Superior Industries International, Inc. (SUP): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of Superior Industries International, Inc. now that Oaktree Capital Management is steering the ship following the major financial overhaul. Honestly, understanding the new blueprint-from their low-cost manufacturing base in Mexico and Poland to their core value proposition of supplying high-quality, cost-competitive wheels to giants like GM and VW Group-is key to seeing where the value lies now. With Trailing Twelve Month Revenue hitting $1.16 billion as of June 2025 and a drastically cleaned-up balance sheet, this Business Model Canvas distills exactly how Superior Industries International, Inc. is converting those long-standing OEM relationships and European aftermarket brands into cash flow. Let's break down the nine essential blocks that define their strategy moving forward.

Superior Industries International, Inc. (SUP) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep Superior Industries International, Inc. running, especially after that big ownership change in 2025. These aren't just vendors; they are the bedrock of the business, from financing to the factory floor.

Oaktree Capital Management and term loan investors (new owners)

The partnership with the term loan investors, led by Oaktree Capital Management, is the most significant recent development, effectively resetting the company's financial structure. This deal, expected to close in the third quarter of 2025, takes Superior Industries International, Inc. private. The core of this relationship is a massive balance sheet cleanup.

Here's the quick math on the debt-for-equity swap:

• Term loan claims converted to new equity: up to approximately $550 million.
• New equity stake for the term loan lenders: 96.5%.
• Reduction in funded debt: from approximately $982 million to around $125 million, which is nearly a 90% reduction.
• Cash payment to current common shareholders: approximately $3.1 million in aggregate.
• Cash and equity for preferred stockholders: approximately $6.2 million cash plus a 3.5% interest in the new entity.

This move was necessary to address liquidity concerns, especially after the company warned that customer cancellations could jeopardize 33% of projected 2025 revenue. Oaktree Capital Management, which manages $203 billion in assets as of March 31, 2025, is signaling confidence in the long-term potential with this capital injection. The company reported annual revenues of $1.16 billion as of September 2025.

Global aluminum suppliers for raw material sourcing

Securing raw material is non-negotiable for an aluminum wheel manufacturer. Superior Industries International, Inc. meets its aluminum requirements through purchase orders with major global producers. For the 2024 fiscal year, they successfully secured commitments sufficient to meet production requirements and anticipated this for 2025. To manage the volatility in commodity pricing, they have contractual price adjustment clauses built into agreements with their OEM customers, which helps minimize the risk associated with aluminum price fluctuations and alloy premiums. For the non-OEM, aftermarket business, they use derivatives to hedge price variability on aluminum purchases.

Automotive OEMs (e.g., GM, Ford, VW Group) for long-term contracts

Original Equipment Manufacturer (OEM) sales are the dominant revenue driver, accounting for approximately 92% of sales in 2024. The contracts are structured around specific vehicle models, typically lasting from one year up to the model's life, usually three to five years. To be fair, these contracts are generally nonexclusive and don't mandate minimum purchase quantities, which means volume is tied directly to the OEM's production schedule. The concentration risk is clear, so you need to watch these relationships closely.

Here's the customer concentration from the 2024 fiscal year:

The company supplies wheels for models from BMW (including Mini), Jaguar-Land Rover, Lucid Motors, Mazda, Mitsubishi, Nissan, Peugeot, Renault, Stellantis, Subaru, Suzuki, and Volvo, in addition to those listed above.

Logistics and shipping providers for global distribution

Superior Industries International, Inc. operates a geographically strategic manufacturing footprint to serve its global customer base. North American products are manufactured in Mexico for sale in the United States, Canada, and Mexico. In Europe, they operate facilities in Poland and Germany. The reliance on these cross-border logistics channels means that strong, reliable relationships with shipping providers are essential to manage costs and delivery timelines, especially given the stated customer desire to de-risk long supply chains.

Technology partners for advanced wheel finishing and lightweighting

The value proposition hinges on offering advanced products, including cast-aluminum, flow-formed, and forged wheels, with premium finishes like diamond cut, polished chrome clad, and PVD. While specific technology partners aren't detailed in the latest filings, the company's ability to execute on its 'Superior Delivers' transformation, which expects to generate at least $75 million of incremental Adjusted EBITDA by 2027, relies heavily on these technological collaborations for efficiency and product differentiation.

