Financial Data and Key Metrics Changes - Revenue totaled $4.8 billion, down 1% year-over-year due to lower vehicle production in North America and Europe and negative customer mix [5][21] - Operating income reached a record $572 million, an increase of over 5%, reflecting strong operating execution and ongoing cost reduction initiatives [5][21] - Earnings per share hit a record $1.69, a 46% increase from the prior year, driven by higher operating income and share repurchases [5][23] - Operating cash flow totaled $273 million, positioning the company to accelerate its deleveraging plan [5][31] Business Line Data and Key Metrics Changes - Advanced Safety and User Experience (ASUX) segment revenues were flat, with Active Safety revenues increasing by 9% and User Experience down 14% due to the roll-off of legacy programs [25][13] - Engineered Components Group (ECG) revenues increased by 1%, driven by 24% growth in China, offsetting declines in North America and Europe [26][16] - Electrical Distribution Systems (EDS) revenues declined by 3%, primarily due to lower light vehicle production, but bookings included over $1 billion in new business awards [27][18] Market Data and Key Metrics Changes - In North America, revenues were down 2%, while in Europe, revenues decreased by 4% year-over-year [24] - In China, revenues grew by 2% year-over-year, driven by growth with local OEMs, despite significant production volume declines with a specific EV customer [24][26] Company Strategy and Development Direction - The company is focused on the transition to electrified, software-defined, and connected solutions, positioning itself to enable this transition across multiple end markets [7][35] - The separation of the EDS business is on track, expected to create two independent public companies with unique product portfolios and financial profiles [35][19] - The company is proactively adapting its business to evolving trade policies and customer needs, leveraging a localized supply chain and flexible cost structure [10][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth drivers of the business, despite current uncertainties due to rapid changes in global trade policies [8][9] - The company is closely monitoring demand changes and plans to update its full-year outlook when visibility improves [8][9] - Management highlighted strong cash flow generation and a robust balance sheet, providing flexibility to execute strategic initiatives [31][32] Other Important Information - The company completed a $3 billion accelerated share repurchase program, reducing its share count by 18% [6] - Bookings for the first quarter were nearly $5 billion, with strong traction in China and across various segments [11][12] Q&A Session Summary Question: Outlook and Tariff Impact - Management confirmed that the second quarter guidance is based on current visibility, with a focus on vehicle production schedules and customer pricing strategies [37][41] Question: High-Value Production Relocation - Management indicated that high-value production could potentially move back to the U.S., but this does not include the wire harness business [42][44] Question: Advanced Content Bidding Launches - Management noted that activity levels remain robust, although customer award timelines have been extended due to macro uncertainties [48][49] Question: EDS Spin and Macro Uncertainty - Management affirmed that the plan to separate EDS remains unchanged, focusing on growth and cost minimization [50][51] Question: Volume Decline and Guidance - Management clarified that the guidance reflects a volume question for the second half of the year, with no direct tariff impact expected [54][60] Question: China Market Performance - Management acknowledged strong growth in China, despite being impacted by a significant global EV manufacturer [62][63] Question: Tariff Commentary - Management confirmed that 99% of goods imported are USMCA compliant, implying minimal tariff costs [78][79]

Financial Performance - Q1 2025 - Reported revenue was $4825 million, a decrease of (2%) year-over-year[28,55] - Adjusted revenue growth, excluding foreign exchange and commodities impact, was (1%)[28,55] - EBITDA increased by 5% to $758 million, with an EBITDA margin of 15.7%, a 100 bps increase[28] - Operating income reached a record $572 million for the first quarter, with an operating margin of 11.9%, up 80 bps[28] - Earnings per share (EPS) stood at $1.69, including a $0.21 benefit from Motional EPS[28] - Operating cash flow was $273 million, driven by higher year-over-year earnings and continued inventory management[28] Segment Performance - Q1 2025 - Advanced Safety & User Experience (AS&UX) reported flat revenue growth, with a 9% adjusted growth in Active Safety and 12% in SV Compute & Software[28,35] - Engineered Components Group (ECG) saw a 1% adjusted revenue growth, with China up 24%, and an 8% increase in operating income[28,39] - Electrical Distribution Systems (EDS) experienced a (3%) adjusted revenue decline due to lower vehicle production, but a 5% increase in operating income[28,43] Guidance and Outlook - The company provided Q2 2025 revenue guidance of $4920 - $5120 million and full-year 2025 revenue guidance of $19600 - $20400 million[45] - Q2 2025 adjusted revenue growth is expected to be around (1%), with NA ~flat, EU (3%), and China (4%)[45] - Full-year 2025 adjusted revenue growth is projected at approximately 2%[45]

