Group 1 - The company AKWEL recorded a consolidated turnover of €510.6 million in the first half of 2025, showing a decrease of 3.4% compared to €528.8 million in the same period of 2024 [2][3][4] - In the second quarter of 2025, the turnover was €255.0 million, which is a decline of 3.9% from the second quarter of 2024, and a slight decrease of 3.0% from the first quarter of 2025 [5][3] - The turnover for Products and Functions in the first half amounted to €497.5 million, down 1.2%, with growth in Decontamination (+15.1%), Fuel (+3.6%), and Cooling (+1.9%), while Air (-22.6%) and Mechanisms (-3.9%) saw declines [6] Group 2 - The company anticipates a decrease in turnover for the full year of 2025, but expects it to be less severe than the decline experienced in 2024 [7] - AKWEL is an independent family business specializing in parts and systems for the automotive and heavy-vehicle industry, with expertise in fluid management and electric vehicle components [9] - The company operates in 20 countries across 5 continents and employs approximately 8,600 people globally [10]

Financial Data and Key Metrics Changes - Net sales for Q2 2025 were $890 million, an increase of 2.5% year over year, with adjusted earnings per diluted share rising to $1.27 from $0.88 in the same period last year [7][10][21] - Adjusted EBITDA was $126 million with a margin of 14.2%, reflecting a 60 basis point year-over-year expansion [9][27] - Total segment adjusted operating margin increased to 13.4%, a 120 basis point rise compared to Q2 2024 [10][22] Business Line Data and Key Metrics Changes - Aftermarket segment sales increased slightly year over year, driven by favorable foreign exchange and tariff recoveries, while Fuel Systems segment sales rose by 3.7% [22][23] - Aftermarket segment margin improved to 16.1%, up 100 basis points, while Fuel Systems segment margins reached 11.5%, up 140 basis points year over year [25][26] Market Data and Key Metrics Changes - The average age of U.S. light vehicles increased to approximately 12.8 years, indicating a growing market for nondiscretionary aftermarket parts [14] - Sales strength was noted in the independent aftermarket in Europe and light vehicle sales in China, while commercial and heavy-duty vehicle sales remained flat to down across all regions [26] Company Strategy and Development Direction - The company is focused on expanding its CV industrial and aerospace OE business, which currently accounts for 73% of revenues, while maintaining light vehicle OE sales at approximately $900 million [17] - The recent acquisition of SEM is expected to enhance the company's capabilities in alternative fuel technology and open adjacent market opportunities [18][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance despite ongoing economic uncertainties, maintaining a full-year outlook [19][32] - The company is optimistic about the second half of the year, expecting to integrate the SEM business and continue executing strategic priorities [33] Other Important Information - The company returned approximately $50 million to shareholders through share repurchases and dividends during the quarter [6][18] - The balance sheet remains strong with cash and cash equivalents of $347 million and total liquidity of approximately $850 million [19][28] Q&A Session Summary Question: Dynamics driving the strong bounce back in Q2 - Management noted that the recovery was influenced by improved visibility and order board strength, along with favorable FX and tariff recoveries [35][36] Question: Conversations at the Paris Air Show - Management reported positive discussions with customers, including Safran, and confirmed progress in the aerospace certification process [38][39] Question: Strategic rationale behind the SEM acquisition - The acquisition is seen as an opportunity to provide greater system solutions for customers and leverage existing manufacturing capabilities to accelerate SEM's growth [40][42] Question: Impact of Ford recall on financials - Management indicated that the recall is primarily a Ford issue and does not expect a significant impact on their financials [47][48] Question: Capital allocation intentions for the rest of the year - Management confirmed plans to continue share repurchases while maintaining a strong balance sheet and cash flow [49][50] Question: Clarification on tariff recoveries and net tariff impact - Management clarified that the company recovered $9 million in tariffs but faced a net tariff cost of $2 million, indicating ongoing efforts to close the gap [54][55]

