Good morning, ladies and gentlemen, and welcome to CVG's First Quarter 2023 Earnings Conference Call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions with instructions to follow at that time. As a reminder, this conference is being recorded. I would now like to turn the conference over to Mr. Andy Cheung, Executive Vice President and Chief Financial Officer. Please go ahead, sir. Thank you, operator. Welcome everyone to our conference call. Joining me on the call today is Harold Bevis, President and CEO of CVG. This morning, we will provide a brief company update as well as commentary regarding our first quarter 2023 results. After which, we will open the call for questions. As a reminder, this conference call is being webcast. A supplemental earnings presentation is available on our website. Both may contain forward-looking statements, including, but not limited to expectations for future periods regarding market trends, cost-saving initiatives, and new product initiatives, among others. Actual results may differ from anticipated results because of certain risks and uncertainties. These risks and uncertainties may include, but are not limited to economic conditions in the markets in which CVG operates, fluctuations in the production volumes of vehicles for which CVG is a supplier, financial covenant compliance and liquidity. Risks associated with conducting business in foreign countries and currencies, and other risks are detailed in our SEC filings. I will now turn the call over to Harold to provide a company update. Thank you, Andy, good morning, everyone. I want to apologize in advance since I have a small cold, and I might cough a few times. I also want you to know I sound worse than I am, but we're very happy to be speaking this morning. As is our usual format, we'll be referring to an earnings presentation, which is found on our website. While you locate that, I wanted to say a few opening comments. Our business performance in the first quarter was strong and consistent with the qualitative comments we made in the last earnings call. We delivered record quarterly sales up over 7% year-over-year through a combination of increased volumes, the contribution of new business ramp-ups, and price increases flowing through. Profitability was meaningfully improved as well due to better price-cost spread realized in the quarter. In addition to strong financial performance this quarter, we continued to deliver significant business growth for the future, adding approximately $85 million in additional new wins at full annual value. A record amount of new business awards for a single quarter. We are revising our 2023 $100 million new wins guidance to $150 million of new wins. 90% of the first quarter wins were in our Electrical Systems business. 90% of the wins are on electric vehicles, including vans, trucks, and other non-Class 8 vehicles. We continue to win globally with new customers and new products, diversifying our customer base and further upgrading our revenue mix toward Electrical Systems. During the quarter, we made progress on working capital through a focus on receivables and inventory. We have almost completely worked down our built-up COVID insurance layers, and we are back to more historical working capital levels as a percentage of sales. COVID is behind us as far as material supply chains are concerned, and our net debt leverage is back to 2x and headed into the ones this year. On the customer front, we're all about customer satisfaction, and we had a good quarter on that front. Across all of our products globally, and especially in the new area of Electrical Systems, we're working on many electric vehicle platforms globally. We broke into the China market in Q1 with an electric vehicle customer who will be our anchor partner for a new high voltage electrical system. Our customers are satisfied, and we are working with many of them globally to advance their electric vehicle platforms, and we're proud to be doing so. Our growth, profitability, and cash flow strategies are working, and we are looking to accelerate our efforts and cash flow strategies this year. We're transforming our revenue mix organically by expanding our market share with new customers and getting onto new vehicle platforms, both internal combustion engine powertrains and electric vehicle powertrains. We're transforming our cost profile organically as well by automating processes, moving to low cost countries, and lowering our cost of quality. We believe that we are delivering best-in-class quality and service to our customers. With the progress we've made in our strategy, we also believe that we are on track to deliver against our long-term sales goal commitment of $1.5 billion in 2027. Our current revenue run rate, combined with the ramp-up of our cumulative $500 million in new annualized wins since the start of this program three years ago, gives us improved line of sight to that target already. We intend to win another $500 million in new business between now and the end of 2027. We also are making meaningful progress towards our long-term EBITDA goal of 9% in 2027. We have caught up on price cost, and we continue to ramp up our $30 million per year of cost out program to protect our margins and offset new wage inflation that we are still seeing. We expect additional accretive margin flow from our new business wins as