Nexteer Reports First Half 2023 Results; Posts Record Half-Year Revenue
AUBURN HILLS, Mich., Aug. 16, 2023 /PRNewswire/ -- Nexteer Automotive (HK 1316) today reported first half results for the period ended June 30, 2023 – including record half-year revenue of US$2.1 billion, which is an increase of 17.4% compared to first half 2022. During this period, Nexteer also secured new customer program awards (Bookings) totaling US$2.8 billion, including Nexteer's second Steer-by-Wire (SbW) program.
"In the first half of 2023, Nexteer continued to leverage our technology strengths and megatrend alignment to maintain business growth above market levels. The strong new and conquest bookings we've won over the past several years enabled us to secure record half-year revenue of $2.1 billion – and we're on track to cross over $4 billion in annual revenue for the first time in our company's history," said Robin Milavec, President, Chief Technology Officer (CTO), Chief Strategy Officer (CSO) and Executive Board Director, Nexteer Automotive. "During the first half of 2023, Nexteer also secured significant Bookings including our second Steer-by-Wire production program and new steering programs with Chinese NEV customers, among others. These Bookings demonstrate how Nexteer's advanced motion control technology continues to solve challenges across all megatrends shaping our industry."
Steering Bookings Highlights
Nexteer achieved Bookings of US$2.8 billion for the first half of the year. These included Nexteer's second SbW production program with a leading, global OEM and a volume increase for a significant North America electric truck program. During this period, Nexteer also continued its Bookings and aggressive growth plan with Chinese New Energy Vehicle (NEV) OEMs.
During the first half of 2023, 89% of Nexteer's Bookings were with the Electric Power Steering (EPS) product line, 98% of the Bookings will be on fully electric vehicle (EV) or EV/Internal Combustion Vehicle (ICE) split platforms and 37% of these Bookings represent new/conquest business, which provides longer term growth over market for Nexteer.
32 Successful New Customer Program Launches
In the first half of 2023, Nexteer successfully launched 32 customer programs across all regions – marking another period of strong program launches. Of these customers' programs, 30 represented new or conquest business and 19 represented EV launches supported by Nexteer's products.
First Half 2023 Financial Results
Nexteer reported first half 2023 revenue of US$2.1 billion, an increase of 17.4% when compared with the six months ended June 30, 2022 and a new company record for half-year revenue. Nexteer also reported free cash flow generation of US$59.9 million – which significantly outperformed the first half of 2022. Compared with the six months ended June 30, 2022, gross profit of US$190.8 million increased by 27.4%; profit before income tax of US$45.8 million increased by 121.0%; profit attributable to equity holders of Nexteer of US$34.0 million increased by 405.2%; and adjusted EBITDA of US$186.1 million increased by 17.7%.
"In addition to growing revenue above market levels, Nexteer continues to take proactive actions to further improve Nexteer's resiliency and enhance our profitability and competitiveness. Nexteer remains committed to executing our long-term strategy for profitable growth by focusing on 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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