Financial Data and Key Metrics Changes - Q2 2025 revenue was $1.1 billion, a 3% decrease on a rebased basis, primarily due to the phasing of project-related B2B revenues [34] - Adjusted OIBDA increased by 7% to $415 million, building on an 8% growth in Q1 [34] - Adjusted OIBDA less P&E additions rose by 26% to $265 million, representing 24% of revenue compared to 19% last year [36] Business Line Data and Key Metrics Changes - Liberty Caribbean reported $366 million in revenue with flat rebased growth year over year, driven by a 6% increase in residential mobile revenue [38] - Cable and Wireless Panama generated $177 million in revenue, with a 10% rebased revenue decline, but adjusted OIBDA grew by 6% year over year [39] - Liberty Networks delivered $150 million in revenue, reflecting a 3% rebased decline, primarily due to a decrease in non-cash IRU revenue [41] Market Data and Key Metrics Changes - Residential revenue in Puerto Rico declined by 5% year over year, with mobile residential revenue down 3% [42] - In Costa Rica, mobile residential revenue grew by 5% year over year, supported by higher postpaid volumes [45] - B2B revenue in Panama declined by 30%, reflecting a strong prior year comparison driven by government project wins [39] Company Strategy and Development Direction - The company plans to separate Liberty Puerto Rico from Liberty Latin America to unlock shareholder value and improve capital structure [6][50] - Focus on lowering capital intensity led to a 23% expansion in adjusted OIBDA less P&E additions year over year [9] - The company is pursuing consolidation opportunities and enhancing its fixed-mobile convergence strategy [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the second half of the year, anticipating stronger cash flow generation and improved revenue performance [54] - The company is focused on operational efficiencies and cost reduction initiatives to enhance margins [33] - Management highlighted the importance of government investments in digitization and cloud computing as growth opportunities [32] Other Important Information - The company reported a negative adjusted free cash flow of $41 million in Q2, attributed to working capital swings [36] - Management changes in Puerto Rico focus on operations, network improvements, and commercial strategies to enhance performance [84] Q&A Session Summary Question: Can you provide more details on the B2B headwinds in Panama? - The B2B headwinds were primarily due to a strong comparison with Q2 2024 and delays in recognizing government project revenues [58][60] Question: What assets will be utilized in the Puerto Rico spin-off? - The company is not commenting on specific assets but acknowledges strong assets that provide financial flexibility [68] Question: Can you elaborate on the impairment in Puerto Rico? - The impairment relates to spectrum acquired from AT&T, which had a higher carrying value than newly acquired spectrum [78][79] Question: What changes were made to the management team in Puerto Rico? - Changes focused on operations, network technology, and commercial strategies to improve performance and customer engagement [84]

Financial Data and Key Metrics Changes - The adjusted EBITDA for Q2 was $69 million, aligning with expectations despite demand headwinds, with overall volumes up 3% year over year but down over 4.5% sequentially [6][24] - Gross profit per ton improved sequentially due to better operating performance, although total profitability was down year over year due to adverse geographic and product mix [24][25] Business Line Data and Key Metrics Changes - The Rubber business saw a 7% increase in volumes year over year and a 4% increase in adjusted EBITDA, driven by contract outcomes, though impacted by import-related headwinds [25] - Specialty volumes decreased by 8% year over year and 6% sequentially, primarily due to soft demand and customer hesitancy related to tariff uncertainties [27] Market Data and Key Metrics Changes - The surge in tire imports into the U.S. was attributed to customers trying to beat tariff deadlines, which negatively affected local tire manufacturing rates and demand [7][15] - The company expects improved Rubber segment demand starting late this year or early next year as tariffs normalize tire imports [9][10] Company Strategy and Development Direction - The company is shifting capital allocation priorities towards debt reduction over share repurchases in the near term [14][30] - Self-help initiatives are underway to improve productivity and lower costs, with a focus on driving free cash flow improvement [21][32] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about demand recovery due to the new tariff paradigm expected to benefit the company in late 2025 or early 2026 [33] - The company is not complacent and is focused on positioning itself for greater earnings power despite the challenging backdrop [32] Other Important Information - The CFO, Jeff Gleich, will retire in the fourth quarter, and a formal search for a successor has begun [5] - The company has committed $7 billion to $8 billion in capital for tire production capacity expansion in North America over the next four years [18] Q&A Session Summary Question: Earnings step up in the second half of the year - Management indicated that volume growth would not significantly increase sequentially, with cost actions expected to benefit in the second half [36][38] Question: Cash balance and levers to hit targets - Management discussed working capital levers, including inventory reduction, with expectations for more opportunities in Q4 [39][40] Question: Tariff impacts and production location expectations - Management does not expect production to revert more to Mexico than the U.S. and noted that the tariff situation remains complex [44][47] Question: Q4 expectations and seasonal trends - Management suggested a possibility of a stronger Q4 due to tariff certainty but emphasized uncertainty [49] Question: Structural versus temporary import impacts - Management acknowledged a price gap between imported and domestic tires, with tariffs helping to close that gap [51][52] Question: Incremental tariff impacts from recent announcements - Management highlighted the significance of the 25% automotive tariff and its implications for imported carbon black from India [55]

