Andres

Andres asked for an update on the progress of restructuring the European business and inquired whether the increased engineering spending in Asia, which impacted adjusted EBITDA, is expected to continue or sustain.

Answer

EVP and CFO Mark Oswald explained that Europe's restructuring spend is expected to be around $120-$130 million in fiscal year 2026, similar to last year, and will decrease in 2027, with future magnitude dependent on customer program decisions. For Asia, he noted that while there will be quarters with increased launch and engineering costs, overall APAC business performance is expected to be positive for full year 2026, with these costs offset by other efficiencies.