Financial Data and Key Metrics Changes - The company reported organic sales of just over $3.5 billion, which was relatively flat despite a decline in market production [7][21] - Adjusted operating margin performance was strong at 10%, reflecting a 60 basis point increase despite a 20 basis point headwind from tariffs [8][22] - Free cash flow improved significantly, increasing by over $270 million or 89% year over year [22] Business Line Data and Key Metrics Changes - Light vehicle e product sales increased by 47%, significantly outpacing the 25% increase in global hybrid and BEV production [8][19] - The company secured multiple new product awards across its portfolio, indicating strong future growth potential [19][11] Market Data and Key Metrics Changes - Market production in the quarter was down approximately 3.6%, while the company achieved sales outgrowth of approximately 3.7% [21][22] - The company noted modest positive growth in China, with light vehicle e product growth exceeding 60% year over year across all major regions [48][49] Company Strategy and Development Direction - The company made the strategic decision to exit its charging business, which was not expected to create shareholder value [9][14] - Capacity consolidation actions were initiated within the North American battery systems business to adjust the cost structure to current market dynamics [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage through a challenging and uncertain environment, emphasizing the strength of the product portfolio and operational performance [19][30] - The company expects full-year sales in the range of $13.6 billion to $14.2 billion, reflecting stronger foreign currencies and anticipated tariff cost recoveries [26][30] Other Important Information - The company anticipates a $30 million headwind to sales from the exit of the charging business but expects a $15 million increase to operating income [15] - The company is actively reviewing its M&A pipeline, looking for opportunities that align with its core competencies and financial criteria [117][120] Q&A Session Summary Question: Insights on foundational product extensions and e product awards - Management highlighted the strength and stickiness of the portfolio, expecting continued strong margins and clarity from OEMs regarding hybrid product plans [36][38] Question: Growth outlook in China - Management noted strong demand for competitive technology in China, with significant growth in light vehicle e products and positive feedback from recent auto shows [49][50] Question: Tariff impacts and recovery negotiations - Management clarified that tariff impacts are manageable, with ongoing negotiations for recovery from customers [66][100] Question: Cash deployment strategy - The company plans to use its strong cash position for shareholder value creation through dividends, buybacks, or inorganic investments [73][120] Question: M&A strategy in the current environment - Management remains active in reviewing M&A opportunities, focusing on targets that provide industrial logic and near-term accretion [117][120]