well. It will drive us towards our 2027 target of 9%. Our 2023 outlook continues to be positive. Our quarterly sales and EBITDA margins through the year should look very similar to Q1, with the possibility of a minor slowdown in top line in the fourth quarter, which is tied to lower industry truck build forecast. Our new business win rate is on track for $150 million a year. The year is off to a strong start, maybe even an inflection point for us. Our best performance is ahead of us. CVG's future is very bright. We're already reporting out at a $1 billion revenue run rate while still ramping up many of our new wins. Our profit rates are already improved. We plan to maintain them and grow them with an aggressive cost out program, price maintenance program, and a continued mix shift. Q2 is now underway and on track, and timing and amount of new wins in the first quarter centered in our Electrical Systems gives us further confidence regarding the outlook for 2023. For what it's worth, we're also at record employment and added over 600 people in the first quarter alone. We're off and running as a company, and one of our core values is to have fun while we work, and we're absolutely having a blast. Now I'd like to turn to the investor deck, starting with page one, please. Our team delivered strong results in the first quarter, highlighted by record levels of revenue and profitability levels that were in line with our long-term targets. As is outlined on the slide, we delivered net sales of $263 million, which is up 7.5% year-over-year, and Adjusted EBITDA of almost $20 million, which is up 47% year-over-year. This results in an Adjusted EBITDA margin of 7.5%, putting us on track to hit our long-term target of 9% as we continue to win new business, optimize our costs and improve profitability. As I mentioned earlier, we had a very strong quarter for new business wins. Furthermore, we continue to see the realization of our pricing efforts, and we are delivering on our $30+ million cost out plan at the same time. Turning to page four. Our team continued to execute our strategy during the quarter. As I already mentioned, we're making significant progress towards transforming our revenue mix through the success of our Electrical Systems' new business wins, and we're committed to driving cost out as well to improve profitability as we go. We have good visibility to the remaining of 2023. We fully expect to accelerate our efforts, positioning us further along our growth trajectory. Our revenue run rate is already reporting at $1 billion, and we're underway with ramping up another $350 million in new wins of the past few years. The impacts of our strategy execution were evident in our first quarter, and our EBITDA margin shows it. We're on track to hit our 9% margin target for 2027. We continue to win new business in Electrical Systems, and it's a key focus for us. We set a record for wins in the quarter, as I mentioned, we're increasing our guidance to $150 million for this year. Combined, we've already won over half a billion dollars in cumulative new revenue across 300 new vehicle platforms and a few other industrial platforms. Finally, we continue to optimize our ongoing business, and we will continue to address non-profitable business areas. We are delivering on our cost out plans, and we expect to reduce our debt leverage further in the coming quarters. Turning to page five. Similar to the comments from last quarter, our demand and market outlook is promising for the remainder of the year. Supported by healthy forecasts across our key end markets on this slide, we are increasingly confident in our positive 2023 outlook. Also, our large public customers are reporting strong year-to-date results, healthy order books, and are expecting continued momentum and growth across end markets this year. These trends and results give us confidence that we're well positioned to participate in the growing demand from our customers and the industry, and that we will build on the record level of revenues and new business wins we are achieving. Of course, we're doubling down on normal market growth via our new wins program and business growth on top of this market growth. These are additives. Turning to page six. Our business wins continue to cumulatively increase and so does the contribution by year. This chart shows an increase in expected contribution from new business in hand versus our last update. During the quarter, 90% of our new business wins were within Electrical Systems business and more specifically tied to electric vehicle production. Notable wins during the quarter included a contract to manufacture electrical system for an electric delivery van in North America and a contract to manufacture electric systems for an electric vehicle in China. These are important for us, especially the China win will act as an anchor customer for us as we expand our electric systems manufacturing operations in China. We have already ordered the equipment to do so. Turning to page seven. As we have highlighted in previous quarters, CVG stands to benefit and is participating in a secular transition of ICE powertrains to electric vehicles. Our secret sauce in this space continues to be proprietary manufacturing software to make and test our products quickly and efficiently. Our speed, nimbleness, and process engineering sets us apart from our