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 (2.5% adjusted for FX/commodities), outpacing the market by 360 bps, driven by APAC growth and new program launches, especially with China OEMs.

• EBITDA grew 22.5% to $424 million, with margin expansion of 170 basis points; net profit rose 68% to $62 million.

• Free cash flow increased to $166 million, up 58.6% from 2023, supporting a strong net cash position of $331 million.

• Bookings for 2024 totaled $6 billion, including key wins in Steer-by-Wire and rear-wheel steering, with 45 programs tied to EVs.

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

Financial highlights

• Revenue: $4.3 billion (+1.6% YoY); adjusted for FX and commodities, +2.5%.

• EBITDA: $424 million (+22.5% YoY), margin 9.9%.

• Net profit: $62 million (+68% YoY), margin up to 1.4%.

• Free cash flow: $166 million (+58.6% YoY); net cash position: $331 million.

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

Outlook and guidance

• Forecasts global OEM production volumes to remain flat in 2025.

• Expects to outperform market by 200–360 basis points in revenue, led by APAC and China.

• Anticipates further margin expansion in 2025 from volume, FX, cost reductions, and footprint initiatives.

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

• Steer-by-Wire expected to be ~5% of revenue by 2030, with significant ramp-up after 2030, led by China.