E-motors, Inverters & Drivetrain

UBS has highlighted 10 industrial companies it sees as positioned for a broader capital-spending cycle, with manufacturing, transportation, defense and construction among the areas expected to gain from improving investment conditions. The list includes Lockheed Martin, United Airlines, C.H. Robinson Worldwide, BorgWarner, UL Solutions, Solstice Advanced Materials, Eaton, Advanced Drainage Systems, United Rentals and Packaging Corp. of America, according to a Wednesday report. UBS said the industrial sector is emerging from a prolonged manufacturing downturn, while inventory trends and short-cycle indicators have improved, and it pointed to stronger operating cash flow outside technology as a source of resources for investment. Among the individual companies, UBS assigned price targets ranging from $80 for Solstice Advanced Materials to $1,350 for United Rentals, with Advanced Drainage Systems carrying the largest implied upside at 62%, based on Sept. 11 closing prices. The bank cited potential catalysts including defense demand, airline earnings, freight productivity, electrification, construction activity and packaging pricing, while higher interest rates and weaker economic growth remain risks to the broader industrial outlook.

Forgent Power Solutions guided to fiscal 2027 revenue of $2.4 billion to $2.6 billion and adjusted EBITDA of $575 million to $625 million, alongside adjusted EPS of $1.26 to $1.40 and an adjusted EBITDA margin of approximately 24%, up from 22.7% in fiscal 2026. The guidance accompanied record fiscal fourth-quarter results, with revenues up 94% to $462 million and adjusted EBITDA margin expanding 200 basis points sequentially to 24.4%. For the full fiscal year, revenues rose 89% to $1.42 billion and adjusted EBITDA rose 91% to $323 million, while operating cash flow increased roughly 2.5 times to $109 million from $45 million, with management expecting more than $300 million in fiscal 2027. Chief Executive Gary Niederpruem said the company booked more than $1.5 billion of orders in the quarter alone, leaving backlog at $3 billion, and announced an incremental investment to build a dedicated 385,000 square foot Powertrain Solutions facility on its Tijuana, Mexico campus, expected online in the fourth quarter of fiscal 2027. For the first quarter of fiscal 2027, Forgent guided to revenues of $445 million to $465 million and adjusted EBITDA of $90 million to $100 million, including approximately $10 million of one-time costs, and said it will stop reporting orders and backlog quarterly while providing rolling quarterly revenue and adjusted EBITDA guidance.

Bosch aims to double its heavy-duty commercial vehicle technology sales from today's more than 4 billion euros by 2035, Dr. Markus Heyn, deputy chairman of the Bosch board of management and chairman of the Mobility business sector, said at the IAA Show in Hannover. The company expects global truck production to grow moderately by about 1 percent to approximately 3.3 million trucks this year, then to 4 million units by the mid-2030s, and says the heavy-duty segment, vehicles weighing over six metric tons, is proving more resilient than an overall global vehicle production downturn expected in 2026. A major new order from long-time partner Daimler Truck for the eActros electric truck covers electric powertrain components manufactured in Europe, and Bosch says one in three newly registered electric trucks in Europe this year will be powered by its electric motor and inverter. Bosch also plans a new joint venture with Brakes India and Wheels India, two subsidiaries of the TSF Group, to develop smart actuators for compressed air generation, compressed air treatment, air suspension, and parking brakes. The company estimates that by 2030 about one in four newly registered heavy-duty trucks worldwide will be climate-friendly, rising to about half by 2035, while it continues to optimize conventional injection systems for standards such as Euro 7.