competitors and is a key contributor during new business prospecting. This methodology and successful business prospecting has allowed us to move quickly and accurately and secure accretive new business in Electrical Systems. We're continuing to target low to medium volumes, which we believe allows us to achieve a better margin profile. In terms of our targeted customer base, CVG targets customers with large total addressable markets within the commercial vehicle space and companies that service both electric vehicle and ICE propulsion systems across a variety of geographic markets. We are looking to replicate our North American business model globally, and as previously mentioned, we are adding a new plant for European production in Morocco, and we will cover these expansion projects in a moment. Please turn the page to slide eight. As we've discussed previously, CVG has a large-scale global capacity expansion program underway, bringing on a significant amount of state-of-the-art capacity in Electrical Systems in multiple markets at the same time. This is made possible due to our record-breaking pace of new business wins and highlighted here on page eight are the three expansion projects that are underway right now and expected to be ramped up and making electric system products before year-end 2023. These new facilities are in low-cost country locations that are close to end markets and our customers and also provide a springboard to enable a higher continued rate of additive new wins. All these projects are on schedule. We are being aggressive but measured in our approach to adding capacity. Turning to page nine, as you can see, our strategic focus on reducing cyclicality, expanding our customer roster, and increasing our exposure to secular growth trends is paying off. We've reduced our exposure to Class 8 trucks, we've grown our revenue share of Electrical Systems, and we've reduced the weight of large customers in our mix. Our strategic focus here, as well as our continued strong pace of new wins, will shift the mix even further in our favor by 2027. As a reminder, the mix shift brings a more attractive growth, margin, and ROIC profile for CVG. Turning to page 10, CVG is fully committed to driving shareholder value in both the short term and long term. We are delivering improved profitability in our ongoing business. We are improving or exiting unprofitable or risky business. We'll continue driving out cost and allocating our capital and resources to support strategic growth opportunities. The work we've done to reposition our portfolio is evident in today's results, and we look forward to continued execution of our strategic priorities. We're deepening our exposure to the secular trend in electrification and automation, increasingly winning new business, which improves our growth outlook, diversifies our customer base, and reduces the cyclicality of our business. We expect to generate meaningful cash flow, which will further fund our growth, drive debt paydown, and allow for strategic acquisitions and increase our exposure to this powerful trend. Turning to page 11, we are highlighting where we are relative to our long-term commitments we've made to you. On our last call, we told you that we were set up to win and make money in 2023 and deliver a year of record revenue, higher EBITDA, and continued free cash flow and debt paydown. After the first quarter, we're even more confident in these statements, and we're more confident in our ability to achieve our long-term targets. These 2027 targets are well within our reach, and we just need to continue doing what we're already doing. In addition to our expected $150 million in new wins this year, we're still targeting at least $100 million in new wins each successive year, concentrated within Electrical Systems. We expect these wins to diversify our product portfolio, our customer base, and drive growth and profitability. We expect strong cash flow, which, combined with our disciplined approach to working capital, will be prioritized for additional debt paydown and to potentially fund bolt-on M&A. Our business transformation remains on track, and we are increasingly confident in delivering against our committed goals of $101.5 billion of revenue and 9% EBITDA margins. Turning to page 12, before I turn the call back over to Andy, I'll just quickly update you on how we are envisioning 2023 playing out compared to 2022. We expect 2023 to be our third record revenue year in a row on the back of steady vehicle demand as forecasted by ACT and FTR, higher pricing, and new business revenue. We expect both gross margin and EBITDA improvement with pricing ahead of inflation, new business ramp-ups, and additional cost out. The cash flow generated will drive down our leverage ratios through further debt paydown in addition to higher EBITDA levels. We expect to secure $150 million in new business wins this year. We are seeing the vast majority of our wins in Electrical Systems. We remain on track to hit our $30 million of cost out target for this year. We have reduced our exposure to large startup costs in the Vehicle Solutions business. We will exit 2023 in a better financial position than we entered it, with a strong future outlook and a strong balance sheet that provides optionality to drive additional growth. With that, I'd like to turn the call back over to Andy as