As a fellow steering system supplier, XEPS has noted that industry peer Nexteer Automotive delivered a remarkable performance in the first half of 2025. Below is a summary of its recent business developments.
Strong 1H25 Results
In 1H25, Nexteer reported total revenue of USD 2.24 billion, up 6.8% year-over-year, already accounting for 51% of its full-year revenue guidance. Gross margin improved by 1.5 percentage points to 11.5%, EBITDA rose 16.8% to USD 230 million, and net profit surged 304.5% to USD 63 million (57% of its full-year target). The company attributed this strong performance primarily to continued growth in the Asia-Pacific region.
Asia-Pacific Momentum with New Projects Scaling Up
Revenue growth in Asia-Pacific and EMEASA (Europe, Middle East, Africa, South America) drove profitability in 1H25:
-
Asia-Pacific revenue reached USD 690 million, up 15.5% YoY, with its share of total revenue rising by 3 points to 31%, while North America’s share decreased to 51%.
-
EMEASA revenue rose 9.4% to USD 400 million.
-
By region, Asia-Pacific EBITDA margin slipped slightly to 16.9%, while EMEASA margin increased to 8.8%.
New orders also showed balanced global distribution: 47% from Asia-Pacific, 30% from EMEASA, and 23% from North America. EPS orders remained the company’s core, making up 69% of total bookings. Nexteer expects growth to continue as new programs such as Xiaomi YU7 ramp up and new facilities in Changshu and Liuzhou begin operations. Its EBITDA margin for the first half improved to 10.3% (+0.9ppts YoY).
Expanding Leadership in Steering and Steer-by-Wire
Management guided for USD 5 billion in new orders for FY2025, with USD 1.5 billion booked in 1H25. These include:
-
A North American full-size truck platform program
-
European customer projects for DP-EPS and rear-wheel steering
-
Chinese OEM exports to Indonesia and Brazil
Leveraging its technical strength, Nexteer continues to consolidate its core EPS competitiveness while expanding into steer-by-wire and advanced chassis domains. Its portfolio now covers steer-by-wire, rear-wheel steering, EMB, and the Motion IQ software suite.
-
Steer-by-wire has already secured orders from a leading North American EV maker for an L4 project, as well as a top Chinese NEV OEM.
-
Rear-wheel steering has been awarded by both European and Chinese automakers.
-
EMB is expected to secure its first program this year.
-
Motion IQ positions Nexteer as a software partner for OEMs moving toward software-defined vehicles.
Outlook
Nexteer is expected to sustain momentum by:
-
Leveraging modular design and leading technology to capture new business opportunities.
-
Benefiting from rising adoption of advanced chassis and steer-by-wire systems as the industry accelerates toward intelligent driving.
Risks
Potential headwinds include: weaker-than-expected OEM sales, tariff impacts, intensified competition in Asia-Pacific, FX volatility, trade frictions, reduced U.S. EV demand due to IRA subsidy removal, and slower-than-expected steer-by-wire adoption.
Source: Nexteer earnings coverage – WeChat article link