Financial Data and Key Metrics Changes - Global revenue increased by 8%, with a 4% contribution from Helly Hansen [20][21] - Adjusted earnings per share (EPS) was $1.21, a 23% increase compared to the prior year [26] - Adjusted gross margin expanded by 120 basis points to 46.4% [25] Business Line Data and Key Metrics Changes - Wrangler's global revenue increased by 7%, with a 9% increase in the U.S. driven by 16% growth in direct-to-consumer (DTC) [21][12] - Lee's global revenue decreased by 6%, with a 5% decline in U.S. wholesale partially offset by 9% growth in digital [22][23] - Helly Hansen's revenue for June was $29 million, exceeding expectations [24] Market Data and Key Metrics Changes - Wrangler's international revenue decreased by 6%, driven by a 6% decrease in wholesale [21] - Lee's international revenue also decreased by 6%, with low single-digit growth in DTC [23] - The U.S. market showed strong performance, particularly in the digital segment [15][21] Company Strategy and Development Direction - The company is focused on accelerating growth through geographic, category, and channel expansion, particularly for Helly Hansen [37][38] - The value creation framework is built on four pillars: accelerate growth, double operating margins, increase capital allocation optionality, and establish Kontoor as an employer of choice [11] - The company plans to hold an Investor Day in 2026 to share strategic vision and financial model improvements [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2025 objectives, citing strong momentum entering the second half of the year [39][40] - The operating environment remains uncertain, but the company is executing at a high level with meaningful opportunities to create shareholder value [19][39] - Tariff impacts are expected to be mitigated over a 12 to 18-month period, with proactive measures in place [32][65] Other Important Information - Inventory increased by 40% to $686 million, with a focus on improving working capital and inventory turnover [27] - The company declared a regular quarterly cash dividend of $0.52 per share [31] - A voluntary debt repayment of $25 million was made during the quarter [29] Q&A Session Summary Question: What is the EBIT contribution from Helly Hansen this fiscal year? - The expected EBIT contribution is around $50 million, with a revenue run rate of approximately $680 million [42][43] Question: Can you elaborate on the cadence for second half revenue growth? - The revenue outlook for Q3 is approximately $855 million, with growth driven by a 53rd week and Helly Hansen's contribution [51][53] Question: What are the initiatives to mitigate tariff impacts? - The company is implementing pricing increases, transferring production within the global supply chain, and enhancing supplier partnerships [62][65] Question: What is the Helly Hansen revenue contribution for Q3? - The expected revenue contribution from Helly Hansen for Q3 is around $175 million [106] Question: How is the Wrangler business performing in terms of inventory management? - Wrangler's business is thriving, with strong demand and effective inventory management strategies in place [73][75]

Financial Data and Key Metrics Changes - Achieve Life Sciences closed the second quarter with a strengthened balance sheet following a successful $45 million public offering in June, which included common stock and warrants [29] - As of June 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $55.4 million, expected to support operations into 2026 [29] - Total operating expenses for the three and six months ended June 30, 2025, were $12.6 million and $25.5 million respectively, consistent with expectations as the company increased investment in regulatory and pre-commercial planning [30] - The net loss for the same periods was $12.7 million and $25.5 million respectively [30] Business Line Data and Key Metrics Changes - The company achieved three transformative milestones: the submission of a new drug application (NDA) for cytisinicline, a strategic partnership with Omnicom, and a capital raise of $49 million [5][6] - The NDA submission is supported by data from over 2,000 clinical trial participants, including results from two Phase III studies and long-term safety data [12][13] Market Data and Key Metrics Changes - There are approximately 29 million smokers in the U.S., with over 15 million attempting to quit each year, highlighting a significant market opportunity for cytisinicline [7] - The annual cost of smoking-related health issues in the U.S. is over $600 billion, indicating a substantial public health burden [8] Company Strategy and Development Direction - The company aims to change the narrative around nicotine dependence, positioning it as a medical condition that requires effective treatment