he gives you a more detailed review of our financial results and I get a new cough drop. Andy, I'd like to turn it over to you. Thank you, Harold. Good morning, everyone. If you are following along in the presentation, please turn to slide 14. First quarter 2023 revenue was $262.7 million as compared to $244.4 million from the prior-year period. The increased revenues was primarily driven by increased pricing to offset material cost increases and increased vehicle-related sales, offset by lower volume in the Industrial Automation segment. Foreign currency translation also unfavorably impacted first quarter of 2023 revenues by $3.6 million or 1.5%. The company reported consolidated operating income of $14.6 million for the first quarter of 2023 compared to income of $8.4 million in the prior-year period. The increase was driven by higher margins, partially offset by higher SG&A. The first quarter of 2023 adjusted operating income was $15.4 million. Adjusted EBITDA was $19.8 million for the first quarter, up 47% year-over-year compared to $13.5 million in the prior year. Adjusted EBITDA margins were 7.5%, an expansion of 200 basis points as compared to Adjusted EBITDA margins of 5.5% in the first quarter of 2022. Interest expense was $2.9 million as compared to $2 million in the first quarter of 2022. Net income for the quarter was $8.7 million or $0.26 per diluted share as compared to net income of $4 million or $0.12 per diluted share in the prior year period. Turning to the segment results on this slide, you can see the performance of our three vehicle-related segments on a combined basis. The combined revenues increased 20% to $253 million compared to $210 million in the year-ago quarter. Combined adjusted operating income was $25.1 million, an increase of 122% compared to $11.3 million in the prior year period. The growth in adjusted operating profit again demonstrates the powerful impact that our focus on price cost management as well as growth in the Electrical Systems and aftermarket segments have on our bottom line. In our Vehicle Solutions segment, first quarter revenues increased 15% to $160.6 million compared to the year-ago quarter, primarily due to increased sales volume and increased pricing to offset material cost increases. Operating income for the first quarter increased 112% to $13.4 million compared to operating income of $6.3 million in the prior year period. First quarter 2023 adjusted operating income, which excludes special costs, increased 106% to $13.5 million, primarily driven by increased pricing, lower freight cost, and overhead reduction. Our Electrical Systems segment achieved revenues of $54.7 million, an increase of 37% compared to the year-ago first quarter, resulting from increased pricing to offset material cost pass-through and new business wins. Operating income was $6.1 million, an increase of $4.3 million compared to the first quarter of 2022 due to increased volume, pricing, and manufacturing efficiencies. Our Aftermarket & Accessories segments revenues increased 25% to $37.6 million compared to the year-ago quarter, primarily resulting from increased sales volume and increased pricing to offset material cost pass-through. Operating income was $5.6 million, an increase of 82% compared to operating income of $2.6 million in the prior year period. The increase is primarily attributable to increased pricing offsetting moderating cost inflation. Our Industrial Automation segment produced first quarter revenues of $9.7 million, a decrease of 71% as compared to $34.1 million in the first quarter of 2022 due to lower demand levels. Operating loss was $0.9 million, a decrease compared to the operating income of $3.7 million in the year-ago quarter. Due to volume reduction and restructuring expenses. Adjusted operating loss was $0.2 million compared to income of $4.1 million in the prior year period. The restructuring efforts are expected to improve performance in this segment throughout the rest of 2023. Highlighted on slide 15 are key financial trends in our business. As I previously mentioned, this quarter EBITDA and margin percentage strongly improved on a sequential basis. The sequential improvements were driven by pricing, our focus on operational excellence and new business launches. Additionally, our net leverage continues to decline as we have generated increasing profitability. Therefore, we believe our net leverage will decline further in 2023 as our strategy continues to deliver financial results. For the remainder of this year, our financial priorities will be to drive additional cost savings to generate higher profitability, free cash flow, and invest in our new growing business platforms. Thank you. I will now turn the call back over to Harold for some closing comments. Harold. Thank you, Andy. I'd like to thank all of our employees for their contribution to our solid financial results and strategic priorities. The pace of the progress that we've been able to achieve in our strategic plan has been better than we thought, and is fueled by a strong focus on our transformation strategy and a clear prioritization of our initiatives and our large and vibrant and growing and new customer base. We're a much stronger company in 2023, and we're ready to capitalize on secular growth and higher profits and the trends towards vehicle electrification. We look forward to sharing