Nexteer Automotive Group (1316) H1 2026 earnings summary

Executive summary

• Achieved record first half 2026 revenue of $2.33 billion, up 3.9% year-over-year, with all key earnings metrics improving and above-market growth.

• Adjusted EBITDA rose 14.1% to $263 million, with margin expanding to 11.3% and operating profit increasing to $115.9 million.

• Net profit attributable to equity holders increased 35.2% to $85.8 million, with net margin improving to 3.7%.

• Free cash flow reached $109 million, nearly triple the prior year, reflecting strong cash generation and operational efficiency.

• Secured $3.3 billion in new business bookings, with 43% from new or conquest business and 30% from Chinese OEMs.

Financial highlights

• Revenue grew 3.9% year-over-year to $2.33 billion, with growth in all regions: NA +2.7%, APAC +3.2%, EMEASA +11.6%.

• Adjusted EBITDA margin improved to 11.3% from 10.3% year-over-year.

• Net profit margin increased to 3.7% from 2.8% year-over-year.

• Free cash flow was $109 million, up from $37 million in the prior year.

• Cash balance was $597 million as of June 30, 2026.

Outlook and guidance

• On track to achieve record full-year revenue and above-market growth, with bookings expected to reach $6 billion.

• Additional Steer-by-Wire program launches anticipated in the second half, supporting long-term growth.

• Focus remains on innovation, cost optimization, and expansion in China and emerging markets.

• No material capital investments planned for the remainder of 2026.

• Effective tax rate expected to be slightly below 25% for the year; long-term rate in the high teens.