Dauch Corp (DCH) September 2026 Conference Transcript

Hi, everyone. It's 1130, so we'll make a start. I'm Vanessa Jeffries from Jeffries. It is just a coincidence. I work in the Global Autos team and really happy to have Chris May and David Lim here with me from Dalk. Maybe just to start, you know, you've had a really big year, obviously, with Dowlays, a couple of guidance upgrades. If you could just give some comments on how you think the year has progressed.

Yeah, no, maybe I'll give a few opening comments. I think we'll address that perfectly. First of all, good morning to everybody. Thank you, Vanessa, for hosting us here today, and thank you to Jeff Rees for having this It's been a great, productive day so far, and I look forward to some continued dialogue Before we begin our comments, though, I do refer everybody to our forward-looking statements and disclosures. You can find those at www.dowk.com. I'm getting used to saying that. But look, in terms of some maybe opening remarks, the highlight of the year for us, and you mentioned that a little bit, Vanessa, is our dollar acquisition. And then, of course, the integration that we've been on this journey really for the last six or so months. We're quite pleased with our progress. Our objective was by the end of the first year to achieve a run rate of $100 million of synergies. At our last earnings call, we provided an update, and we're pacing towards $70 million at this point in time. So we're making great progress. We've got the rest of the year to go to continue to deliver and meet our objectives. We've been highly focused in the areas of SG&A and product engineering, and those results are translating into the run rate numbers that I shared with you. Our ultimate goal, though, is to get to $300 million of run rate objective by the end of year three, again, with $180 million at the end of year two, and then the full rate of the $300 by the end of year three. And as we stated on our earnings call, again, good progress on the SG&A. good progress on the product engineering. We'll continue to drive in those areas for the balance of this year and into next year, starting to work on some of the purchasing elements, both the indirect and the direct side of our purchasing. The indirect, we're making some good progress there back half of the year and in the next year. The direct, as our CEO said on the call, given the macro environment of some of the pressures there, is going to take us into 27 and into 28 to realize some of those savings, but again, pacing towards our overall objectives so certainly excited about that and we'll continue to drive performance in that area as it relates to overall 2026 the first half of the year we were quite pleased with our performance the macro environment was solid our volumes were steady and consistent and that's really where you see our company shine in terms of the ability to deliver performance and you saw that in the first quarter and you also saw that inside of the second quarter as we transition now into the second half of the year we will start to go through some key changeovers and new platforms with our customers in particular with the full-size light-duty truck with General Motors we're starting to experience downtime here in September early part of October as planned so that'll impact us here in the second quarter earth I'm sorry third quarter as relates a little bit of revenue and the contribution margin associated with that but it's a beautiful vehicle hope to sell very well for that as we enter into 2027 I would also say inside of the quarter for third quarter we continue to see some I would say elevated launch costs associated with that platform as well some other launch activity would have been going on in particular driven by some challenged suppliers as some of that stressed macro environment is pushing some pressure on some weaker suppliers we're encountering a little bit of some challenges they're working through that through the course of the quarter again driven by some of those macro events of oil and pressures and fuel surcharges and things of the like But that's where we sit here in terms of the quarter. Overall volumes have been steady. We have seen a little bit of softness in some other heavy-duty platforms inside the quarter. But big picture-wise, you see the releases by S&P Global. The market is overall relatively flat and steady. So with that, maybe that's a nice introduction for our Dolly integration as well as where we stand for 26.

I mean, you've gone a little bit into the second half of 26. You know, we know GM changeover. you probably have a little bit more seasonality than investors are used to with more European exposure. You know, we'd like to work less in August and China's getting tougher. No one knows how it's going to go. Maybe if you could just talk about some of the offsets to that in the second half.

Yeah. In terms of some of the seasonality, you're exactly right. The inside of North America, seasonality generally is a little bit in the front end of July as you go through some model changeovers. And of course, really globally at US and Europe in the deep part of December is seasonal. And then as we've increased our European exposure this year, we have experienced a little bit more of that August dynamic as it relates to seasonality. So we've absolutely experienced that. So we've been planning for that. We generally plan our schedules and staffing around that as well as our cost structures around that. But in terms of offsets, our focus has really been on our synergy deliveries and our integration of the two companies outside of the seasonality of the business, which really don't impact, per se, those elements.

And maybe if we could just go into the synergies a bit. I mean, it's obviously always a focused topic for investors. There's a lot that's within your control, SG&A operations. You know, there's a very heavy corporate cost structure at Darlays. And then there's some, you know, maybe takes a little bit more external work, like the purchasing. So maybe you can think about how you think about timing of those over the next three years and any surprises you've seen since the acquisition.