options [7][24] - Achieve is focused on a data-driven approach to its commercial launch strategy, leveraging a proprietary AI-enabled platform for decision-making and performance optimization [19][26] - The strategic partnership with Omnicom is intended to enhance brand development, market access, and stakeholder engagement ahead of the product launch [18][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the regulatory process and anticipates receiving the FDA's Day 74 NDA acceptance letter in mid-September [31] - The company is committed to executing its strategy with financial prudence while preparing for a potential product launch in late 2026 [31][32] - Management highlighted the importance of building relationships with payers to ensure rapid access to cytisinicline following approval [22][23] Other Important Information - The company plans to complete the ORCA-OL study database by the end of the year and aims to present the results in 2026 [15][68] - Achieve is actively engaging with the FDA and has requested a priority review for the NDA submission, although a standard review is currently anticipated [50] Q&A Session Summary Question: Will the 120-day safety update include only 100 patients or the full 290? - The company will submit all subjects available at the time of the database cut, which will be more than 100 but not the full 290 [34] Question: How will commercial spending ramp up ahead of launch? - The company will incrementally increase pre-commercial activities prior to approval, with a disciplined approach to commercial investment [35][36] Question: Will cytisinicline be priced at a premium compared to generic options? - The company views cytisinicline as a branded product at a premium price, supported by its differentiated profile [37] Question: What initial contact methods will be used to reach providers? - The company plans to identify individual needs of targeted physicians and engage through various channels, including social media and email [40][42] Question: What is the overall safety profile of cytisinicline? - The safety profile remains consistent with previous data, with no new safety signals identified [46][47] Question: Will there be any updates on future clinical development before the end of the year? - The company plans to complete the ORCA-OL study database quickly and aims to present data at conferences in 2026 [66][68]

Financial Data and Key Metrics Changes - For the second quarter, sales increased by 2% year-over-year to $991 million, with operating profit rising by 22% and EPS increasing by 60% to $0.24 [9][14][15] - Gross margin improved by 145 basis points to 41.2%, while operating margin expanded by 255 basis points to 15.5% [10][14] - SG&A expenses decreased by 2% compared to the prior year, resulting in a 110 basis point leverage [11][14] Business Line Data and Key Metrics Changes - The intimates business experienced a decline compared to last year, while basics saw low single-digit growth, active products grew nearly 30%, and new businesses, including scrubs and loungewear, grew by 165% [10][60] - Operating margin for the quarter was driven by cost restructuring actions and productivity improvements [11][15] Market Data and Key Metrics Changes - On a constant currency basis, sales in The Americas increased, were flat in Australia, and decreased slightly by about $5 million in The US [10] - The US Interwear market faced ongoing consumer headwinds, particularly in the intimate apparel category [10] Company Strategy and Development Direction - The company is focused on innovation, expanding product categories, and investing significantly in brand development, with spending levels more than double compared to four years ago [7][8] - The strategy includes leveraging advanced analytics and AI for operational improvements and maintaining a diversified supply chain [8][9] - The company aims to drive increased shareholder returns through consistent sales growth, margin expansion, and continued debt reduction [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current macroeconomic conditions and consumer demand dynamics, citing strong performance and visibility into the second half of the year [6][27] - The company raised its full-year guidance, expecting sales to reach approximately $3.53 billion, operating profit to increase by 17%, and EPS to rise by 65% [16][17] Other Important Information - The company has paid down $1.5 billion of debt, reducing leverage by nearly 2.5 turns over the past two years [9] - Management highlighted the importance of mitigating tariff impacts and maintaining competitive pricing strategies [33][42] Q&A Session Summary Question: What drove the outperformance in the quarter and the increased outlook? - Management noted strong performance across key metrics, with operating margin at 15.5%, driven by cost savings and productivity initiatives [22][23][27] Question: Insights into tariff impacts through 2025 and 2026? - Management indicated that tariff costs would not be felt until Q4 and expressed confidence in mitigating these costs through proactive measures [32][34] Question: Pricing pushback in the mass channel? - Management acknowledged the importance of pricing as part of the tariff offset strategy and expressed confidence in their ability to implement price increases supported by brand strength [38][42] Question: Bringing international business profitability closer to US operations? - Management stated that cost savings initiatives are being applied broadly, and improvements are being seen consistently in the international business [46][48] Question: Benefits of lower cotton on margins and competition from private labels? - Management noted that cotton is a small percentage of total costs and emphasized that the broader innerwear business is performing well despite challenges in the intimates category [55][60][62]

