Key Takeaways Sanmina delivers advanced automotive electronics, from ECUs to LED lighting and climate modules.The company supports EV growth with power management, battery subsystems and charging systems.Partnerships with OEMs like Ather Energy enhance Sanmina's role in smart and connected vehicles.Sanmina Corporation (SANM) is a key provider in the automotive electronics sector, delivering advanced designs, manufacturing, testing and supply chain solutions to global original equipment manufacturers (OEMs) ...

TraXtion Awarded Core Preferred Partner Status By Lithia & DrivewayFeb 10, 2026 2:07 PM Eastern Standard Time# TraXtion Awarded Core Preferred Partner Status By Lithia & DrivewayShare---IRVING, Texas-- ([BUSINESS WIRE])-- [TraXtion], a leading provider of automated tire and vehicle inspection solutions, today announced it has been awarded Core Preferred Partner status by Lithia Motors, Inc. (NYSE: LAD) as part of the Lithia & Driveway Preferred Partner Program. This designation from one of the largest deale ...

Core Viewpoint - LG Energy Solution will acquire full ownership of NextStar Energy from Stellantis, which is a strategic decision aimed at strengthening the battery manufacturing ecosystem in Canada and enhancing growth opportunities in North America [2][3][8]. Group 1: Acquisition Details - LG Energy Solution will purchase Stellantis's 49% equity stake in NextStar Energy, which was established as a joint venture in 2022 to create Canada's first large-scale battery manufacturing facility [2][8]. - The ownership transition is a mutually agreed decision between LG Energy Solution and Stellantis, ensuring a seamless transition and long-term growth for NextStar Energy [3][8]. Group 2: Strategic Implications - NextStar Energy will leverage LG Energy Solution's technological expertise and operational capabilities to better serve a wider customer base, including the Energy Storage System (ESS) industry [4][10]. - Stellantis will continue to be a key customer, sourcing battery products from NextStar Energy, thereby reinforcing the partnership [4][9]. Group 3: Investment and Employment - Over $5 billion CAD has been invested in NextStar Energy's facility, which currently employs over 1,300 people, with a target of 2,500 employees as production scales up [5][8]. - The facility is crucial for Canada's advanced manufacturing and clean-energy sector, enhancing North America's battery supply chain and supporting long-term industrial competitiveness [5][6]. Group 4: Market Position and Future Growth - LG Energy Solution aims to increase its global ESS production capacity to over 60 GWh this year, with more than 50 GWh of this capacity located in North America [11]. - The acquisition positions LG Energy Solution to respond swiftly to the growing demand in the ESS market and strengthens its role in Canada's electric vehicle industry [7][11].

Financial Data and Key Metrics Changes - Net sales for the December quarter were $1.186 billion, up 4% sequentially and 15.6% year-over-year, exceeding original guidance [5][16] - Non-GAAP gross margins were 60.5%, up 379 basis points sequentially, while GAAP gross margins were 59.6% [6][17] - Non-GAAP net income was $252.8 million, with earnings per diluted share at $0.44, which was $0.04 above the high end of guidance [6][7] - Total operating expenses were $555.2 million, with non-GAAP operating income at 28.5% of sales [7][9] - Cash flow from operating activities was $341.4 million, with adjusted free cash flow at $305.6 million [9] Business Line Data and Key Metrics Changes - Sales from microcontroller and analog businesses were flat sequentially, while growth came from networking, data center, FPGA, and licensing business units [16] - Distribution sell-through was $11.7 million higher than sell-in, indicating a reduction in distributor inventory [16] - The adjusted EBITDA for the December quarter was $402 million, representing 33.9% of net sales [9] Market Data and Key Metrics Changes - Net sales growth was observed in the Americas and Europe, while sales in Asia were flat [16] - The strongest sales performance was noted in the aerospace and defense sector, as well as in networking data center solutions [17] Company Strategy and Development Direction - The company is focusing on modernizing connectivity in automotive and industrial markets, with a strategic collaboration with Hyundai Motor Group to integrate 10BASE-T1S solutions [12][13] - The company aims to capture opportunities in Industry 4.0 and automotive Ethernet, with a comprehensive portfolio of Ethernet solutions [14][15] - The company is positioned to benefit from significant growth in the automotive and industrial Ethernet connectivity markets, projected to be worth tens of billions by 2030 [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of end markets, including automotive, industrial, communication, data center, aerospace and defense, and consumer sectors [17] - The company anticipates net sales for the March quarter to be $1.26 billion ±$20 million, representing 6.2% sequential growth and 29.8% year-over-year growth [22] - Management noted challenges with lead times and substrate availability, but overall demand remains strong [20][21] Other Important Information - The company expects to maintain a non-GAAP tax rate of about 10% for fiscal year 2026 [8] - Total debt decreased by $12.1 million sequentially, with net debt down by $26 million [9] - The company plans to prioritize debt reduction over share buybacks until a more favorable debt leverage ratio is achieved [105][106] Q&A Session Summary Question: How should the continued strength versus seasonality be viewed? - Management indicated that distribution inventory is largely corrected, with strong backlog and bookings for the current quarter, leading to confidence in growth [25] Question: Update on inventory reserve and underutilization charges? - Management expects inventory reserves to normalize, with underutilization charges continuing to decrease gradually as factories ramp up [27][28] Question: Clarification on microcontroller and analog segments? - The upside in December was primarily driven by stronger performance in product segments, while licensing growth was anticipated [32] Question: Customer inventory behavior and restocking signs? - Management noted that while customers are still drawing down inventories, some products are starting to be purchased at consumption rates, but restocking has not yet begun [42][43] Question: Backlog for the June quarter? - Management reported that January bookings were strong, and the June quarter backlog is higher than the March quarter backlog at the same point in time [48] Question: Thoughts on the aerospace and defense segment? - Management highlighted strong growth driven by increased defense budgets and commercial airplane production, benefiting the company significantly [74][75] Question: Growth in FPGA business? - Management indicated that FPGA is experiencing significant growth and gaining market share, although specific numbers are not disclosed [85]

