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Mark Oswald, EVP & CFO, clarified that commodity impacts are reported net of recoveries and that improved business performance is now offsetting a net tariff headwind that wasn't in the original plan. Jerome Dorlak, President, CEO & Director, explained that the 2026 outlook for China's top line is dependent on the launch cadence of local OEMs, which has faced some delays, potentially leading to growth that might still slightly contract versus the market.

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EVP and CFO Mark Oswald stated that FX assumptions were kept consistent with the prior guide due to volatility. Both Oswald and CEO Jerome Dorlack affirmed that the capital allocation strategy is unchanged: a measured approach prioritizing business investment and shareholder returns, with the timing of buybacks dependent on macro clarity and second-half cash generation.

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President and CEO Jerome Dorlack stated that Adient has action plans with customers and has communicated that the company cannot absorb a 10-25% tariff burden, necessitating pass-throughs to the value chain. On margins, EVP and CFO Mark Oswald explained that the strong 12% decremental margin in Q1 was achieved due to having advance notice of production changes. He noted that the full-year guidance assumes continued success in managing costs to keep decrementals below the typical 17-18% level.

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Mark Oswald, EVP and CFO, stated that while positive business performance will help, the primary driver of EMEA's results will be the negative impact from a 5% reduction in regional production volume. Jerome Dorlack, President and CEO, explained that last year's China forecast was impacted by an unforeseen shift to export production, where Adient had less exposure. He expressed confidence in this year's 6% outgrowth forecast, noting it is based on 100% booked business and incorporates improved market intelligence on the domestic vs. export production mix.

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Chairman & CEO Bruce McDonald and Senior VP & CFO Timothy Kraus stated that with shares considered 'extremely undervalued,' share repurchases are the preferred method for capital return. Kraus clarified that the $310 million cost savings program is separate from the efforts to eliminate the $40 million in true stranded costs, which they expect to fully mitigate by 2027.

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SVP and CFO Timothy Kraus confirmed the off-highway business has minimal U.S. tariff exposure, which is considered 100% recoverable, with the main risk being broader macroeconomic volume impacts. He reiterated that the sale process is now expected to conclude later in Q2. He declined to provide specific FX and commodity guidance figures to prevent a back-calculation of the company's tariff assumptions.

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CFO Timothy Kraus declined to give specifics on the Hydro-Quebec payment but expressed confidence that a resolution would be reached sometime in 2025. He confirmed the re-segmentation, which folds Power Technologies into other units, will be completed during Q1 and reflected in the first quarter's report.

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Timothy Kraus, SVP & CFO, stated the hydraulics business sale did not close because the buyer's financing fell through. Regarding the Off-Highway market, Kraus confirmed weakness across agriculture, construction, and material handling. He noted that while these markets move quickly, the team is performing well, citing that a $100 million sales decline in Q3 resulted in a less than 10% decremental margin due to effective cost flexing.

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CEO Seetarama Swamy Kotagiri stated that while H2 production looks slightly softer than H1, they don't see a precipitous fall and are comfortable with their outlook, which aligns with IHS. Regarding capital, he reiterated that the focus remains on capital discipline and free cash flow. While the conditions for resuming buybacks haven't changed, they can act on the existing NCIB if visibility improves. He also confirmed the long-term goal of a low-4% CapEx-to-sales ratio remains intact for 2026.

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CEO Seetarama Kotagiri affirmed that the 40/60 earnings cadence remains a good assumption based on current visibility. Regarding buybacks, he reiterated the program is paused due to uncertainty. While the intent is to utilize the NCIB authorization when conditions permit, he did not commit to a specific target, emphasizing the priority of maintaining balance sheet strength.

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CEO Seetarama Kotagiri attributed the Seating performance to input costs, program volume drops, and negative EV mix, noting an underperforming program ends in late 2026, which will be a positive catalyst. For Complete Vehicles, he said the cost structure has been right-sized and discussions are ongoing with various OEMs. He stated the LG JV is performing well from a product and business-win perspective, though currently pressured by the EV market slowdown.

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CFO Patrick McCann explained that the strong 2026 incremental margin is significantly influenced by the removal of ~$2.2 billion in low-margin Complete Vehicle sales, which is accretive to the consolidated margin. This is supplemented by savings from reduced engineering spend, lower D&A, and restructuring. Both McCann and CEO Seetarama Kotagiri confirmed that H2 2024 commercial recoveries are factored into the outlook and are expected to follow a similar back-half weighted cadence as in 2023.

