1、7T2se3r0Ot6kwoPa7T2se3r0Ot6kwoPaDistributed on:11/07/2025 09:02:10 GMTDistributed on:11/07/2025 09:02:10 GMT11 July 2025Expect strong 2Q across the boardHeading into the 2Q earnings season,the average supplier in our coverage is up 16%YTD(vs.S&P 500+7%)and we continue to like the group,believing mos

2、t can generally meet or beat expectations due to resilient light vehicle production environment,fast cost recoveries from OEMs,and weaker USD.Specifically,2Q LVP was originally anticipated to decline by almost-1%YoY in mid-April vs.latest revision to growing almost+2%,helped by smaller declines in N

3、.America(-4.1%vs.-10.5%prior)and higher growth in China(+8.5%vs.+4.5%prior).For now,the direct tariff impact on suppliers has been less than anticipated,supported by high USCMA-compliance and the ability to recover unmitigated tariff costs.Looking at 2Q specifically,we expect outperformance from Adi

4、ent,Aptiv,BorgWarner,and Visteon while Dana and Goodyear may deliver more benign results.For Dana,we see some incremental weakness in the commercial vehicle market which could put a lid on results.Mobileye also reported strong preliminary 2Q results that beat consensus on both revenue and profit.Sep

5、arately as a result of solid 1H performance,we anticipate that most suppliers who withdrew guidance,will reinstate their full-year outlook including Aptiv,Lear,and Visteon.Cautiously optimistic about 2H volumeAs it pertains to the rest of the year,S&P Global anticipates a-2.8%YoY decline in global L

6、VP or about flat H/H.A big driver is N.America especially in 4Q(-5.3%YoY).Thus far,weve heard management commentary calling out some“softness”in 3Q orders,but not meaningful enough to categorize as deterioration.This resilience appears to be supported by automakers choosing not to raise prices mater