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CFO Andrew Lynch stated China represents about 12% of total revenue, with new wins sufficient to return to low-to-mid single-digit auto outgrowth. CEO Stephan von Schuckmann noted the HVOR market is soft, particularly in North America, and expects to undergrow the market for the balance of the year due to higher content on Western OEMs whose production is down.

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Chief Executive Officer Stephan Von Schuckmann stated he does not see significant push-outs for the 2026 European EV launches, as OEMs need these technologically advanced, second-generation vehicles to meet CO2 targets. He also noted that the strong operational margin trend in Sensing Solutions is expected to continue.

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CFO Brian Roberts explained that Q1 is seasonally challenging for margins due to price downs, which are offset by productivity efforts that layer in over time. He emphasized a new discipline in adding costs. While the 2025 plan is still in development, the goal is to expand margins year-over-year from the 2024 level.

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CEO Amnon Shashua confirmed a 2-2.5 year lead time for Western OEMs, with EVP Nimrod Nehushtan adding that current RFQs target 2027-2028 SOPs. Regarding rideshare, Nehushtan argued that while platforms initially partner broadly, the ultimate winners will be the most cost-efficient and scalable solutions. He expressed confidence that Mobileye's inherent advantages, like lower power consumption, will secure high volumes long-term.

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CFO Moran Rojansky confirmed that the expected 1.4 million incremental units from share gains and new launches are tracking in line or better than expected. CEO Amnon Shashua affirmed that robotaxi momentum is accelerating, highlighting their scalable technology and partnerships with major players like VW, Uber, and Lyft, with additional opportunities in Europe and with other OEMs.

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CEO Amnon Shashua and EVP Nimrod Nehushtan confirmed that the 2027-2028 timeframe remains the sweet spot for advanced system adoption, driven by competitive and regulatory pressures. They expressed confidence in converting the current pipeline, noting steady progress and the ability to meet timelines. CFO Moran Rojansky projected a 1.5 percentage point increase in 2025 gross margin, primarily due to a lower mix of SuperVision revenue.

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CFO Heath Mitts responded that ongoing investments in engineering and manufacturing capacity are already embedded in the company's run rate. He reiterated that for modeling purposes, a 30% incremental flow-through on organic growth is a fair assumption. He suggested this rate could be higher with strong volumes but might be pressured in a low-growth environment, but this remains the core business model for driving margins.

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CEO Terrence Curtin first reiterated that tariff exposure is mainly in the Industrial segment. CFO Heath Mitts then addressed capital allocation, stating that despite the $2.3B Richards deal, TE's strong cash generation supports a balanced approach. The company will continue to pursue a pipeline of smaller, bolt-on M&A while also being in the market daily with share buybacks.

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CFO Heath Mitts clarified the 20% margin goal is a multi-year target, with the new Industrial segment providing the main uplift opportunity from its current high-teens level. CEO Terrence Curtin addressed the orders question by explaining that the large order figures for the segment include business beyond just AI, such as traditional cloud and enterprise, which is why the total order value is higher than the specific AI revenue forecast for the next year.

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CFO Claire McDonough confirmed the per-unit tariff impact estimate includes reimbursement benefits and that the company is exploring long-term sourcing opportunities, particularly for batteries. She attributed the $3,300 per-unit COGS improvement in Q1 primarily to operational efficiency and fixed cost leverage from higher production volumes, despite a less favorable delivery mix.

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CEO RJ Scaringe emphasized the value of the vertically integrated software stack in creating paid feature opportunities but did not provide specific take rates. He also stated that the R2's cost structure was designed to be robust with or without the IRA credit. CFO Claire McDonough clarified that while the original 2027 EBITDA positive target did not include the VW deal, achieving it now requires the JV's benefit to offset a more negative policy outlook.

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CFO Patrick McCann confirmed a ~$1.5 billion revenue benefit from FX, which was primarily offset by lower North American volumes impacting the BES and Seating segments. CEO Seetarama Kotagiri stated that the tariff recovery process would be similar to that used during the semiconductor crisis, where over 95% of costs were recovered. He expects a collaborative process, though some timing lags are possible.

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CEO Kevin P. Clark and CFO Varun Laroyia clarified that the outlook framework is not guidance but a tool for modeling scenarios based on their internal customer schedule data, not IHS. They explained the math that leads to an implied 7% second-half decline at the low end of their original range. Regarding China, Clark attributed the revenue growth lag to a significant production decline at a single major global EV customer, while noting underlying market trends and bookings with local OEMs remain strong.

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