Well, if we take our $300 million of synergies and sort of break them down into three buckets, it's how we think about it. That's how we manage them inside the company. 30% of that is SG&A, 50% of that is really in the purchasing area, and the last 20% is in the operational side. So if you think about the, I would say, main elements in the SG&A section, it would be things such as duplicate public company costs, duplicate departments from an SG&A perspective the ability to optimize your SG&A footprint as well as optimize our engineering spend so all well within our control these are areas where we've gotten at right out of the chute that's why we've seen the great progress that we have so far this year we still have more work to do in that area to drive performance so we're excited to continue to work through that piece the second element the largest bulk would be the purchasing piece of our savings or 50% of our goal. And I would think about that from really three perspectives. You have a direct purchasing spend that we have. So think of where we go out and buy parts that end up in our parts. We have an indirect spend. So think of service contracts, or maybe we're buying gloves for the factory workers to use inside of the production methods, things of that type of nature. And then the third piece is vertical integration, where we have an opportunity given our strong metal forming footprint both on powder metal as well as our forging to insource components that we buy on the outside and really bring in that margin capture associated with that so each one of these three take a different timeline and have different types of end parties you have to deal with so on the indirect side for example is something we've started to kind of work our way through you're negotiating with service providers etc you're combining services on the outside to optimize spend that's going quite well and we see that continuing tracking on the time frame that we thought I made some comments as it relates to the direct side and some of my opening remarks that's where you have to negotiate with a counterparty but also at times our customers involved as it relates to approval to resource or move product around we knew and planned for that but it's just a timing perspective as that stands and then the last piece is vertical integration and quite frankly it's one of the things we're most excited about because we leverage really the skills that we have in the company we'll insource powder that we buy raw powder we now can insource to ourself as well as raw forging so we can insource to ourself and we're well underway of that process again some of these just simply take time you have to validate and move suppliers or bring it in-house again all line with what we expected then the last bucket is the operational piece which is 20 percent of our savings and i would think about that really sort of on two elements you have pure operational efficiency where we are driving a common operating system across all our plants legacy dowley plants legacy american axle plants together as one douk operating system uh well underway we've been into all the facilities laying the planking picking the best of the best we're starting to see some progress on that front as well and again that'll take time over the next couple years as you integrate and train and bring everybody up to speed and all in the same operating system. And then the last piece of the operations would be some restructuring where you are combining some efficiencies to bring open capacity or commonize and maximize capacity that we have for certain products. Again, those planning stages are underway, and by its nature, our view is that was always the longest tail in the pipeline. But again, the planning has already begun for that. So hopefully that gives a nice overview. It was rather lengthy, but hopefully it gives you a nice overview where we stand on our Synergy Roadmap.

And then you went a little into the plant piece, and you've obviously had the chance to visit all the plants this year. Have there been any surprises, and what would you say are the key differences between Dalles and American Axel Plants?

Yeah, I would say there's been no significant negative surprises. I think the mindset is when we went into this acquisition was we have two companies that have a great legacy of engineering and manufacturing. We bring them together. We pick the best of the best. across these operating systems and put that together across our entire fleet of factories. And I would say we're marching towards that plan. We're excited about the opportunities to improve on all our facilities and drive some of those synergy savings. But I would say no negative, significant negative issues have arose since the acquisition started.

And one topic before the acquisition closed is maybe the potential, you know, cultural fit. Any, you know, issues you've seen there or has that been quite smooth?

You know, for the most part, it's been relatively smooth. Again, you start from the core foundations of the companies, engineering and manufacturing as a tier one supplier. So the starting page, if you will, is similar, similar customers, similar geographies. You know, in terms of cultural issues that you deal with a little bit, maybe on the fringe, work arrangements on the office staff, things like that. We've been kind of working through. I think every company is dealing with that in some form or fashion, whether they're going through integration or not. But that's probably the number one, I would say, cultural issue that we continue to work our way through. no concerns and it'll just work its way through our process.

And then at your recent update, you talked through a strong quoting activity. I know it's hard to give a historical view on that given you've just acquired Dalais, but maybe how does that figure compare to what you've seen in the past and what's the mix of that like compared to what you've seen?

