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Transcript Summary

Nexteer Automotive Group Limited achieved record revenue of $4.6 billion in 2025, a 7.2% year-over-year increase, outperforming the global market by 320 basis points. Growth was spearheaded by the Asia Pacific region, which reached a record $1.5 billion in revenue. The company successfully launched 57 programs and secured $4.9 billion in new bookings, including significant Steer-by-Wire wins in China. EBITDA grew 11.2% to $472 million, with margins expanding to 10.3%, despite headwinds in North America such as EV program cancellations and supplier issues. Net profit stood at $102 million after accounting for impairment costs. Reflecting financial strength, the Board increased the dividend payout ratio to 45%. Management highlighted progress in "Motion-by-Wire" technologies, including the development of Electromechanical Braking (EMB) systems. For 2026, Nexteer anticipates another year of record revenue, targeting growth of 200–300 basis points above the market. While acknowledging geopolitical risks and market volatility, Nexteer’s strategy focuses on technology leadership in electrification and autonomous driving, supported by a strong balance sheet and ongoing manufacturing expansion in Thailand and China.

5-year share-count history (top 10 holders by peak, incl. exited) + price

Full Earnings Call Transcript — Q4 • 2026-03-24

Operator: Ladies and gentlemen, welcome to Nexteer Automotive Group Limited 2025 Annual Results Conference Call. [Operator Instructions] I would now like to turn the conference call over to Investor Relations Director, Mr. Tony Wang. Please go ahead.
Tony Wang: Okay. Thank you, Jamie. Again, welcome, everyone, to our earnings call for the full year of 2025. We made the announcement of our annual results this evening, Hong Kong time. Before we begin today's call, I would like to remind you that this presentation contains a safe harbor statement. For additional information, please refer to the content in the second page of our slides. The presentation accompanying today's call are available on our company's website. Please visit nexteer.com to download slides if you have not done yet. Joining us today are Robin Milavec, Executive Board Director, President, CTO and Interim Global COO; Mike Bierlein, Senior Vice President and CFO. Starting the presentation, Robin and Mike will provide the business and financial highlights, respectively. And then we will open the lines for your questions. Please follow the limit of 2 questions per person. With that, let me turn the call over to our President, Robin.
Robin Milavec: Thank you, Tony, and hello to everybody online today. I'll begin with an overview of our business performance and strategic progress, and then I'll hand it over to Mike Bierlein, our Chief Financial Officer, and he will walk you through our financial results and 2026 outlook. So starting with Slide 4 in our deck, let me start with a high-level overview of our full year business highlights. This reflects 5 key milestones demonstrating Nexteer's focus on long-term profitable growth. First is revenue. Our total revenue reached nearly $4.6 billion increasing 7.2% compared to 2024. And as a result, we achieved record revenue for a third consecutive year. This reflects sustained above-market growth driven by new and Conquest business wins. Second is program launches. We successfully launched 57 customer programs with particularly strong momentum in APAC, reflecting our deepening engagement with both global and Chinese OEMs. Third is new business bookings. We achieved customer program bookings totaling $4.9 billion, including new Steer-by-Wire wins with 2 leading Chinese NEV OEMs. The business development on Steer-by-Wire is well on track, along with the solid execution by our team in 2025. Fourth is revenue in our Asia Pacific division. APAC revenue reached a record of approximately $1.5 billion. This represents a 9.8% increase year-over-year, making the fourth consecutive year of record revenue in this region. This milestone highlights a remarkable organic growth trajectory with revenue surging from about USD 1 billion to USD 1.5 billion in less than 3 years. In 2025, Nexteer China and Nexteer India, each achieved record revenue, reflecting continued growth and strong regional execution. And finally, enhancing shareholder returns. We are glad to announce that the Board of Directors has approved a $46 million dividend subject to the approval of the shareholders in the upcoming Annual Shareholders Meeting. This dividend amount is more than double that of last year and represents a total of 45% payout ratio of the 2025 net profit attributable to equity holders which is an increase from 35% we had in 2024. These milestones collectively demonstrate Nexteer's ability to grow above market, while maintaining financial discipline. As I mentioned earlier, we successfully launched 57 customer programs across multiple product lines, regions, customers and vehicle segments. 