Matt Coranza

Matt Coranza (with Joseph asking on his behalf) questioned the lower-than-expected flow-through on the 2026 sales outlook, asking about any incremental investments beyond footprint realignment. He also sought clarification on the confidence behind the 2027 revenue guidance, especially given the automotive sector's majority contribution.

Answer

EVP, CFO, and Treasurer Jon Douyard explained that 2026 growth aligns with mid-single digits over automotive industry volumes, with ongoing progress in productivity and material savings. He noted consistent footprint headwinds and some FX pressure from the peso, but no other significant incremental investments beyond reallocating internal spend for adjacent markets. President and CEO Bill Presley expressed strong confidence in the 2027 revenue number, citing robust launch activity in core automotive climate and pneumatic solutions, alongside increasing traction and new product contributions from medical and home and office adjacent markets.