Nexteer Automotive Group (1316) Q4 2025 earnings summary

Executive summary

• Achieved record revenue of $4.6 billion in 2025, up 7.2% year-over-year, marking the third consecutive year of record sales and outpacing global OEM production growth.

• Launched 57 customer programs, with strong APAC momentum and significant wins in Steer-by-Wire, Motion-by-Wire, and EPS technologies.

• Secured $4.9 billion in new business bookings, including major Steer-by-Wire awards with leading Chinese and EV OEMs; 66% from new/conquest business.

• Expanded manufacturing and technical footprint in APAC, including new facilities and technical centers in China, India, and Thailand.

• Board approved a $46 million dividend, more than double last year, representing a 45% payout ratio of net profit.

Financial highlights

• Revenue reached $4.6 billion, up 7.2% year-over-year; adjusted revenue growth was 6.9%, outperforming the market by 320 basis points.

• EBITDA grew 11.2% to $472 million, with margin expanding to 10.3%.

• Net profit attributable to equity holders was $102 million (2.2% of revenue), up from $62 million in 2024; adjusted net income was $126 million (2.7%).

• Free cash flow was $124 million, with a strong net cash position of $414 million at year-end.

• Ended 2025 with $501 million cash on hand, $50 million gross debt, and $833 million total liquidity.

Outlook and guidance

• Expect above-market revenue growth in 2026 of 200-300 basis points, mainly driven by APAC, despite a forecasted 1% decline in global OEM production.

• Anticipate continued margin expansion and initial revenue from Motion-by-Wire products in 2026.

• Effective tax rate forecasted to fall below 30% in 2026, with a long-term target in the high teens.

• Focus remains on innovation, product portfolio breadth, and leveraging megatrends such as ADAS, electrification, and software.