Core Insights - LKQ Corporation reported a revenue of $3.6 billion for Q2 2025, a decrease of 1.9% compared to $3.7 billion in Q2 2024, with organic revenue for parts and services down 3.4% [2][13] - The company achieved a net income of $192 million, up from $185 million in the same period last year, with diluted earnings per share increasing by 7.1% to $0.75 [3][25] - LKQ is focused on cost reduction, having eliminated over $125 million in costs over the past year, with an additional $75 million targeted for 2025 [4][10] Financial Performance - Revenue for the first half of 2025 was $7.1 billion, down 4.2% from $7.4 billion in the same period of 2024 [27] - The gross margin for Q2 2025 was 38.8%, slightly down from 39.0% in Q2 2024 [25] - Operating income for Q2 2025 was $312 million, a decrease of 5.2% compared to $329 million in Q2 2024 [25] Strategic Initiatives - The company is executing a three-year plan aimed at simplifying its business portfolio and enhancing return on invested capital [1][7] - LKQ is expanding its lean operating model globally to drive productivity and improve execution [10] - The company is pursuing a disciplined capital allocation strategy focused on maximizing shareholder value [10][12] Market Outlook - LKQ has lowered its full-year outlook for 2025, projecting organic revenue growth for parts and services to be between -3.5% and -1.5%, down from a previous estimate of 0% to 2% [13] - The updated diluted EPS forecast for 2025 is between $2.47 and $2.77, a reduction from the previous range of $2.91 to $3.21 [13] - The company is navigating macroeconomic challenges in both North America and Europe, including declining repairable claims and geopolitical unrest [13] Shareholder Returns - In Q2 2025, LKQ repurchased approximately 1.0 million shares for $39 million and distributed $78 million in cash dividends [11] - Since the initiation of the stock repurchase program in late October 2018, the company has repurchased approximately 66.5 million shares for a total of $2.9 billion [11] - The Board of Directors declared a quarterly cash dividend of $0.30 per share, payable on August 28, 2025 [11] Cash Flow and Balance Sheet - Cash flow from operations for Q2 2025 was $296 million, with free cash flow at $243 million [8] - As of June 30, 2025, total debt stood at $4.5 billion, with a leverage ratio of 2.6x EBITDA [8][29] - The company reported total assets of $15.9 billion and total stockholders' equity of $6.5 billion as of June 30, 2025 [29][30]

Core Insights - Genuine Parts Company (GPC) reported mixed Q2 2025 financials, with total sales of $6.2 billion, reflecting a 3.4% growth year-over-year, but faced margin pressures leading to a downward revision of full-year earnings and cash flow outlooks [6][13][39] - The company revised its diluted EPS guidance for FY2025 to a range of $6.55 to $7.05, down from $6.95 to $7.45, primarily due to tariff impacts and persistent cost inflation [5][47] - Management indicated that inflation in Selling, General and Administrative (SG&A) expenses outpaced sales inflation by approximately 100 basis points, contributing to a decline in adjusted EBITDA margin to 8.9% [5][44] Financial Performance - Adjusted EPS for Q2 2025 was $2.10, down 14% year-over-year, impacted by lower pension income and higher depreciation and interest expenses [7][38] - Total adjusted SG&A as a percentage of sales increased to 28.7%, up 150 basis points year-over-year, with absolute SG&A rising by $145 million [7][40] - Operating cash flow is projected at $1.1 billion to $1.3 billion for FY2025, with free cash flow expected at $700 million to $900 million, both lower than previous forecasts [5][57] Segment Performance - Automotive segment sales increased by 5% in Q2 2025, with comparable sales up about 0.5%, while the industrial segment saw sales of $1.8 billion, up about 1% [7][24] - E-commerce accounted for 40% of Motion segment sales, reflecting a growth of over 10% since early 2024 [7][23] - The company acquired 32 U.S. stores in Q2 2025, in addition to 44 in Q1 2025, enhancing its market presence [7][31] Market Conditions - Management noted that the cumulative effect of broad-based tariffs on demand remains a risk, with potential negative consequences if tariffs expand or inflation impacts accelerate [5][55] - The company expects full-year sales growth of 1%-3% for FY2025, with automotive segment sales growth guided at 1.5%-3.5% and industrial segment sales seen up 1%-3% [7][57] - Current PMI readings indicate a contractionary environment, which has influenced the revised growth expectations for both automotive and industrial businesses [49][57] Strategic Initiatives - Ongoing global restructuring initiatives aim to offset rising SG&A expenses and address challenges across diverse geographic markets [6][44] - The company is focused on controlling costs and enhancing operational efficiency, with a target of over $200 million in annualized cost savings by 2026 from restructuring efforts [7][56] - Management emphasized the importance of maintaining customer relationships and adapting to market changes through strategic pricing and sourcing initiatives [6][20]