MAHLE has announced it will present sustainable drive solutions at IAA TRANSPORTATION 2026 in Hanover, Germany, from September 15 to 20, 2026, under the theme Electrified. Efficient. Economical. The highlight is a range extender system for electric trucks, an intelligent power generating unit that combines a generator, a combustion engine, thermal management, a fuel tank, an AdBlue tank and exhaust aftertreatment in a single unit. It can be installed directly into existing electric truck platforms. The system delivers 110 kW of continuous electrical power and 130 kW of peak power, can replace roughly one third of existing battery capacity, and cuts total vehicle weight by about 600 kilograms, allowing an electric truck to travel more than 800 kilometers, split between 400 kilometers on battery and 400 kilometers on the range extender. It also reduces carbon dioxide emissions by more than 80 percent, falling to nearly zero when used with the renewable fuel HVO100. In addition, MAHLE is presenting the MCT electric motor, short for MAHLE Contactless Transmitter, for heavy-duty truck drive axles for the first time in the world. It uses no permanent magnets, cutting rare earth usage by up to 3 kilograms per vehicle, delivers a peak output of 370 kW and more than 900 newton meters of torque, and achieves efficiency of up to 95 percent in testing under the VECTO standard, while reducing drivetrain weight by 10 kilograms. Arnd Franz, chairman of the MAHLE management board and chief executive officer, said the market wants electrified solutions that are both cost-effective and practical, and called on governments and policymakers to embrace technological diversity, including battery electric vehicles, hydrogen and renewable fuels. MAHLE currently partners with more than 120 commercial vehicle manufacturers worldwide and aims to grow its commercial vehicle business faster than the market over the next five years.

24/7 Wall St. rates Qualcomm a buy with a $239.79 price target, implying 35.45% upside from the current $176.88 quote, at 90% model confidence. The call rests on Qualcomm's Q3 FY26 revenue of $9.947 billion, which beat consensus, and automotive revenue that grew 61% year over year to $1.588 billion, its 23rd consecutive double-digit growth quarter, even as non-GAAP EPS of $2.21 narrowly missed on memory and wafer input costs. Momentum accelerated after Qualcomm issued warrants to Amazon to acquire $4 billion worth of the chipmaker's stock as part of an AI infrastructure deal, and CEO Cristiano Amon has committed to more than $24 billion in revenue across automotive and IoT plus more than $15 billion in data center by fiscal 2029, nearly doubling the prior target. The bear case lands near $200.49, with handset revenue down 20% in the third quarter and management expecting roughly a 50% decline in Apple revenue from the September to December quarter, while memory and wafer inflation compressed operating income by 41.13% year over year. Broadcom, the aspirational benchmark, posted $29.591 billion in Q3 FY26 revenue with AI semiconductor sales of $16.7 billion, up 221% year over year, and carries a $1.72 trillion market cap versus Qualcomm's $188.9 billion.

Asia Plus Securities stated that August 2026 sales at DELTA Taiwan, the parent company of DELTA, came in at 64 billion Taiwan dollars, down 4% month-on-month but still up 35% year-on-year, and above the 2Q26 average of 61 billion Taiwan dollars. As a result, combined sales for the first two months of the third quarter, July 2026 through August 2026, reached 130 billion Taiwan dollars, or 41% growth year-on-year. Although parent company sales declined, DELTA's own sales in the same period do not necessarily have to fall in tandem, because parent company sales reflect the entire group including subsidiaries worldwide, which have different timing for production, product delivery, and revenue recognition. However, DELTA Thailand's sales tend to move in the same direction as the parent company, with a correlation of roughly 96%. The research team therefore expects DELTA's July 2026 to August 2026 sales to still grow better than in 2Q26, just like the parent company. In addition, the raw material shortage problems that arose in 2Q26 began to ease from July 2026. Overall, the research team views that DELTA's 3Q26 sales will grow both quarter-on-quarter and year-on-year, while margins should improve quarter-on-quarter and royalty payments as a share of sales will decline quarter-on-quarter, as products manufactured under DELTA's own technology are expected to account for a higher proportion in the second half of 2026, pushing 3Q26 profit to its highest point of the year. The research team also estimates normal profit for 2026 to 2027 at 35 to 49 billion baht, or average annual growth of 42%, and maintains its Buy recommendation, believing profit has already passed its low point for the year in 2Q26 and that second-half 2026 profit will be better than the first half. It sets a target price of 342.00 baht.