Yeah, no, we're super excited about that. That figure is, we said we had over $2 billion of opportunities that we're actively quoting on and looking at. I just sort of dimensionalized what that is. It's almost double for what we talked about as legacy American Axel in the past couple of years. And of course, doubling the size of the company, increasing our product portfolio with powdered metal and side shafts. You could now start to see that flow through in terms of quotation opportunities for us with different customers, which is super exciting for us as well. The mix of this, I would say it basically touches all our products that we sell uh whether it's legacy dolly products or legacy uh american axle products but the combined uh corporation touches them all we're seeing um uh reigniting if you will of interest in new programs uh as it relates to ice and hybrid uh new programs as it relates to some in electrification uh so we thought that this would shift from electrification to hybridization in ICE platforms, especially in North America, and we're seeing that play out right in front of us with some of these opportunities. But geography-wise, mirrors almost the exact geography mix of the company's revenues, about 60% in North America, 25% in Europe, 15% rest of the world. So it's lining up quite nice. And we're super excited to get at this, by the way. This is one of our growth drivers.

And I guess it's been harder to be explicit on any kind of revenue synergy. So maybe if you could go through initial customer reactions to the merger, if you've seen the opportunities there.

Yeah, initial customer feedback has been positive. Look, they're always excited when they are able to work with strong suppliers such as Doubt Corporation. This continues to strengthen us as well as provide more product content, more global reach to some of the suppliers that require that. but also expanded our respective regional reaches, which will help with some of the macro trends we're seeing from a new tariff regime, if you will, in the current moment. So that's worked very well to our advantage, plus bringing a wider set of products to our customers, to new customers that we really didn't have exposure to previously. So think of some of the Japanese OEMs, some of the Chinese OEMs.

We're gaining more insight into, especially through our joint venture with SDS. so that's that's playing out really well again these take time to build those relationships start to get in the quotation process start to gain awards but we're really pleased with where we sit here today if I may add to that basically you know it is a global organization so as these OEMs look at global platforms we could support them around the globe 24 hours whether it be manufacturing or engineering and that's what they really needed one and you went into the powertrain mix of the order book a little bit and how that's changed i mean i think it's fair to say a few years ago there was buckets of suppliers where people thought you know the

products will be irrelevant and others were you know and now that sentiment's completely changed on that how do you manage your portfolio now where you have more geographic diversification and europe seeing really strong ev growth in the u.s it's obviously not yeah that ev mix is is becoming more and more regional oriented uh at least in the current uh mindset but you know if think about our playbook has been to be ultimately agnostic to propulsion systems in what we design and develop that was also part of our rationale and thought process with the acquisition of dolly as they brought in a significant product that we didn't make that would be side shafts that are 100% agnostic to the type of architecture of the vehicles and actually they go up in content and size as you transition to electrification so being agnostic to the product in terms of whether it's ice hybrid or ev starts with really kind of the first recipe from that perspective but we've also been tried we have tried to be and we continue to do this and we saw this also on legacy dolly was to be measured in our investments target areas that we think leverage our expertise for example we are now moving in china in particular growing our electrified e-beam business so this is you know our feature product on the legacy american axle side was the beam axle north america truck you now have electrified beam axle in china that's starting to launch with a couple of customers over there again leveraging that expertise measured investments putting a balance of spend from a r d perspective to support technology that's required by the customers but also leveraging our strength versus just going all in we didn't do that to start several years ago and i think we benefited from that we've won great awards such as the scout platform which is leveraging that advanced technology of electrification again with the beam architecture of our axles but also a lot of the ev wins that we've seen dolly win through side shafts but also on the component side both legacy companies strong component footprint to supply into drive units and other architecture elements of an ev vehicle again product agnostic measured and disciplined. That's sort of how we've been approaching it, and I think it's playing out just well.

And maybe if we just go a little bit regionally, maybe if we start with China, because it's obviously a big topic, and I know you don't have a crystal ball on how subsidies and customer demand is going to evolve in the next year, but you've got two strong businesses there now. How have you seen the year play out and what are your expectations for the rest of it?