Financial Performance - Q1 2025 sales were $217.9 million[5], relatively in line with Q4 2024[12] - Adjusted gross profit for Q1 2025 was $47.7 million[5], with a margin of 21.9%[5], a 210 bps increase compared to Q4 2024[9] - Adjusted EBITDA for Q1 2025 was $7.6 million[5], representing a margin of 3.5%[5], an 80 bps improvement from Q4 2024[9] - Free cash flow for Q1 2025 was $4.9 million[5], a $1.5 million improvement compared to Q1 2024[9] Segment Results - Control Devices sales increased by 10.6% compared to Q4 2024, reaching $69.9 million in Q1 2025[24] - Electronics division saw MirrorEye revenue increase by approximately 24% compared to Q4 2024[9], setting a quarterly sales record[12] - Stoneridge Brazil OEM sales increased by over 60% compared to Q4 2024[9], reaching $14.4 million in Q1 2025[33] Guidance and Outlook - The company is maintaining its full-year 2025 revenue guidance of $860 million to $890 million[21] - Full-year adjusted gross profit guidance is $189 million to $200 million, with a margin of 220% to 225%[21] - The company anticipates free cash flow between $25 million and $30 million for the full year 2025[21]

Financial Performance - Q1 2025 sales decreased to $2352 million from $2735 million in Q1 2024[24] - Adjusted EBITDA for Q1 2025 was $188 million, down from $223 million in Q1 2024[24] - Q1 2025 adjusted free cash flow improved to -$101 million from -$168 million in Q1 2024[33] - Diluted adjusted EPS decreased to $0.13 from $0.26 year-over-year[24] Cost Savings and Outlook - The company is accelerating its cost-savings plan, increasing 2025 cost savings from $175 million to $225 million[12, 17] - Full-year sales guidance is maintained at ~$9.5 billion to $10.0 billion[37] - Full-year adjusted EBITDA guidance is maintained at ~$975 million[37] - Full-year adjusted free cash flow is guided at ~$225 million[37] Segment Performance - Light Vehicle Systems sales were $1180 million, down from $1324 million in Q1 2024[47, 58] - Commercial Vehicle Systems sales were $568 million, down from $653 million in Q1 2024[47, 58] - Off-Highway Drive and Motion Systems sales were $604 million, down from $758 million in Q1 2024[47, 58]

Core Insights - BorgWarner will present its latest inverter technology at the 46th Vienna Motor Symposium from May 14-16, 2025, including a double-sided cooled (DSC) 800V SiC power module and a next-generation multi-level traction inverter [1][2] Group 1: Technology Advancements - The DSC power module is designed to maximize efficiency and enable smaller, high-performance inverters for battery electric vehicles (BEVs) [1][2] - The innovative design of the DSC power module improves thermal management and power conversion efficiency, allowing for more compact and sustainable solutions in vehicle electrification [2] - The power module enhances thermal performance by extracting heat from both sides of the silicon carbide power switch, leading to lower junction temperatures or higher current densities [2] Group 2: Market Context - The growing adoption of BEVs and hybrids necessitates advancements in efficiency and power density for vehicle electrification [2] - BorgWarner's technology supports high-power applications and compact designs, contributing to the future of sustainable mobility [2][3]

Core Points - Cooper Standard has been recognized as one of America's Climate Leaders 2025 by USA TODAY and Statista, highlighting its commitment to sustainability and environmental responsibility [1][2] - The award acknowledges companies in the U.S. that demonstrate a strong environmental record and significant year-over-year reductions in emissions intensity [2] - Cooper Standard's 2023 Corporate Responsibility Report emphasizes its dedication to reducing environmental impact while promoting business innovation and profitability [3] Company Overview - Cooper Standard is a leading global supplier of sealing and fluid handling systems, headquartered in Northville, Michigan, with operations in 20 countries [5] - The company employs approximately 22,000 team members, focusing on continuous improvement in business practices and community engagement [5] - Cooper Standard utilizes materials science and manufacturing expertise to create innovative and sustainable solutions for various transportation and industrial markets [5]

Q1 2025 EARNINGS This presentation This press release contains forward-looking statements within the meaning of U.S. federal securities laws. Forward-looking statements are statements other than historical fact that provide current expectations or forecasts of future events based on certain assumptions and are not guarantees of future performance. Forward-looking statements use words such as "anticipate," "believe," "continue," "could," "designed," "effect," "estimate," "evaluate," "expect," "forecast," "go ...