42 of these were new or conquest wins and 36 were for electric vehicle platforms, demonstrating strong executions as bookings convert into revenue. Today, rather than walking through a detailed launch list line-by-line, this slide simply highlights the selection of major program launches that illustrate our new bookings wins that are translating into tangible growth. First, we achieved the initial launch of our Modular Column EPS or mCEPS in the EMEASA region. While Nexteer's mCEPS was first introduced in China, leveraging our industry-leading EPS building blocks. This successful EMEASA launch further enhances our competitiveness and our regional footprint. Second, we delivered the first Dual Pinion EPS program launch with a leading Chinese OEM. Following the inaugural Dual Pinion EPS launch in EMEASA, we have secured additional orders from multiple Chinese domestic OEMs and other European OEM over the past year. The customer demand for this product is strong, driven by the need for cost-effective speed-to-market solutions combined with Nexteer's proven steering, reliability and performance. At the same time, despite the emergence of Dual Pinion EPS, we have built a very solid and growing Rack EPS business foundation in China. Nexteer Technologies have been adopted across numerous mainstream and premium EV models with customers, including Xiaomi, XPeng, Li Auto, Zeekr, Chery, Changan, and others. Overall, the strong launch momentum across gear-based EPS platforms, including our single pinion, dual pinion and Rack EPS products continue to reinforce Nexteer's market leadership, particularly in the China market. Out of the 57 program launches, 48 of those were in APAC, supporting both Chinese and global customers. This, again, is another proof point of Nexteer's strategic targeting and capitalizing on the region's growth opportunities. This robust launch pipeline reflects increasing diversity across products, across customers and regions which is critical to our long-term success. Looking ahead, we are particularly excited about 2 Motion-by-Wire related product launches beginning in 2026. Turning now to new business awards. We secured $4.9 billion in customer program bookings in 2025, reflecting strong commercial momentum across products, regions and customers. These wins include several breakthrough awards and important first, underscoring our leadership in advanced steering technologies. Most notably, we secured Steer-by-Wire program with 2 leading Chinese new energy vehicle OEMs. And these cover both the handwheel actuator as well as the roadwheel actuator applications. These awards further reinforce Nexteer's leadership in next-generation Motion-by-Wire technologies. Let me expand a little bit more on these 2 customers. So building on our first Steer-by-Wire win with a leading Chinese OEM in the second half of 2024, we successfully secured a second award with this customer in 2025. This follow-on win demonstrates growing customer confidence and an expanding adoption of by-wire technology across the OEM's upcoming vehicle platforms. In addition, we secured our first Steer-by-Wire booking with another leading Chinese OEM, including, again, both the handwheel actuator and roadwheel actuator applications. This program is expected to launch as early as next year, reflecting a short lead time from a business award to production and strong execution capabilities. Beyond Steer-by-Wire, we continue to expand our dual pinion and rear wheel steering business across APAC and EMEASA, deepening relationships with existing Chinese OEMs, while also securing a new European-based OEM. These wins highlight not only the scalability of our dual pinion product technology, but also our ability to deliver cost-effective, lightweight rear wheel steering solutions that enable up to 12 degrees of rear wheel steering turning angle and supporting a broader growth pipeline. We also earned our first Column Assist EPS win with a market-leading OEM in India. This marks an important milestone for Nexteer in 1 of the world's fastest-growing automotive markets. This win demonstrates our ability to localize proven global electric power steering technologies and compete effectively on cost, quality and reliability in a highly value-focused market. Another important first is that we earned the first high output Column Assist EPS win with a leading Chinese OEM. This represents an important expansion of our Column EPS portfolio into higher performance and load applications. This win highlights our ability to extend Column EPS technology beyond the traditional output range to meet more demanding vehicle requirements. We continue to capture the global expansion of Chinese OEMs as they grow their presence in Europe and South America, by leveraging our strong China relationships and global footprint to support customers with consistent scalable steering solutions across regions. Importantly, this trend allows Nexteer to extend China originated wins into incremental global revenue opportunities. And lastly, we successfully conquested a new Power Column business for full-size truck platform in North America, strengthening our leadership position in this region as well. Looking at bookings across product lines and regions, over 75% of Nexteer's bookings were in our EPS product line and nearly half or 45% of our bookings were secured in the APAC region. Overall, this diversified portfolio indicates our technology is becoming the product of choice by many domestic and global OEMs. On the next slide, this highlights that customer diversification remains a core growth pillar for Nexteer. We partner selectively with OEMs to align