Nexteer Automotive (HK 1316) today reported year end results for the period ended December 31, 2024, including record revenue of US$4.3 billion, an increase of 1.6% compared to 2023. Adjusting for foreign currency and commodity recoveries, Nexteer’s revenue increased by 2.5%, outperforming the market by 360 basis points.
“Nexteer’s strong Bookings over the past several years converted into revenue of $4.3 billion for 2024, our second, consecutive year achieving revenue above $4 billion and growing above market levels,” said Robin Milavec, President, Chief Technology Officer (CTO), Chief Strategy Officer (CSO) and Executive Board Director, Nexteer Automotive. “We also secured significant Bookings throughout 2024 totaling $6 billion and expanded diversification across our customers, markets and products. Our Bookings also prove continued growth momentum alongside Chinese OEMs with 28% of our Bookings coming from this segment, which is an impressive 38% increase from the prior year.”
Bookings highlights: diversification & continued Chinese OEM momentum
During this period, Nexteer’s above market revenue growth was driven by strong conquest wins of new customer business over several years, as well as continued momentum with leading Chinese OEMs (COEMs). Nexteer achieved $6.0 billion in Bookings, of which 31% represented new conquest business and 28% represented COEM business. The company noted key Bookings positioning Nexteer to capitalize on future, additional growth opportunities, including:
- First Dual Pinion Electric Power Steering (DPEPS) win in APAC with two leading COEMs
- First Steer-by-Wire (SbW) booking with a leading COEM
- First Rear Wheel Steering – a form of SbW – with a leading COEM
- First SbW booking for a highly automated mobility-as-a-service application with a global EV leader
- Next Generation Bookings: Incumbent Driveline (DL) business extension and a Rack-assist Electric Power Steering (REPS) for a full-size truck platform
77 launches – Sets record & expands diversification
In 2024, Nexteer successfully launched 77 customer programs – surpassing the company record in 2023 – 68 represented new or conquest business and 45 represented EV platforms. The composition across Nexteer’s product lines, customers, regions and vehicle segments reflects a growing diversity. For example, 52 launches were in APAC supporting both COEMs and global OEMs. This success is a result of Nexteer’s strategic plan to capitalize on growth opportunities within the region and globally as COEMs expand into new markets.
Nexteer’s launch composition also reflects many firsts, including a first Rack-Assist Electric Power Steering (REPS) launch with a Japanese OEM, first Dual-Pinion EPS (DPEPS) launch in EMEASA, first major adjacent market launch for Single-Pinion (SPEPS) in NA, plus multiple first REPS launches with COEMs.
Full Year 2024 Financial Results
Nexteer achieved record full-year revenue of US$4.3 billion increasing by 1.6% when compared with 2023. Adjusting for unfavorable foreign currency translation and a decrease in commodity recoveries, the company’s revenue increased by 2.5%, outperforming the market by 360 basis points. Continued growth in APAC led with revenue growth above market by 11.3% driven by growth with COEMs.
Net Profit Attributable to Equity Holders of $61.7 million increased by 68.0% compared to 2023. Adjusted EBITDA of $424.4 million, increased $77.8 million or 22.5% compared to 2023. Nexteer’s free cash flow was strong with an inflow of $166.4 million which was an increase of $61.4 million compared to 2023 driven by the increase in earnings.
“Our Nexteer team navigated 2024’s challenging environment with a determined focus on strengthening our business and profitability fundamentals. While we made significant progress in 2024, we remain committed to continuing and accelerating this progress while executing our strategy for profitable growth that delivers above market revenue, improves margins and drives innovation,” added Milavec.
SOURCE: Nexteer