Financial Data and Key Metrics Changes - Net sales for the first quarter were $796 million, down 7.8% year-over-year, with a 4.1% decrease when excluding foreign exchange impacts and prior year contract manufacturing revenues [9][28] - Adjusted EBITDA was $103 million with a margin of 12.9%, representing a year-over-year decline of 260 basis points [10][34] - Adjusted earnings per diluted share were $0.94, excluding non-operating items [11][31] - The balance sheet remains strong with cash and cash equivalents of $373 million, and total liquidity of approximately $900 million [12][37] Business Line Data and Key Metrics Changes - Aftermarket segment sales decreased by 3.9% year-over-year, primarily due to lower OEM sales [29] - Fuel system segment sales were down 10.2%, or 7.3% excluding prior year contract manufacturing sales, attributed to lower OE sales across all regions [29][32] - Total segment adjusted operating margins were 12.2%, a decrease of 140 basis points year-over-year [10][31] Market Data and Key Metrics Changes - The macroeconomic environment and automotive industry showed signs of slowing, similar to the second half of 2024 [7] - The North American market is experiencing a softening in commercial vehicle (CV) and light vehicle (LV) segments, with expectations of no pre-buy effect in the second half of the year [21][51][120] Company Strategy and Development Direction - The company is focused on long-term profitable growth through capital investment, share repurchases, and dividends [19][20] - There is a commitment to expanding product offerings and capturing new business wins, particularly in alternative fuels and aftermarket segments [15][17][25] - The company aims to navigate near-term uncertainties while maintaining a strong financial position to invest in business and pursue acquisitions [25][72] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by tariffs and macroeconomic conditions but expressed confidence in the company's resilience and ability to adapt [22][25] - The company expects to maintain a strong order board and sees opportunities for growth despite current market softness [51][122] - The effective tax rate for 2025 is expected to be between 38% and 42%, with ongoing efforts to improve it [43] Other Important Information - The company returned $111 million to shareholders through share buybacks and dividends during the first quarter [12] - Capital expenditures were $35 million, representing 4.4% of sales, primarily for new machinery and equipment [40] Q&A Session Summary Question: Impact of tariffs on business - Management indicated that the majority of North American business is USMCA compliant, positioning the company well to manage tariff impacts [48] Question: Changes in production market - Management confirmed a softening in the commercial vehicle market but noted a stable order board and ongoing demand from customers [51][54] Question: FX impacts on guidance - FX headwinds were initially estimated at $80 million but are now closer to $20 million, with expectations of stability for the remainder of the year [59] Question: M&A strategy amid uncertainty - The company remains in a strong cash position and is focused on smaller, cash-flowing tuck-in acquisitions [72] Question: Supplier settlement and standalone costs - Management clarified that the supplier settlement was a one-off headwind and that standalone costs are expected to stabilize [78][84] Question: New product development and commercialization - The company continues to see strong demand for new products and expects to add over 2,000 SKUs annually [114] Question: Customer sentiment regarding tariffs - Management reported no significant changes in customer behavior or delays in development activities due to tariffs [106] Question: Free cash flow and shareholder returns - The company will assess share buybacks each quarter based on cash flow forecasts and market conditions, with a current limitation on repurchases due to a tax manager agreement [128]