with the long-term industry mega trends, including electrification, autonomy and connectivity. And today, we serve more than 60 OEMs globally. Over the last year, we've expanded our customer base by winning programs across a broad range of customer models from leading domestic OEMs in China to the market leader in India, to premium EV manufacturers in North America as well as an emerging autonomous mobility company. Importantly, these wins span a wide mix of technologies, including our Rack EPS, Column EPS, Dual Pinion, Rear Wheel Steering, Driveline and Columns and Intermediate Steering Shafts. This demonstrates our ability to deploy the full Nexteer portfolio. It positions us to capture growth from established volume leaders, while also participating in the emergence of new mobility players which are reshaping the industry. While every competitive situation is different, our success consistently comes down to a few core strengths. We bring world-class product and process technologies. Our quality and reliability performance as measured by our customers remains strong and continues to improve. We listen carefully to understand what each customer truly values. And as the Tier 1 in our space was experienced as a global OEM in our early history, we truly understand how critical speed, agility and mindset are in responding to those needs. And finally, flawless execution from development through launch remains a defining differentiator. Together, these capabilities underpin our ability to win, scale and grow profitably across a diverse and evolving customer base. We also continue to make disciplined progress in expanding our manufacturing and technical footprint across Asia Pacific to support long-term growth and localization. This slide shows the time line on how APAC steering production and validation has expanded in the past 5 years. In January of 2025, we opened our state-of-the-art Changshu Manufacturing and Testing facility in China, strengthening our ability to support the growing demand from Chinese OEMs, while aligning with China's focus on high-end intelligent and sustainable manufacturing. That expansion is complemented by our Asia Pacific technical center in Suzhou, which brings comprehensive engineering, validation and corporate functions together in 1 location, enabling faster development cycles and closer proximity to our customers. We have also expanded our India Technical Center near Bengaluru with additional physical validation capabilities, enhancing localized engineering support in that region. Looking into 2026, we've opened our first manufacturing facility in Rayong, Thailand, which has begun production with an initial focus on Column Assist EPS to support growing demand across Southeast Asia. And finally, we broke ground on new smart manufacturing facilities in both Liuzhou and Suzhou, further expanding capacity for advanced steering technologies, including EPS and Steer-by-Wire. Together, these initiatives reflect our disciplined approach to scaling capabilities and supporting customers across the region. On this next slide, I'd like to update the status of 1 of our most important Motion-by-Wire development portfolio products, which is electromechanical breaking or EMB. Nexteer publicly debuted EMB at the 2025 Shanghai Auto Show. We leveraged our technology building blocks to create a modular high-precision braking system to strategically expand into Motion-by-Wire chassis control. Following the Winter Test on EMB 1 year ago, a second round of winter vehicle tests were completed in Yakeshi, China during the period between December of 2025 and March of this year. In this event, we had more than 17 OEM customers that were engaged and had given very positive feedback on the vehicle performance through the on-site test driving and technical review. Meanwhile, our customers were surprised by the rapid pace of our EMB product development progress. Right now, we're developing highly automated production line to accelerate our industrialization process. And we also will continue to optimize the function, performance and durability of the EMB product. We're looking to secure our first business booking of EMB with the Chinese OEM in the course of this year. This next slide highlights how we are capitalizing on Motion-by-Wire and MotionIQ to enable Intelligent Motion in the vehicle. First, we're integrating smart chassis technologies, including steer-by-wire, rear wheel steering and brake-by-wire, with the electric powertrain architectures. This system-level integration allows us to deliver precise coordinated motion control across the vehicle, while supporting OEMs efforts to simplify platforms and scale advanced architectures. Second, we're embedding software-defined vehicle and AI capabilities directly into motion control. Through MotionIQ, we combine proven safety critical algorithms with flexible software tools enabling OEMs to develop, tune and update motion functions more quickly, while retaining control over vehicle differentiation. And third, these capabilities support autonomous vehicle applications, including Robotaxi and ADAS Level 3 Plus. Our Motion-by-Wire, hardware and software foundation enables the redundancy, the precision and the control required for higher levels of automation. Now I'll hand it over to Mike Bierlein for the financial review.
