Core Viewpoint - Valeo has announced the issuance of new green bonds amounting to 650 million euros, maturing on May 20, 2031, with a coupon rate of 5.125% [1][2]. Group 1: Green Bond Details - The green bond issue raised 650 million euros, with a maturity period of 6 years and a coupon of 5.125% [1]. - The transaction was facilitated by several financial institutions, including BNP Paribas, Crédit Agricole CIB, CIC, Helaba, ING, and Mizuho, acting as Joint Active Bookrunners [1]. Group 2: Use of Proceeds - The net proceeds from the green bond issuance will be allocated to finance projects and investments related to technologies that support low-carbon mobility, particularly focusing on vehicle electrification [2]. Group 3: Sustainability Framework - The green bonds are issued under Valeo's Green and Sustainability-linked Financing framework, which was established in July 2021 and updated in September 2023 [3]. - A fifth supplement to the base prospectus was approved by the AMF on May 7, 2025 [3]. Group 4: Long-term Sustainability Goals - Valeo aims to achieve Net Zero by 2050, encompassing all its operating activities and supply chain globally, as well as its entire value chain in Europe [4]. - The company plans to continue developing its portfolio of technologies that promote low-carbon mobility, making them accessible to a wider audience [4].

Group 1 - The BorgWarner rolling jackpot has been reset to $20,000 for 2025 after Josef Newgarden earned $440,000 with his Indianapolis 500 win in 2024 [1][7] - Newgarden has the chance to become the first driver to win the Indy 500 three consecutive years, which would also earn him an additional $20,000 [1][3] - Team owner Roger Penske aims for his 21st win in the Indy 500, having previously achieved three consecutive wins with different drivers [1][2] Group 2 - The BorgWarner jackpot was established in 1995 and increases by $20,000 each year, motivating drivers to win in consecutive years [2] - The prize money has been claimed twice, with the largest sum of $440,000 earned by Newgarden for his wins in 2023 and 2024 [2] - Before the jackpot, only four drivers had won the Indianapolis 500 in consecutive years [2] Group 3 - Joseph Fadool, President and CEO of BorgWarner, expressed excitement about Newgarden's potential historic achievement [3] - If Newgarden wins again, he will have his image sculpted and cast in sterling silver for the Borg-Warner Trophy [3] - If Newgarden does not win, the jackpot funds will roll over to the 2026 Indy 500, totaling $40,000 [4] Group 4 - BorgWarner has been a global product leader for over 130 years, focusing on mobility innovation and sustainability [5]

Core Viewpoint - BorgWarner Inc. is facing significant challenges due to higher tariffs and rising selling, general and administrative (SG&A) expenses, leading to a recommendation to offload the stock from portfolios [1]. Group 1: Financial Performance and Guidance - The company has reduced its guidance for adjusted operating margin to a range of 9.6% to 10.2%, down from the previous estimate of 10.0% to 10.2%, reflecting a 20 basis point impact from higher tariffs [2]. - BorgWarner anticipates free cash flow of $650 million to $750 million in 2025, indicating a year-over-year decline of $29 million at the midpoint of the guidance [3]. - The Zacks Consensus Estimate for 2025 sales and earnings suggests a year-over-year decline of 2.57% and 2.78%, respectively, with earnings estimates for 2025 and 2026 moving down by 8 cents and 12 cents [6]. Group 2: Cost Structure and Debt - The company is experiencing high SG&A costs, which are expected to persist, alongside elevated research and development expenses related to electrification programs, limiting profit margins [3]. - BorgWarner's long-term debt increased to $3.8 billion as of March 31, 2025, up from $3.76 billion at the end of 2024, which restricts financial flexibility [4]. Group 3: Competitive Landscape - BorgWarner competes with larger manufacturers and distributors, including Robert Bosch GmbH, Denso Corporation, and others, which may have economic advantages such as lower labor costs and subsidies [5]. - Increased competition could negatively impact BorgWarner's business prospects [5].

