Yahoo Finance

• Revenue: Record revenue of USD 4.3 billion, a 1.6% increase compared to 2023.

• APAC Revenue: Record revenue of USD 1.3 billion, growing more than 10% compared to 2023.

• EBITDA: USD 424 million, a 22.5% increase year over year, with margins expanding by 170 basis points.

• Net Profit: USD 62 million, a 68% increase compared to 2023, with margin improving by 50 basis points.

• Free Cash Flow: USD 166 million, a USD 61 million increase compared to 2023.

• New Business Bookings: USD 6 billion in lifetime revenue, including two new steer-by-wire production awards.

• Dividend: Board approved a USD 22 million dividend, representing a 35% payout ratio of the 2024 net profit.

• Program Launches: 77 customer programs launched, with 45 tied to electric vehicle programs.

• Regional Revenue Distribution: North America 51%, APAC 31%, EMEASA 17% of total revenue in 2024.

• Cash Position: Net cash position of USD 331 million at year-end 2024.

• Warning! GuruFocus has detected 7 Warning Signs with NTXVF.

Release Date: March 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Nexteer Automotive Group Ltd (NTXVF) achieved record revenue of $4.3 billion in 2024, marking a 1.6% increase compared to 2023.

• The company successfully launched 77 customer programs across all regions, with 45 tied to electric vehicle programs, setting a new company record.

• Nexteer secured $6 billion in customer program bookings, including significant steer-by-wire production awards.

• The APAC division achieved record revenue of $1.3 billion, growing more than 10% compared to 2023, with strong profitability and free cash flow.

• The Board approved a $22 million dividend, representing a 35% payout ratio of the 2024 net profit, an increase from the historical payout of 20%.

Negative Points

• Unfavorable foreign exchange reduced revenue by $27 million due to the depreciation of the China RMB against the US dollar.

• North America revenue decreased by 2.9% compared to last year, partly due to a European OEM underperformance and certain customer programs ending in 2023.

• The company faced $19 million in warranty recall costs, mostly in the EMEASA division, impacting EBITDA.

• Nexteer incurred $9 million in restructuring costs in 2024, related to early retirement programs and the transition of column manufacturing to Mexico.

• The company experienced a $47 million impairment primarily due to customer program cancellations, impacting net profit.

Q & A Highlights

Q: Could you share more about the steer-by-wire project size and its content compared to traditional systems? Also, is Nexteer engaging with Chinese taxi upgrade makers for steer-by-wire? A: The steer-by-wire system for the North American EV leader is a road wheel actuator similar to a dual pinion system, with additional redundancies for safety. In China, we have secured two steer-by-wire production contracts and see promising opportunities in this market.