Nvidia and MediaTek announced Monday an expansion of their partnership to develop AI computing platforms across infrastructure, local computing, and automotive sectors. As part of the collaboration, Nvidia has invested $3.5 billion in convertible bonds issued by MediaTek. The partnership covers three main areas: AI infrastructure, where MediaTek will adopt Nvidia's NVLink Fusion platform to enable custom XPU development for hyperscalers and cloud providers; continued collaboration on Nvidia RTX Spark and DGX Spark PC chips for consumer and enterprise computing; and automotive platforms for AI-powered software-defined vehicles. Nvidia CEO Jensen Huang highlighted MediaTek's expertise in system-on-chip design and connectivity, while MediaTek CEO Rick Tsai emphasized the shared vision for pervasive AI computing. The NVLink Fusion platform includes multi-die XPU development with Nvidia NVLink Fusion chiplet, NVLink-C2C connectivity, and NVHBM memory capabilities.

Yingboler released its 2026 half-year report, with first-half net profit attributable to the parent company at 118 million yuan, up 216.8% year-on-year. Operating revenue was 2.42 billion yuan, up 77.1% year-on-year; non-GAAP net profit attributable to the parent was 115 million yuan, up 241.8% year-on-year; net operating cash flow was 317 million yuan, down 37.3% year-on-year; earnings per share were 0.3843 yuan. In the second quarter, operating revenue was 1.34 billion yuan, up 62.4% year-on-year; net profit attributable to the parent was 60.87 million yuan, up 130.2% year-on-year. As of the end of the second quarter, total assets were 7.558 billion yuan, up 0.9% from the end of the previous year; net assets attributable to the parent were 3.124 billion yuan, up 2.8% from the end of the previous year. The company's business is mainly concentrated in the new energy vehicle and low-altitude economy sectors. In the new energy vehicle sector, it has become a leading domestic Tier 1 supplier and is actively expanding into new energy commercial vehicles and electric motorcycles. In the low-altitude economy, its eVTOL electric propulsion systems and drone electric propulsion systems have secured project designations from multiple leading companies.

Fute Technology released its 2026 interim report on August 27. Supported by its core onboard power supply business, and benefiting from strong demand in the new energy vehicle market and expansion of overseas operations, the company achieved substantial double-digit growth in both revenue and profit during the reporting period. Operating revenue reached 2.445 billion yuan, up 65.81 percent year on year. Net profit attributable to the parent company was 158 million yuan, up 135.76 percent. Net profit after deducting non-recurring items was 152 million yuan, up 139.14 percent. Net cash flow from operating activities was 130 million yuan, a significant improvement from negative 18 million yuan in the same period last year, mainly due to revenue growth and collection of accounts receivable. Total assets at the end of the period were 4.482 billion yuan, up 10.06 percent year on year, and cash and cash equivalents increased to 826 million yuan, mainly thanks to the receipt of funds from a private placement. In terms of business structure, new energy onboard products remained the absolute mainstay, with revenue of 2.417 billion yuan in the period, accounting for nearly 99 percent of total revenue, up 71.31 percent year on year. Gross margin was 18.16 percent, down slightly by 2.07 percentage points year on year but still relatively stable. Energy management product revenue was 14.14 million yuan, down 43.10 percent year on year. The rapid growth in performance was mainly driven by strong downstream customer demand, which led to a significant increase in product sales volume. The company's customers include well-known domestic and overseas automakers such as GAC, NIO, Xiaomi and Renault. The proportion of overseas revenue rose to 21.65 percent, showing initial results from its global expansion. In addition, financial expenses fell 72.09 percent year on year, mainly due to foreign exchange gains. Research and development investment rose 35.80 percent year on year to 164 million yuan, as the company continued to strengthen its technological advantages in 800-volt high-voltage platforms, silicon carbide applications and integrated products. Although an increase in inventory write-down provisions led to larger asset impairment losses, this did not offset the profit flexibility brought by growth in the main business. Looking ahead, the global penetration rate of new energy vehicles continues to rise, especially with strong growth in Europe and emerging markets. The wider adoption of 800-volt high-voltage platforms and the implementation of bidirectional charging and discharging technology will create new incremental space for the onboard power supply industry. As an independent third-party supplier, the company is expected to further consolidate its market share by leveraging its automated manufacturing capabilities and differentiated cost advantages. However, intensifying industry competition may put pressure on gross margins, and the relatively large scale of accounts receivable carries collection risk.