Michael Bierlein: Thanks, Robin, and good day, everyone. Nexteer delivered a record year in 2025 with full year revenue reaching $4.6 billion. On an adjusted basis, excluding foreign exchange and commodity impacts, revenue increased 6.9% year-over-year outperforming the market by approximately 320 basis points. Importantly, all 3 regions delivered growth, supported by strong production schedules. Profitability continues to improve. EBITDA grew 11.2% year-over-year, with margins expanding by 40 basis points. We generated positive free cash flow of $124 million, and our balance sheet remains strong, ending the year with $414 million of net cash. From a growth and visibility standpoint, we secured $4.9 billion of customer program bookings during 2025, including 2 Steer-by-Wire program awards reinforcing our long-term growth outlook. Finally, reflecting our confidence in Nexteer's financial strength, our Board approved a $46 million dividend representing a 45% payout ratio, up from 35% in 2024. This confirms our commitment to disciplined capital allocation and increasing shareholder returns. This slide highlights our key financial metrics for 2025: revenue, EBITDA, net profit and free cash flow, and demonstrate solid improvement across our core earnings profile. Revenue reached $4.6 billion in 2025, up 7.2% year-over-year, reflecting favorable volumes and execution on New and Conquest program launches. EBITDA increased to $472 million representing an 11.2% increase versus 2024, with margins expanding to 10.3%, driven by favorable volume and improved operating performance. Net profit attributable to equity holders was $102 million or 2.2% of revenue compared to $62 million in 2024. This includes a $24 million of net impairment costs driven by customer program cancellations. While we recognized a similar net impaired cost of $23 million a year ago. Adjusting for these onetime items, our net income would be $126 million or 2.7% for the year of 2025. Free cash flow was $124 million in 2025 compared to $166 million in 2024. Improvements in EBITDA were offset by a onetime favorable tax benefit received in 2024 and by net investment in working capital to support growth. Overall, 2025 represents a year of improved earnings quality, supported by stronger volumes and operating performance. This slide shows a walk of 2024 revenue to 2025 revenue. Favorable foreign exchange increased revenue by $15 million, driven by the euro strengthening compared to the U.S. dollar. As noted here, the largest driver of the year-over-year increase in revenue was represented by volume, pricing and others, which provided an uplift of $293 million, driven by strong customer schedules and above-market growth in all 3 segments. APAC continued to lead with revenue growth, mainly with the China OEMs. Finally, commodity prices reduced slightly, causing a year-over-year revenue decrease of $1 million. This slide shows our year-over-year revenue growth versus the market in 2025, adjusted for foreign exchange and commodity price changes. On a global basis, Nexteer delivered 6.9% adjusted revenue growth year-over-year, outperforming the market by approximately 320 basis points. Looking at the regions. North America revenue increased by 4.4% year-over-year and 5.4% above market as our customer programs continue to perform well in the market. APAC continued to lead with 10.2% year-over-year growth and 3.1% growth over market, underscoring the strength of our regional execution and customer portfolio. EMEASA delivered strong growth with 8.5% year-over-year revenue increase and 9.5% above market, supported by program ramp-ups. This slide summarizes our 2025 revenue performance by region and highlights both the mix and growth dynamics across the business. Starting on the left. Total revenue increased from $4.3 billion in 2024 to $4.6 billion in 2025. From a mix standpoint, North America remains our largest region at 50% of total revenue, with APAC at 32%, and EMEASA at 17%. Overall, the regional mix remains balanced with continued structural growth in APAC. Turning to the regional growth performance on the right. North America revenue of $2.3 billion increased 4.4% year-over-year. APAC delivered strong growth of 9.8% or 10.2% excluding FX and commodity impacts supported by sustained momentum from New and Conquest program launches over the past several years and our leading position with the Chinese OEMs. EMEASA revenue increased 11.4% year-over-year or 8.5% excluding FX and commodity impacts driven primarily by Conquest program volume ramp-ups. This slide walks through the year-over-year change in EBITDA from 2024 to 2025. EBITDA increased from $424 million in 2024 to $472 million in 2025, representing an 11.2% year-over-year increase with margins expanding from 9.9% to 10.3% of revenue. Starting with the key drivers. Volume and mix contributed $59 million, reflecting higher revenue and improved operating leverage across the business. These gains were partially offset by $10 million related to troubled supplier costs as well as $10 million of net tariff impact, both of which pressured year-over-year performance in North America. Restructuring cost was $9 million in 2025, which was equal to our restructuring cost in 2024. Restructuring costs were primarily to support a further 15% reduction in U.S. salaried employment in 2025, as we continue to focus on optimizing our cost structure to improve margins and costs related to the transfer of the Columns operation from the U.S. to Mexico, which is nearing completion. All other performance factors contributed $9 million, reflecting continued improvement in manufacturing and material performance more than offsetting price reductions and economics. This