#USA #Auburn Hills #Nexteer Automotive #Electric Power Steering #Growth Results

Nexteer Automotive Reports Impressive Year-End Results for 2024

Overview of Financial Performance

AUBURN HILLS, Mich., March 19, 2025 – Nexteer Automotive, listed as HK 1316, has released its extraordinary year-end results for 2024, revealing an unprecedented revenue of US$4.3 billion. This marks a 1.6% increase compared to 2023. Notably, after adjusting for foreign currency fluctuations and commodity recoveries, the actual growth in revenue was an impressive 2.5%, surpassing the market by 360 basis points.

Insights from Leadership

Robin Milavec, the President and CTO of Nexteer, expressed pride in the company’s continuous growth over the past few years. "Our strong bookings have transitioned into revenue of $4.3 billion, marking our second consecutive year exceeding the $4 billion milestone while outpacing market growth," Milavec stated. In 2024, the company secured substantial bookings totaling $6 billion, highlighting its expanded diversification across clients, markets, and products. A remarkable 28% of these bookings came from the rapidly growing Chinese Original Equipment Manufacturers (COEMs), representing a 38% increase from the previous year.

Highlights of Bookings and Innovations

Nexteer's revenue surge was heavily influenced by a series of significant contract wins over the past few years. The breakdown of their $6.0 billion bookings indicates that 31% was new business gained through competitive conquest, while 28% was from COEMs. The company is strategically placed for future expansion opportunities with accomplishments including:

• - The first Dual Pinion Electric Power Steering system deployment in APAC with two major COEMs.
• - The inaugural Steer-by-Wire (SbW) booking with a leading COEM.
• - The introduction of Rear Wheel Steering, a form of SbW, with another key player.
• - The first SbW booking tailored for an automated mobility-as-a-service application with a global electric vehicle leader.
• - Upcoming product offerings that include enhancements in their Driveline business and new Rack-assist Electric Power Steering systems for larger truck platforms.

Continued Expansion and Records Set

In 2024, Nexteer not only achieved record revenue but also successfully launched 77 customer programs. This surpassed last year's record of 68, with 45 of these launches being dedicated to electric vehicle platforms. The performance across various product lines, clientele, and geographical segments showcases a significant broadening in diversity.

Remarkably, 52 launches occurred in the APAC region, demonstrating Nexteer's commitment to capitalize on growing market opportunities as COEMs venture into new territories. Among these launches were several firsts, including:

• - A groundbreaking Rack-Assist Electric Power Steering system with a Japanese OEM.
• - The inaugural Dual-Pinion EPS launch in the EMEASA region.
• - A significant market entry for Single-Pinion (SPEPS) operations in North America.

Financial Overview of 2024

For the full year of 2024, Nexteer's revenue reached US$4.3 billion, illustrating a steady 1.6% increase relative to the previous year. Adjusted for poor foreign currency translations and decreased commodity recoveries, the adjusted revenue growth stood at 2.5%, again surpassing the market by 360 basis points. The company also experienced robust revenue growth of 11.3% within the APAC region, primarily driven by expansion efforts with COEMs.

Net profit attributable to equity holders soared to $61.7 million, marking a 68.0% increase from 2023. The adjusted EBITDA reached $424.4 million, enhancing by $77.8 million—a notable 22.5% increase. Furthermore, Nexteer’s free cash flow was bolstered, showcasing an inflow of $166.4 million, which indicates a rise of $61.4 million over the previous year as a result of increased earnings.

Strategic Direction Ahead

"Navigating the complexities of 2024 proved challenging, yet our focus on solidifying our business and enhancing profitability remained steadfast," Milavec continued. Nexteer is determined to maintain momentum, diligently applying strategies aimed at achieving profitability and stimulating sustainable growth while aiming for revenues that consistently outpace market trends, bolstering margins, and fostering innovation.

Nexteer Automotive stands as a pioneer within the motion control technology sector, propelling advancements in mobility across various megatrends such as electrification, connectivity, automated driving, and shared mobility solutions, catering to more than 60 global customers including giants like BMW, Ford, GM, and numerous others in China and India like BYD, Chery, and Great Wall. This significant progress in 2024 sets a firm foundation for future endeavors in growth and technological advancement.