Yeah, so maybe just to level set, how we play in the China market today is Dow Corporation. We have a wholly owned subsidiary that we supply all-wheel drive systems as well as the electrified beam axle that I just mentioned we've been transitioning that business from you know many many years ago when it was started from a I would say basically exclusively Western OEMs to now we have over half of our business now is with Chinese OEMs and Cherry would be a future customer of that facility and growing the electrified beam business with multiple different customers as we transitioned and brought in Daolei, one of the jewels, our view of that company and that asset was their joint venture with Hasco called SDS in China. It's about a billion and a half of revenues. It serves the China market exclusively, selling all of the products essentially that legacy Daolei provided. Has also been on a journey to transition to over 50% of their customer bases with Chinese OEMs and growing. They also play in the electrified axle space, so growing on all-wheel drive, or two-wheel drive vehicles in that segment for EVs is critical. That's where we're starting to see our alcohol push into that segment through that joint venture. So I think we're positioned really well in terms of how we play in the market from a nice risk-reward balance perspective. We're growing with the Chinese OEMs and obviously supporting their products domestically, but any they would export, we would be on that content as well to the extent they're exporting the vehicles we supply. and i guess on that topic you know chinese oem market share gains in europe is obviously a very big topic how does that impact your business i mean i know you're seeing any kind of fundamental changes in the market whether it's you know pricing among your customers competition yeah look it's it's clearly a big dynamic going on in the european market and elsewhere by the way around the world the chinese oems are developing outstanding vehicles competitive price points and starting to either export them out of China or you're starting to see them build regionally now or start to install the capability to build regionally some of the products that they will supply. So again, plays very well to what I would say is our number one element is our footprint to supply to them in the areas and regions that they look to build factories and also supply them out of China through either a wholly owned and our joint venture with STS. But it all starts with building that relationship with the end customer, which we believe would start in China. And that has been a key focus of us to work our way into those supply chains. We have competitive products, competitive pricing, technology, all things that they need and require. And we'll continue to work and invest to grow that book of business because it's clearly gaining share around the globe.

And obviously, we've seen a lot of massive restructuring programs announced by European OEMs recently, plans to reduce variants, et cetera. How do you think about that European business over the next couple of years and how to manage them?

Well, we'll certainly understanding each platform and how it's impacted. Some they're consolidating, so we may not be impacted at all by some of these announcements. But obviously working closely with our customer, understanding their vision for end products. But how do we support them best? We support them best by being cost competitive for the end vehicles they want to provide as well as the technology they need for those vehicles. And if we bring the technology and we bring the cost competitiveness, we'll win that business or maintain it, whichever it would be.

And then just moving to the U.S., I guess, how do you think about your preparedness for any USMCA changes? How are you set in terms of tariffs?

Yeah, so I would say in terms of maybe going reverse, just tariffs holistically. You know, our approach as a company has been to build and buy in the region that we produce and ultimately ship to our end customer. And Legacy Dollar had a very similar type of an approach. So as best we could, as best they could, and combined, we're positioning ourselves to try to minimize any tariff impact that we would have just naturally inside of our business. USMCA, though, is a very interesting arrangement. It's, as you know, Mexico, United States, and Canada, and has really been built with its predecessor, NAFTA, since I think it went in 1994. So 30-plus years, the North American auto industry has built itself around this trade agreement. It's very important to the industry, this trade agreement, to support production in Mexico, United States, and Canada. We have built our factories around that. Our customers have built their factories around that. So paying very close attention to the end, rules and regulations are critical to the success of not only us but also the industry. But how do we think about it? We want to be flexible in terms of what we need. So we have manufacturing in Mexico. We have manufacturing inside the United States with the acquisition of DALI. We have increased our footprint inside the United States, which we think will be helpful as part of all these transitions and rules change. But at the end of the day, our customer sources, and they also source the end location for which we build our product. So working closely with our customers to deal with whatever the rules change may take place over the future for this is what we'll do. We'll continue to monitor, but flexibility and good communication is key.

I guess if we look forward to 2027, one of the key topics to consider is that inflation is probably not moving lower. How does your customer compensation structure work, if you could just remind us of that?

Yeah, so as it relates to 2027, you're correct, inflation does not appear to be going anywhere anytime soon at the current moment, but we'll see how it plays out for next year. But by and large, our contracts with our customers generally are fixed pricing with the exception of commodity-type inputs that change on the open market. So what do I mean by that? For example, steel that we buy, input into that steel is a variety of different commodities. As those commodities move each day and are procured by the supply base, they pass their cost to us or reduce their cost, and we pass that on to our customer contractually, either through monthly or quarterly type arrangements. The base price of these items that we buy, base price of steel, base price of aluminum, those are ours to manage. That's where you could see some inflation pressure we would need to use productivity as our first step to offset some of that if it became excessive obviously we would have some dialogue with our customers you saw us do that back as well as many in the industry do that back I think it was 2022 time frame when you had some very rampant inflation but it's clearly a pressure point inside the industry we would need to work with productivity as well with our customers but it's it's a real item that we have to deal with I might just stop for a second see if anyone has any questions?

