Financial Data and Key Metrics Changes - Second quarter 2025 sales were $706 million, a decrease of 0.3% compared to 2024, primarily due to unfavorable volume and mix, including net customer price adjustments, partially offset by favorable foreign exchange [12] - Adjusted EBITDA for the quarter was $62.8 million, an increase of more than 23% compared to $50.9 million in the second quarter of last year, with margin expansion of 170 basis points despite lower sales and production volumes [13] - The company reported a small net loss of $1.4 million in the second quarter compared to a net loss of $76.2 million in 2024, with adjusted net income for 2025 being positive at $1 million or $0.06 per diluted share [13][14] - For the first half of 2025, sales dipped due to unfavorable foreign exchange and slightly lower volume mix, but gross profit margin increased by 200 basis points and adjusted EBITDA margin improved by 300 basis points compared to the same period last year [14][18] Business Line Data and Key Metrics Changes - The sealing business is expected to drive revenue growth of about 6% on average over the next five years, with significant expansion of EBITDA margins and return on capital increasing to approximately 20% by 2030 [25] - The fluid handling business anticipates top-line growth averaging approximately 8% annually over the next five years, with EBITDA margins expected to increase to around 16% and return on invested capital approaching 30% [26] Market Data and Key Metrics Changes - The company was awarded $77 million in net new business awards during 2025, reflecting strong relationships with customers and operational excellence [10] - The company has successfully reached agreements with customers to pass through or recover the majority of direct tariff impacts on its business, allowing for a focus on operational excellence [29] Company Strategy and Development Direction - The company has established four strategic imperatives to drive significant improvements across its business, focusing on operational excellence, cost optimization, and leveraging digital tools for efficiency [21][22] - Long-term strategies for each operating segment have been developed to achieve stated strategic imperatives and enhance value creation over the next several years [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive free cash flow for the full year, supported by solid results in the first half and expectations for production volumes [20] - The company is better positioned than ever to execute its strategic plans and deliver on its commitments, despite ongoing challenges in the industry [27][28] Other Important Information - The company ended the second quarter with a cash balance of approximately $122 million and total liquidity of approximately $273 million, which is deemed sufficient to support business plans and growth objectives [19] - The company is actively evaluating options to strengthen its balance sheet and improve cash flows, with a focus on refinancing its first and third lien notes [20] Q&A Session Summary Question: Clarification on incremental revenue from sealing - The incremental revenue includes $400 million, with $300 million being net new business and the remaining $100 million from modest increases in production or pricing [34][35] Question: Details on fluid business incremental revenue - The fluid business is expected to have $600 million in incremental revenue, with net new business included in the outlook [38][41] Question: Margin expansion and optimization in a tariff environment - The company has a detailed quote process for new business, tracking variable contribution margins and managing pricing closely to ensure real and achievable margins [43][44] Question: Cash restructuring and working capital use - Cash restructuring was less than $10 million, and the company expects working capital use to unwind completely in the second half of the year [62][64] Question: Potential rate reduction from refinancing - The company is optimistic about a potential improvement in rates when refinancing, with expectations of a reduction of 100 to 300 basis points [67][69]

Company Overview - Dana Incorporated is a leader in designing and manufacturing efficient propulsion and energy-management solutions for vehicles and machines globally [3][4] - The company reported sales of $10.3 billion in 2024 and employs 39,000 people across 30 countries [4] - Dana has been recognized as one of the "World's Most Ethical Companies" for 2025 and one of "America's Most Responsible Companies 2025" [4] Upcoming Financial Results - Dana will release its 2025 second-quarter financial results on August 5, 2025, with a press release at approximately 7 a.m. EDT [1] - A conference call and webcast will follow at 9 a.m. EDT, where senior management will discuss the results and answer questions [1] Accessing Conference Call - The conference call can be accessed via a toll-free number for domestic participants and a toll number for international participants [2] - Audio streaming and presentation slides will be available on Dana's investor website, with a replay accessible after the call [2]

