Tenneco Inc. (TEN): Business Model Canvas [Dec-2025 Updated]

You're looking to understand the nuts and bolts of a major auto supplier after a huge private equity shift, so let's cut straight to the core mechanics of Tenneco Inc. as we see it in late 2025. Honestly, mapping out their Business Model Canvas reveals a $18.3 Billion operation-split between its roughly $7.82 Billion Clean Air tech and $5.59 Billion Ride Performance segments-that is heavily reliant on deep OEM partnerships and managing over $4.175 billion in debt. This isn't just theory; this canvas shows exactly how Tenneco Inc. plans to generate revenue from its global manufacturing footprint and proprietary IP while navigating the costs of restructuring. Dive below to see the nine building blocks that define their value creation engine right now.

Tenneco Inc. (TEN) - Canvas Business Model: Key Partnerships

You're looking at the structure that keeps Tenneco Inc. moving, and honestly, the partnerships are where the multi-billion dollar scale is managed. Since going private, the focus has been on leveraging these relationships for operational leverage and growth capital, which is clear from the 2025 investment activity. Tenneco Inc. estimates its annual revenue to be around $18.3 Billion as of late 2025, and these partners are critical to maintaining that top line and pushing the projected S&P Global Ratings-adjusted EBITDA margins above 7% for 2025.

Financial Sponsors: Apollo Fund X and American Industrial Partners (AIP)

The ownership structure dictates much of the strategic partnership landscape. Apollo Fund X and American Industrial Partners (AIP) are the controlling financial sponsors, having completed a strategic investment into Tenneco Inc.'s Clean Air and Powertrain businesses in April 2025. This access to capital is designed to fuel targeted growth strategies. To give you a sense of AIP's scale, they are an industrials investor with approximately $17 billion in assets under management.

Here's a quick look at the financial backing and performance context:

Global Original Equipment Manufacturers (OEMs)

Tenneco Inc. relies heavily on a concentrated base of major vehicle manufacturers. For the year ended December 31, 2024, the top five customers accounted for approximately 40% of Tenneco Inc.'s net sales. General Motors Company alone represented 17% of that 2024 net sales figure. This concentration means maintaining strong, long-term supply agreements is paramount.

The dependency is also visible in key regional operations; for instance, the top ten customers contributed 82.32% of Tenneco Clean Air India's revenue in Q1 FY2025. Major global OEMs served include Ford, Stellantis (via its constituent brands like Chrysler/Jeep/Ram), General Motors Company, BMW, Toyota, and Nissan.

• General Motors Company 2024 Net Sales Share: 17%
• Top Five Customers 2024 Sales Share: 40%
• Tenneco Clean Air India Top Ten Customer Revenue Share (Q1 FY25): 82.32%

Tier 1 Automotive Suppliers for Complex System Integration

Tenneco Inc. itself operates as a Tier 1 supplier, providing complex systems like emission control and ride performance directly to OEMs. Tenneco Clean Air India, for example, is explicitly described as a tier-1 automotive component manufacturer supplying solutions to major OEMs. This means Tenneco Inc. is both a partner to Tier 1s (in some joint ventures or component supply) and a primary Tier 1 for the OEMs. Established suppliers are encouraged to discuss longer-term supply agreements centered on continuous improvement and productivity sharing, with many such contracts presently in effect.

Strategic R&D Collaborators for Electrification and Powertrain Tech

The commitment to remaining technology-driven requires substantial investment, which the 2025 capital infusion is meant to accelerate. Tenneco Inc.'s annual investment in Research & Development (R&D) was reported to be up to $412 million in 2024, underpinning 2025 strategic initiatives focused on cleaner mobility. This is a direct action to address the shift toward electric vehicles (EVs).

A concrete example of this R&D output, showing partnership-like innovation, is the unveiling of GLYCODUR NEO in October 2025, which is a new PFAS-Free Bearing Material, signaling a move toward sustainable component technology.

Global Logistics Providers for Supply Chain Efficiency

Managing the global flow of components from its approximately 200 sites worldwide requires reliance on established logistics networks. Tenneco Inc. has defined preferred carriers for different shipment types to drive efficiency and compliance with C-TPAT Trade Best Practices.

The preferred logistics partners for specific freight types as of late 2025 include:

• FedEx: Preferred provider for domestic (US) small package/parcel shipments (150 lbs/70 kg or less) when Tenneco pays the freight.
• DHL Express: Preferred provider for international small package/parcel shipments (150 lbs/70 kg or less) when a US Tenneco location is responsible for the shipment.

