Nexteer Reports First Half 2024 Results

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Aug 14, 2024, 06:59 ET

Continues Strong Revenue Pipeline & Growth Momentum with China OEMs

AUBURN HILLS, Mich., Aug. 14, 2024 /PRNewswire/ -- Nexteer Automotive (HK 1316) today reported first half results for the period ended June 30, 2024 – including revenue of US$2.1 billion, remaining flat compared to first half 2023. During this period, Nexteer also continued above market revenue growth driven by strong conquesting of new customer awards (Bookings) over the past several years. Nexteer also achieved $2.1 billion in first half Bookings, of which almost half (43%) were driven by continued growth with Chinese domestic OEMs (COEMs), including the Company's first Dual Pinion-Assist EPS (DPEPS) award in APAC.

"In the first half of 2024, Nexteer's strong conquest bookings over the past several years has converted into half-year revenue of $2.1 billion and continues to support our growth above market levels," said Robin Milavec, President, Chief Technology Officer (CTO), Chief Strategy Officer (CSO) and Executive Board Director, Nexteer Automotive. "During the first half of 2024, Nexteer also secured significant Bookings totaling $2.1 billion which goes hand-in-hand with our continued technology leadership and trend alignment. Proof points include Nexteer's growing momentum with Chinese domestic OEMs and our latest announcement of Modular Pinion-Assist EPS – mPEPS – which now completes our full suite of modular electric power steering solutions that accelerate speed-to-market and reduce cost without sacrificing performance."

Bookings Highlights
Nexteer achieved Bookings of $2.1 billion for the first half of the year. 74% of Bookings represented incumbent business including key NA truck bookings for Driveline (DL) and Columns and Intermediate Shafts (CIS) while 26% represented new conquest business, including Nexteer's first DPEPS in APAC. During this period, Nexteer also continued its aggressive growth plan with COEMs representing 43% of first half Bookings. Furthermore, COEM bookings almost tripled when comparing first half of 2023 bookings at $325 million to first half of 2024 bookings at $930 million, increasing 186%.

38 Successful New Customer Program Launches
In the first half of 2024, Nexteer successfully launched 38 customer programs across all regions – marking another period of strong program launches. Of these customers' programs, 32 represented new or conquest business, 18 represented 100% EV launches and 23 represented APAC launches as well as several firsts including Nexteer's first EPS launch with a Japanese OEM, first DPEPS launch in EMEASA and first major adjacent market launch for steering in NA.

First Half 2024 Financial Results
Nexteer reported first half 2024 revenue of $2.1 billion, remaining flat when compared with the first half of 2023. Adjusting for foreign currency and customer commodity recoveries, the company's revenue increased by 1.0%, outperforming the market by 120 basis points. Adjusted EBITDA of $197 million or 9.4% of revenue improved by $11 million, representing a 50-basis points expansion compared to the first half of 2023. Net profit attributable to equity holders was $16 million in the first half of 2024, which was a reduction of $18 million compared to the first half of 2023, that included a one-time income tax gain of $11 million.
"Beyond strong revenue growth, Nexteer continues our laser focus on improving and executing operational efficiencies including customer recoveries, reducing fixed costs, optimizing our footprint and leveraging our supply chain. These collective actions and more represent Nexteer's commitment to our long-term strategy for profitable growth. Our holistic strategy positions Nexteer to successfully navigate a challenging environment and ensure customer diversification and product expansion aligned with industry megatrends," added Milavec.

FORWARD-LOOKING STATEMENTS
Any forward-looking statements and opinions contained within this press release are based on current plans, estimates and projections, and therefore involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements and opinions. Nexteer Automotive and its directors and employees assume (a) no obligation to correct or update the forward-looking statements or opinions contained in this press release; and (b) no liability in the event that any of the forward-looking statements or opinions do not materialize or turn out to be incorrect.

ABOUT NEXTEER AUTOMOTIVE
Nexteer Automotive (HK 1316) is a global leading motion control technology company accelerating mobility to be safe, green and exciting. Our innovative product and technology portfolio includes electric and hydraulic power steering systems, steer-by-wire systems, steering columns and intermediate shafts, driveline systems and software solutions. The company solves motion control challenges across all megatrends – including electrification, software/connectivity, ADAS/automated driving and shared mobility – for more than 60 customers around the world including BMW, Ford, GM, RNM, Stellantis, Toyota and VW, as well as automakers in India and China including BYD, Chery, Great Wall, Geely, Xpeng and others. www.nexteer.com

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SOURCE Nexteer Automotive