Nexteer Automotive Group (1316) H2 2024 earnings summary

Executive summary

• Achieved record revenue of $4.3 billion in 2024, up 1.6% year-over-year, outpacing the market and driven by new program launches and APAC expansion, especially with China OEMs.

• Secured $6 billion in new customer program bookings, including major Steer-by-Wire and rear-wheel steering wins, with 64% in EPS and strong EV/EV-ICE platform presence.

• Launched 77 customer programs, with 45 tied to EVs and 52–68 in Asia-Pacific, reflecting strong market alignment and innovation.

• Expanded customer base by adding four new strategic customers over two years, now serving 60+ global and Chinese OEMs.

• Board approved a $22 million dividend, nearly tripling the prior year and raising payout ratio to 35% of net profit.

Financial highlights

• EBITDA grew 22.5% year-over-year to $424 million (9.9% margin), with net profit rising 68% to $62 million and margin improving by 50 basis points.

• Free cash flow increased to $166 million, up 58.6% year-over-year; net cash position at $331 million and total liquidity at $746 million.

• Gross profit rose 21.7% to $448.5 million; gross margin improved to 10.5% from 8.8%.

• APAC revenue reached a record $1.338 billion, up 10.1–12% year-over-year, while North America revenue declined 2.8–2.9%.

• Final dividend proposed at $0.0087 per share, about 35% of net profit.

Outlook and guidance

• Forecasting global OEM production volumes to remain flat in 2025, but expect to outperform the market by 200–300 basis points in revenue, led by APAC growth and new Changshu plant.

• Margin expansion anticipated in 2025 due to volume growth, cost reductions, FX tailwinds, and footprint initiatives.

• Steer-by-Wire expected to comprise about 5% of revenue by 2030, with significant ramp-up after that, especially in China.

• Targeting $6 billion in annual bookings for 2025, supporting long-term revenue growth.

• Positioned for continued growth with strong bookings and alignment to industry megatrends (ADAS, electrification, software).