Core Viewpoint - PHINIA Inc. will participate in Gabelli's 49th Annual Automotive Symposium on November 4, 2025, focusing on industry dynamics and the company's business [1] Company Participation - The participation will be in-person and will include a Q&A session [1] - PHINIA's President and CEO, Brady Ericson, will engage in the Q&A session alongside Gabelli's Brian Sponheimer [1] Industry Dynamics - The event will provide insights into the automotive industry dynamics [1] - The discussion will likely cover trends and challenges facing the automotive sector [1]

Core Insights - Modine Manufacturing Company (MOD) and Dana Incorporated (DAN) are both key players in the thermal-management products sector for the automotive industry, with Modine also involved in HVAC and agricultural equipment, while Dana focuses on motion/drive systems for vehicles and machinery [1] Modine Stock Analysis - In Q1 FY26, Modine reported net sales of $682.8 million, a 3% increase from $661.5 million year-over-year, driven by the Climate Solutions segment [4] - Modine anticipates net sales growth of 10-15% for FY26, supported by recent acquisitions such as AbsolutAire and L.B. White, which enhance its market presence [5][7] - The company expects adjusted EBITDA for FY26 to be between $440-$470 million, reflecting a growth of 12-20% [7] - Performance Technologies segment faced challenges with a 4% decline in heavy-duty equipment sales and an 8% drop in on-highway sales, leading to a projected revenue decrease of 2-12% for FY26 [8] Dana Stock Analysis - Dana reported sales of $1.9 billion from continuing operations in Q2 2025, alongside a $2.7 billion divestiture of its Off-Highway business to streamline operations [9][10] - The company expects to generate approximately $2.4 billion in net cash from the sale, with plans to use $2 billion for debt repayment and initiate a $1 billion capital return program [10] - Dana's cost-savings initiative has realized $60 million in savings in Q2, contributing to a target of a 10% adjusted EBITDA margin by 2026 [11] - For 2025, Dana forecasts revenues between $7.25 billion and $7.55 billion, with an adjusted EBITDA margin of 7.4-8.1% [11] Valuation and Estimates - Modine trades at a forward sales multiple of 2.66X, while Dana's forward sales multiple is at 0.35X [13] - The Zacks Consensus Estimate for Modine's FY26 EPS indicates a year-over-year growth of 14.3%, while Dana's FY25 EPS suggests a significant growth of 50% [15][16] Conclusion - Modine's growth is supported by strategic acquisitions but faces challenges in its Performance Technologies segment due to market demand [17] - Dana's strong debt reduction strategy, capital return program, and focus on electrified systems position it favorably for profitability and margin expansion through 2026 [19]

Financial Data and Key Metrics Changes - The company reported record-breaking third-quarter sales of over $2.7 billion, a 6% increase year-over-year, driven by strong performance in Asia and South America [9][12] - Adjusted operating income increased by 14% to $271 million, with an adjusted operating margin of 10%, up 70 basis points from the previous year [9][16] - Earnings per share increased by 26% to $2.31, marking the ninth consecutive quarter of growth in adjusted earnings per share [17] - Operating cash flow was robust at $258 million, an increase of 46% compared to the previous year [19] Business Line Data and Key Metrics Changes - Sales growth was particularly strong in China, with a return to outperformance with Chinese OEMs, driven by recent product launches [4][12] - The company achieved a gross margin of 19.3%, an increase of 130 basis points year-over-year, primarily due to direct labor efficiency and headcount reductions [10][16] Market Data and Key Metrics Changes - Global light vehicle production increased by 4.6% in the third quarter, exceeding expectations, with strong growth for domestic OEMs in China [11][23] - Light vehicle production in North America showed resilience, while production in Western Europe and Japan declined by approximately 2% to 3% [11][23] - The company underperformed light vehicle production by 0.7% globally, attributed to a negative regional mix [12][13] Company Strategy and Development Direction - The company is focused on expanding its presence in China, investing in a second R&D center to strengthen partnerships with Chinese OEMs [6][7] - A strategic agreement with CATARC aims to define the next generation of safety standards in the automotive sector [7][8] - The company plans to form a joint venture with HSAE to develop advanced safety electronics, targeting high-growth areas [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving financial targets despite anticipated challenges in the fourth quarter, including lower light vehicle production and geopolitical issues [25][26] - The outlook for the global auto industry has improved, particularly for North America and China, with expectations of sustained growth in Chinese light vehicle production over the medium term [23][24] Other Important Information - The company has committed to stock repurchases of $300 to $500 million annually and increased its quarterly dividend to $0.85 per share [6][17] - The leverage ratio remains low at 1.3 times, below the target limit of 1.5 times, reflecting prudent financial management [22] Q&A Session Summary Question: Why isn't organic sales benefiting from the stronger production environment? - Management explained that adjustments for past quarters and a larger negative market mix impacted organic sales guidance [30][31] Question: Was there anything unusual in the strong margin for Q3? - Management confirmed that a $50 million supplier compensation was one-time and highlighted the importance of internal improvement efforts [32][33] Question: Should Q4 trends be extrapolated into 2026? - Management expressed confidence in reaching midterm targets and noted that Q4 is typically the strongest quarter of the year [36][39] Question: Can you dimensionalize the headwinds for Q4? - Management indicated that engineering income would be the largest headwind, followed by the absence of out-of-period inflation compensation and increased depreciation [44][45] Question: How is the company positioned in the Chinese market? - Management noted strong growth with Chinese OEMs and ongoing investments, including a new R&D center [52][53] Question: What is the outlook for the European market? - Management remains cautious about the European market, primarily due to demand uncertainties [54] Question: How does the company view supplier contract trends? - Management stated that they do not foresee major concerns regarding contract negotiations with OEMs [76][77] Question: What is the impact of the recent supply issues on European production? - Management indicated it is too early to comment on potential impacts but emphasized their preparedness to manage supply chain constraints [80]

