Adjusted EBITDA is a non-GAAP financial measure which we have defined as net income (loss) before
interest, income taxes, depreciation, amortization, equity grant expense, restructuring expense, non-service cost components of pension and other postretirement benefit costs and other adjustments not related to our core operations (gain/loss on debt extinguishment, pension settlements, divestitures, impairment, etc.).
Adjusted EBITDA is a measure of our ability to maintain and continue to invest in our operations and provide shareholder returns. We use adjusted EBITDA in assessing the effectiveness of our business strategies, evaluating and pricing potential acquisitions and as a factor in making incentive compensation decisions. In addition to its use by management, we also believe adjusted EBITDA is a measure widely used by securities analysts, investors and others to evaluate financial performance of our company relative to other Tier 1 automotive suppliers. Adjusted EBITDA should not be considered a substitute for earnings (loss) before income taxes, net income (loss) or other results reported in accordance with GAAP. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.
Adjusted net income (loss) attributable to the parent company is a non-GAAP financial measure which we have defined as net income (loss) attributable to the parent company, excluding any discrete income tax items, restructuring charges, amortization expense and other adjustments not related to our core operations (as used in adjusted EBITDA), net of any associated income tax effects. This measure is considered useful for purposes of providing investors, analysts and other interested parties with an indicator of ongoing financial performance that provides enhanced comparability to net income (loss) attributable to the parent company reported by other companies. Adjusted net income (loss) attributable to the parent company is neither intended to represent nor be an alternative measure to net income (loss) attributable to the parent company reported in accordance with GAAP.
Diluted adjusted EPS is a non-GAAP financial measure which we have defined as adjusted net income (loss) attributable to the parent company divided by adjusted diluted shares. We define adjusted diluted shares as diluted shares as determined in accordance with GAAP based on adjusted net income (loss) attributable to the parent company. This measure is considered useful for purposes of providing investors, analysts and other interested parties with an indicator of ongoing financial performance that provides enhanced comparability to EPS reported by other companies. Diluted adjusted EPS is neither intended to represent nor be an alternative measure to diluted EPS reported in accordance with GAAP.
Adjusted free cash flow is a non-GAAP financial measure which we have defined as net cash provided by (used in) operating activities less purchases of property, plant and equipment plus proceeds from sale of property, plant and equipment. We believe adjusted free cash flow is useful to investors in evaluating the operational cash flow of the company inclusive of the spending required to maintain the operations. Adjusted free cash flow is not intended to represent nor be an alternative to the measure of net cash provided by (used in) operating activities reported in accordance with GAAP. Adjusted free cash flow may not be comparable to similarly titled measures reported by other companies.
The accompanying financial information provides reconciliations of adjusted EBITDA, diluted adjusted EPS and adjusted free cash flow to the most directly comparable financial measures calculated and presented in accordance with GAAP. We have not provided a reconciliation of our adjusted EBITDA and diluted adjusted EPS outlook to the most comparable GAAP measures of net income (loss) and diluted EPS. Providing net income (loss) and diluted EPS guidance is potentially misleading and not practical given the difficulty of projecting event driven transactional and other non-core operating items that are included in net income (loss) and diluted EPS, including restructuring actions, asset impairments and certain income tax adjustments. The accompanying reconciliations of these non-GAAP measures with the most comparable GAAP measures for the historical periods presented are indicative of the reconciliations that will be prepared upon completion of the periods covered by the non-GAAP guidance.