Financial Data and Key Metrics Changes - Net sales for the first quarter of 2025 were $934 million, essentially flat compared to the prior year, but outperformed underlying customer production volumes, equating to a growth over market of 10% [6][41] - Adjusted EBITDA was $129 million, representing a margin of 13.8%, marking a record for the company [6][38] - Adjusted free cash flow was $38 million, driven by solid EBITDA performance [6][48] - The company maintained one of the strongest balance sheets in the industry, ending the quarter with $658 million in cash and a net cash balance of $343 million [50][63] Business Line Data and Key Metrics Changes - The display product line was a standout, growing 50% despite overall customer production volumes being down mid-single digits [44] - New business wins totaled $1.9 billion for the quarter, led by displays and digital cluster product wins [8][21] - The company secured significant contracts with major OEMs, including a new digital cluster business with Toyota and a large cockpit display with Cherry [13][23] Market Data and Key Metrics Changes - Industry production volumes increased by 1% in Q1, while production at top customers decreased by 4% on a revenue-weighted basis [17] - Sales growth was driven by The Americas and Europe, with strong performance in commercial vehicles and new product launches [18][42] - In China, the company experienced a year-over-year decline in sales due to market share loss of global OEMs and lower domestic OEM sales [19][41] Company Strategy and Development Direction - The company's strategy focuses on product and customer expansion, particularly in faster-growing technology domains in automotive [10] - Visteon aims to capitalize on the trend of software-defined vehicles and the increasing demand for larger displays [11][12] - The company is strategically expanding its business with targeted growth customers in Asia and enhancing its presence in the two-wheeler market [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating potential tariff-related headwinds and emphasized the importance of maintaining a strong balance sheet [9][36] - The company is not reaffirming full-year guidance due to uncertainties created by tariffs, but remains optimistic about long-term growth prospects [51][67] - Management highlighted the importance of working closely with customers to mitigate tariff impacts and maintain operational stability [61][63] Other Important Information - The company has paused share repurchase activities to focus on cash preservation amid tariff uncertainties [39][63] - Visteon is actively exploring technology-accretive acquisitions as part of its capital allocation strategy [64] Q&A Session Summary Question: Impact of tariffs on supply chain and customer discussions - Management stated that they have not been impacted by tariffs yet and are working constructively with customers to reduce exposure [73][74] Question: Current engagement environment for new vehicle designs - Management indicated that the engagement environment remains stable, with robust new business activity expected throughout the year [80][81] Question: Production schedules and inventory management - Management noted no meaningful pull ahead from customers, with stable order scenarios observed [87][88] Question: Supply chain cost impacts - Management confirmed no significant increases in supplier costs, attributing stability to diversified supply bases [91][92] Question: New business wins and future revenue acceleration - Management expressed confidence in exceeding the $6 billion target for new business wins, supported by a strong pipeline [150][156] Question: Strategy in China and customer mix - Management outlined a strategy to work with both domestic and global OEMs, expecting gradual recovery in the Chinese market [121][124]

Financial Data and Key Metrics Changes - First quarter revenues decreased by 0.6% year-over-year but grew approximately 1% when adjusted for foreign exchange [28] - Adjusted EBITDA for the quarter was $39.3 million, representing 11.1% of sales, down from 12.2% in the same quarter last year [28] - Adjusted diluted earnings per share decreased to $0.51 from $0.62 year-over-year [29] Business Line Data and Key Metrics Changes - Automotive Climate and Comfort Solutions revenue increased by 3.8% year-over-year or 5.3% when excluding foreign exchange effects, driven by strong growth in lumbar and massage comfort solutions [28] - Medical segment revenues increased by 6% year-over-year when adjusted for foreign exchange, primarily due to growth in Europe [28] Market Data and Key Metrics Changes - The outlook for 2025 annual volumes has declined by 2% compared to previous reports, with a notable 10% decline expected in North America, which constitutes about 40% of the company's business [9][33] - The company is closely monitoring dealer inventory levels and customer demand schedules to adapt to market changes [9] Company Strategy and Development Direction - The company is focused on expanding revenue while increasing margins and cash flow, with a strategic emphasis on scaling four core technology platforms: thermal management, air moving devices, pneumatic solutions, and valve systems [12][36] - The company is actively pursuing opportunities in adjacent markets, particularly in the medical sector, leveraging existing technologies without significant incremental investments [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased economic uncertainty due to tariffs but expressed confidence in the company's ability to mitigate impacts and maintain a strong balance sheet [6][10] - The company is committed to driving profitable growth and operational excellence, with plans to optimize production across regions [18][20] Other Important Information - The company received $400 million in new automotive business awards during the quarter, including significant wins with Japanese OEMs and Volvo [24][25] - The company was recognized as General Motors Supplier of the Year for the third time, highlighting strong relationships and innovative technology [27] Q&A Session Summary Question: How much pass-through revenue is incorporated in the guidance? - Management indicated that the impact of tariffs is relatively limited, with only a small portion of the overall business affected, primarily in Mexico and North America [42] Question: Why is the approach to adjacent markets different this time? - Management clarified that the focus is on scaling existing technologies into adjacent markets rather than developing new products, emphasizing the use of current capital equipment [45] Question: What are the booking dynamics in Q1? - Management stated that the first quarter's new program awards were in line with expectations, despite appearing lower than previous quarters [50] Question: How is the company maintaining its sales guidance despite weaker industry forecasts? - Management explained that while North American volumes are under pressure, favorable foreign exchange impacts and tariff pass-throughs are helping to maintain guidance [51]