Finance: draft 13-week cash view by Friday.

Superior Industries International, Inc. (SUP) - Canvas Business Model: Key Activities

Superior Industries International, Inc.'s key activities center on high-precision manufacturing, advanced product development, and complex financial stewardship, especially following recent capital structure changes.

High-volume aluminum wheel manufacturing in Mexico and Poland

The core operational activity involves manufacturing aluminum wheels utilizing a low-cost, local-for-local footprint established in Mexico and Poland. The transformation of European manufacturing operations was completed, relocating all production from Germany to the highly automated operations in Poland. This strategic move aimed to close the margin gap between the two regions. For the first quarter of 2025, the Europe segment reported net sales of $\mathbf{\$117.9}$ million. Automotive industry production volumes in Western and Central Europe declined by $\mathbf{7.1\%}$ during the first quarter of 2025, which impacted sales performance.

Key manufacturing and sales metrics for recent periods include:

• North America Q1 2025 Net Sales: $\mathbf{\$203.7}$ million.
• European Q1 2025 Net Sales: $\mathbf{\$117.9}$ million.
• Global Q1 2025 Net Sales: $\mathbf{\$321.6}$ million.
• Global Q1 2024 Net Sales: $\mathbf{\$316.3}$ million.

Advanced design and engineering for OEM specifications

Superior Industries International, Inc. collaborates with customers to design, engineer, and manufacture products, focusing on the latest light weighting and finishing technologies. This activity is critical for securing Original Equipment Manufacturer (OEM) contracts. Year-to-date as of May 14, 2025, the team had quoted on more than $\mathbf{53}$ million lifetime wheels. The company's advanced offerings, like larger-diameter wheels and lightweight, aerodynamic solutions, continue to drive content growth with global OEMs such as GM, Ford, VW Group, and Toyota. In 2024, GM accounted for $\mathbf{24\%}$ of annual consolidated net sales, while in Q1 2025, GM and Ford represented $\mathbf{21\%}$ and $\mathbf{18\%}$ of total sales, respectively.

Global supply chain management, especially for aluminum

Managing the supply chain, particularly for aluminum, which accounts for the vast majority of total raw material requirements, is a constant key activity. The company utilizes contractual price adjustment clauses with OEM customers to minimize the price risk associated with aluminum and alloy premiums. Despite this, higher aluminum costs contributed to the increase in North America net sales by $\mathbf{5.3\%}$ in Q1 2025 compared to the same period in 2024. The company anticipates sourcing aluminum requirements to meet expected production levels in 2025 based on commitments secured in 2024.

Post-recapitalization balance sheet management and debt reduction

A major focus involves managing the balance sheet following a 2024 debt refinancing that attracted $\mathbf{\$520}$ million in new capital and extended term loan maturities to 2028. The company is laser focused on cashflow generation to accelerate debt reduction. As of March 31, 2025, Total Debt stood at $\mathbf{\$516}$ million, with Net Debt at $\mathbf{\$462}$ million. The expected Leverage Ratio by the end of 2025 is approximately $\mathbf{4.0x}$, up from an original target of $\mathbf{3.6x}$. One report suggested a plan to slice total debt and preferred from $\mathbf{\$982}$ million to around $\mathbf{\$125}$ million. Unlevered free cash flow provided $\mathbf{\$33}$ million in the first quarter of 2025.

Here's a quick look at key financial figures near the end of the period:

European aftermarket brand marketing and distribution

This activity involves marketing and distributing wheels in the European aftermarket under specific brands. The company serves this market with the brands ATS, RIAL, ALUTEC, and ANZIO. The European segment's net sales were $\mathbf{\$117.9}$ million in Q1 2025, which represented a $\mathbf{4.0\%}$ decrease compared to Q1 2024 due to lower volumes and unfavorable foreign exchange rates. Research and development for these European aftermarket wheels is performed in Bad Dürkheim, Germany.