Bethel released its 2026 interim report, showing first-half attributable net profit of 641 million yuan, up 22.8% year on year, and operating revenue of 6.27 billion yuan, up 21.5% year on year. Second-quarter revenue was 3.6 billion yuan, up 42.4% year on year, with attributable net profit of 373 million yuan, up 48.0% year on year. The company said its first electronic mechanical braking project achieved mass production, making it the world's first supplier to achieve a breakthrough in and mass production of fully dry electronic mechanical braking technology, and it completed the acquisition of a controlling stake in Yubei Steering. During the reporting period, the total number of projects under research rose 87.65% year on year, while newly mass-produced projects and awarded projects increased 62.60% and 52.84% respectively.

Tie Liu Stock disclosed its 2026 semi-annual report on the evening of August 25. During the reporting period, it achieved operating revenue of 1.204 billion yuan, up 1.53% year on year. Net profit attributable to shareholders of the listed company was 68.9349 million yuan, up 41.26% year on year, with profit growth clearly outpacing revenue growth. The company has formed four major business segments: core robot components, automotive transmission systems, high-precision components, and smart services for commercial vehicles. Among them, the robot components business has been positioned as a new engine for future growth. The company has established a wholly owned subsidiary, Jierfu Hangzhou Intelligent Robot Co., Ltd., as its core platform, and has set up a joint innovation system with the Yangtze River Delta Hart Robot Industry Technology Research Institute. In the high-precision components segment, the project for producing 600,000 sets of motor shafts and other core new energy vehicle parts annually has been put into operation, and orders have been obtained from Li Auto, Leapmotor, and Volkswagen. The company said it will accelerate the pace of moving new-track businesses such as core robot components and high-precision new energy vehicle components from research and development to industrialization.

Fangzheng Motor disclosed its 2026 semi-annual report, with net profit attributable to the parent of 24.3765 million yuan in the first half, up 438.74% year on year. During the reporting period, the company achieved total operating revenue of 1.717 billion yuan, up 35.77% year on year, and shipped 584,300 new energy drive motors, up 51% year on year, with cumulative shipments of 4.68 million units and supporting nearly 50 vehicle models. The company has established deep supporting relationships with automakers including SAIC-GM-Wuling, SAIC Motor, Xpeng, Li Auto, and Volkswagen. The first phase of the Deqing base with annual capacity of 800,000 units is fully operational, and the main construction of the second phase with annual capacity of 2.2 million units has been completed and is gradually ramping up production. Businesses such as intelligent controllers, micro and special motors, and automotive electronics provide multi-point support, among which Shanghai Haineng's revenue grew 41.24% year on year, and robot joint motors have achieved small-batch supply and entered testing applications for multiple humanoid robot projects. The company also continues to increase capital in its Vietnamese subsidiary and is advancing the implementation of a high-performance magnetic drive transmission system joint venture project with Bosch.