Summary of Modine Manufacturing Company (MOD) FY Conference Call Company Overview - **Company**: Modine Manufacturing Company (MOD) - **Event**: Oppenheimer's twentieth Annual Industrial Growth Conference - **Date**: May 08, 2025 Key Industry Insights Data Center Market - **Growth Projections**: Initial growth outlook for fiscal year 2025 was 60% to 70%, revised to 110% to 120% due to increased demand from hyperscalers [4][6] - **Hyperscaler Relationships**: Expanded from one significant relationship to four, enhancing sales opportunities [5][6] - **Acquisition Impact**: The acquisition of Scott Springfield added evaporative cooling technology, allowing access to a previously blocked market segment [6][7] - **North American Chiller Market**: Significant growth noted in North America, particularly in chiller markets, with expansions in Virginia and Mississippi [7][8] - **Core Technology**: Focus on free cooling technology and evaporative cooling, addressing both water and electricity efficiency [10][11] Customer Diversification - **Current Customer Base**: Approximately 50% hyperscale and 50% colocation, with potential shifts based on customer CapEx or leasing models [23][27][28] - **AI Orders**: Secured a $180 million order for AI chillers from a Neo Cloud provider, indicating diversification into new customer pools [24][25] Competitive Dynamics - **Market Share Growth**: Modine has been gaining market share despite increased competition in liquid cooling and chiller capacity [29][31] - **Sustainable Growth**: Projected 30% organic growth in data center for fiscal year 2026, with a CAGR of 45% to 55% expected [12][31] Financial and Operational Highlights Capacity Expansion - **Investment in Capacity**: Capacity has more than doubled from $500 million to over $1 billion based on market visibility and probability analysis [18][19] - **Pipeline Potential**: The sales pipeline is five to six times the current revenue, indicating strong future growth potential [21] M&A Strategy - **Acquisition Focus**: Active in M&A to fill technology gaps and enhance data center capabilities, with a strong buy-side funnel [38][40] - **Absolute Air Acquisition**: A strategic acquisition to extend product lines and leverage existing partnerships [34][36] Capital Allocation - **Prioritization**: M&A is the top priority, followed by internal CapEx for growth, with buybacks being a lower priority [80][82] - **Divestiture Plans**: Plans to divest $250 million to $300 million in automotive revenue, focusing on non-core assets [55][58] Market Trends and Challenges HVAC and Heat Transfer Products - **Market Transformation**: Strategic simplification of the coils business has improved margins, with a focus on cash generation for reinvestment [43][44] - **Impact of ESSER Funding**: The cessation of ESSER funding may affect the IAQ business, but backlog remains strong [46][48] Tariff Management - **Tariff Strategy**: Different approaches for climate solutions and performance technology segments, with a focus on passing through costs to customers [69][71] Future Outlook - **Diversification Opportunities**: Excitement about entering new markets such as healthcare and life sciences, leveraging expertise in thermal management [89][90] - **Long-term Growth Potential**: Focus on generating cash from current operations to reinvest in more attractive markets [92]

Core Insights - Adient reported adjusted earnings per share (EPS) of 69 cents for Q2 fiscal 2025, an increase from 54 cents in the same period last year, exceeding the Zacks Consensus Estimate of 36 cents [1] - The company generated net sales of $3.61 billion, a 4% decrease year over year, but above the Zacks Consensus Estimate of $3.47 billion [1] Segment Performance - The Americas segment achieved revenues of $1.70 billion, up 2.3% year over year, surpassing the Zacks Consensus Estimate of $1.59 billion, with adjusted EBITDA of $94 million, an increase from $80 million in the prior-year quarter [3] - The EMEA segment reported revenues of $1.23 billion, down 10.1% year over year, but exceeding the Zacks Consensus Estimate of $1.16 billion, with adjusted EBITDA of $50 million, down from $57 million in the previous year [4] - The Asia segment's revenues were $707 million, a decline from $742 million in the same quarter last year, missing the Zacks Consensus Estimate of $736 million, with adjusted EBITDA slightly down to $110 million from $112 million [4] Financial Position - As of March 31, 2025, Adient had cash and cash equivalents of $754 million, down from $945 million as of September 30, 2024, with long-term debt at $2.39 billion [5] - Capital expenditures totaled $109 million, compared to $124 million in the prior-year quarter [5] Guidance Updates - Adient maintains its fiscal 2025 revenue guidance at $13.9 billion and adjusted EBITDA at $850 million, with equity income projected at $80 million [6] - Free cash flow is now expected to be between $150 million and $170 million, down from a previous estimate of $180 million, with capital expenditures estimated at $285 million [7]