2025 | 2024 | ||
Net sales Costs and expenses Cost of sales | $ 2,352 2,132 | $ 2,735 2,491 | |
Selling, general and administrative expenses | 132 | 139 | |
Amortization of intangibles | 3 | 3 | |
Restructuring charges, net | 5 | 5 | |
Loss on disposal group previously held for sale | (29) | ||
Other income (expense), net | (8) | 2 | |
Earnings before interest and income taxes | 72 | 70 | |
Interest income | 3 | 4 | |
Interest expense | 39 | 39 | |
Earnings before income taxes | 36 | 35 | |
Income tax expense | 8 | 37 | |
Equity in earnings of affiliates | 2 | 2 | |
Net income | 30 | - | |
Less: Noncontrolling interests net income | 5 | 5 | |
Less: Redeemable noncontrolling interests net loss | (8) | ||
Net income attributable to the parent company | $ 25 | $ 3 | |
Net income per share available to common stockholders Basic | $ 0.17 | $ 0.02 | |
Diluted | $ 0.17 | $ 0.02 | |
Weighted-average shares outstanding - Basic | 145.6 | 144.8 | |
Weighted-average shares outstanding - Diluted | 147.0 | 144.8 |
(In millions, except per share amounts)
Three Months Ended March 31,
Consolidated Statement of Comprehensive Income (Unaudited) For the Three Months Ended March 31, 2025 and 20242025 | 2024 | ||
Net income Other comprehensive income (loss), net of tax: Currency translation adjustments | $ 30 14 | $ - (20) | |
Hedging gains and losses | 18 | (2) | |
Defined benefit plans | 1 | ||
Other comprehensive income (loss) | 32 | (21) | |
Total comprehensive income (loss) | 62 | (21) | |
Less: Comprehensive income attributable to noncontrolling interests | (5) | (4) | |
Less: Comprehensive loss attributable to redeemable noncontrolling interests | 11 | ||
Comprehensive income (loss) attributable to the parent company | $ 57 | $ (14) | |
(In millions)
Three Months Ended March 31,
Consolidated Balance Sheet (Unaudited) As of March 31, 2025 and December 31, 2024 | |||
(In millions, except share and per share amounts) | March 31, 2025 | December 31, 2024 | |
Assets Current assets Cash and cash equivalents | $ 507 | $ 494 | |
Accounts receivable Trade, less allowance for doubtful accounts of $17 in 2025 and $15 in 2024 | 1,425 | 1,195 | |
Other | 236 | 261 | |
Inventories | 1,617 | 1,547 | |
Other current assets | 246 | 206 | |
Total current assets | 4,031 | 3,703 | |
Goodwill | 257 | 250 | |
Intangibles | 148 | 150 | |
Deferred tax assets | 579 | 560 | |
Other noncurrent assets | 137 | 189 | |
Investments in affiliates | 127 | 126 | |
Operating lease assets | 299 | 293 | |
Property, plant and equipment, net | 2,222 | 2,214 | |
Total assets | $ 7,800 | $ 7,485 | |
Liabilities, redeemable noncontrolling interests and equity Current liabilities Short-term debt | $ 130 | $ 8 | |
Current portion of long-term debt | 215 | 214 | |
Accounts payable | 1,659 | 1,522 | |
Accrued payroll and employee benefits | 273 | 236 | |
Taxes on income | 90 | 69 | |
Current portion of operating lease liabilities | 46 | 44 | |
Other accrued liabilities | 415 | 468 | |
Total current liabilities | 2,828 | 2,561 | |
Long-term debt, less debt issuance costs of $18 in 2025 and $19 in 2024 | 2,428 | 2,389 | |
Noncurrent operating lease liabilities | 262 | 258 | |
Pension and postretirement obligations | 304 | 295 | |
Other noncurrent liabilities | 343 | 397 | |
Total liabilities | 6,165 | 5,900 | |
Commitments and contingencies Redeemable noncontrolling interests | 189 | 189 | |