Superior Industries International, Inc. (SUP) - Canvas Business Model: Key Resources

You're looking at the core assets Superior Industries International, Inc. relies on to run its business as of late 2025. These are the things they own or control that make their value proposition possible.

The manufacturing footprint is geographically strategic, centered in North America and Europe. Superior Industries International, Inc. operates production plants in Mexico and Poland. The company uses advanced finishing technologies across these locations. For instance, the European manufacturing unit is specifically noted in Stalowa Wola, Poland. In Mexico, the company operates four facilities in Chihuahua.

Intellectual property centers on advanced wheel design and material science. Superior Industries International, Inc. collaborates with customers to engineer products using the latest light weighting and finishing technologies. The company holds several patented technologies, including ALULITE, DECOTECH, and PVD. This focus on innovation helps them meet customer requirements efficiently.

A significant resource is the portfolio of established European aftermarket brands. These brands are market-leading in Europe for alloy wheels.

Financially, the balance sheet provided a certain level of immediate liquidity. Total cash and cash equivalents on the balance sheet as of March 31, 2025, stood at $54 million.

The relationships with Original Equipment Manufacturers (OEMs) are deep-seated, evidenced by the volume of business derived from this channel. Sales of OEM aluminum wheels accounted for approximately 92% of the Company's total sales in the fiscal year ended December 31, 2024. This segment relies heavily on quality compliance and established trust. Superior Industries International, Inc. holds several key industry certifications that support these long-standing relationships:

• IATF 16949: 2016
• ISO 14001:2015
• ISO/IEC 17025 Laboratory
• Brazil Inmetro
• India BIS

Furthermore, the company has received recognition such as the GM Supplier Quality Excellence Award and the Nissan Mexicana Quality Award - Supplier of the Year Winner. The list of automotive manufacturers supplied includes giants like Audi, BMW, Mercedes, VW, Jaguar, Landrover, Ford, GM, Nissan, and Toyota. That's a defintely strong foundation of trust built over time.

Superior Industries International, Inc. (SUP) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Superior Industries International, Inc. (SUP) for their aluminum wheels, especially given the recent turbulence and the pending acquisition closing around September 30, 2025. The value proposition hinges on manufacturing proximity, product sophistication, and established brand trust.

Cost-Competitive, High-Quality Aluminum Wheels (Local-for-Local)

Superior Industries International, Inc. emphasizes its competitively advantaged local-for-local manufacturing footprint as a key differentiator, particularly as global supply chain dynamics shift. This means producing wheels close to the final assembly point for major automakers. The company manufactures all North American products in Mexico, leveraging lower prevailing labor costs compared to the United States. For Europe, production is based in Poland. This structure is becoming increasingly valuable because of tariff pressures; for instance, tariffs on Chinese wheel imports into the U.S. are over 100%, and tariffs on Moroccan imports into Europe are almost 50%. This tariff environment intensifies the urgency for OEMs to localize production, directly benefiting Superior Industries International, Inc.'s regional manufacturing setup. The company's OEM aluminum wheels are sold for factory installation to a wide array of manufacturers, including BMW (including Mini), Ford, GM, Honda, Lucid Motors, Stellantis, and VW Group. Honestly, this geographic positioning is key to maintaining cost-effectiveness against international competitors.

Diverse Product Portfolio Including Cast, Flow-Formed, and Forged Wheels

The breadth of manufacturing capability allows Superior Industries International, Inc. to serve varied customer needs, from standard fitments to high-performance applications. The product range includes aluminum cast wheels and flow-formed wheels, and the general description of their capabilities also encompasses forged wheels. This technical versatility supports their OEM focus, which was substantial; in 2024, OEM aluminum wheels accounted for approximately 92% of the company's total sales. While the company faced significant volume losses representing an estimated 33% of expected 2025 revenue from certain North American OEMs, the underlying product capability remains a core value.

