Strategic Execution and Market Dynamics – Achieved 4 percentage points of market outperformance despite a 5% decline in customer vehicle production, driven by strong launch execution in Europe and India. – Performance in Europe was bolstered by high-content display programs with…
di, Renault, and Mercedes, offsetting regional production headwinds. – Strategic shift in China is focusing on premium domestic OEMs and smart car EVs, which remain resilient compared to the declining value and ICE segments. – Secured $2 billion in new business awards during Q2, with 60% of first-half wins coming from the strategic software-defined vehicle portfolio. – Expanded the SmartCore high-performance compute (HPC) footprint with a new premium brand under the Geely Group, reinforcing leadership in AI-enabled cockpit computing. – Successfully launched 24 new products across 11 automakers, highlighting the industry’s migration toward larger, higher-content digital cockpits. – Diversified growth by securing $340 million in new business within adjacent mobility markets, including commercial vehicles and electric two-wheelers. Outlook and Strategic Assumptions – Expects mid-to-high single-digit market outperformance in the second half of 2026, supported by a robust launch schedule despite continued production pressure. – Guidance assumes sales growth in all regions except the Americas, where lower customer production and legacy program roll-offs act as headwinds. – Anticipates 2027 will be a challenging year for semiconductor supply, specifically memory, necessitating product redesigns and alternate supplier qualifications. – Projecting a return to low single-digit sales growth in China as the first SmartCore HPC programs launch with Geely and Chery later this year. – Management expects margins to improve sequentially through the second half, driven by the closure of customer cost recovery agreements and operational efficiencies
Operational Context and Risk Factors – Announced a $200…