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GLW · Forward model · Automotive · Bull case

What has to happen in Automotive

Model as of

This page changes Automotive inside the complete GLW model. Every other vertical, corporate programme and valuation assumption stays in the selected portfolio case.

GLW forward model
Horizon
Consolidated fair value $234.51 all other verticals held in this portfolio case
Final-quarter revenue $504M 5% of company revenue
Explicit segment contribution $2.02B EBITDA less segment capex, before corporate items

The three named agreements convert faster than the plan assumes. Enterprise Networks grew 65% year over year in the basis quarter with Gen AI product sales growing significantly faster, and both the Amazon and NVIDIA agreements were signed inside that quarter, so almost none of their volume is in the base. NVIDIA's commitment is being met with a 10x expansion of US optical connectivity capacity and three new plants, and Corning took $880m of customer deposits and government incentives in a single quarter against $59m a year earlier - customers are pre-paying. Add Solar's module business crossing into profit and the $40 billion arrives early. This case runs Optical and Solar a point a quarter faster with margins a point and a half higher, and exits at 22x on an 8.5% discount rate.

Automotive

Basis quarter$471M
Final quarter$504M
Implied CAGR+1%
Final revenue mix5%

Ceramic substrates and particulate filters for emissions control, plus Automotive Glass Solutions. A mature, cyclical, cash-generative line with a 30.36% EBITDA margin and essentially no growth at +2.4% year over year. Its job in the model is ballast: it funds the build without being asked to grow into it.

Last four quarters
2025 Q3 $454M Reported
2025 Q4 $440M Reported
2026 Q1 $437M Reported
2026 Q2 $471M Reported
Environmental TechnologiesAutomotive Glass Solutions
Sequential growth +0.6%/qtr decaying toward +0.2% The trailing-four-quarter compounded rate: (471/460)^(1/4) - 1 = 0.59%.
Automotive

Latest: $504M (2030Q4E)

Period Value
2024Q1 $491M
2024Q2 $479M
2024Q3 $430M
2024Q4 $446M
2025Q1 $440M
2025Q2 $460M
2025Q3 $454M
2025Q4 $440M
2026Q1 $437M
2026Q2 $471M
2026Q3E $474M
2026Q4E $476M
2027Q1E $479M
2027Q2E $481M
2027Q3E $483M
2027Q4E $485M
2028Q1E $487M
2028Q2E $489M
2028Q3E $490M
2028Q4E $492M
2029Q1E $494M
2029Q2E $495M
2029Q3E $497M
2029Q4E $498M
2030Q1E $499M
2030Q2E $501M
2030Q3E $502M
2030Q4E $504M

Assumptions & reasoning

  • Two years of segment EBITDA margin sit in a 28.7-30.7% band with no trend, so the terminal margin is held mid-band rather than extended in either direction.
  • Terminal capex intensity is set to the FY2025 rate of 4.24% rounded to 4.0%, not to the 3.40% of one light quarter, because 16 of capital spending on 471 of sales is a quarter of maintenance-only spend rather than a run rate.
  • The segment was created on 1 January 2025 by moving Automotive Glass Solutions in with Environmental Technologies and Corning did not recast 2023, so only ten quarters exist on this definition - which is also what sets the model's shared history window.
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