Advanced Design for Vehicle Performance and Aesthetics & Lightweighting Technology

Superior Industries International, Inc. collaborates with customers to design, engineer, and manufacture products utilizing the latest technologies. Competition in the aluminum wheel market is based on factors like technology, quality, and price. One concrete example of the value derived from innovation, though based on a prior period analysis, is that the introduction of successful products, such as lightweighting wheels, large diameter wheels, and aerodynamic wheels, helped the company increase the price of its wheels by approximately 21%. This focus on lightweighting technology is critical for helping automakers meet stricter fuel efficiency standards or extend the range of their electric vehicles (EVs). The company's Q1 2025 Adjusted EBITDA margin was 15% of Value-Added Sales, showing the ongoing effort to maintain profitability through value-added products despite operational stress.

Established, Trusted Aftermarket Brands in Europe

In the European market, Superior Industries International, Inc. maintains a trusted presence through established aftermarket brands. These brands are key to their European segment's value proposition, which generated $117.9 million in Net Sales in Q1 2025. The specific brands that anchor this segment are:

• ATS
• RIAL
• ALUTEC
• ANZIO

Research and development for these European aftermarket wheels is performed in Bad Dürkheim, Germany, ensuring local relevance and design expertise for that market.

Here are some key financial and operational metrics from the latest reported period that ground these value propositions:

The company's ability to generate $33 million in Unlevered Free Cash Flow in Q1 2025, driven by working capital changes, shows operational strength despite the OEM volume losses. Finance: draft 13-week cash view by Friday.

Superior Industries International, Inc. (SUP) - Canvas Business Model: Customer Relationships

You're looking at the relationships Superior Industries International, Inc. maintains with its key buyers as of late 2025, which is a mix of deep integration with large auto manufacturers and direct market engagement in Europe.

The relationship structure is heavily weighted toward Original Equipment Manufacturers (OEMs) in North America and Europe, despite recent significant disruption. For the first quarter of 2025, North America segment Net Sales reached $203.7 million, while Europe segment Net Sales were $117.9 million, out of total Net Sales of $322 million for the quarter.

Dedicated OEM sales and engineering teams for deep integration

Superior Industries International, Inc. serves a diversified global OEM customer base, including manufacturers like BMW (including Mini), Ford, GM, Jaguar-Land Rover, Lucid Motors, Mazda, Mitsubishi, Nissan, Peugeot, Toyota, and VW Group. The company's value-added sales in Q1 2025 were $101.4 million in North America and $67.1 million in Europe. The company highlights its portfolio of premium technologies, such as advanced offerings of larger-diameter wheels and lightweight and aerodynamic solutions, as driving content growth with these OEMs.

Contractual, long-term supply agreements with major OEMs

While Superior Industries International, Inc. maintains long-term business relationships with OEM customers, volume commitments are generally limited to near-term customer requirements authorized under purchase orders, often with delivery periods of approximately one month. However, the company has contractual price adjustment clauses with its OEM customers to minimize the risk associated with fluctuating aluminum costs. The reliance on a few large customers remains a factor; for instance, the top four customers accounted for a significant portion of sales in early 2025, as shown below:

The top three customers accounted for 52% of total sales in 2023.

Direct sales and distribution to European aftermarket retailers

The European market includes direct sales and distribution to the aftermarket under the brands ATS, RIAL, ALUTEC, and ANZIO. For Q1 2025, European Net Sales totaled $117.9 million. Unlike OEM prices, the prices for these aftermarket wheels are generally fixed months in advance of the sales seasons.

Collaborative design process for custom wheel development

The focus on advanced offerings like larger-diameter wheels and lightweight/aerodynamic solutions suggests an ongoing collaborative design process to meet evolving OEM specifications and content growth targets. The company's local-for-local manufacturing footprint in Mexico and Poland is positioned as a competitive advantage in response to global tariff dynamics driving OEM urgency for localized production.