Finance: draft 13-week cash view by Friday.

Tenneco Inc. (TEN) - Canvas Business Model: Key Activities

You're looking at the core actions Tenneco Inc. must execute flawlessly to maintain its position as a top-tier global automotive supplier, especially now that it's private under Apollo Global Management's ownership. The sheer scale of the operation demands precision in manufacturing, innovation, and cost control.

Global manufacturing of highly-engineered automotive components

Tenneco Inc. operates a massive manufacturing footprint, employing approximately 60,000 team members globally as of July 01, 2024. The company's estimated annual revenue as of late 2025 is around $18.63 Billion (TTM). This activity is segmented across its core product offerings, which serve both Original Equipment Manufacturers (OEMs) and the aftermarket.

The operational scope includes serving major global automakers like BMW, Toyota, Nissan, Daimler, and Jaguar. A specific example of this manufacturing activity is seen in the subsidiary Tenneco Clean Air India Limited, which, as of March 31, 2025, operated 12 manufacturing facilities across seven states and one union territory. These facilities produce components like catalytic converters, diesel particulate filters (DPFs), mufflers, and exhaust pipes.

Here is a look at the scale and performance within a key regional manufacturing hub:

Research and development (R&D) for clean air and EV technologies

Tenneco Inc. maintains a technology-driven approach, which requires substantial capital commitment to R&D. The annual investment in Research & Development (R&D) was reported to be up to $412 million in 2024. Another reported figure for R&D spending in 2024 was $257 million.

This investment directly fuels innovation in areas critical to the industry's pivot. Key R&D focus areas include:

• Developing advanced emission control systems for stringent global regulations.
• Creating noise, vibration, and harshness (NVH) management solutions tailored for electric vehicles (EVs).
• Advancing next-generation ride performance products, such as CVSAe semi-active suspension technology.

The company holds a dominant market share in niche areas, such as a 52% value share in the shock absorbers and struts market for Indian Passenger Vehicle OEMs in Fiscal Year 2025.

Operational restructuring and cost optimization for margin recovery

A major ongoing activity is the execution of restructuring and cost optimization programs to recover margins, which were pressured by past costs and inflation. For instance, restructuring costs in one quarter alone (Q1 2024) reached $127 million. The company's S&P Adjusted EBITDA Margin is projected to improve to above 7% in 2025, a significant jump from the 5.2% recorded in 2023.

The focus on efficiency is evident in subsidiary performance metrics, where cost control led to PAT growth despite revenue pressure. For example, Tenneco Clean Air India Limited saw its PAT grow nearly 10% year-over-year in Q2 FY26, reaching Rs 150.68 crore, even as its EBITDA margin slightly contracted to 16.9% from 17.5% the prior year. The overall debt load remains a focus, with a target to fall below a 6x Debt-to-EBITDA leverage ratio in 2025, down from over $4.175 billion in debt as of late 2023.

Managing a complex, global supply chain and distribution network

Tenneco Inc. must manage a complex network to supply its global customer base. This involves rationalizing the supply chain to improve throughput, as seen when the Motorparts segment initiated a rationalization effort in the second quarter of 2021. The company serves the aftermarket with trusted brands like Monroe, alongside its OE business.

The scale of the distribution network is supported by the 60,000 global employees. The company is also focused on standardizing quality globally by year-end 2025.

Executing streamlined growth strategies post-Apollo investment

The strategic investment completed in April 2025 from Apollo Fund X and American Industrial Partners into the Clean Air and Powertrain businesses provides enhanced access to capital to fuel growth. This investment is intended to accelerate both organic and inorganic growth.

A key execution of this strategy involves streamlining the organizational model, exemplified by the subsidiary Tenneco Clean Air India Limited's successful public listing on November 19, 2025. This IPO was an offer for sale aggregating to Rs. 3,600.00 crores, consisting of 9.07 crore shares. The leadership is executing on a purpose to be the world's best manufacturer and distributor.

Here are the segment revenue contributions based on the most recent structural data:

• Emission Control Technologies: 42% of total revenue.
• Ride Performance Solutions: 30% of total revenue.
• Powertrain Technologies: 28% of total revenue.

Finance: draft 13-week cash view by Friday.

