Consensus $4.12. Raises FY25 revenue view to $13.6B-$14.2B from $13.4B-$14B, consensus $13.76B. The company said, “The Company has provided a 2025 full year guidance update. Net sales are expected to be in the range of $13.6 billion to $14.2 billion in 2025, compared with 2024 sales of approximately $14.1 billion. This is a slight increase from the Company’s previous range as a result of favorable impacts from foreign exchange and tariff customer recoveries which were mostly offset by lower industry production expectations. The Company expects its weighted light and commercial vehicle markets to be in the range of down 4% to down 2% in 2025. This is a reduction from the Company’s prior range of down 3% to down 1% primarily due to the potential impact of tariffs on global industry production. The Company’s sales guidance implies a year-over-year change in organic sales of down 2% to up 2% or estimated outgrowth above market production of approximately 200 to 400 basis points. The increase in the Company’s estimated outgrowth compared to its previous guidance of 100 to 300 basis points reflects anticipated tariff customer recoveries. Stronger foreign currencies are expected to result in an increase in sales of $250 million compared to the Company’s previous guidance. The Company expects operating margin to be in the range of 8.1% to 8.6% in 2025. Excluding the impact of non-comparable items and the add back of intangible asset amortization expense, adjusted operating margin is expected to be in the range of 9.6% to 10.2%, which includes a 20 basis point dilutive impact from anticipated tariff customer recoveries. The change compared to the Company’s previous adjusted operating margin range of 10.0% to 10.2% is due to expected lower industry production and the dilutive impact of anticipated tariff customer recoveries on the Company’s margin profile. Net earnings are expected to be within the range of $3.44 to $3.85 per diluted share. Excluding the impact of non-comparable items, adjusted net earnings are expected to be in the range of $4.00 to $4.45 per diluted share, compared to the Company’s previous adjusted net earnings range of $4.05 to $4.40 per diluted share. Full-year operating cash flow is expected to be unchanged and in the range of $1,323 million to $1,375 million, and free cash flow is expected to be unchanged and in the range of $650 million to $750 million.”
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