Financial Data and Key Metrics Changes - Revenue for the quarter was $3.6 billion, up 4% year-over-year, primarily driven by foreign exchange tailwinds from Europe [6][27] - Adjusted EBITDA improved by 10 basis points year-over-year to 5.7%, totaling $207 million [27][30] - Adjusted net income was $28 million or $0.35 per share during the quarter [27] Business Line Data and Key Metrics Changes - In the Americas, consolidated sales were generally in line with the broader market [29] - EMEA sales trailed the market due to customer mix and deliberate portfolio actions [29] - Asia outperformed, driven by significant growth in China as new programs with domestic OEMs ramped [29] Market Data and Key Metrics Changes - Production volumes are trending higher, particularly in North America, with overall industry volume indicators remaining positive [9] - China is expected to continue double-digit growth through fiscal year 2028, despite relatively flat overall vehicle production [12] - The growth outlook for Asia outside of China is expected to exceed market growth in both fiscal year 2027 and 2028 [12] Company Strategy and Development Direction - The company is focused on onshoring opportunities in North America, having won approximately 150,000 units of direct onshoring business [11] - Investments in automation are expected to ensure continued positive business performance, with most projects having a payback under two years [10] - The introduction of Modutec, a modular seat design solution, aims to enhance manufacturing efficiency and support onshoring priorities [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering solid business performance due to a resilient operating model and positive production outlook [9] - The company raised its guidance for revenue, adjusted EBITDA, and free cash flow for fiscal year 2026 [38] - Management acknowledged challenges in Europe due to volumes and capacity but remains committed to delivering positive business performance [15] Other Important Information - The company generated $15 million of free cash flow in the first quarter, exceeding internal expectations [33] - Total liquidity was $1.7 billion, consisting of $855 million in cash and $823 million in undrawn capacity under a revolving line of credit [35] - The company returned $25 million to shareholders through share repurchases during the quarter [35] Q&A Session Summary Question: Impact of potential disruptions on F-150 F-Series recovery - Management indicated that they are monitoring the situation and will provide updates based on Ford's guidance [41][42] Question: Onshoring opportunity growth - Management confirmed that the onshoring opportunity has grown to $500 million, including conquest wins, and expects to finalize additional significant wins soon [44][45][46] Question: Update on European restructuring - Management stated that restructuring spend in Europe is expected to decrease in fiscal year 2027, but future restructuring will depend on customer production plans [54][55] Question: Asia adjusted EBITDA decline - Management acknowledged that increased engineering spending for new programs may continue but overall business performance in Asia is expected to be positive for the full year [56] Question: Commercial settlement impact - Management clarified that the commercial settlement is more about timing and cadence rather than extraordinary circumstances [61][62] Question: Europe market dynamics and margin management - Management is focusing on higher-end segments to insulate from Chinese imports and is actively pursuing components business in Europe [81][82]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $3.6 billion, a 4% increase year-over-year, primarily driven by foreign exchange tailwinds and favorable volume and pricing [25][27] - Adjusted EBITDA improved by 10 basis points year-over-year to 5.7%, totaling $207 million [26][28] - Adjusted net income was $28 million or $0.35 per share during the quarter [26] Business Line Data and Key Metrics Changes - In the Americas, consolidated sales were generally in line with the broader market, while EMEA sales trailed the market due to customer mix and portfolio actions [27] - Asia outperformed, driven by significant growth in China as new programs with domestic OEMs ramped up [27] Market Data and Key Metrics Changes - North America vehicle production is expected to be around 15 million units for fiscal year 2026, up from previous guidance of 14.6 million [36] - China is expected to continue double-digit growth through fiscal year 2028, despite flat overall vehicle production [12] Company Strategy and Development Direction - The company is focused on onshoring opportunities, with approximately $500 million in potential revenue from onshoring and conquest wins [12][43] - Investments in automation are expected to ensure continued positive business performance, with most projects having a payback under two years [10] - The introduction of Modutec, a modular seat design solution, aims to enhance manufacturing efficiency and support onshoring priorities [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering solid business performance due to a resilient operating model and positive production volume trends [9][10] - The company raised its guidance for revenue, adjusted EBITDA, and free cash flow for the fiscal year 2026 [36][37] Other Important Information - The company generated $15 million of free cash flow in Q1 2026, higher than internal expectations [32] - Total liquidity was $1.7 billion, comprised of $855 million in cash and $823 million in undrawn capacity under a revolving line of credit [34] Q&A Session Summary Question: Impact of potential disruptions on F-150 F-Series recovery - Management indicated that they are monitoring the situation and will provide updates based on Ford's guidance [40][41] Question: Update on onshoring opportunities - The company confirmed that onshoring opportunities have increased to $500 million, including a significant domestic OE production move from Mexico to the U.S. [43][45] Question: Progress on European restructuring - Management noted that restructuring spend in Europe is expected to be around $120 million to $130 million in fiscal year 2026, with a decrease anticipated in fiscal year 2027 [52][53] Question: Sustainability and commercial settlements - Management clarified that commercial settlements are part of normal business operations and timing mismatches are expected [60][62] Question: Growth opportunities in Asia and Europe - Management highlighted ongoing discussions with customers regarding onshoring and potential growth in the 2028-2029 timeframe, while also addressing competitive pressures from Chinese imports in Europe [71][82]