Q: How should we think about the margin outlook as we move into 2025? A: Seetarama Kotagiri, CEO, mentioned that they are on track for a 75 basis point margin improvement between 2024 and 2025. The operational improvements are expected to contribute 35 to 40 basis points going into 2025, providing a solid foundation for margin expansion.

Q: What is the rationale behind starting the share buyback program earlier than previously indicated? A: Patrick McCann, CFO, stated that the decision to start the buyback program earlier reflects confidence in their execution over the past nine months. The leverage ratio is tracking slightly ahead of expectations, allowing them to pull the buyback timeline forward by one or two quarters.

Q: Are there any new developments in terms of program pushouts or volatility expected for 2025? A: Seetarama Kotagiri, CEO, acknowledged some program delays and deferments but emphasized that these are not driving the margin expansion into next year. The focus remains on operational improvements and cost control, with any changes in volumes or EV trajectory potentially serving as tailwinds.

Q: Can you provide more context on the free cash flow outlook and factors within your control to expand it? A: Seetarama Kotagiri, CEO, highlighted that the biggest variable is volumes, with assumptions for 2025 being flattish compared to 2024. They are focused on capital discipline, operational excellence, and reducing engineering spend to maintain free cash flow expectations despite potential industry challenges.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.