Core Insights - Aptiv PLC (APTV) reported better-than-expected second-quarter 2025 results with adjusted earnings of $2.12 per share, beating the Zacks Consensus Estimate by 18.4% and increasing 34.2% year over year. Revenues reached $5.21 billion, surpassing the Zacks Consensus Estimate by 3.5% and rising 3.1% year over year [1][9]. Revenue Performance - Adjusted revenues improved 2% year over year, with a 1% decline in Europe, while North America and South America both grew by 3%. Asia saw a 4% increase, despite a 1% decline in China [2]. - The Electrical Distribution Systems and Engineered Components Group reported revenues of $2.21 billion and $1.72 billion, rising 7% and 6% year over year, respectively. However, the Advanced Safety and User Experience segment's revenues declined by 3% to $1.5 billion [3]. Operating Income and Cash Flow - Adjusted operating income was $628 million, up 3.6% from the previous year, with an adjusted operating income margin of 9.3%, an increase of 60 basis points year over year [3]. - The company generated $510 million in cash from operating activities in the quarter, totaling $783 million for the first half of 2025, compared to $887 million in the prior-year period [4]. Future Outlook - For Q3 2025, Aptiv expects revenues between $4.95 billion and $5.10 billion, exceeding the current Zacks Consensus Estimate of $4.91 billion. Adjusted EPS is anticipated to be between $1.6 and $1.8, slightly lower than the current estimate of $1.81 [5]. - For the full year 2025, Aptiv projects revenues between $20 billion and $20.3 billion, above the current Zacks Consensus Estimate of $19.70 billion. Adjusted EPS is expected to range from $7.3 to $7.6 per share, compared to the current estimate of $7.23 [6].

Core Insights - Aptiv PLC reported revenue of $5.21 billion for the quarter ended June 2025, reflecting a year-over-year increase of 3.1% and a surprise of +3.51% over the Zacks Consensus Estimate of $5.03 billion [1] - The earnings per share (EPS) for the quarter was $2.12, compared to $1.58 in the same quarter last year, resulting in an EPS surprise of +18.44% against the consensus estimate of $1.79 [1] Financial Performance Metrics - Net Sales- Eliminations and Other reported at $-228 million, significantly worse than the estimated $-145.91 million, marking a year-over-year change of +1420% [4] - Net Sales- Advanced Safety and User Experience was $1.51 billion, slightly below the average estimate of $1.59 billion, representing a -3% change year over year [4] - Adjusted Operating Income for Advanced Safety and User Experience was $178 million, exceeding the average estimate of $169.47 million [4] Stock Performance - Shares of Aptiv have returned -7.6% over the past month, contrasting with the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Company Overview & Strategy - BorgWarner's vision is a clean, energy-efficient world, and its mission is to deliver innovative and sustainable mobility solutions[9, 10] - The company aims to outgrow end markets, build on its product portfolio, and drive enhanced financial performance[21] - BorgWarner's value proposition includes a strong product portfolio, leading market share, financial strength, customer relationships, and a decentralized operating model[19] Financial Performance & Outlook - The company's 2024 foundational sales were approximately $12 billion[26] - BorgWarner estimates an adjusted operating margin between 96% and 102% for 2025[58, 59] - The company anticipates free cash flow between $650 million and $750 million in 2025[59] Market Dynamics & Opportunities - The estimated BorgWarner weighted light vehicle/commercial vehicle market is expected to decrease by 2% to 4% in 2025[62, 63] - The content opportunity per light vehicle increases from $548 for combustion engines to $2,569 for battery electric vehicles (BEVs) in 2027[24] - BorgWarner is exiting the charging business, which is expected to increase adjusted operating income by approximately $15 million in 2025 and $30 million in 2026[43] Capital Allocation - From 2020-2024, BorgWarner allocated capital with 57% towards M&A, 21% towards buybacks, 14% towards dividends and 8% towards Non-Controlling Interest Dividends, totaling $49 billion[53] - Since 2020, BorgWarner has returned approximately $35 billion to shareholders, including $1033 billion in buybacks, $720 million in shareholder dividends, and ~$17 billion market cap of PHINIA at spin-off[53]

Core Insights - The article discusses the investment outlook for Gentherm Incorporated (THRM), previously rated as a hold when trading around $48.6, indicating modest upside potential and insufficient margin of safety [1] Investment Philosophy - The investment approach is based on fundamental analysis, focusing on companies with a strong competitive moat, consistent growth in free cash flow, and a robust financial performance track record [1] - The philosophy emphasizes long-term investing over short-term trading tactics, aiming to unlock value through informed and balanced market navigation [1] Contribution to Investment Community - The author aims to explore various investment topics, including uncovering undervalued stocks and identifying overvalued ones, providing actionable insights for investors [1] - Writing for Seeking Alpha is viewed as a way to contribute to a community that values deep analytical insights into the market, enhancing collective investor wisdom [1]