slide highlights our EBITDA and margin performance by region in 2025 compared with the last year. Starting with North America. EBITDA was $174 million in 2025 compared with $178 million in 2024. EBITDA margin declined from 8.1% to 7.6%, as margin improvement initiatives were more than offset by troubled supplier and net tariff costs. APAC EBITDA increased to $243 million up from $230 million in the last year, driven by continued strong revenue growth, EBITDA margins remained robust at 16.6%. APAC continues to deliver solid earnings growth and margin performance supported by increased scale and operating execution. In EMEASA, EBITDA increased significantly to $69 million, up from $36 million in 2024. EBITDA margins expanded from 5% to 8.6%, driven by improving operating efficiency and revenue growth, reflecting meaningful year-over-year progress in the region. This slide shows our EBITDA to net profit walk for 2025. Overall, the year-over-year $48 million in EBITDA increase is driving the net profit increase from $62 million to $102 million. Depreciation and amortization totaled $309 million in 2025, broadly flat versus last year. D&A includes depreciation of plant, property and equipment as well as amortization of intangible assets. The results include a $24 million net program impairment charges recorded in 2025. And $23 million in 2024, primarily related to North America EV program cancellations and volume reductions. We continue to work with our customers on cost recoveries related to these programs. Operating profit increased to $163 million, up from $115 million last year, reflecting the stronger EBITDA performance. Below operating profit, JV earnings increased modestly, driven mainly by contributions from our Chongqing operations. Income tax expense increased to $55 million compared with $42 million last year. This increase was primarily driven by improved profitability. Our U.S. operations remain in a valuation allowance position, driving our effective tax rate to be elevated at 33% for 2025 compared to 36% in 2024. As our profitability continues to improve in the U.S., our effective tax rate will continue to reduce. For 2026, the forecast for effective tax rate is slightly below 30%, and our long-term effective tax rate remains in the high teens. Moving to the balance sheet and cash flow. On the left of the slide, you can see our full year 2025 cash flow performance compared with 2024. Cash from operating activities of $405 million in 2025 was $41 million lower than 2024, as increased EBITDA was offset by a onetime favorable tax benefit in 2024 and by a net investment in working capital to support growth. Cash used in investing activities totaled $281 million in 2025, largely in line with the last year. Overall, free cash flow was strong at $124 million. We ended 2025 with $501 million of cash on hand and gross debt of only $50 million with finance leases of $37 million, resulting in a net cash position of $414 million at year-end. Total liquidity stood at $833 million comprised of $501 million of cash and $332 million of committed credit facilities, providing significant financial flexibility. Turning to our 2026 operating considerations. Despite expectations for modestly lower global OEM production in 2026 we remain on track to deliver another year of record revenue. We expect above-market revenue growth in 2026 of approximately 200 to 300 basis points, driven primarily by continued growth in APAC, particularly in China as we continue to expand with both global and domestic OEMs. From a profitability perspective, we expect continued margin expansion benefiting from net performance improvements and increased volume leverage. Our Motion-by-Wire portfolio continues to build momentum with additional order opportunities anticipated and initial revenue recognition expected to begin in 2026, marking an important milestone in the commercialization of this technology. At the same time, geopolitical risks persist, including ongoing conflicts and trade tensions, we remain vigilant and continue to actively manage these risks through close engagement with customers, suppliers and our global operating footprint. Nexteer's long-term investment opportunity remains compelling, supported by above-market revenue growth, continued margin expansion through operational efficiency and execution, our leading position in Motion-by-Wire technology and a strong balance sheet, enabling strategic investments and increasing shareholder returns. In closing, Nexteer has a well-defined strategy focused on technology leadership, portfolio alignment with megatrends, disciplined cost management and targeted growth in China and emerging markets. Thank you for joining us today. Operator, Jamie, please open the line for Q&A.
Operator: [Operator Instructions] And our first question today comes from Shelley Wang from Morgan Stanley.
Shelley Wang: I have 2 questions. The first is about our new products. And it's good to see the progress on the Steer-by-Wire project wins. And then, I was wondering, like, in the long term, are we more focused on the Steer-by-Wire itself or we target to provide like the integrated solutions, maybe including the Steer-by-Wires like EMB. And then if it's the integrated one, then what's our advantage if comparing to other chassis suppliers and the start-up? So this is my first question. And my second question is about the impairments and the compensation. And because from the financial statements, we see we booked $54 million customer compensation in 2024, but only $8 million last year. So are we expected to receive more compensation this year? Or the $8 million is for the project installations last year? Yes. So that's my second question.