Core Insights - Fox Factory Holding Corp. will announce its third-quarter results for the period ending October 3, 2025, on November 6, 2025, after market close [1] - A conference call with the executive management team will take place on the same day at 4:30 p.m. ET to discuss the results [2] Company Overview - Fox Factory Holding Corp. is a global leader in designing, engineering, and manufacturing premium products for specialty sports and vehicles, including shocks and suspension systems [3] - The company’s brand portfolio includes FOX, Marucci, and Method Race Wheels, known for innovation and performance trusted by professional athletes and enthusiasts [3] - Fox Factory integrates engineering and manufacturing expertise through acquisitions to diversify its product offerings beyond its core shock and suspension segment [3] - The company also provides aftermarket products through a global network of retailers and direct-to-consumer channels [3]

Core Insights - Aptiv PLC has a market capitalization of $18 billion and operates in the transportation, aerospace and defense, telecommunications, and industrial markets, focusing on advanced vehicle components and technologies [1] Financial Performance - Aptiv is expected to announce its Q3 2025 results on October 30, with analysts predicting an adjusted EPS of $1.79, a decrease of 2.2% from $1.83 in the same quarter last year [2] - For fiscal 2025, analysts forecast an adjusted EPS of $7.53, representing a 20.3% increase from $6.26 in fiscal 2024 [3] - In Q2 2025, Aptiv reported an adjusted EPS of $2.12 and a 3% increase in net sales to $5.2 billion, which contributed to a rise in share price by 2.9% on July 31 [5] Stock Performance - Over the past 52 weeks, Aptiv shares have returned 19.6%, outperforming the S&P 500 Index's gain of 14.7% and the Consumer Discretionary Select Sector SPDR Fund's increase of 18.8% [4] Analyst Ratings - The consensus view on Aptiv stock is moderately optimistic, with a "Moderate Buy" rating from analysts. Among 22 analysts, 14 recommend "Strong Buy," one suggests "Moderate Buy," six indicate "Hold," and one advises "Strong Sell" [6] - The average analyst price target for Aptiv is $94.11, indicating a potential upside of 13.4% from current levels [6]

Core Insights - Three stocks with strong value characteristics and a Zacks Rank of 1 (Strong Buy) are highlighted for investors: Energizer, Guess, and Dana [1][2][3]. Company Summaries - **Energizer (ENR)**: - Leading manufacturer and distributor of batteries and lighting products - Current year earnings estimate increased by 1.4% over the last 60 days - Price-to-earnings ratio (P/E) is 6.26, significantly lower than the industry average of 25.90 - Holds a Value Score of A [1][2]. - **Guess (GES)**: - Designs, markets, distributes, and licenses casual apparel and accessories - Current year earnings estimate increased by 8.1% over the last 60 days - Price-to-earnings ratio (P/E) is 10.58, compared to the industry average of 23.20 - Holds a Value Score of A [1][3]. - **Dana (DAN)**: - Provider of technology driveline, sealing, and thermal-management products - Current year earnings estimate increased by 35.6% over the last 60 days - Price-to-earnings ratio (P/E) is 13.16, slightly below the industry average of 13.40 - Holds a Value Score of A [1][4].

