Superior Industries International Inc

there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Dan Lee. Please go ahead.

Good morning and welcome to our fourth quarter and full year 2024 earnings conference call. During our call this morning, we will be referring to our earnings presentation, which, along with our earnings release, is available on the investor relations section of Superior's website. I'm joined on the call today by Manasi Gulavan, our president and chief executive officer. Before I turn the call over to Manasi, I remind everyone that any forward-looking statements contained in this presentation or commented on today's are subject to the State Harbor provisions of the Private Securities Litigation Reform Act of 1995. Please refer to slide two of this presentation for the full State Harbor statement and to the company's SEC filing, including the company's current annual report on Form 10-K, for more complete discussions of forward-looking statements and risk factors. We will also be discussing various non-GAAP measures today, Non-GAAP measures exclude the impact of certain items and therefore are not calculated in accordance with U.S. GAAP. Reconciliations of these measures to the most directly comparable U.S. GAAP measure can be found in the appendix of this presentation. I now turn the call over to Maji to provide a full business and portfolio update. Maji?

Thanks, Ben. Good morning and welcome to our fourth quarter and full year 2024 earnings call. Let's begin with an overview of the year on slide four. I am incredibly proud of our team's achievement in 2024. We have positioned our company for success like no other time in recent history. Our business is fully restructured, well invested, and successfully refinanced. We are now the global technology and cost leader in the wheel industry. In a geopolitical environment that favors local and regional manufacturing, Superior stands out among its peers. In a challenging industry environment, we executed major restructuring initiatives, successfully negotiated price adjustments with customers, and transformed our footprint. Despite industry production decline, we delivered strong EBITDA margins in line with the prior year, a testament to our team's solid execution. Our value-added sales were in line with the overall industry as собственate OEM production continued to pressure growth. We completed our European-made fashion transformation in 2024, and with that, all production has been consolidated in our low-cost, highly automated operations in Poland. Our low-cost, local-for-local manufacturing footprint in Mexico and in Poland is now a competitive advantage and positioned superior to capture demand from OEM customers seeking shorter de-risk supply chains. Late last year, we attracted $520 million in new capital and refinanced all of our debt extending all maturities to 2028. This significant milestone strengthens our financial foundation and provides flexibility for future growth. With the refinancing behind us, we are now more than ever focused on generating cash, accelerating debt reduction, and optimizing our equity base to enhance long-term shareholder value. Turning to our results for the full year, Adjusted value-added sales declined 4% year-over-year, which was in line with the overall industry decline. Adjusted EBITDA margins was 21%, in line with the prior year, despite softer industry production. This margin stability highlights partial benefits from the solid execution of our restructuring and transformation actions, as well as the successful negotiations for customer price recoverance. Looking ahead to 2025, we anticipate a 4% decline in industry production based on recent IHS estimates. Despite this, we expect to outperform the market and achieve substantial margin expansion in the back half of 2025. I would add that our 2025 industry production volume and EBITDA assumptions do not reflect the impact of recent tariffs. I will shortly discuss the multifaceted impacts of these tariffs on our company. We are monitoring the situation closely, and as we have more visibility, we will update our outlook. Dan will provide more details on our 20.5 guidance in his comments. With regard to our preferred shares, We are engaged in advanced constructive discussions to address the preferred equity in a manner that benefits all of our stakeholders. Turning to slide five, the midpoint of our 2025 adjusted EBITDA is $170 million. This represents a 16% earnings growth versus 2024 on a relatively flat value added sale. This improvement is driven by the additional benefits of the remaining wheels being transferred from Germany to Poland, improved capacity utilization in Europe, and structural cost initiatives that we announced in the fourth quarter last year. The results of these initiatives represent a step change improvement in our cost structure and profitability. Slide six highlights our progress on the initiative we announced since 2023, closing the margin gap between our two regions. North America and Europe. I am pleased to share with you that we have now achieved this goal despite lower industry production. With our European manufacturing operations now consolidated in Poland, margins in Europe are now relatively in line with those in North America. I would also add that on a consolidated basis, adjusted EBITDA margin was in line with last year, even with lower production volumes. Turning to slide seven, which highlights the multi-faceted impact of tariffs on our business, favorable and unfavorable. First, the recent U.S. tariffs on aluminum will have a neutral impact on Superior due to the pass-through arrangements we have with customers on all aluminum we purchase. Next, incremental tariffs on Chinese imports to the U.S., as well as the potential tariffs on Chinese imports into Mexico, Both have a favorable impact on Superior as this action accelerates demand for USMTA localized production, another advantage of our local-for-local footprint. Further, as for the two tariffs related to Europe, tariffs on European imports into the US have a similar favorable impact on Superior as they accelerate European OEM efforts to localize wheel imports, utilizing our local wheel production in North America. Further, the EU Commission's announcement this week of increasing tariffs to almost 50% on Chinese wheels imported from Morocco into the EU have a similar favorable impact on Superior, making production at our Poland facilities more attractive for OEMs. This localized production in Europe and in North America positions us favorably compared to other suppliers. I would also note that our readily available production capacity in both regions position us to benefit from short-term localization efforts. Moving down the slide, the Trump administration's announcement this week of duties on imports from Mexico have a far-reaching impact on the entire automotive industry in North America, given the integration between the two countries. The industry, suppliers, and OEMs will not be able to bear these costs and ultimately will pass these on to the consumer. The impact of this on industry vehicle production remains unclear. I would note that the Mexico tariffs could potentially have an impact on less than 20% of our North America production. Here, our expectation is that these costs will be passed on to our customers. In summary, recent tariff actions in both regions have a multifaceted impact on superior, potentially favorable and unfavorable. We are closely monitoring this fluid situation and will update our financial outlook accordingly as we gain more clarity. Moving on to slide eight, which highlights our company's performance since 2019. The key takeaway here. The superior team has delivered exceptional, consistent execution despite the many curveballs we faced, including declining industry volumes, COVID, microchips, and exponential inflationary pressures. Our focus on our differentiated technologies and delivering lighter and larger wheels with premium finishes has consistently enabled us to outgrow the market. At the same time, our team responded to industry disruptions in the past few years with absolute focus on cost discipline, executing strategic restructuring initiatives, and successfully addressing product pricing. The consistent adjusted EBITDA margins, despite the challenging production environment, is a testament to this effort. Slide 9 highlights our key launches in 2024, which continue to drive growth. Larger and lighter wheeled premium finishes continue to make up a larger proportion of our launches. Our continuous focus on delivering differentiated technologies is a key driver in the 33% content per wheel growth since 2019. Turning to slide 10. Looking ahead, we remain focused on our value creation roadmap which we laid out several years ago. We now have a differentiated foundation, the powerful combination of our 100% low cost manufacturing footprint and our comprehensive portfolio of premier technologies. Both are unmatched in industry, giving superior and significant competitive edge. With our footprint transformations complete, we are focused on operational excellence and leveraging our differentiated portfolio to drive long-term profitable growth. Moving on to slide 11, which highlights our outlook for the year. As the industry continues to face production headwinds and rising input costs, we expect global auto production to decline approximately 4% in 2025 compared to 2024. Our financial outlook, by the way, does not include assumptions on the net cost of tariffs. For the full year, we are guiding adjusted EBITDA in the range of $160 million to $180 million, reflecting the benefits of our European transformation and other cost-saving actions. This represents a 16% growth in earnings. We also expect to generate approximately $110 million to $120 million of unlevered pre-cash flow. Dan will provide more details on our outlook in a moment. I will now turn the call over to Dan to review our financial results in more detail. Dan?