Songzhi Automobile Air Conditioning disclosed its 2026 half-year report. In the first half, it achieved operating revenue of 2.547 billion yuan, up 2.15% year on year, with net profit attributable to the parent of 125 million yuan and net profit attributable to the parent after deducting non-recurring items of 107 million yuan. The company also released its 2026 employee stock ownership plan, with initial participation capped at 89 people, proposed holdings of no more than 2.3514 million shares, accounting for 0.27% of the current total share capital, with the shares sourced from previously repurchased stock. Overseas revenue reached 206 million yuan, up 33.11% year on year. Revenue from thermal management for large and medium-sized buses was 743 million yuan, up 15.91% year on year, with a market share exceeding 50%. In the first half, it sold more than 44,000 electric compressors, up more than 20% year on year, and battery thermal management business shipments rose more than 30% year on year. As of the end of the reporting period, the company held a total of 595 patents, including 122 invention patents.

Sosen released its 2026 semi-annual report. In the first half, total operating revenue reached 587.16 million yuan, up 30.65% year on year, and net profit attributable to the parent company was 37.82 million yuan, turning from a loss to a profit. Among this, the LED driver power supply business achieved operating revenue of 471.26 million yuan, up 14.83% year on year, with a gross margin of 25.73%, an increase of 2.14 percentage points. The energy storage core components business achieved operating revenue of 108.87 million yuan, up 250.21% year on year. The company also launched a new NS-V series five-in-one sports lighting dedicated power supply, and debuted a self-developed 150 kilowatt commercial and industrial storage product that is about to begin small-batch delivery.

BorgWarner reported second quarter 2026 sales of over $3.6 billion, with adjusted operating margin expanding 100 basis points to 11.3% and adjusted earnings per share growing 17% year-over-year. The company announced seven new business awards across its foundational and eProducts portfolios, including an eTurbo program with a major European OEM and an integrated drive module award with a global OEM. BorgWarner also increased its full-year adjusted EPS guidance to a range of $5.05 to $5.30 per diluted share, up from $5.00 to $5.20, and its Board approved a $1 billion increase to the share repurchase authorization, bringing the total to $1.35 billion. The company returned approximately $134 million to shareholders in the quarter through buybacks and dividends, and it plans to invest an incremental $10 million to $15 million in industrial R&D in the second half of 2026 to accelerate product readiness for data center and other industrial markets.

Turntide Technologies has secured a £17 million matched-funding grant from the UK Government and Advanced Propulsion Centre UK to accelerate volume production of its axial flux motors. The funding comes through the DRIVE35 Scale-up Fund, part of the government's £4 billion DRIVE35 programme delivered by the Department for Business, Innovation, Science and Trade in partnership with the APC and Innovate UK. Project SUPREME will automate labour-intensive processes such as winding and tooling, and establish a component and validation facility in Cramlington, Northumberland, while expanding the company's Gateshead campus. The 18-month programme, running through January 2028, aims to lower costs and meet growing global demand for lighter, more efficient powertrains across automotive and industrial applications.

BorgWarner increased its remaining share repurchase authorization to US$1,350 million through 2029 after completing a US$1,061.45 million buyback program. The company also reported second-quarter 2026 sales of US$3,648 million and net income of US$277 million, and announced multiple new propulsion and variable cam timing program awards across Europe and China. These developments highlight BorgWarner's strategy of pairing ongoing combustion and hybrid content wins with growing electrified propulsion awards while returning capital to shareholders.

Magna International raised its full-year adjusted earnings and free cash flow guidance after reporting a record second-quarter adjusted profit of $1.86 per share, a 29% increase driven by operational excellence and cost reductions. Sales rose 3% to $11 billion, with weighted organic growth over market of 3%, while adjusted EBIT margin expanded 70 basis points to 6.2%. The company narrowed and raised its full-year adjusted EBIT margin outlook to 6.3% to 6.6%, lifted adjusted EPS guidance to $6.70 to $7.30, and increased free cash flow guidance to $1.75 billion to $1.85 billion. CEO Seetarama Kotagiri said operational performance was the primary driver, and the company returned $598 million to shareholders in the quarter, including $465 million in share repurchases. Magna also noted it is evaluating adjacent non-automotive markets such as robotics and data centers, with more details expected at its November investor day.