Core Insights - Genuine Parts Company (GPC) reported revenue of $6.16 billion for the quarter ended June 2025, reflecting a year-over-year increase of 3.4% [1] - The earnings per share (EPS) for the quarter was $2.10, down from $2.44 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $6.11 billion by 0.81%, while the EPS surpassed the consensus estimate of $2.08 by 0.96% [1] Financial Performance Metrics - Automotive net sales reached $3.91 billion, exceeding the average analyst estimate of $3.84 billion, representing a 5% increase compared to the previous year [4] - Industrial net sales were $2.25 billion, slightly below the average estimate of $2.27 billion, showing a year-over-year increase of 0.7% [4] - Segment EBITDA for Automotive was $337.99 million, below the average estimate of $346.71 million [4] - Corporate EBITDA was reported at -$78.63 million, better than the average estimate of -$104.12 million [4] - Segment EBITDA for Industrial was $288.14 million, compared to the average estimate of $296.82 million [4] Stock Performance - Genuine Parts shares have returned +2.1% over the past month, while the Zacks S&P 500 composite has increased by +5.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Performance - Global sales increased by 3.4% to $6.2 billion[11] - Gross margin improved by 110 bps to 37.7%[11] - Adjusted diluted EPS decreased by 13.9% to $2.10[11] - Adjusted EBITDA decreased by 3.8% to $547 million[11] - The company has ample liquidity with $1.5 billion[11] Segment Performance - Industrial global sales increased by 0.7% to $2.3 billion, with global comps decreasing by 0.1%[13] - Industrial segment EBITDA increased by 1.1% to $288 million, with segment EBITDA margin improving by 10 bps to 12.8%[13] - Automotive global sales increased by 5.0% to $3.9 billion, with global comps increasing by 0.4%[16] - Automotive segment EBITDA decreased by 6.9% to $338 million, with segment EBITDA margin decreasing by 110 bps to 8.6%[16] Outlook - Revised 2025 total sales growth outlook to 1% to 3%[33] - Revised 2025 adjusted diluted EPS outlook to $7.50 to $8.00[33] - Revised 2025 cash from operations outlook to $1.1 billion to $1.3 billion[33] - Revised 2025 free cash flow outlook to $700 million to $900 million[33]

Core Insights - Genuine Parts Company reported second quarter 2025 results that met expectations, reflecting strategic initiatives and cost restructuring amid challenging market conditions [2][3] - The company generated sales of $6.2 billion, a 3.4% increase from $6.0 billion in the same period last year, driven by acquisitions and favorable foreign currency impacts [3][4] - Net income for the quarter was $255 million, or $1.83 per diluted share, down from $296 million, or $2.11 per diluted share, in the prior year [3][4] Financial Performance - Adjusted net income for the second quarter was $292 million, or $2.10 per diluted share, compared to $342 million, or $2.44 per diluted share, in the prior year [4] - For the first half of 2025, sales totaled $12.0 billion, up 2.4% from $11.7 billion in the same period of 2024, with net income of $449 million, or $3.23 per diluted share, down from $544 million, or $3.89 per diluted share, in the prior year [7] - The company generated cash flow from operations of $169 million for the first six months of 2025, a decrease attributed to lower net income and changes in working capital [8][9] Segment Performance - The Automotive Parts Group reported global sales of $3.9 billion, a 5.0% increase from the same period in 2024, with a segment EBITDA of $338 million, down 6.9% [5] - The Industrial Parts Group saw sales of $2.3 billion, a 0.7% increase from the same period in 2024, with segment EBITDA of $288 million, up 1.1% [6] Outlook - The company revised its full-year 2025 guidance, now expecting total sales growth of 1% to 3%, down from the previous 2% to 4% [11][13] - Adjusted diluted earnings per share guidance was revised to a range of $7.50 to $8.00, down from $7.75 to $8.25 [8][13] - The updated outlook considers the impact of U.S. tariffs and current market conditions, indicating a more moderated improvement than previously projected [12][13]