Financial Data and Key Metrics Changes - The company reported record second quarter revenue of $5.2 billion, reflecting a 2% year-over-year growth [18] - Operating income totaled $628 million, with a record earnings per share of $2.12, marking a 34% increase [7][19] - Operating cash flow was $510 million, contributing to a strong balance sheet and capital allocation flexibility [7][24] Business Line Data and Key Metrics Changes - Advanced Safety and User Experience (ASUX) segment revenues declined by 3%, impacted by the roll-off of legacy programs and production slowdowns in China [9][20] - Engineered Components Group (ECG) revenues increased by 5%, driven by growth in Europe and local Chinese OEMs [22] - Electrical Distribution Systems (EDS) segment revenues also grew by 5%, supported by strong volume growth in North America and Asia Pacific [27] Market Data and Key Metrics Changes - In North America, revenue grew by 3% despite a year-on-year decline in vehicle production, driven by active safety and electrified programs [20] - European revenues decreased by 1%, slightly better than vehicle production trends, while revenues in China also declined by 1% due to unfavorable customer mix [20] Company Strategy and Development Direction - The company is focused on maximizing shareholder value, with plans for the spin-off of Electrical Distribution Systems on track [6] - The strategic emphasis is on electrification, automation, and digitalization trends across multiple industries, enhancing competitive positioning [5] - The company aims to optimize operational efficiency and cost structure to remain agile in a dynamic market environment [5] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding potential consumer demand weakening in the second half of the year due to evolving trade and regulatory policies [17] - The company remains confident in its ability to navigate the dynamic environment and deliver strong financial results [32] - Future guidance reflects a conservative outlook, anticipating a 3% decline in global vehicle production for the full year 2025 [25] Other Important Information - The company received the Volkswagen Group Award for Resilient Supply Chains, highlighting its effective supply chain management [6] - New business bookings totaled $5.4 billion, positioning the company for strong future growth [8] Q&A Session Summary Question: Visibility for Q4 production - Management indicated that they have reasonable visibility into production schedules, with a conservative outlook for the second half of the year due to market dynamics [35][36] Question: Content opportunities from shifting vehicle mix - Management noted that they have already seen a shift towards larger vehicles, which has provided content opportunities despite a slowdown in EV adoption [38] Question: Bookings target visibility - Management expressed confidence in achieving the $31 billion bookings target, despite a challenging macro backdrop [41][42] Question: Growth in non-automotive sectors - Management reported strong growth in industrial, aerospace, and defense sectors, with expectations for solid double-digit growth in the back half of the year [45][46] Question: Assumptions for second half growth - Management highlighted that growth in the second half will be driven by ongoing ADAS program launches and strong performance in the EDS business [52][53] Question: Capital allocation post-EDS spin - Management clarified that they will focus on M&A opportunities in engineered components and ASUX sectors while maintaining manageable leverage [56][57]

AUBURN HILLS, Mich., July 31, 2025 /PRNewswire/ -- BorgWarner, a global product leader in delivering innovative and sustainable mobility solutions, is strengthening its partnership with a major global original equipment manufacturer (OEM) by supplying its wastegate turbocharger technology for a hybrid powertrain option for the automaker's high-profile sports car platform. This contract follows several recent contracts for the same technology, demonstrating BorgWarner's product leadership in the wastegate tu ...

"This award underscores our ability to win in highly contested markets by offering reliable, cost-effective solutions and long-term supply commitments," said Dr. Volker Weng, Vice President of BorgWarner Inc. and President and General Manager, Turbos and Thermal Technologies. "It reflects our strategic focus on supporting global OEMs with combustion engine technologies while others exit the space." BorgWarner's wastegate turbocharger technology offers a a robust and efficient solution designed for small- di ...

Core Insights - BorgWarner has secured a significant contract with a major Chinese OEM for electric motors, highlighting its strong position in China's rapidly growing NEV market [1][2] - The awarded motor features a platform-based design suitable for various NEV applications and utilizes an innovative ultra-short hairpin welding process to enhance space efficiency [1][6] - BorgWarner is expanding its motor operations in China, including a new manufacturing base in Wuhu, which will increase motor capacity and support scalable delivery [2][6] Company Developments - The partnership with the Chinese OEM has lasted nearly a decade, indicating a strong and ongoing relationship [2] - BorgWarner's commitment to delivering efficient motor solutions aligns with the electrification trends in the automotive industry [2][3] - The new Wuhu facility will feature intelligent manufacturing lines capable of producing multiple motor platforms, enhancing operational efficiency [2][6] Industry Context - The NEV market in China is experiencing rapid growth, creating opportunities for companies like BorgWarner to leverage their technological advantages [2] - The demand for electric motors is increasing as the automotive industry shifts towards electrification, positioning BorgWarner favorably in this evolving landscape [2][3]