Tenneco Inc. (TEN) - Canvas Business Model: Key Resources

You're looking at the core assets Tenneco Inc. relies on to execute its strategy as a private, automotive component powerhouse. These aren't just line items; they are the engines of their operation, especially now that they've secured fresh capital.

The foundation rests on a massive global footprint and deep technical knowledge. Tenneco Inc. maintains a global network of manufacturing facilities, with operational presence reported across the Americas, Europe, and Asia-Pacific, supporting the required structure across 4 continents.

Proprietary Intellectual Property (IP) is a major barrier to entry. This IP is concentrated in emission control and suspension technologies, which are critical as the industry navigates stricter global standards. The group-level IP portfolio includes over 5,000 active patents and 7,500 trademarks that can be adapted to local cost structures.

Here is a snapshot of the quantifiable, hard assets Tenneco Inc. is working with as of late 2025:

Financial capital and backing from private equity investors are central to the current strategy. Apollo Fund X, along with American Industrial Partners, completed a strategic investment into the Clean Air and Powertrain businesses in April 2025. Apollo took Tenneco private in November 2022 for $7.1 billion. To give you context on the backing firm, Apollo reported approximately $751 billion of assets under management as of December 31, 2024.

The established brands in the aftermarket are key revenue drivers, especially for the aftermarket segment. These brands are the face of Tenneco Inc. to repair shops and consumers globally. The core aftermarket brands include:

• Monroe Ride Solutions
• Walker global brand name products

The workforce is highly specialized, supporting the technology-driven mission. The specialized engineering and technical workforce is stated to be over 60,000 employees globally. This team underpins the operational performance that resulted in top-quartile EBITDA margins since the 2022 acquisition.

Finance: draft 13-week cash view by Friday.

Tenneco Inc. (TEN) - Canvas Business Model: Value Propositions

You're looking at Tenneco Inc. (TEN) not just as a parts maker, but as a critical enabler of the global vehicle fleet, balancing the legacy ICE (Internal Combustion Engine) market with the EV transition. The value Tenneco Inc. offers is rooted in its sheer scale and specialized technology across distinct, yet integrated, business lines.

Advanced Clean Air Solutions for meeting global emission standards

Tenneco Inc. provides essential technology to meet increasingly tough global mandates. This value proposition is backed by significant regional performance, even amidst broader market shifts. For example, the Tenneco Clean Air India subsidiary reported a consolidated revenue of Rs 4,890 crore for its fiscal year 2025, down from Rs 5,468 crore in fiscal 2024, showing the direct link between regulatory compliance and regional business volume.

The company's commitment to this area is supported by strategic capital, as the Clean Air business received a strategic investment from Apollo Fund X and American Industrial Partners in April 2025, designed to fuel targeted growth strategies and innovation in emission control systems.

Ride Performance and NVH (Noise, Vibration, Harshness) management

For the ride performance segment, the value is in delivering superior vehicle dynamics and passenger comfort, which is increasingly important as vehicle interiors become quieter, making NVH more noticeable. This segment is a substantial part of the business, estimated to account for 30% of Tenneco Inc.'s total revenue.

The focus on innovation here is clear, with the company investing $340 million in Research & Development in 2024 to advance technologies like CVSAe semi-active suspension.

High-performance components for both traditional and electric vehicles (EVs)

Tenneco Inc. is actively developing solutions for the EV transition, offering EV-agnostic technologies that reduce weight and manage NVH in battery-electric platforms. This dual focus-supporting the existing ICE fleet while innovating for EVs-is key to maintaining relevance. The estimated revenue breakdown shows the current weighting:

Comprehensive global aftermarket parts portfolio (DRiV)

The aftermarket group, DRiV, provides a massive value proposition through breadth and availability for vehicle repair and maintenance. This segment is a major stabilizer for the overall business, with over 70% of Tenneco Inc.'s sales originating from its aftermarket and Commercial Vehicle (CV) segments combined in 2024.

The commitment to coverage is relentless; for instance, through February 2024, the DRiV team introduced 181 new part numbers across brands like Monroe®, MOOG®, and Walker®, providing repair occasions for approximately 97 million vehicles on the road in North America alone.

• Independent aftermarket customers and OES accounted for approximately 34% of 2024 net sales.
• DRiV added more than 500 SKUs to the Monroe Coil Springs Range in Q3 2025.