Core Viewpoint - LKQ is expected to report quarterly earnings of $0.93 per share, reflecting a 5.1% decline year over year, with revenues forecasted at $3.61 billion, a decrease of 2.7% compared to the previous year [1]. Revenue Estimates - Analysts estimate 'Revenue- Other- Total' to be $151.43 million, indicating a decline of 4.8% from the prior-year quarter [4]. - 'Revenue- Parts and Services- Wholesale- North America' is projected to reach $1.35 billion, suggesting a 3.1% decrease year over year [4]. - The total 'Revenue- Parts and Services' is expected to be $3.44 billion, reflecting a 3.2% decline from the previous year [4]. - 'Revenue- Parts and Services- Specialty' is anticipated to be $438.81 million, indicating a 5.8% decrease year over year [5]. - 'Revenue- Parts and Services- Europe' is forecasted at $1.59 billion, suggesting a 2.4% decline from the prior-year quarter [5]. - 'Revenue- Parts and Services- Self Service' is estimated at $52.92 million, reflecting a 3.8% decrease year over year [5]. - 'Revenue- Specialty' is expected to be $436.72 million, indicating a 6.3% decline year over year [6]. - 'Revenue- Wholesale- North America' is projected to reach $1.43 billion, suggesting a 3.1% decrease year over year [6]. - 'Revenue- Europe' is expected to be $1.62 billion, indicating a 1.3% decline year over year [6]. - 'Revenue- Self Service' is estimated at $132.14 million, reflecting a 0.7% decrease year over year [7]. EBITDA Estimates - 'EBITDA- Self Service' is expected to reach $13.67 million, compared to $13.00 million reported in the same quarter of the previous year [7]. - 'EBITDA- Specialty' is projected at $33.34 million, down from $41.00 million reported in the same quarter of the previous year [8]. Stock Performance - Over the past month, shares of LKQ have remained unchanged, while the Zacks S&P 500 composite has increased by 5.4% [8].

Core Insights - Garrett Motion Inc. (GTX) is expected to report second-quarter 2025 results on July 24, with earnings per share (EPS) estimated at 37 cents and revenues at $918 million, indicating a year-over-year growth of 32.14% in EPS and a 3.15% increase in revenues [1][2][7] Financial Performance - In Q1 2025, GTX reported an adjusted EPS of 30 cents, surpassing the Zacks Consensus Estimate of 29 cents, and net sales of $878 million, exceeding the estimate of $843 million, although the top line fell 4% year-over-year [2][4] - The adjusted EBIT margin improved to 14.9% in Q1 2025 from 13.2% in Q1 2024, reflecting the benefits of strategic cost-saving measures [4] Market Demand and Growth - The company is experiencing increased demand for turbocharged range-extended electric vehicles (EVs) and plug-in hybrids, securing new contracts in China and North America [3] - New commercial vehicle program wins in Europe and China are also contributing to the company's growth [3] Capital Expenditure - GTX anticipates capital expenditure to be 2.8% of sales in 2025, up from 2.6% in 2024, which may impact cash flow in the short term despite supporting long-term growth [4][7] Earnings Prediction - The current Earnings ESP for GTX is 0.00%, indicating no expected earnings beat, although it holds a Zacks Rank of 2 [5][6]

Core Viewpoint - American Axle & Manufacturing Holdings, Inc. (AAM) has received approval from its stockholders for the proposed acquisition of Dowlais Group plc, marking a significant step towards creating a leading global automotive supplier [1][4] Group 1: Transaction Details - AAM stockholders approved all proposals related to the acquisition of Dowlais, which is expected to close in the fourth quarter of 2025, pending Dowlais shareholder approval and other regulatory conditions [1][3] - The combined entity is projected to generate annual revenues of approximately $12 billion on a non-adjusted basis, enhancing AAM's geographic presence across various automotive segments, including internal combustion engines, hybrids, and electric powertrains [2] Group 2: Leadership and Strategic Vision - David C. Dauch, Chairman and CEO of AAM, will continue to lead the combined company, emphasizing the value creation opportunity and the ability to navigate industry shifts and volatility [4] - AAM plans to seek a secondary listing on the London Stock Exchange for its common stock, including new shares issued in connection with the acquisition [2]