Nexteer Automotive Group (1316) Q1 2025 earnings summary

Executive summary

• Achieved a record 23 new program launches in Q1 2025, with 14 supporting battery electric vehicle platforms and 19 representing new or conquest business, including major launches across APAC and North America.

• Strong bookings momentum, especially with leading China OEMs and NEVs, including high-end and new products such as rear wheel steering, rack EPS, and dual pinion EPS.

• Regained a significant North American column business previously lost, improving competitiveness and scale in Mexico and North America.

• Expanded motion-by-wire chassis portfolio, including steer-by-wire, rear wheel steering, brake-by-wire, and software, showcased at the Shanghai Auto Show.

• Major program launches for global OEMs including Fiat, Ford, BYD, BMW, Cadillac, Alfa Romeo, Lynk, Opel, and Zeekr.

Financial highlights

• Booked $0.8 billion in new business in Q1 2025; forecasting $5 billion in bookings for the full year.

• Electric power steering accounted for 36% and columns for 45% of year-to-date new business bookings.

• Nearly 40% of total bookings are with China OEMs, reflecting alignment with growth megatrends in China.

• Bookings composition: 54% Asia Pacific, 45% North America, 1% EMEASA; 76% from new conquest programs.

Outlook and guidance

• Expecting another record launch year for EPS, including the first dual pinion EPS in China.

• On track to deliver above-market revenue growth of 200 to 300 basis points year-over-year, with APAC as a key driver.

• Continued margin expansion initiatives remain on track, with strategic focus on 'Motion-by-Wire' chassis control and further bookings anticipated throughout the year.

• Anticipate continued strong demand for by-wire technologies, especially in China.

• Closely monitoring tariff policy developments with a comprehensive mitigation plan in place.