Financial Data and Key Metrics Changes - Sales for Q1 2025 were $2.4 billion, a decrease of $83 million compared to the previous year, driven by lower demand across all end markets [17] - Adjusted EBITDA was $188 million, with a profit margin of 8%, just 20 basis points lower than last year [17] - Net income attributable to Dana was $25 million, significantly up from $3 million last year, primarily due to the proposed divestiture of a non-core hydraulics business [17][18] - Operating cash flow was a use of $30 million, an improvement of $65 million year-over-year due to lower working capital requirements [18][23] Business Line Data and Key Metrics Changes - The integration of the former power technology segment into the aftermarket business is expected to yield operational improvements and contribute $30 to $35 million to the overall $300 million cost reduction target [8][21] - Cost savings added $41 million in profit from various actions taken, with an expectation to realize an additional $50 million of the total $300 million in cost savings this year [21] Market Data and Key Metrics Changes - North American commercial vehicle customers are experiencing a reduction in schedules, impacting the outlook for the company [11][12] - There is a slight increase in pre-buy interest in the Off Highway segment, with some positive signs of order improvements outside North America in the second half of the year [12][13] Company Strategy and Development Direction - The company is accelerating its cost reduction program from $175 million to $225 million for 2025, focusing on operational improvements and leveraging best practices across its businesses [8][21] - The company has decided to retain its power technology segment, indicating a strategic shift towards enhancing operational efficiency rather than divesting [92] Management's Comments on Operating Environment and Future Outlook - Management noted that the tariff situation is manageable, with several mitigation actions already completed [10][11] - The company expects to see a recovery in sales and profitability in the back half of the year, despite acknowledging risks in the commercial vehicle segment [12][13][108] Other Important Information - The company won its tenth PACE award for a hybrid transmission product, which is expected to grow sales significantly over the next few years [14][15] - Full-year adjusted free cash flow is expected to be $225 million, approximately $155 million higher than last year [26][27] Q&A Session Summary Question: Guidance changes considering tariffs and market assumptions - Management indicated that commercial vehicle expectations are lower, but this is offset by light vehicle and Off Highway improvements, along with additional revenue from tariff offsets [31][34] Question: Impact of tariffs on the business - Management stated that the tariff impact was $6 million for the quarter, with expectations for recovery within a quarter [44][46] Question: Light vehicle production assumptions - Management confirmed that current light vehicle production assumptions remain consistent with previous forecasts, with no substantial changes expected [58][60] Question: Cost savings sources and sustainability - Management expressed confidence in achieving the $225 million cost savings, primarily from headcount reductions and operational efficiencies [87][90] Question: Timing of the Off Highway sale - Management expects the Off Highway sale process to conclude later in the second quarter, with ongoing work from bidders [82][83]