Core Viewpoint - The global coolant control valve market is projected to reach USD 570 million by 2031, with a compound annual growth rate (CAGR) of 11.0% in the coming years [2]. Market Overview - The coolant control valve is a critical component in automotive engine cooling systems, regulating coolant flow to maintain optimal engine temperatures [1]. - The market is dominated by 3-way coolant control valves, which hold approximately 63.1% of the global market share [8]. - Passenger vehicles represent the largest application market, accounting for about 75.4% of the total demand [11]. Market Drivers - Stricter environmental regulations and emission standards are increasing the demand for efficient cooling systems, with coolant control valves playing a key role in meeting these requirements [14]. - The rapid growth of electric vehicles (EVs) and hybrid electric vehicles (HEVs) is significantly impacting the coolant control valve market, as these vehicles have more complex cooling system needs [14]. - The push for vehicle lightweighting and energy efficiency is driving the demand for coolant control valves, which help manage coolant flow and improve fuel efficiency [14]. Market Challenges - High production costs and technical requirements pose barriers to entry for smaller manufacturers, as the production of high-performance coolant control valves demands advanced materials and complex manufacturing processes [15][16]. - Fluctuations in raw material prices, including metals and high-performance plastics, can directly affect production costs and market pricing [17]. - Intense market competition leads to product homogenization and price wars, challenging manufacturers to enhance product quality and reduce costs [18]. - Consumer acceptance of new technologies, such as smart coolant control valves, remains low, particularly in developing countries, which may hinder market penetration [19].

Financial Data and Key Metrics Changes - The company reported organic sales of just over $3.5 billion, which was relatively flat despite a decline in market production, with a sales outgrowth of 3.7% driven by a 47% increase in light vehicle e-product sales [6][21][22] - Adjusted operating margin performance was strong at 10%, reflecting a 60 basis point expansion despite a 20 basis point headwind from tariffs [7][24] - Free cash flow improved significantly, increasing by over $270 million or 89% year over year [22] Business Line Data and Key Metrics Changes - Light vehicle e-product sales grew by 47%, significantly outpacing the 25% increase in global hybrid and BEV production [6][7] - The company made a strategic decision to exit the charging business, which was not expected to create shareholder value, and began capacity consolidation actions within the North American battery systems business [8][14] Market Data and Key Metrics Changes - Market production in the quarter was down approximately 3.6%, but the company outgrew the market by 3.7% [21][22] - The company expects a full-year market assumption reduction to down 2% to 4% due to estimated impacts of tariffs on customer demand, particularly in North America [27][30] Company Strategy and Development Direction - The company is focused on maintaining a product portfolio that can achieve a 15% return on invested capital (ROIC) and has made decisions to exit non-profitable segments [8][14] - The company continues to secure new product awards across its portfolio, indicating a strong focus on product leadership in combustion, hybrid, and BEV architectures [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage through a challenging and uncertain environment, emphasizing the strength of the product portfolio and operational performance [19][20] - The company anticipates continued outgrowth over market production, with a full-year sales outgrowth expected to be approximately 200 to 400 basis points [30][32] Other Important Information - The company expects to eliminate approximately $30 million of annualized operating losses from exiting the charging business, while this exit is projected to be a $30 million headwind to sales but a $15 million increase to operating income [15] - The company is undertaking capacity consolidation actions in its Battery Systems business to adjust to current market dynamics, which are expected to result in annual cost savings of approximately $20 million by 2026 [16][17] Q&A Session Summary Question: Insights on business extensions and reinvestment needs - Management highlighted the strength and stickiness of the portfolio, expecting continued strong margins and similar profiles for extended foundational products [38] Question: Concerns regarding rare earth elements in e-products - Management acknowledged the use of rare earth elements in products and mentioned ongoing efforts to manage supply constraints [40] Question: Growth outlook in China - Management expressed optimism about growth in China, citing strong demand for competitive technology and successful product launches [49][50] Question: Clarification on North American light vehicle production outlook - Management indicated a conservative outlook for North American production, adjusting expectations to down 7% to 12% [52] Question: Breakdown of tariff impacts - Management provided details on tariff impacts, indicating that about 50% is related to IEPA and auto parts tariffs, while the remaining 50% is from China retaliatory tariffs [98] Question: Future M&A opportunities - Management remains active in reviewing M&A opportunities, emphasizing a disciplined approach to ensure targets meet specific criteria [118][120]