Robin Milavec: Okay. Thank you, Shelley. This is Robin. I'll take the first question that you had, and then I'll turn it over to Mike to address your second question. So in terms of the new product strategy, certainly, we've been developing our Steer-by-Wire product for a number of years now, and we are beginning to see traction in the market, especially in the China market with Steer-by-Wire, new business wins, production launches that will start this year. And as a part of this by wire technology, our intention is to be a chassis Motion-by-Wire supplier. So that is the reason for the recent development of our electromechanical braking system. And that is a critical milestone in the Chassis-by-Wire system that we need to fulfill. So I would indicate that the advantage that we will have in this market, obviously, when you think about braking, we don't have a long history of braking as a company. However, we are very experienced in safety-critical vehicle systems, and the EMB product has -- shares a lot of commonality with electric power string in terms of the electric motor, the actuator, the electronics, the software, all of that is very scalable, and it builds on those critical technology building blocks with the EPS. So we see a lot of potential to increase our scale and really drive competitiveness by having both the Steer-by-Wire and the EMB products together. In addition, we don't have a lot of legacy investments in hydraulic braking. So we're really free from the past legacy of this older technology that will be phasing out and we are entering in this technology shift in the industry to electric braking. So we believe that is also an advantage for us. And the third advantage I would highlight is the close partnership that we have developed with the China OEMs. I noted that we had 17 customers evaluating our Brake-by-Wire vehicles in our Winter testing. There is significant interest from many of the China OEMs to support Nexteer, and we believe that relationship will lead to business sourcing for both Steer-by-Wire and EMB, and that will enable us to enter the braking market globally at some point in the near future. With that, let me hand it over to Mike for part 2 of your question, Shelley.
Michael Bierlein: Thanks for the question, Shelley. So in terms of the impairments, it's certainly a challenging situation in North America with the changing, say, demand and support from government programs to support the electric vehicles. So each of our 3 major customers within North America determined to cancel or significantly reduce volumes on their EV truck and SUV platforms. And that happened towards the end of the year of 2025. We did record $32 million of impairments between write-offs for our engineering intangible assets as well as write-offs for some specific, say, machinery and equipment. We did recover $8 million that netted us down to $24 million on a P&L impact for the year. And because these program cancellations happen toward the end of the year, we were not able to fully negotiate the recoveries with our customers, and we do expect to receive recoveries yet in 2026. Now we also have to deal with challenges across our supply chain. And certainly, we have costs that our partners and our supply base have incurred relative to these program cancellations as well. But to answer your question, yes, we do expect to recover this further cost to offset these write-offs in 2026.
Operator: And our next question comes from [ Jiayi Shi ] from Guotai Haitong Securities.
Unknown Analyst: And I'm just wondering how much would you estimate the growth of revenue of each area in 2026 and the EBITDA margin of each area?
Michael Bierlein: Thanks, Jiayi, for further questions. And certainly, considering the dynamic environment that we're facing in 2026, there has been certainly a mix of impacts on our revenue outlook forecast. As I mentioned, we are expecting our revenue to grow on a year-over-year basis, above market by 200 to 300 basis points. And with that, we are, at this point, anticipating a global market volumes to be lower by about 1% for the year. And I think that the 1% really depends on how this geopolitical conflict between the U.S., Israel and Iran ends up playing out over the years -- over the year. Hopefully, the conflict ends sooner. Our forecast is, of course, assuming a short-term conflict with that. So from a volume perspective, we are seeing that most of our growth over market will be in Asia Pacific. So you can think about, the 200 to 300 basis points growth being largely in Asia Pacific. From an earnings profile. We do see a continued margin expansion. And if you think about breaking that down then by region, I continue to challenge our Asia Pacific region to maintain profit margins in around the 16% to 17% EBITDA range. And we continue to see improvement and momentum in our EMEASA segment. So you can expect added improvements in EMEASA as well as we see improvements in North America as we have these onetime charges related to troubled suppliers and net tariff costs within North America.
Operator: [Operator Instructions] And at this time, I'm showing no additional questions, we would like to thank you for the questions and today's participation. If there are any further queries, please contact us at investors@nexteer.com. The conference has now concluded. We do thank you for attending today's presentation. You may now disconnect your lines.
Robin Milavec: Thank you, gentlemen.