Parent company stockholders' equity | |||
Preferred stock, 50,000,000 shares authorized, $0.01 par value,
no shares outstanding - -
Common stock, 450,000,000 shares authorized, $0.01 par value,
145,726,212 and 144,993,614 shares outstanding | 2 | 2 | |
Additional paid-in capital | 2,294 | 2,282 | |
Retained earnings | 214 | 204 | |
Treasury stock, at cost (1,304,731 and 837,803 shares) | (21) | (13) | |
Accumulated other comprehensive loss | (1,110) | (1,142) | |
Total parent company stockholders' equity | 1,379 | 1,333 | |
Noncontrolling interests | 67 | 63 | |
Total equity | 1,446 | 1,396 | |
Total liabilities, redeemable noncontrolling interests and equity | $ 7,800 | $ 7,485 |
2025 | 2024 | ||
Operating activities | |||
Net income | $ 30 | $ - | |
Depreciation | 96 | 101 | |
Amortization | 5 | 5 | |
Amortization of deferred financing charges | 1 | 1 | |
Earnings of affiliates, net of dividends received | (2) | (2) | |
Stock compensation expense | 13 | 6 | |
Deferred income taxes | (20) | 2 | |
Pension expense, net | (7) | ||
Change in working capital | (141) | (251) | |
Change in other noncurrent assets and liabilities | (15) | (4) | |
Loss on disposal group previously held for sale | 29 | ||
Other, net | (4) | 18 | |
Net cash used in operating activities | (37) | (102) | |
Investing activities | |||
Purchases of property, plant and equipment | (75) | (70) | |
Proceeds from sale of property, plant and equipment | 11 | 4 | |
Settlements of undesignated derivatives | (1) | (1) | |
Other, net | 4 | ||
Net cash used in investing activities | (65) | (63) | |
Financing activities | |||
Net change in short-term debt | 121 | 17 | |
Repayment of long-term debt | (4) | (27) | |
Dividends paid to common stockholders | (15) | (15) | |
Distributions to noncontrolling interests | (1) | (3) | |
Collection of note receivable from noncontrolling interest | 11 | ||
Contributions from redeemable noncontrolling interests | 9 | ||
Other, net | (6) | 9 | |
Net cash provided by financing activities | 95 | 1 | |
Net decrease in cash, cash equivalents and restricted cash | (7) | (164) | |
Cash, cash equivalents and restricted cash − beginning of period | 512 | 563 | |
Effect of exchange rate changes on cash balances | 18 | (12) | |
Cash, cash equivalents and restricted cash − end of period | $ 523 | $ 387 | |
(In millions)
Three Months Ended March 31,
Reconciliation of Net Cash Used In Operating Activities to Adjusted Free Cash Flow (Unaudited)2025 | 2024 | ||
Net cash used in operating activities | $ (37) | $ (102) | |
Purchases of property, plant and equipment | (75) | (70) | |
Proceeds from sale of property, plant and equipment | 11 | 4 | |
Adjusted free cash flow | $ (101) | $ (168) | |
(In millions)
Three Months Ended March 31,
Segment Sales and Adjusted EBITDA (Unaudited) For the Three Months Ended March 31, 2025 and 2024Three Months Ended
(In millions)
SalesMarch 31,
2025 2024
Light Vehicle | $ 1,180 | $ 1,324 | |
Commercial Vehicle | 568 | 653 | |
Off-Highway | 604 | 758 | |
Total Sales | $ 2,352 | $ 2,735 | |
Adjusted EBITDA Light Vehicle | $ 68 | $ 78 | |
Commercial Vehicle | 44 | 33 | |
Off-Highway | 79 | 115 | |
Corporate expenses and other net | (3) | (3) | |
Adjusted EBITDA | $ 188 | $ 223 |
2025 | 2024 | ||||
Earnings before income taxes | $ | 36 | $ | 35 | |