Tier 1 supplier reliability and global scale for OEMs

Tenneco Inc.'s value to Original Equipment Manufacturers (OEMs) is its entrenched position as a global, one-stop-shop supplier capable of delivering complex systems reliably. The company's consolidated revenue in 2024 was US$16,777 million, with an estimated annual revenue around $18.3 Billion as of late 2025, demonstrating significant global scale.

This scale is being leveraged to drive financial discipline; the core strategy is to improve S&P Global Ratings-adjusted EBITDA margins to above 7% in 2025, up from 5.2% in 2023. The Trailing Twelve Months (TTM) Gross Margin sits at 11.81%, showing effective management of direct manufacturing costs, even as the Operating Margin (TTM as of November 2025) remains a very slim 0.10%.

The company's global footprint saw 63% of its 2024 net sales generated outside the United States.

Tenneco Inc. (TEN) - Canvas Business Model: Customer Relationships

You're managing a massive global supplier network, so you know that customer relationships are the bedrock of automotive component revenue, especially when you're operating with the slim margins seen across the industry. For Tenneco Inc., this relationship strategy is clearly split between high-volume Original Equipment Manufacturers (OEMs) and the higher-margin, recurring aftermarket business.

Dedicated long-term, strategic partnerships with major OEMs

Tenneco Inc. positions itself as a Tier 1 supplier, designing, manufacturing, and marketing technologies directly to major automotive engine manufacturers globally. This requires deep, long-term agreements, often structured as negotiated annual contracts or long-term supply agreements. The company's financial health is heavily tied to the success and stability of these key accounts.

The concentration risk is real, but it's managed by being indispensable across multiple product lines like Clean Air and Ride Performance. For the year ended December 31, 2024, the top five customers accounted for approximately 40% of the company's net sales. To be fair, General Motors Company alone represented 17% of those net sales for the same period. No other single customer crossed the 10% threshold in 2022, 2023, or 2024.

This OEM reliance is geographically specific, too. Looking at the Indian operations for FY 2025, Tenneco Clean Air India Limited served 119 customers, which included the top seven Passenger Vehicle (PV) OEMs and the top five Commercial Truck (CT) OEMs in that region. Still, customer concentration remains high in that subsidiary, with the top ten customers contributing 81.54% of revenue in Fiscal 2025.

Here's a quick look at how the overall business revenue was segmented based on the 2024 year-end figures:

Zero-defect mindset and quality certification mandate (IATF 16949)

Building and maintaining OEM trust hinges on flawless execution, which Tenneco Inc. translates into a zero-defect mindset. This is not just a cultural goal; it's backed by measurable standards and mandates. A key operational goal for 2025 was achieving 100% certification with IATF 16949, ISO 9001, or other applicable quality management standards across all manufacturing sites by year-end. This standardizes quality governance globally, which is defintely necessary when you're aiming for the projected $78.97 million net income for the 2025 fiscal year.

The progress toward this goal is evident:

• As of 2024, 99% of operational sites were certified to either IATF 16949 or ISO 9001.
• Tenneco requires direct material suppliers to certify their quality management systems to ISO 9001 standards.
• For critical parts, Tenneco may require special controls like error-proofing or 100% inspection, though they reserve the right to waive PPAP (Production Part Approval Process) elements under special circumstances.

Account management teams for deep customer integration and co-development

Deep integration means account management teams work directly with OEM engineering groups, often involving customer reimbursements for engineering services performed. This collaborative approach ensures Tenneco's solutions-like advanced suspension systems or emission control technologies-are designed into the next generation of vehicles. The company's Net R&D costs as a percentage of net sales hovered around 3.1% to 3.3% for the 2022-2024 period, showing sustained investment in these joint efforts.

The focus on local execution, as seen in the China operations, exemplifies this integration. Tenneco expanded local capability in China in 2024 by opening a new Beijing Suspension Technical Center (December 2024) and a GTR-compliant Brake Emissions Lab in Chongqing (November 2024). This local R&D and testing capability helps them deliver customized, high-performance solutions with local speed to their regional OEM partners.

Brand-specific marketing and support for the aftermarket channel

The aftermarket channel, managed by the DRiV business group, is a crucial, higher-margin revenue stream, accounting for about 34% of net sales in 2024. Customer relationships here are built on brand recognition, part availability, and quality assurance for repairs and maintenance.

Tenneco Inc. supports this channel through established, trusted brands. The strategy involves rapidly expanding the product catalog to capture more service opportunities. For instance, the DRiV segment added more than 500 SKUs to the popular Monroe Coil Springs Range in the third quarter of 2025 alone. This rapid SKU expansion directly supports repeat business and customer loyalty among independent aftermarket customers and OES clients.