Financial Data and Key Metrics Changes - Net sales for Q2 2025 totaled $30.7 million, representing a 9.5% decrease from $33.9 million in Q2 2024, impacted by delays in aerospace and defense customer approvals and manufacturing inefficiencies [12][17] - Gross profit for Q2 2025 was $4.8 million, or 15.8% of net sales, compared to $4.6 million, or 13.6% of net sales in the same prior year quarter, due to increased facility utilization and manufacturing productivity [12][13] - Adjusted EBITDA for Q2 2025 was $1.1 million, up from $900,000 in Q2 2024, indicating improved operational performance despite lower sales [14][17] Business Line Data and Key Metrics Changes - The aerospace and defense segment faced challenges due to the closure of the Blue Earth facility and the transfer of programs to Bemidji, but significant progress has been made in customer approvals [5][12] - Customer backlog increased by approximately $10 million from March 31, 2025, to $78.4 million by the end of Q2 2025, indicating potential future revenue growth [12][17] Market Data and Key Metrics Changes - The company is well-positioned in North America and China, with operations under the USMCA framework and a near-shoring approach to reduce shipping costs and time [7][8] - The company is monitoring tariff impacts closely, particularly regarding piece parts imported from China, and is adjusting pricing and sourcing strategies accordingly [8][9] Company Strategy and Development Direction - The company is focused on strengthening its balance sheet and reducing inventory investments while driving efficiencies in manufacturing processes [18] - There is a strong emphasis on engineering expertise, product innovation, and sustainability, with advancements in fiber optic technology being a key area of growth [19][20][24] - The shift from copper to fiber optics aligns with industry trends towards more efficient and reliable solutions, particularly in aerospace and defense markets [25][28] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding future revenues, citing improved customer backlog and stabilization of supply chains [17][26] - The company is adapting to changing customer needs and geopolitical uncertainties, focusing on building deeper partnerships and tailored delivery strategies [8][9][27] Other Important Information - The company completed the sale of the Blue Earth facility in July 2025, which is expected to further reduce ongoing operating expenses [13] - Cash totaled $652,000 as of June 30, 2025, down from $916,000 at the end of 2024, reflecting timing of cash receipts and expenditures [15][16] Q&A Session Summary Question: Are there any questions from the audience? - No questions were received during the Q&A session, and the call was concluded with a note of thanks for participation [29][31]

Financial Data and Key Metrics Changes - The company reported consolidated EBITDAX of $338 million and adjusted free cash flow of $36 million for the second quarter [5] - Total production and oil volumes met guidance, despite weather-related impacts reducing daily production by approximately 780 barrels of oil equivalent per day [5] - Capital expenditures for the quarter were $257 million, exceeding the high end of guidance due to accelerated activities and drilling cost overruns [5][6] - Net debt increased by $8 million, while net working capital was reduced by $41 million [12] Business Line Data and Key Metrics Changes - The company executed three Horseshoe wells using water-based fluids, achieving significant cost savings [6] - Completion stage architecture improvements led to a 9% reduction in pumping cycle times, saving $13 per foot [7] - The company drilled the longest wells in its history, including a lateral of 16,515 feet, and set records for feet drilled in a single day [7][8] Market Data and Key Metrics Changes - The company has hedged approximately 95% of expected second-half oil production at an average price of $69 per barrel, along with hedging for natural gas and other products [14] - The optimization strategy is expected to lower WTI breakevens by about $5 per barrel across 1,300,000 completable lateral feet [10] Company Strategy and Development Direction - The company is shifting from an acquisition-focused strategy to optimizing existing assets, resulting in a 10% reduction in employee and contractor headcount [11][12] - The focus remains on generating adjusted free cash flow and reducing debt to build long-term shareholder value [14] - The company plans to bring 38 wells online by October, with expectations for significant debt reduction in the latter half of the year [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in generating substantial adjusted free cash flow in 2025, with a target of reducing net debt by approximately $185 million for the remainder of the year [13] - The company is optimistic about capital efficiency improvements and the potential for larger-scale developments in 2026 [20][41] Other Important Information - The company achieved a major milestone by drilling a stacked Horseshoe development, which is believed to be a first in the industry [9] - Sustainable savings from operational efficiencies are expected to deliver an incremental $25 million in cash flow per year [10] Q&A Session Summary Question: Production trajectory into 2026 and capital efficiency - Management highlighted improvements in capital efficiency and successful drilling practices that support production growth into 2026 [18][20] Question: Cost accomplishments and LOE projections - Management discussed ongoing cost reduction initiatives and the impact of transitioning to more efficient lift types [22][24] Question: Production cadence heading into 2026 - Management indicated that production would be high in Q4 2025 but expected a slight decrease in early 2026 due to timing [30] Question: Non-core asset sales and future cadence - Management stated that non-core asset sales are opportunistic and will continue as long as favorable prices are available [33] Question: Net debt trends and leverage outlook for 2026 - Management expects to continue paying down debt in 2026, with a corporate breakeven below $55 per barrel [39] Question: Development program and capital allocation for 2026 - Management confirmed a focus on larger-scale developments and capital efficiency opportunities moving into 2026 [41][42]

Financial Data and Key Metrics Changes - The company reported that sales, operational cash generation, and EBITDA were in line with expectations for the quarter [10][11] - Net debt remained stable at $13 billion, with net leverage increasing to 3.1 times due to a reduction in last twelve month EBITDA to $4.2 billion [28][29] - Cash costs declined compared to the first quarter, driven by stronger operational performance and lower fixed costs [25][26] Business Line Data and Key Metrics Changes - Brazilian operations saw stronger sales volumes and lower costs compared to Q1, with EBITDA growth year-over-year [12][13] - U.S. operations experienced a 3% price increase quarter-over-quarter, driven by product mix and better commercial location [13] - The paper and packaging business in the U.S. is expected to deliver positive EBITDA in Q3, with lower costs and higher production volumes anticipated [16][58] Market Data and Key Metrics Changes - In Brazil, print and write demand rose 6% year-over-year, with domestic sales also increasing by 6% [14] - Uncoated wood free paper demand remained stable in North America and Latin America but declined by 10% in Europe [14] - The U.S. market for boxboard demand was stable, while demand for SBS boards increased by 1% [15] Company Strategy and Development Direction - The company is focusing on competitiveness and cost reduction, with an emphasis on executing existing deals rather than pursuing new M&A initiatives [10][11] - A deal with Eldorado is expected to provide an internal return of around 20%, allowing for increased production at the Ribba's mill without significant investment [6][42] - The company plans to maintain a focus on deleveraging and improving operational competitiveness [10][88] Management's Comments on Operating Environment and Future Outlook - Management noted that the cash cost trend is expected to continue decreasing in the upcoming quarters [10][25] - The company is monitoring market dynamics closely, particularly in light of recent price corrections and supply-demand imbalances [22][72] - Management expressed confidence in the recovery of order intake in China and the potential for price increases due to supply constraints [22][23] Other Important Information - The company has built inventories in the U.S. to mitigate the impact of 50% import duties imposed by the U.S. government [17] - The company is planning to redirect the majority of its exports from the U.S. to other regions [17] - The company maintains a healthy amortization schedule with more than six years of average maturity [28] Q&A Session Summary Question: What are the changing dynamics in the pulp scenario that allowed for the $20 price increase for Asia? - Management noted high order intake levels in China since June, indicating a supportive market environment for price increases [32][34] Question: Can you elaborate on the internal rate of return of the deal with Eldorado? - The internal rate of return is expected to be around 20%, driven by optimized harvesting and reduced operational costs [40][42] Question: What is the expected normalized production level if pulp prices remain below $550 per ton? - The company has a detailed analysis on production costs and has decided to reduce production to maintain profitability [46][47] Question: What are the main opportunities identified in the U.S. packaging market? - The company is expanding its market reach and has seen significant growth in cup stock sales, indicating strong opportunities for profitability [60] Question: How are negotiations regarding the 10% tariff on U.S. exports going? - The company successfully negotiated that customers will bear the 10% tariff, ensuring that Suzano will not absorb this cost [97] Question: What is the status of the Kimberly Clark acquisition? - Dedicated teams have been established to plan the carve-out of the new joint venture, with the project progressing as planned [98]

Warner Music (WMG) Q3 2025 Earnings Call August 07, 2025 08:30 AM ET Speaker0Welcome to Warner Music Group's Third Quarter Earnings Call for the period ended 06/30/2025. At the request of Warner Music Group, today's call is being recorded for replay purposes. And if you object, you may disconnect at any time. I would now like to turn the call over to your host, Mr. Karim Chin, Head of Investor Relations.You may begin.Speaker1Good morning, everyone, and welcome to Warner Music Group's fiscal third quarter ea ...