The December 2025 ISM reading came in at 47.9, the lowest of the year. New orders contracted for the fourth straight month. The employment sub-index showed manufacturing jobs declining for 11 consecutive months.That’s how many consecutive months the ISM Manufacturing PMI spent in contraction territory, from November 2022 through December 2024. It was the longest manufacturing contraction streak on record. Through December 2025, the index remained in contraction for nine more months, bringing the total to 35 ...

Core Insights - Martinrea International Inc. has acquired a 10% equity interest in Polyalgorithm Machine Learning Inc. for an initial investment of $1.5 million, with plans to increase this to a 20% interest over the next two years, totaling $3.0 million [3] Company Overview - Martinrea International Inc. is a diversified global automotive supplier engaged in the design, development, and manufacturing of lightweight structures and propulsion systems [1] - The company operates in 57 locations across multiple countries including Canada, the United States, Mexico, Brazil, Germany, Slovakia, Spain, China, South Africa, and Japan [5] Technology and Innovation - PolyML focuses on advanced machine learning and data analytics, utilizing its proprietary Fiins AI technology to enhance Martinrea's adaptive welding software platform, improving weld quality, efficiency, and energy usage [2] - Fiins AI is also applied in press health monitoring, providing early warning insights that help reduce unplanned downtime and maintenance costs [2] Strategic Partnership - The partnership between Martinrea and PolyML aims to develop new products and enhancements to the Fiins AI platform for both internal operations and third-party marketing [3] - Martinrea has secured exclusivity with PolyML for automotive and select industrial applications, subject to conditions [3] Leadership Perspectives - Martinrea's CEO, Pat D'Eramo, highlighted the significant improvements in cost and efficiency in manufacturing operations due to the deployment of innovative technologies [4] - PolyML's CEO, Mardi Witzel, expressed confidence in the value of their technology and the importance of the partnership with Martinrea for future growth [4]

Core Viewpoint - VCI Global (VCIG) has entered a legally binding term sheet to acquire a 51% controlling equity interest in RTCAR Comercializadora de Suministros Automotrices, enhancing its operational capabilities in the automotive sector [1] Group 1: Acquisition Details - The acquisition provides VCI Global with an immediately operational and scalable industrial base to support high-volume production for a leading global automotive original equipment manufacturer (OEM) expanding in North America [1] - RTCAR Mexico is managed by a seasoned team with extensive experience in global automotive OEMs and Tier-1 suppliers, including leadership roles at Fortune 500 companies [1] - The management team possesses deep expertise in North American manufacturing, supply chain optimization, and USMCA-compliant operations, positioning RTCAR to meet international standards for quality, cost, and delivery [1] Group 2: Strategic Importance - RTCAR Mexico will serve as a core manufacturing and assembly platform for the OEM's North American market entry, initially focusing on high-demand SUV and hybrid vehicle models [1] - The existing Memorandum of Understanding (MOU) is expected to convert into a definitive offtake agreement in January 2026, ensuring guaranteed production volumes and providing early revenue visibility [1] - The definitive agreement will formalize multi-year production volumes and commercial terms, establishing a long-term industrial growth pipeline for VCI Global [1]