our successes for you in future calls. I'd now like to turn the call over to our operator and open the line up for questions. Thank you. Thank you, sir. Ladies and gentlemen, we now begin the question- and- answer session. Should you have a question, please press star followed by one on your touch-tone phone. You will hear a three-tone prompt acknowledging your request, and your question will be pulled in the order they're received. Should you wish to decline from the polling process, please press star followed by two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment please for your first question. Your first question comes from Joe Gomes with Noble Capital. Please go ahead. Thank you for taking the questions, and good morning. Good morning, Joe. Good morning, Joe. I was wondering on the vehicle-related segments, could you kind of break out for us, you know, what was the contribution from volume versus pricing in the quarter? Yeah, Joe. For the quarter, we say with 20% growth in terms of our revenues in three vehicle-related segments. Thinking about, roughly 60% of that came from volume and 40% of that, from pricing. Excellent. Great. I know you had talked in the past, I think you had, like, one more major contract that you needed to work on pricing. Have you been able to get that finalized or is that something you're still working on? Yep, we were able to finalize it, and we'll get extra contribution from that contract beginning April 1, so it's already in place. Okay, thank you for that. I noticed, you know, corporate and other SG&A expenses rose, fairly big on a percentage basis, in the quarter. What was behind that? Was that just on the cost reduction program expenses, or is there other things that would drove that? Joe, great question. A couple of things there. One is we invested in some of the SG&A costs to drive our cost reduction program. We see some opportunity to invest and drive higher profitability there. The other thing that contributed to it was some of the variable compensation last year was lower in terms of incentive comp. Those are the main driver for SG&A. Okay. One more, if I may. Pardon me. On the new plant startups, just wondering, you know, how they're going, how they're proceeding. You know, are they all on schedule for all the new plants? Yeah. Aldama, which is near Chihuahua, Mexico, is significantly ahead of schedule. We may get to open that one up a quarter early. Morocco and Agua Prieta are on schedule. Agua Prieta is scheduled to produce Q4 and Morocco in Q3. They have to start up too, Joe. We have new wins for new vehicles that are ramping up both in Europe and in the United States that need our Electrical Systems inside of them. We're on the clock, and we have backup plans in case some unforeseen action happens. In the vehicle world, you have to do these things in a high-quality manner and PPAP them is the term and pass quality regimens. We're on track and significantly ahead in Aldama. Great. congrats on the quarter, and I'll pass it on for other questions. Thank you, Joe. Thanks, Joe. Thank you. Your next question comes from John Franzreb with Sidoti. Please go ahead. Good morning, guys. Congratulations on a great quarter. Thank you, John. I'd like to start with the margin profile. either the gross or the operating term, however you wanna address it, but increased significantly. It seems to me there's a bunch of buckets that could have drove that. It could have been volume, pricing, cost savings, new business, or the exclusion startup costs. Can you kind of walk through the puts and takes of how those changes impacted the gross and/or operating margin? I think you're right, John. All of the above you mentioned. I would say the biggest impact is pricing, recovery of the inflation that we saw last year. Our price-cost management is our single biggest contributor. At the same time, we also see a strong volume leverage in our vehicle segments, but those are kind of got offset by our Industrial Automation side. The other thing that really added to our profitability is the cost reduction. As Harold mentioned, we are on track, and we are very confident of our cost out programs, so that's helped us a lot in that. Lastly, last year, as you remember, the supply chain disruption as well as the Ukraine war generated some inefficiency in the business, and we were able to recover and get back on the e-efficiency level. Those really help us in driving the strong result. Got it. Andy and Harold. Harold, I think you deferred to giving specifics on the cost savings plans. That it's starting to really impact the P&L, can you maybe talk a little bit of what the actions are you are taking and how much you realized of that $30 million so far in the first quarter? Yes. We have multiple categories of cost out. We have procurement, we have cost efficiency, we have plant overhead consolidation, and we have global supply chain optimization, and we have some SG&A. We have about 350 projects in our project tracker. Mm. In the first quarter, we were ahead of plan. We did almost $9 million of cost out of the plan. The plans are delivering. It's the highest amount of cost out we've attempted. Coupled with Joe's question and Andy's answer, we've added some talented people and continuous improvement. We're opportunity rich. We're opportunity rich. We're actually contemplating plans to increase our focus