Crisis management and negotiation (e.g., post-Q1 2025 volume loss)

Superior Industries International, Inc. experienced a setback subsequent to March 31, 2025, receiving notifications from certain larger North American OEM customers of their intent to resource all outstanding purchase orders to another supplier. This sudden loss of volumes represented 33% of expected 2025 revenue. This event resulted in a short-term liquidity constraint, putting the ability to meet near-term covenant thresholds in doubt. In response, the company entered into a commitment letter with term loan lenders to gain access to up to $70 million of additional term loans and secure financial covenant relief. The company reported a Q1 2025 Net Loss of $13 million and withdrew its fiscal year 2025 guidance due to these uncertainties.

The company is actively pursuing a recapitalization transaction to strengthen its financial position.

• Q1 2025 Net Sales: $322 million.
• Q1 2025 Adjusted EBITDA margin: 15%.
• Cash Flow Provided by Operating Activities (Q1 2025): $24 million.
• Total cash on balance sheet (as of March 31, 2025): $54 million.
• Net Debt (as of March 31, 2025): $462 million.

Finance: draft 13-week cash view by Friday

Superior Industries International, Inc. (SUP) - Canvas Business Model: Channels

You're looking at how Superior Industries International, Inc. gets its aluminum wheels to the customer base, which is split between Original Equipment Manufacturers (OEMs) and the aftermarket. The strategy heavily relies on local manufacturing to navigate global trade dynamics, which is a key point given the current tariff environment.

For the first quarter of 2025, the company reported Net Sales of $\mathbf{\$321.6}$ million globally. This revenue flows through distinct geographical channels.

Here is the breakdown of Net Sales for the three months ended March 31, 2025:

The Value-Added Sales (VAS), which strips out the fluctuating cost of aluminum, gives a clearer picture of the core business activity. For Q1 2025, Global VAS was $\mathbf{\$168.5}$ million. Honestly, that $\mathbf{\$101.4}$ million from North America is the lion's share of the core business value.

Direct sales to North American and European OEM assembly plants form the bedrock of the business. Superior Industries International, Inc. supplies wheels for factory installation to a long list of major automakers. You're talking about clients like:

• BMW (including Mini)
• Daimler (Mercedes-Benz, AMG, Smart)
• Ford and GM
• Honda, Mazda, Nissan, Subaru, Suzuki, Toyota
• Stellantis and Renault
• VW Group (Volkswagen, Audi, Porsche, etc.)
• Volvo and Jaguar-Land Rover

The push for supply chain localization, driven by tariffs, makes the regional manufacturing hubs critical for this direct channel. Superior Industries International, Inc. uses its facilities in Mexico and Poland for in-region delivery. As of the Q1 2025 earnings call, the CEO noted that both the Europe and Mexico operations had approximately 20% excess capacity. This excess capacity is being leveraged as OEMs seek local partners due to the over $\mathbf{100\%}$ US import tariffs on Chinese wheels and the $\sim\mathbf{50\%}$ tariffs on Moroccan imports into Europe. This tariff dynamic is fueling new business quoting, with the company having quoted over $\mathbf{\$53}$ million in lifetime deals year-to-date, which is double the prior year's level.

For the European aftermarket, Superior Industries International, Inc. relies on independent distributors and retailers. This channel moves product under its established aftermarket brands. These brands are definitely well-known over there:

• ATS®
• RIAL®
• ALUTEC®
• ANZIO®

While the search results don't give a specific revenue split for the distributor channel versus the European OEM channel within the $\mathbf{\$117.9}$ million European Net Sales, the aftermarket brands are the key to that segment's reach. The company also maintains a company-owned websites presence to support its aftermarket brand visibility, though specific e-commerce revenue figures aren't broken out in the Q1 2025 data.

Underpinning all of this is the global logistics network for raw material and finished goods transport. This network has to be efficient, especially when you consider the company's financial position as of March 31, 2025: Total Debt was $\mathbf{\$516}$ million, but they had $\mathbf{\$54}$ million in total cash on the balance sheet. The ability to move materials efficiently helps manage working capital, which was a focus, as Cash Flow Provided by Operating Activities was $\mathbf{\$24}$ million for Q1 2025. The company has physical locations supporting this, including Shared Services in Chihuahua, Mexico, and the European Office in Bad Dürkheim, Germany.

Finance: draft 13-week cash view by Friday.