Company Overview & Strategy - BorgWarner has a vision for a clean, energy-efficient world and delivers 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 leverages its core competencies through organic and inorganic investments[21] Financial Performance & Sustainability - In 2023, approximately 87% of BorgWarner's revenue came from EV and emissions-reducing hybrid and combustion products[24] - eProduct sales reached approximately $2 billion in 2023[25] - The company achieved a 32% reduction in scope 1 and 2 emissions since 2021 and targets a 25% reduction in Scope 3 emissions by 2030 versus a 2021 baseline[26] - Since 2020, BorgWarner has returned approximately $34 billion to shareholders, including buybacks exceeding $1 billion and shareholder dividends of approximately $696 million, and the market cap of PHINIA at spin-off was approximately $17 billion[49] Product Portfolio & Market Position - BorgWarner holds a 1 or 2 market share in foundational products and is growing share in several eProducts[19] - The estimated BorgWarner content opportunity per light vehicle increases from $548 for combustion engines to $2,569 for BEVs in 2027[28] - The company's foundational sales are approximately $12 billion in 2024[30]

Core Insights - The company reported a decrease in U.S. GAAP net sales of approximately 2% for the first quarter of 2025 compared to the same period in 2024, with net sales totaling $3,515 million [5][6][14] - Adjusted earnings per diluted share increased by approximately 8% to $1.11 in Q1 2025, up from $1.03 in Q1 2024, despite a decline in net earnings per diluted share from $0.93 to $0.72 [4][6] - The company has provided full-year 2025 guidance, expecting net sales between $13.6 billion and $14.2 billion, reflecting slight growth from 2024 sales of approximately $14.1 billion [7][8] Financial Performance - U.S. GAAP net earnings for Q1 2025 were $157 million, down from $213 million in Q1 2024, while adjusted net earnings were $1.11 per diluted share, an increase from $1.03 [6][14] - The company achieved an adjusted operating margin of 10.0% in Q1 2025, compared to a U.S. GAAP operating margin of 6.7%, reflecting a 60 basis point improvement year-over-year [5][6] - The company reported net cash provided by operating activities of $82 million for Q1 2025, a significant improvement from a net cash used of $(118) million in Q1 2024 [17] Business Developments - The company secured multiple new business awards, including a high-volume hybrid eMotor award and a high-voltage coolant heater award, which are expected to support long-term profitable growth [2][5] - The company plans to exit its Charging business, which is anticipated to eliminate approximately $30 million in annualized adjusted operating losses [5][6] - The company is consolidating its North American Battery Systems business, aiming for annual cost savings of approximately $20 million by 2026 [5] Market Outlook - The company expects its weighted light and commercial vehicle markets to decline by 4% to 2% in 2025, a revision from the previous estimate of down 3% to down 1% [7][8] - The sales guidance implies a year-over-year change in organic sales of down 2% to up 2%, with an estimated outgrowth above market production of approximately 200 to 400 basis points [7][8] - The company anticipates operating margins in the range of 8.1% to 8.6% for 2025, with adjusted operating margins expected to be between 9.6% and 10.2% [8]

Core Insights - Lear (LEA) reported a revenue of $5.56 billion for Q1 2025, reflecting a year-over-year decline of 7.2% and an EPS of $3.12, down from $3.18 a year ago, with a revenue surprise of +0.09% and an EPS surprise of +18.18% [1] Financial Performance - Revenue and EPS: Revenue of $5.56 billion with a year-over-year decline of 7.2% and EPS of $3.12 compared to $3.18 a year ago [1] - Revenue surprise: Reported revenue exceeded the Zacks Consensus Estimate by +0.09% [1] - EPS surprise: EPS surpassed the consensus estimate of $2.64 by +18.18% [1] Geographic Net Sales - North America: $2.25 billion, below the $2.30 billion estimate, a year-over-year decline of -9.2% [4] - South America: $177.80 million, below the $218.26 million estimate, a year-over-year decline of -13.4% [4] - Asia: $1.07 billion, slightly below the $1.08 billion estimate, with a year-over-year increase of +1.1% [4] - Europe and Africa: $2.06 billion, above the $1.92 billion estimate, a year-over-year decline of -8.5% [4] Segment Performance - E-Systems: Net sales of $1.41 billion, slightly below the $1.42 billion estimate, with a year-over-year decline of -7.1% [4] - Seating: Net sales of $4.15 billion, above the $4.11 billion estimate, with a year-over-year decline of -7.3% [4] - Adjusted Segment Earnings - E-Systems: $73.80 million, exceeding the $58.81 million estimate [4] - Adjusted Segment Earnings - Seating: $279.90 million, above the $240.82 million estimate [4] Stock Performance - Lear's shares have returned +12.7% over the past month, outperforming the Zacks S&P 500 composite's +11.5% change [3] - Current Zacks Rank for Lear is 4 (Sell), indicating potential underperformance in the near term [3]