impact - **Direct Tariff Exposure**: Initially estimated at $250 million, reduced to approximately $200 million annually due to compliance efforts with USMCA [5][6] - **Q2 Tariff Expense**: $45 million incurred in Q2, totaling $55 million year-to-date [6] - **Indirect Impact**: Uncertainty regarding OEMs passing tariff costs to consumers, affecting demand [7] - **USMCA Compliance**: Focus on increasing North American content to mitigate tariff exposure [6][11] Vehicle Electrification Outlook - **EV Market Focus**: North American EV market is critical; China shows strong EV production while Europe sees slight declines [19][20] - **Volume Expectations**: Lower than third-party forecasts, with a temporary dip expected due to regulatory changes [21][22] - **Product Agnosticism**: 80% of products are applicable to both EV and ICE vehicles, providing a natural hedge [22] Operational Efficiency - **Stability in Operations**: Improved stability allows for better execution of operational improvements, targeting a 75 basis point increase in efficiency [30][32] - **Automation Initiatives**: Significant investments in automation, reducing reliance on manual labor [50][54] Growth in China - **Sales in China**: $5.5 billion in sales, with 60% to domestic OEMs [43] - **Competitive Landscape**: Focus on high-value components to avoid low-margin competition [36][38] - **Payment Terms**: Extended payment terms from Chinese OEMs, with delays up to 150 days [39][40] M&A Strategy - **Focus on Organic Growth**: Historically, Magna has prioritized organic growth over M&A, with $20 billion in CapEx compared to $2 billion in net M&A over the last 15 years [57][58] - **Portfolio Review**: Regular evaluations of product lines to identify potential divestitures or areas for growth [61][62] Capital Allocation and Leverage - **Target Leverage**: Aiming for 1.5x net leverage, currently at approximately 1.9x [68][70] - **Share Repurchase Strategy**: Flexibility to repurchase shares when conditions are favorable, despite current tariff uncertainties [74][75] Electrochromic Mirror Business - **Market Share Growth**: Anticipated growth in market share in China, aiming for 30% in the coming years [80] Complete Vehicle Assembly - **Joint Ventures**: Successful operations in China with increasing volumes, particularly with the Arc Fox models [96][97] - **Flexibility in Production**: Ability to quickly adapt to customer needs without the need for extensive new facilities [98][99] Additional Insights - **Regulatory Changes**: Ongoing adjustments in response to regulatory changes affecting the EV market and tariffs [18][20] - **Customer Relationships**: Strong focus on maintaining relationships with key customers while navigating competitive pressures [41][42] This summary encapsulates the critical insights from the Magna International conference call, highlighting the company's strategic focus areas, operational challenges, and market dynamics.

American Axle & Manufacturing (AXL) 2025 Conference August 12, 2025 10:20 AM ET Speaker0Okay. We're going to get going with the next presentation. Once again, I'm Ryan Brinkman, U. S. Automotive Equity Research Analyst at JPMorgan.Very excited to have with us Chris May, Executive Vice President and Chief Financial Officer of American Axle and Manufacturing and David Lim, Head of Investor Relations. I think Chris has got a few minutes of prepared remarks, a slide or two, and then we'll engage in a fireside c ...