Superior Industries International, Inc. (SUP) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Superior Industries International, Inc. as of the first quarter of 2025. Honestly, the customer mix is heavily weighted toward large, established players in North America and Europe, but recent events have put a spotlight on the fragility of that concentration.

North American Automotive OEMs (GM, Ford, Toyota)

This segment is the historical powerhouse for Superior Industries International, Inc., driving the largest portion of their top line. For the first quarter of 2025, North America accounted for $203.7 million of the total Net Sales of $321.6 million. This represents about 63.3% of the total Q1 2025 Net Sales. You know the names-GM, Ford, Toyota-they are the anchor clients, demanding high volumes of factory-installed wheels. However, this segment is also the source of the major near-term risk; subsequent to March 31, 2025, the company lost volumes representing 33% of its expected 2025 revenue from certain larger North American OEM customers. That's a massive shift you need to factor into any valuation.

European Automotive OEMs (VW Group, BMW, Daimler)

Europe is the second major OEM pillar, though significantly smaller than North America based on Q1 2025 figures. European Net Sales for that quarter were $117.9 million, making up about 36.7% of the total. Superior Industries International, Inc. supplies wheels for factory installation on models from the VW Group (including Audi, Porsche, Bentley), BMW (including Mini), and Daimler (Mercedes-Benz, AMG, Smart), among others like Jaguar-Land Rover, Renault, Stellantis, and Volvo. The CEO noted that import tariffs, around ~50% on Moroccan imports into Europe, are fueling localization momentum here, which helps Superior Industries International, Inc.'s Polish operations.

European Aftermarket Consumers (via ATS, RIAL, etc.)

This segment serves the replacement wheel market in Europe, which is a different sales channel than direct-to-factory supply. Superior Industries International, Inc. sells through well-recognized aftermarket brands like ATS, RIAL, ALUTEC, and ANZIO. While the search results provide clear data on OEM sales by region, they don't break out the specific revenue contribution from the European Aftermarket versus European OEM sales for Q1 2025. We only know that the European segment generated $117.9 million in Net Sales. The value-added sales for the entire European operation in Q1 2025 were $67.1 million. This business is critical because it offers a degree of diversification away from the direct, often volatile, OEM contract cycles.

Here's a quick look at the geographic revenue split from the latest reported quarter:

Asian Automotive OEMs with North American/European production

This is an emerging, opportunity-driven segment, directly tied to global trade dynamics. The pressure from US tariffs on Chinese wheel imports, which are over 100%, is forcing global OEMs to seek localized supply chains in North America. Superior Industries International, Inc. is actively quoting on this demand, noting an unprecedented level of activity year-to-date with over 53 million lifetime wheels quoted. The CEO mentioned securing a contract with a Japanese OEM in late 2024/early 2025, showing success in capturing this shift toward regional sourcing. This group is less about current volume and more about future contract wins driven by trade policy.

Customers seeking tariff-advantaged, localized production

This isn't a geographic segment but a strategic customer motivation that cuts across the OEM categories, especially in North America and Europe. The urgency from OEMs to localize production is directly exacerbated by global tariff dynamics. Superior Industries International, Inc.'s manufacturing footprint in Mexico and Poland is its key competitive advantage here, offering more cost-effective, local-for-local sourcing compared to imports. The company's Value-Added Sales for Q1 2025 were $168.5 million globally. This value-add is what these customers are paying for-the localized engineering, design, and manufacturing that avoids high import duties. If onboarding takes 14+ days, churn risk rises, so speed in securing these new localized contracts is key.

• North American OEM customers are actively resourcing to avoid tariffs on Asian imports.
• European operations benefit from nearly 50% tariffs on Moroccan imports, favoring local Polish production.
• The company is quoting on more than 53 million lifetime wheels year-to-date, driven by tariff tailwinds.

Finance: draft 13-week cash view by Friday.

Superior Industries International, Inc. (SUP) - Canvas Business Model: Cost Structure

You're looking at the cost side of Superior Industries International, Inc. (SUP) following its major balance sheet reset in mid-2025. The cost structure is heavily influenced by raw material volatility, fixed overhead from global operations, and the recent, dramatic reduction in financing costs.