Group 1 - Illinois Tool Works Inc. (ITW) is a significant player in the global industrial manufacturing sector, operating across seven business segments including automotive components and food service equipment, focusing on areas with above-average growth potential [2] - The company has a competitive advantage characterized by a wide economic moat and an extensive intellectual property portfolio of over 17,000 patents, which helps maintain its strong market position [3] - ITW's decentralized and entrepreneurial structure allows its business units to operate independently, tailoring strategies to meet customer needs effectively, while also maintaining a reliable dividend record with 53 consecutive years of dividend growth [4] Group 2 - Currently, ITW offers a quarterly dividend of $1.61 per share, resulting in a dividend yield of 2.63% as of October 13 [4]

Core Insights - Heartland Advisors reported a strong performance for small-cap stocks in Q3 2025, with the Russell 2000® Index increasing by 12.39%, outperforming the S&P 500 Index's 8.12% rise [1] - The Heartland Value Plus Fund achieved an 8.51% return in Q3 2025, lagging behind the Russell 2000® Value Index, which gained 12.60% [1] Company Highlights - PHINIA Inc. (NYSE:PHIN), a spin-off from BorgWarner, focuses on developing integrated components and systems for vehicles and industrial applications, aiming to enhance performance and reduce emissions [2] - PHINIA Inc. experienced a one-month return of -9.93%, but its shares increased by 13.30% over the past 52 weeks, closing at $51.78 on October 10, 2025, with a market capitalization of $2.014 billion [2] Investment Strategy - The Heartland Value Plus Fund emphasized that stock selection is most effective when management actions confirm improving fundamentals, such as share buybacks, insider buying, and growing dividends [3] - Currently, approximately one-third of the fund's holdings have insider buying, 84% of the companies are engaged in active buybacks, and 61% have raised dividends in the past year [3]

Core Insights - The collaboration between Gestamp and Hydnum Steel aims to utilize clean steel produced with renewable energy and green hydrogen for automotive components, marking a significant advancement in the decarbonization of the mobility sector [1][2] Group 1: Partnership Details - Gestamp will supply high-quality steel scrap from its stamping processes to Hydnum Steel, which will produce ultra-low CO₂ emission steel using renewable energy and green hydrogen [2] - The agreement includes technical collaboration to develop steel grades that meet the automotive industry's stringent standards, with Gestamp gaining priority access to these low-emission steels [3] Group 2: Sustainability and Circular Economy - The collaboration supports circularity, a crucial element for decarbonizing the automotive supply chain and achieving the long-term goal of a Net Zero Car [4] - Gestamp's decarbonization strategy focuses on sustainable raw materials, material recycling, and partnerships to promote cleaner mobility, with steel and aluminum recycling being critical due to their significant emissions [5][6] Group 3: Hydnum Steel's Production Model - Hydnum Steel's Puertollano plant will utilize an electric arc furnace powered entirely by renewable energy, aiming for a 98% reduction in emissions compared to traditional steel mills by substituting natural gas with green hydrogen [7] - The plant will implement a closed-loop water treatment and reuse system, achieving zero discharge [7] Group 4: Statements from Leadership - The Chief Purchasing Officer of Gestamp emphasized that the agreement is a step forward in decarbonizing the automotive industry and reinforces the company's circular economy model focused on sustainable resource management [8]

Core Insights - Dana Incorporated (NYSE:DAN) is recognized as one of the best small-cap EV stocks to buy according to analysts [1] - Wells Fargo lowered its price target for Dana from $22 to $21 while maintaining an Equal Weight rating [1] - UBS analyst Joseph Spak reiterated a Buy rating with a price target of $25 [3] Financial Performance - Dana reported $2.35 billion in revenue for the fiscal second quarter of 2025, a decrease of 14% year-over-year, but exceeded Wall Street estimates by $49.5 million [3] - The company's earnings per share (EPS) of $0.13 fell short of estimates by $0.03 [3] - Management raised its full-year guidance by $250 million, adjusted EBITDA by $35 million, and free cash flow by $50 million ahead of the fiscal third-quarter results expected on November 5, 2025 [2] Business Overview - Dana Incorporated specializes in energy management solutions and designs and manufactures propulsion systems for vehicles and machines across global mobility markets [4]