Company Overview - VCI Global Limited has entered a legally binding term sheet to acquire a 51% controlling equity interest in RTCAR Comercializadora de Suministros Automotrices, S.A. de C.V. ("RTCAR Mexico"), enhancing its operational capabilities in the automotive sector [1] - RTCAR Mexico is positioned as a leading automotive manufacturing platform, focusing on high-quality, cost-efficient solutions for global automotive OEMs and Tier-1 suppliers [6] Strategic Importance - The acquisition provides VCI Global with an immediately operational and scalable industrial base to support high-volume production for a leading global automotive OEM expanding in North America [1] - RTCAR Mexico will serve as a core manufacturing and assembly platform for the OEM's North American market entry, initially focusing on high-demand SUV and hybrid vehicle models [4] Market Context - The North American automotive industry was valued at approximately US$1.23 trillion in 2025, with a projected compound annual growth rate (CAGR) of 5.4% through 2034, driven by demand for SUVs, hybrids, and electrified vehicles [3] - Combined motor vehicle production across the United States, Mexico, and Canada reached approximately 16.1 million units in 2024, with Mexico accounting for over 20% of the region's production [4] Operational Readiness - RTCAR Mexico is led by a seasoned management team with extensive experience in global automotive OEMs and Tier-1 suppliers, ensuring compliance with USMCA and optimizing supply chains [2] - The existing Memorandum of Understanding (MOU) is expected to convert into a definitive offtake agreement in January 2026, ensuring guaranteed production volumes and early revenue visibility for VCI Global [4][5] Future Outlook - The first vehicle delivery is anticipated in Q4 2026, marking the beginning of a multi-year growth trajectory for VCI Global in the automotive sector [5] - The acquisition is expected to diversify VCI Global's earnings base toward asset-backed, recurring industrial revenue [5]

Core Viewpoint - Highway Holdings Limited has signed a letter of intent to acquire 51% of Regent-Feinbau Adermann GmbH, a German-based manufacturer, primarily for cash and unregistered shares, aiming to enhance its OEM business and target the Chinese automotive market [1][4]. Company Overview - Highway Holdings is an international manufacturer providing quality parts for blue chip equipment manufacturers, with administrative offices in Hong Kong and manufacturing facilities in Yangon, Myanmar, and Shenzhen, China [8]. Acquisition Details - The acquisition is expected to close by the end of March 2026, subject to due diligence, negotiation of a definitive purchase agreement, and customary closing conditions [2]. - Regent-Feinbau specializes in precision sheet metal components and welded assemblies, serving OEMs and Tier 1 suppliers in sectors such as automotive, aerospace, and industrial [3]. Strategic Importance - The acquisition is part of Highway Holdings' strategy to rejuvenate its OEM business, which has faced revenue declines due to global challenges [4]. - Regent-Feinbau's capabilities in thick sheet metal cutting, bending, and welding will enhance Highway Holdings' offerings in the Chinese market, which is projected to grow at over 2% annually [5][6]. Financial Position - Highway Holdings has a strong financial foundation with approximately $5.3 million in cash and cash equivalents, equating to about $1.20 cash per share, positioning the company well for this acquisition and potential future transactions [6].

Core Viewpoint - Strattec Security Corporation will participate in two upcoming virtual investor conferences, showcasing its position as a leading provider of smart vehicle access and security solutions for the automotive industry [1][5]. Group 1: Investor Conference Details - The iAccess Alpha Virtual Best Ideas Winter Investment Conference will take place on December 9 and 10, 2025, with a presentation scheduled for 10:00 a.m. Eastern Time on December 9 and one-on-one meetings on December 10 [5]. - The Sidoti Year End Virtual Investor Conference is set for December 11, 2025, featuring a presentation at 1:00 p.m. Eastern Time and one-on-one meetings [5]. - Live audio webcasts and accompanying slides for both events will be available on the STRT Investor Relations website, with archives accessible post-conference [2]. Group 2: Company Overview - Strattec Security Corporation is a prominent global provider of advanced automotive access, security, and authorization solutions, primarily serving vehicle manufacturers in the U.S. [3]. - The company has over 110 years of history and has evolved from mechanical to integrated electro-mechanical systems in vehicle security [3]. - Strattec's product offerings include power access solutions, latches, vehicle start systems, keys, fobs, locks, and door handles, among others [3].