Raw material costs, primarily aluminum, which are often passed through, remain a key variable cost. For the first quarter of 2025, the North America segment saw its net sales increase by $9.5 million driven by higher aluminum and other pass-through costs to OEM customers. To be fair, the OEM contracts are structured to adjust for these changes, but this pass-through mechanism isn't perfect, as evidenced by the European segment reporting lower aluminum pass-through costs of $0.5 million contributing to a net sales decrease.

The company relies on its global manufacturing footprint in Mexico and Poland, which means high fixed costs from manufacturing plant operation and maintenance are a constant. While we don't have a direct fixed cost total, the Q1 2025 Gross Profit was $16 million, a drop from $21 million the prior year, largely due to lower performance-related cost absorption. This absorption issue points directly to overhead not being fully covered by production volume.

Labor and conversion costs in Mexico and Poland are central to Superior Industries International, Inc.'s cost strategy. The move to lower-cost, highly automated operations in Poland, completed as part of the European Transformation, was intended to close the margin gap with Mexico. However, Q1 2025 conversion costs still hit the bottom line: North America saw $5.9 million in higher conversion costs impacting operating income, and the European segment faced $4.4 million in higher conversion costs. Honestly, the lower labor costs in these regions are a significant differentiator, but conversion costs remain a pressure point.

The most significant recent change impacting the cost of capital is the debt reduction. Interest expense on remaining debt, reduced from $982 million to $125 million, is a massive structural improvement. Following the July 2025 recapitalization, funded debt was slashed from approximately $982 million to about $125 million, a reduction of almost 90 percent. This deleveraging is designed to create room for operational focus by significantly lowering the interest burden.

On the overhead side, Selling, General, and Administrative (SG&A) expenses showed positive movement. For the first quarter of 2025, SG&A expenses were $16 million, down from $21 million in the first quarter of 2024. This decrease reflects cost reduction efforts tied to the European Transformation.

Here's a quick look at the key Q1 2025 cost and related performance metrics:

The company's focus on operational efficiency is clear in the cost control measures:

• European Transformation driving SG&A reduction.
• Lower-cost manufacturing footprint in Mexico and Poland.
• Debt reduction eliminating a major interest expense distraction.
• OEM pricing mechanisms to recover aluminum cost inflation.

Finance: review the projected Q2 2025 interest expense based on the $125 million post-restructuring debt load by Monday.

Superior Industries International, Inc. (SUP) - Canvas Business Model: Revenue Streams

The Trailing Twelve Month (TTM) Revenue for Superior Industries International, Inc. stood at $1.16 billion USD as of June 2025. This follows a reported Net Sales figure of $322 million for the first quarter of 2025.

The geographic split of that first quarter revenue shows the core markets clearly:

Superior Industries International, Inc.'s primary revenue streams come from the design and manufacture of aluminum wheels sold to original equipment manufacturers (OEMs) for factory installation in North America and Europe. A secondary, but important, stream is the sale of branded wheels in the European aftermarket. The European aftermarket sales use brands such as ATS, RIAL, ALUTEC, and ANZIO.

The OEM business is heavily concentrated with a few large players, though recent events have shifted the near-term outlook. You can see the customer concentration from the first quarter of 2025:

• GM accounted for 21% of sales in Q1 2025.
• Ford accounted for 18% of sales in Q1 2025.
• VW Group accounted for 15% of sales in Q1 2025.
• Toyota accounted for 13% of sales in Q1 2025.
• Prior to recent notifications, these customers were estimated to be about 33% of projected consolidated net sales for the 2025 fiscal year.

Regarding the pass-through costs, the structure includes mechanisms to manage commodity risk. Superior Industries International, Inc. has contractual price adjustment clauses with its OEM customers designed to minimize the price risk associated with aluminum and alloy premiums. This suggests that the cost of raw materials, like aluminum, is factored into the Net Sales through these agreements, rather than being a separate, non-included pass-through line item in the reported Net Sales figure. Finance: draft 13-week cash view by Friday.