Financial Data and Key Metrics Changes - The company reported Q2 revenue of $78 million, reflecting a 34% year-over-year decline and a nearly flat trend quarter-over-quarter [14] - Adjusted EBITDA for Q2 was $9.7 million, nearly doubling quarter-over-quarter despite a $700,000 decrease in revenues [17] - The net loss for Q2 was $5.2 million, with an adjusted operating expense run rate of $24.6 million [17] Business Line Data and Key Metrics Changes - The Energy Industrial segment's revenue decreased significantly to $22.8 million, a 38% year-over-year decline, attributed to inventory rebalancing and a lack of new projects [15] - The EV thermal barrier business generated $55.2 million in revenue, a 32% decrease year-over-year, aligning with lower vehicle production schedules [15] - Gross profit margins for the Energy Industrial business were maintained at 36%, while the EV thermal barrier business had margins of 31%, which is below the target of 35% [16] Market Data and Key Metrics Changes - The subsea market has shown a significant slowdown, with historical revenue cycling between $5 million and $15 million per year, but averaging approximately $30 million per year in 2023 and 2024 [10] - The company anticipates revenue growth and high gross profit margins in 2026 and beyond, despite current challenges in the energy sector [12] Company Strategy and Development Direction - The core objective is to build a strong, profitable, and capital-efficient business, focusing on streamlining operations and optimizing cost structures [8] - The company is well-positioned to serve US-based OEMs, especially in the EV market, despite regulatory headwinds [9] - Future growth is expected to be driven by project work in the Energy Industrial segment and stable demand for EV thermal barrier products [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to adapt and innovate in a turbulent global economy, emphasizing a resilient and growth-oriented business model [26] - The outlook for the second half of the year includes expected revenue of $140 million to $160 million, translating to a total annual revenue of $297 million to $317 million [21] - The company expects to generate approximately double the adjusted EBITDA in the second half compared to the first half [21] Other Important Information - The CFO transition is underway, with Grant Thaley set to take over at the end of Q3 [6] - The company has removed approximately $65 million in costs, bringing operating expenses back to 2022 levels [8] - Cash and equivalents at the end of the quarter stood at $168 million, positioning the company well for future operations without needing additional capital [20] Q&A Session Summary Question: Update on Energy Industrial segment and distributor destocking - Management acknowledged ongoing destocking and lower project revenue, but expressed confidence in future growth as distributor inventories are worked through [32][33] Question: Outlook for Pyrothin and impact of tax credit expiration - Management remains optimistic about Q4 sales, citing GM's market share gains and stable demand despite the tax credit expiration [37] Question: Design activity with new OEMs and future revenue - Management noted ongoing quoting activity and expected incremental revenues from key OEMs like Stellantis and Daimler in the coming years [42][44] Question: Revenue buildup potential for Thermal and quoting activity - Management confirmed a path to achieving previously discussed revenue targets, with a focus on prismatic cells and ongoing quoting activity [86][88] Question: Impact of Mercedes' EV plans on revenue - Management indicated potential for incremental volume from the ACC partnership with Mercedes, particularly in the European market [94] Question: Lead times for orders in subsea and LNG - Management clarified that subsea projects typically have a lead time of one to two quarters, while LNG projects may require two to four quarters [107]