on this effort. It brings CapEx with it. It brings some CapEx with it. Mm-hmm. We'll report out on that in the future. We're not trying to withhold it. We were hesitant to make many public comments because it was a first time thing for us, John. It's turning out to be much more successful than we thought. Great. Actually, I'll get back in queue, let someone else ask a question. Thank you. Thank you. Your next question comes from Gary Prestopino with Barrington Research. Please go ahead. Good morning, Harold and Andy. Hey, couple of questions here. I just wanna be clear. You're saying that the margins that you guys have attained in this quarter are pretty much sustainable throughout the year. Is that correct? Yes. Yes. As far as the SG&A expense, somebody asked a question about that. It is somewhat elevated. I think there was a couple of puts and takes there. As we're looking at this, should it kind of stay at that almost 7.8% of revenue as we go through the year? Yeah, I would say, that's about right. For the year, again, we are capitalizing on a lot of opportunities that we see. There's a lot of good payback projects that we are very happy to invest. I think we'll stay around the level for the moment, and continue to see the profit that come with it. Okay. Then- Gary, we'll be able to- Oh, I'm sorry, Harold. Go ahead. I was just gonna say that it's mainly people costs. We'll be able to flex it if needed. Okay. When you guys released numbers for Q4, you said about $85 million, I'm sorry, $100 million of new business wins. You got $85 million of that in the quarter and raised it by $50 million. I mean, what was the surprise there that occurred that caused it to your, you know, almost get that entire new business win in Q1 and then given the ability to raise it? Was there something there that you didn't think you were gonna sign, and it came, you know, came over the transom? We have a big pipeline. In previous decks, we've reported out on the size of the pipeline. Mm-hmm. We are running about a one out of six hit rate. Gary, it's around an 18% hit rate. At all times, including right now, we have finish line, you know, proposals that we've made to customers to produce their products for them. And they have, you know, a few people they're gonna choose from. We were able to win a decent amount of business in the quarter because our pipeline, the timing of our pipeline came into the quarter. It was not really a higher hit rate per se, it was really the timing of decisioning. If you look at the rest of this year and the timing of decisioning, it's still at a high rate. There's a lot of awarding being done in our industry. In the case of Electrical Systems, we have a one of our main competitors, Gary, is named Leoni. They're a public company in Germany, and they filed bankruptcy in the 1st quarter. So our amount of looks actually is increasing. So we're organizing to do that and get our capacity lined up to be able to more aggressively bid. The our pipeline coupled with, you know, a big industry participant kind of in trouble, is giving us confidence to increase the outlook for the year. We didn't increase the outlook for next year or the year after we said 100. But it looks like this year we're gonna have a more fruitful environment than we expected. Does that German competitor, are they liquidating or are they just gonna be restructuring? The German bankruptcy laws, they have the equivalent of a pre-pack. They have a white knight who's a well-known billionaire from Austria, went in with them. It's gonna be like any bankruptcy. There'll be good old-fashioned litigation from the bondholders that have to take a haircut and all that. It's gonna go on for a while. There's a court process, it's well known that the vehicle industry is pretty tight, and they have constrained capital. We're getting more looks than we expected, and we already had a vibrant pipeline. We feel pretty confident in 150. Okay. Thank you very much. You're welcome. Thank you. Your next question comes from Barry Haimes with Sage Asset Management. Please go ahead. Thanks so much, and congrats on the great quarter. My question is on the various EV programs, could you give us a little thumbnail sketch on average, how the margin progression looks? You know, I presume there's some amount of cost before you start production, and then when you do start production, you know, how many quarters to ramp to normal? Then, are the normalized margins on these programs anticipated to be, you know, less than equal to or greater than, let's say, your legacy truck OE margins? Thanks so much. You're welcome. I'm gonna address the program life cycle part of it, then I'm gonna hand it to Andy to talk about the margin comments. The typical EV program is about two years. We get an award, and then we go through some prototyping and first article testing, and then the vehicle maker goes through some prototype vehicle testing. Then we solidify and freeze the design, and then we have to PPAP the bill of material and the manufacturing process so that they're repetitive and consistent through every vehicle and set up for metrics for quality and on time and all that. We've been expensing that cost as we go. When we started this three years ago, we were reporting out what our startup costs were because they were impeding our profits when we were just getting started. Spend forward to