Interest income | (3) | (4) | |||
Interest expense | 39 | 39 | |||
Earnings before interest and income taxes | 72 | 70 | |||
Depreciation | 96 | 101 | |||
Amortization | 5 | 5 | |||
Non-service cost components of pension and OPEB costs | 2 | 4 | |||
Restructuring charges, net | 5 | 5 | |||
Stock compensation expense | 13 | 6 | |||
Strategic transaction expenses | 15 | 2 | |||
(Gain) loss on sale of property, plant and equipment | (1) | 5 | |||
Supplier capacity charge adjustment | (19) | ||||
Loss on disposal group previously held for sale | 29 | ||||
Other items | (4) | ||||
Adjusted EBITDA | $ 188 | $ 223 | |||
(In millions)
Three Months Ended March 31,
Diluted Adjusted EPS (Unaudited) For the Three Months Ended March 31, 2025 and 2024(In millions, except per share amounts)
2025 | 2024 | ||||
Net income attributable to the parent company Items impacting income before income taxes: Amortization | $ | 25 5 | $ | 3 5 | |
Restructuring charges, net | 5 | 5 | |||
Strategic transaction expenses | 15 | 2 | |||
Supplier capacity commitment charge adjustment Loss on disposal group previously held for sale | (19) | 29 | |||
Other items Items impacting income taxes: | (3) | ||||
Net income tax expense on items above | (2) | (13) | |||
Income tax expense (benefit) attributable to various discrete tax matters | (10) | 9 | |||
Adjusted net income attributable to the parent company | $ 19 | $ 37 | |||
Diluted shares - as reported | 147.0 | 144.8 | |||
Adjusted diluted shares | 147.0 | 144.8 | |||
Diluted adjusted EPS | $ 0.13 | $ 0.26 | |||
Three Months Ended March 31,
2024 Segment Sales and Adjusted EBITDA Recast for Segment Realignment (Unaudited) | |||||||||
(In millions) | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | FY 2024 | ||||
Sales Light Vehicle | $ 1,324 | $ 1,366 | $ 1,253 | $ 1,168 | $ 5,111 | ||||
Commercial Vehicle | 653 | 645 | 612 | 570 | 2,480 | ||||
Off-Highway | 758 | 727 | 611 | 597 | 2,693 | ||||
Total Sales | $ 2,735 | $ 2,738 | $ 2,476 | $ 2,335 | $ 10,284 | ||||
Adjusted EBITDA Light Vehicle | $ 78 | $ 89 | $ 83 | $ 83 | $ 333 | ||||
Commercial Vehicle | 33 | 40 | 47 | 17 | 137 | ||||
Off-Highway | 115 | 116 | 103 | 88 | 422 | ||||
Corporate expenses and other net | (3) | (1) | (1) | (2) | (7) | ||||
Adjusted EBITDA | $ 223 | $ 244 | $ 232 | $ 186 | $ 885 | ||||
Earnings (loss) before income taxes | $ 35 | $ 67 | $ 52 | $ (74) | $ 80 | ||||
Interest income | (4) | (2) | (4) | (5) | (15) | ||||
Interest expense | 39 | 39 | 40 | 43 | 161 | ||||
Earnings (loss) before interest and income taxes | 70 | 104 | 88 | (36) | 226 | ||||
Depreciation | 101 | 106 | 97 | 97 | 401 | ||||
Amortization | 5 | 6 | 5 | 5 | 21 | ||||
Non-service cost components of pension and OPEB costs | 4 | 2 | 8 | 4 | 18 | ||||
Restructuring charges, net | 5 | 12 | 24 | 35 | 76 | ||||
Stock compensation expense | 6 | 8 | 7 | 9 | 30 | ||||
Strategic transaction expenses | 2 | 2 | 1 | 4 | 9 | ||||
Loss on sale of property, plant and equipment | 5 | 1 | 6 | ||||||
Supplier capacity charge | 46 | 46 | |||||||
Amounts attributable to previously divested/closed operations | 9 | 9 | |||||||
Loss on disposal group previously held for sale | 29 | 1 | (4) | 26 | |||||
Other items | (4) | 3 | 6 | 12 | 17 | ||||
Adjusted EBITDA | $ 223 | $ 244 | $ 232 | $ 186 | $ 885 | ||||
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