Okay. So maybe if we could move on to, you know, as you're integrating DALE, some of your key learnings from your past acquisitions.

Yeah, I think one of the key items that we learned is probably our largest acquisition prior to DALE was the acquisition of MPG back in the 2017 timeframe. And, you know, one of the key learnings from that was just prior to our uh acquisition of them they won several i would say large awards ones we were very interested in because they were products our view would run for 20 years these are the big high speed transmissions they're still running today so they're sort of playing out as we thought they would these are not products that get changed very often but they were sizable launches and maybe we underestimated the size of some of those launches as we stepped into that assuming the program management for those system was in place. And as we got into some of these launches, I think they became a little more challenged over the course of maybe the following year. And if you go back to 2018 timeframe, we had some challenges with some of these big launches. So the lesson learned from that was prior to close, early on after close is really dive deep into the readiness state of the launches of all the big programs, all the key products that are coming in the company that we would acquire. I would say Dalai in this case. And to understand it, make sure we're ready, get on them, fold them right into our core program management system right away and stay on top of these early so it doesn't become an issue forward. And that's exactly what we've done.

And I think one key positive we've seen with the Dalai's acquisition is you've done so well with the part of that business this year.

And that was a business in the past that was always kind of seen as a little bit of a problem child, even though it actually was higher margin, cash generative because you know there was this perception that it was too ice exposed etc maybe if you could just talk about you know what you've done there with that business to achieve the success that you have yeah we've integrated as part of our segment with our steel forging side so combine it this is our metal forming group but continue to have operational improvements here of course the dynamic on the powder piece of the powder metal so the raw powder has played a little bit to our flavor one of the key competitors in that space has gone on business so we picked up some nice new business there also allowed us to work on our vertical integration even more as part of our synergy plan but focused on operational execution a stable environment they got great IT systems things of this nature and just letting them run and letting them perform inside of a with the appropriate support from the rest of the company I think is translation to to good performance of that business unit. I think the other piece there is that you know we'd always heard about these new programs and you know magnets and other opportunities they're exploring so maybe if you could just give your thoughts on that yeah it's it's a very interesting business there's a lot of I would say potential growth vectors inside of the PM business from a product perspective additive materials magnets some very much in the experimental phase some starting to see interest on you know lightweighting certain components on additive type applications so think 3d printing that type of stuff all plays into sort of the PM products that we supply these are I would say investments legacy Dahlia has made to start to venture into some of these areas some of these we think have real opportunity some you know would probably would conclude maybe they don't but it is nice to see some growth vectors inside of our PM business that maybe don't even relate to auto so which is really where you see some of these opportunities and just more generally on that i mean we have seen obviously a lot of emergence of non-auto stories among tier one suppliers given the difficulty of the industry how do you think about that i mean i know you've already got enough industrial exposure but are there any new areas you'd like to move into or are you focused on integration right now well clearly first and foremost we're focused on integration right it was to the through this acquisition was to become the premier driveline tier one auto supplier in the world and that's exactly what we're focused on from an integration perspective but if you think of the core competencies of the company engineering machining assembly global program management forging powder metal etc these are these are characteristics and elements that many industries need as part of their supply chains or products that can translate very well to many different industries so we always look for different opportunities as it relates to especially on the organic growth side as you know about 20 percent of the powder met business historically before the combined companies was in the industrial type of products to where, again, that skill set was needed in that space. Those products are needed in that space. And to the extent we can see that type of growth, we would explore that. But those characteristics of their company will continue on that will play well to many different industries.

And it'd be interesting to hear in that context. I mean, your R&D to sales is a lot lower than many of your peers. You know, that's their focus area at the moment in getting costs down. How do you think about that R&D over coming years?

Yeah, I would offer two perspectives. There's a piece of our business, so think of the metal forming segment, which really doesn't consume a lot of R&D, right? The R&D is very much overweighted more towards the driveline segment of our business. So holistically, when you look at our company, it's disproportionate towards that. So when you add $3 billion of revenue on the metal forming side, round number, it sort of dilutes that ratio if you will that would be my first one and go back to some of the comments when we were talking about the Evie opportunities and our thought was to be measured measured on what we invest in focus on the key areas of our strength don't go all in and spend gobs and gobs of resources over the last several years to to grow into what was a pretty expansive Evie environment so I think that has served us well so we didn't have to peel all that stuff back so i think it puts us in a good footing here today there's still room to optimize our engineering spend you've seen us do it over the last couple years even with the change in ev because we were spending some on that uh and we will continue to look to

optimize this spend going forward and it's really part of our synergy plan and the conversation i always have you know always is about free cash flow inflection over the next few years especially after the integration the synergy costs kind of wind up i know you don't probably don't want to give any guidance on you know 2027 and four but maybe if you could help us think about those moving pieces a little bit.