today, we're more than covering those startup costs, and they're in our number, and they're becoming less and less on a percentage basis 'cause we're growing. We also reported that we were not going to aggressively pursue startup seeding business because it had a very high startup cost, and we had a well-known one that was in the press last year. We basically have focused in on our bull's-eye of Electrical Systems. Actually, the startup cost profile is minimal. With regards to the plant startups, the reason why the Electrical Systems business is accretive from an ROIC standpoint is they're CapEx light. Our secret sauce in that business is actually software. It's not capital equipment. We have a special internal software program that we've designed and we're using globally that allow us to take our designs, put them straight onto a plasma screen, and have in testing that's automated, and we have really obviated the need for a lot of capital. We have a very good setup here. When a plant starts up, of course, there's some overhead inefficiencies. The way we're playing the game here is that we're pre-selling out most of the capacity and then ramping up the plants with business we already have. It's actually about a one-quarter break even kind of a deal when we get started, but I'll now turn it over to Andy to talk further about margins. Yeah. In terms of the electrical system margin, so you can see today we are already at a low double-digit OI, operating income margin level. I'll just say that the new business are all coming in at accretive margin profile. We're happy to continue to launch the business and that will actually continue to give us improvements to the overall business unit margin. Great. Thank you so much. That's very helpful. You're welcome. Thank you. Your next question comes from Steven Martin with Slater Capital Management. Please go ahead. Hi, guys. Hey, Steven. Hey. Aftermarket parts, finally, I guess you turned it on in the first quarter. How did the new business perform, and what should we expect over the balance of the year? Yeah. We're out of the gates on that, and it's been performing as expected with a meaningful expansion on our profit margins. Basically, it's a direct-to-customer play versus going through an intermediary. The end customer has a price they're willing to pay, we have a direct channel to the end user there. You should expect to see our profit rates gradually increase in that business. The business itself grows around 4%-5% unit volume and another amount based on annual price increases. You'll see modest growth relative to electric vehicles, Electrical Systems, where we're having explosive growth for us. It'll be a modest growth outlook, but with margin expansion. You at one point said it was a $100 million opportunity. Over what timeframe? Is that still your target, and over what timeframe? Yeah. The business in the first quarter was $37 million, so it's well above the $100 million rate. Our goal in that business is, in the 2027 business plan, our goal is to double that business. It involves replicating our business strategy in APAC, Asia Pacific. It involves replicating our business strategy in Europe, and it involves expanding our product line into other aftermarket products other than Class 8 truck seats. When you look at 2027, from a margin perspective, what would you expect the operating margin of that to be? It will be accretive to our company average that we've articulated. Right. Overall, our long-term target is 9% EBITDA margin. Obviously, we are well on our way there. Clearly, growing the Electrical Systems business and the Aftermarket & Accessories business are the one that will drive to that target. The mix shift is gonna be meaningful and help contribute to that target. Okay. Turning to, unfortunately, the lagging business, how low does that go? You know, can we expect to arrest or at least break even in that over the course of the year? It's bottomed out now. We think that we're nearing an inflection point up. If you look at the leading indicators from Amazon and other e-commerce shippers, they're suggesting that there's gonna restart modest rebuilding. We get orders when they build new parcel distribution centers. That's the automation part of it that we participating in, and we have non-warehouse automation business as well. It's not gonna get worse, I can say that. We have hope that in the second half's better than the first half. It's too early to say that, though. This is a PO business. If we had POs in hand, I would make more confident comments here. As of right now, we're expecting a turn in the second half, but we're yet to see it. Right. Last year, it started to fall off in the second quarter, really fell off in the back half. The comparisons for that business get easier as we get through the year. Exactly right. All right. Thank you. Thank you, Steven. Thank you. There are no further questions at this time. Mr. Bevis, back over to you. Thank you everyone for calling in today. We appreciate your interest and investment in our company. We're on track with creating value here and having fun while we do it. We look forward to speaking with you in the next quarter. With that, we'll end the call for today. Ladies and gentlemen, this concludes your conference call for today. We thank your participation and ask that you please disconnect your lines. Have a-