Financial Data and Key Metrics Changes - The company reported 5 billion in bookings for the full calendar year [11] - North America operations generated 1.3 billion from U.S. operations and $900 million from Mexico operations [17] - The company expects above-market revenue growth of 200 to 300 basis points year over year for 2025 [20] Business Line Data and Key Metrics Changes - In Q1 2025, the company achieved 23 new program launches, including 14 for battery electric vehicle platforms [7] - Electric powered steering accounted for 36% of year-to-date new business bookings, while columns accounted for 45% [11] - The company secured significant steer by wire bookings, including contracts with a global EV leader and a leading Chinese NEV OEM [21] Market Data and Key Metrics Changes - Nearly 40% of total bookings are from Chinese OEMs, indicating alignment with growth megatrends in China [12] - The company is experiencing strong customer schedules in North America, with no significant changes related to recent tariff impacts [28] Company Strategy and Development Direction - The company is focusing on motion by wire technology as a central part of its long-term growth strategy, transitioning from hydraulic to electric control systems [21] - The company aims to expand its motion by wire chassis portfolio, including steer by wire and brake by wire technologies [10][14] - The strategy includes reducing fixed costs, optimizing footprint, and improving supply chain efficiency to drive margin expansion [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges such as dynamic tariff environments and supply chain restrictions but expressed confidence in navigating these issues [5][20] - The company remains optimistic about the North American market, despite potential volatility due to tariffs [26][27] Other Important Information - The company launched several new programs at the Shanghai Auto Show, emphasizing its commitment to innovative technology [6] - The company is actively working to mitigate tariff costs through changing sourcing locations and negotiating recoveries with customers [19] Q&A Session Summary Question: Updates on the latest trend in the North America market - Management noted that North America volumes are performing according to expectations, with strong customer schedules in the near term [24][26] Question: Changes in customer order trends due to new tariffs - Management indicated that customer production schedules remain strong and have not changed significantly due to the new tariffs [28] Question: Clarification on USMCA tariff compliance - Management confirmed that to be USMCA compliant, 75% of content must come from North America, and compliant goods can be imported with zero tariffs [30][31]
NEXTEER(01316) - 2025 Q1 - Earnings Call Transcript