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CEO Joseph Fadool stated that the team acted quickly on the battery business, which was slightly EBITDA positive and cash flow breakeven in Q2, positioning it for profitable growth. CFO Craig Aaron noted that second-half PowerDrive performance depends on production levels, but the focus remains on outgrowing the hybrid and EV market and converting that growth at mid-teens margins. Fadool also confirmed a definite increase in RFQ flow for advanced hybrids.

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CEO Joseph Fadool stated that while current orders look good, the guidance prudently anticipates potential market changes from tariffs and macro uncertainty. Executive Craig Aaron clarified that FX is now a $250 million tailwind compared to prior guidance. He also confirmed that the guidance assumes 100% recovery of tariff costs from customers, though timing of these recoveries could impact results at the lower end of the range.

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Executive Frederic Lissalde detailed the company's market view (down 3-3.5%), noting regional differences. Regarding hybrids, he explained that advanced hybrid powertrains draw products from both foundational segments, including engine components and shifting mechanisms, making both integral to hybrid growth without ranking one over the other.

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CFO Jason Cardew stated the E-Systems wind-down is now forecasted at $146 million for 2025 and will remain a headwind, projecting approximately $150 million in 2026 and $200 million in 2027. Regarding the backlog, he noted they will provide a full update later, mentioning a new headwind from Stellantis's Ram EV delays but also an offset from strong Chinese OEM business. CEO Ray Scott added that the Seating quoting pipeline is at a near-record high, signaling future opportunities.

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CFO Jason Cardew explained that the 2027 China revenue split is a 'moving target' due to ongoing discussions that could lead to the consolidation of some current JVs. CEO Raymond Scott added that growth with Chinese domestics is driven by strong relationships and technology, which is also opening doors with Japanese OEMs. On buybacks, Cardew stated that after achieving the $325 million target, a reasonable expectation for Q4 would be an additional $10 million.

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CCO Dan Galves explained the guidance increase was due to stronger-than-expected sales from Zeekr (for export markets) and the Polestar 4. CEO Amnon Shashua confirmed the Porsche/Audi start of production is late 2026, with revenue impact in 2027, which he termed an "inflection year." Regarding Intel, Galves noted their patience and continued ownership of over 80% but stated he could not comment on their future plans.

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CFO Christina Zamarro confirmed the price/mix guidance of $150 million for both Q3 and Q4. She noted that competitors are also implementing significant price increases due to higher tariff exposure, stating Goodyear's exposure is about one-fourth of the industry average. Zamarro detailed that the annualized tariff cost is $300 million, with about $50 million hitting in Q2, and this is included within the broader inflation and other costs bucket.

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CFO Christina Zamarro stated that price/mix should grow into Q2 and Q3, while raw material headwinds could be $100M-$150M in the second half. CEO Mark Stewart confirmed that multiple global pricing actions have been implemented since Q3 2024. Stewart also detailed plans to launch five new premium product lines to address volume challenges. Zamarro attributed the Q4 Goodyear Forward upside to these pricing actions, particularly at the premium end of the market.

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CEO and President Mark Stewart attributed volume weakness to an influx of Tier 4 imports and a deliberate exit from low-margin business, while emphasizing the focus on expanding premium SKU coverage. Executive Vice President and CFO Christina Zamarro explained the Q4 price/mix headwind is driven by higher OE volume. She noted the lower 2025 CapEx reflects a disciplined capital allocation process, and the 2024 working capital use is a timing issue related to production cuts and inventory builds that will be recovered next year.

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CFO Sherry House attributed the Q1 beat to better-than-expected costs, particularly on warranty. She noted Model e's strong quarter was driven by pricing and material cost pull-aheads but expects it to be the segment's best quarter of the year. COO Kumar Galhotra stated Mach-E production is 'business as usual' with no plans for adjustments.

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SVP of Finance Gagan Dhingra did not confirm the 2024 shipment number but stated that as production scales in 2025, the proportion of vehicles going to Saudi Arabia is expected to decrease relative to North America. Interim CEO Marc Winterhoff confirmed that the Midsize platform will be produced at both the AMP-2 plant in Saudi Arabia and the AMP-1 plant in Arizona to serve the North American market.

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CFO Joe Massaro explained the Maxieye investment provides a crucial local vision solution for Aptiv's ADAS platform to win business with Chinese OEMs. CEO Kevin P. Clark stated that Altair is not a direct competitor, as it focuses on the broader industrial engineering toolchain, which is only a small part of Wind River's automotive-focused offerings.

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