Yeah, we're not providing 27 guidance here today, but some of the moving pieces are very consistent with what we've been talking about here over the past six months. So one of the key, aside from the company's base performance, but our synergy realization and the ability to convert that to cash. This is EBITDA synergy, so it should convert to cash. That's sort of the first piece of an uplift, if you will, for cash flow performance. Continuing to keep our capex at a spend of five percent of sales or less uh is critical to that so having a again a moderate and measured capex spend would that spike up where would it spike up that would spike up in scenarios where you have significant new programs that are launching in a condensed period of time and you know quite frankly it's probably a trade we would take if we had to spend it for that but from an organic growth perspective so it's the synergy piece it's the keeping the capex at five percent less and then also i would say on the uh you know we use the term adjusted free cash flow but the other elements that we spent cash on here this year like our acquisition cost to close the transaction will go away reducing our restructuring core restructuring costs of both legacy companies reducing that spend is critical to that and we'll have some cash spend to implement our synergies our guide there has been we'll invest a dollar to realize a dollar of synergies and that will continue between now and really the conclusion of that through the end of 2028. So that's how I think of some of the kind of big moving pieces for cash flow.

And so it'd be great if you could let us know, you know, your thoughts on deleveraging versus eventually shareholder returns versus, you know, maybe any other M&A that you want to do.

Yeah, no, we think this is another great part of our story. As you know, we carry a little bit of leverage. We closed the second quarter at 2.6 times. It's artificially a little bit low because you have some trailing LTM benefits from an EBITDA perspective on some good commercial settlements in the back half of 25 by Dalai. But that said, we think we're pacing really well from a leverage perspective. Our first key milestone that we want to get to is two and a half times. And what does that do? Between here and two and a half times, our, I would say, almost exclusive use of our cash flow generation will be to pay down our outstanding debt. We paid down $125 million of our 2028 notes in the second quarter. We did the exact same amount and took out the remainder of our 2028 notes here in the third quarter. So we're deploying that cash to pay down our debt. Once we cost that two and a half times, we'll bring a little more balance to that capital allocation. We would expect to continue to pay down debt, but open to some more open to shareholder friendly type use of that capital. And then, of course, we would love to be two times or less kind of post in the future. We want to continue to strengthen the balance sheet, but it'll be more of a balanced capital allocation versus exclusively debt paid.

And, you know, I guess as you've done this big merger, how do you think about industry consolidation going forward?

Well, the industry has been consolidating over the last 10 years. And I know if I think our CEO gets asked this question very frequently on the earnings call, you know, his view, our view is the industry is going to continue to consolidate over time, especially as propulsion systems change competition changes you know the environment is squeezing out small suppliers that get troubled you know we talked a little bit about that in my open remarks you know the oems are going to want bigger stronger tier one suppliers and they'll consolidate over time and potentially at the oem level as well and conversely to that it'd be interesting to hear your thoughts on you know any potential divestments you want in the portfolio i mean you've owned for a while now is anything is there a lot of portfolio overlap or anything that doesn't really work yeah i would say first there's not really a lot of portfolio overlap at all a little bit on maybe some of our components and all-wheel drive systems but at the macro level not a lot of overlap first and foremost both companies over the last year or two have been focused on trimming a little bit of their portfolio we exited about 100 million dollars worth of value last year dolly did something very similar i would call those sort of as small good opportunities to monetize some assets inside the business that we did not view as part of our product portfolio longer term we will continue to do those type of evaluations and where there's good small action items to take we would certainly do so and i think we're just at time if you want to maybe give us any key messages you want to get across before your capital markets day yeah look um i think my opening remarks said most of where our attention is today it's on the integration of Dolly we are really excited and pleased with where we're at at this point in time It's a journey, right? We have three years to get our synergies on and we're focused on delivering that 300 million We talked a little bit about our 26 performance, but we are we're excited for this capital markets day to sort of share with our broader community You know who we are and get a little deeper insight to how we think and how we're going forward. So Thank you today for all those questions and Appreciate everybody's time.

We look forward to hearing from you in November.

Thank you very much