June Wolfe Autos & Mobility Virtual Conference Takeaways

研报英文原文证据摘录

June Wolfe Autos & Mobility Virtual Conference Takeaways

June 23, 2026

Raw Materials back in focus, potentially weighing on Q2 profitability. Q2 appears to be tracking in-line to slightly

below market expectations for most Suppliers (ALV risk to margins; VGNT risk to FCF; MGA potentially both), with

LEA the notable exception (Q2 tracking in line to slightly better). Broadly it appears that commodity inflation has been

running above expectations this quarter. Copper prices have continued move higher, impacting LEA, APTV, and VGNT

(LEA noted this is a q/q headwind to E-Systems; VGNT expects Copper to be less of a y/y EBITDA headwind vs Q1 of

-$28 MM, though we suspect worse than our est of -$6 MM). Aluminum remains challenging. High Oil prices through

late-Q1 and most of this quarter could weigh on Q2 results, especially for those with sizable Resin exposure (namely

MGA and ALV). And other inputs appear to be surging, including Helium (both pricing & sourcing; est ~1.5% of ALV’s

raw mats buy). That said, resin headwind could ease into 2H26, with Oil now >30% off its peak. And FY26 guides remain

in place, with Suppliers still expecting to offset incremental commodity pressure with price recoveries and cost actions.

Everyone angling for a non-Autos story. Investors are rewarding names like BWA, GTX, and ST, viewing them as

having credible (and expanding) opportunities in fast-growing end-markets outside of LV Auto. The rest of the group

has clearly taken note. Almost every Supplier now appears to have a non-Auto narrative. Gentex is already supplying

into end-markets such as Medical and Aero (combined ~5% of total). DAN is exploring opportunities in Aero (on-top of

their CV business, now bolstered with the recent Eaton Mobility acquisition).