Finance: draft 13-week cash view by Friday.

Tenneco Inc. (TEN) - Canvas Business Model: Channels

You're mapping out the distribution arteries for Tenneco Inc., a company with an estimated Trailing Twelve Month (TTM) revenue of $18.63 Billion USD as of November 2025. The channels reflect a dual focus on supplying major vehicle builders and servicing the global repair market.

Direct sales and technical support to Original Equipment Manufacturers (OEMs)

Direct sales channels are the primary route for Tenneco Inc.'s Original Equipment (OE) business, which is segmented across its core technology groups, including Clean Air, Powertrain, and Performance Solutions. Based on the historical segment mix, the Emission Control Technologies division, which sells directly to OEMs for new vehicle production, is estimated to account for 42% of total revenue, equating to roughly $7.82 Billion for fiscal year 2025. Similarly, the Ride Performance Solutions segment, supplying OE shock absorbers and struts, is estimated to contribute 30% of revenue, or about $5.59 Billion in the same period. This channel relies heavily on technical collaboration, with Tenneco Inc. supporting major clients like BMW, Toyota, Nissan, and Daimler directly with engineering and integration support. The company's overall projected net income for the 2025 fiscal year is approximately $78.97 million USD, underscoring the importance of these high-volume OE contracts.

Global Aftermarket distribution network (DRiV) to retailers and service centers

The aftermarket channel is managed through the DRiV business group, which is one of the world's premier partners to replacement parts distributors and wholesalers. DRiV employs approximately 9,000 professionals globally to support this effort. This network leverages a stable of respected brands including Monroe, MOOG, Walker, and Wagner. The physical infrastructure supporting this channel includes 29 distribution facilities worldwide. In the Asia Pacific region, DRiV is actively expanding its reach, with plans to increase overall vehicle coverage to 90 percent or more by October 2025. The initial rollout of new product lines in that region already targets approximately 70 percent vehicle coverage across key markets like Southeast Asia, China, and India.

Regional technical centers for localized R&D and customer service

Tenneco Inc. utilizes a network of regional centers to provide localized technical support and R&D, ensuring products meet specific regional demands and regulations. The DRiV group alone operates 20 engineering and technical centers globally. These centers are crucial for tailoring offerings; for example, Tenneco India operates 12 manufacturing facilities across seven states as of March 31, 2025, strategically placed in hubs like Maharashtra and Tamil Nadu to serve local OEM needs and support the aftermarket supply chain. Specific technical functions are localized, such as emission control engineering and manufacturing in Rybnik, Poland, and shock absorber engineering at the Engineering Centre (EEEC) in Gliwice, Poland. This localized presence helps minimize freight and logistics costs while enhancing product quality for regional clients.

Industrial and Marine direct sales channels for specialized products

While the primary public focus is on light vehicle and commercial truck OE and aftermarket, Tenneco Inc. also delivers technology solutions across the off-highway, industrial, and motorsport sectors through its Powertrain and Performance Solutions groups. Direct sales channels in these specialized areas target specific industrial and marine engine platforms. For instance, DRiV's FP DIESEL turbochargers are developed for heavy-duty truck applications with compatibility across leading engine platforms such as Cummins and Detroit Diesel. This demonstrates a direct sales approach to large industrial and power system integrators, distinct from the standard automotive OE channel.

Here is a summary of the quantitative scale across Tenneco Inc.'s operational footprint as of late 2025:

The channels are supported by a massive physical presence and brand portfolio:

• DRiV houses 31 of the industry's most trusted brands.
• Asia Pacific Aftermarket coverage target is 90 percent or more by October 2025.
• Initial Asia Pacific product launch coverage is approximately 70 percent.
• Tenneco Inc. operates on 6 continents.
• The company's projected FY2025 Net Income is $78.97 million USD.

Finance: draft 13-week cash view by Friday.

Tenneco Inc. (TEN) - Canvas Business Model: Customer Segments

You're analyzing the customer base for Tenneco Inc. as of late 2025, which means we have to rely on the most recent audited figures from the end of fiscal year 2024 to paint the picture, as the company is now private. Honestly, the customer mix shows a heavy reliance on both new vehicle production and the steady demand for replacement parts. The scale is massive, with an estimated annual revenue around $18.3 Billion for 2025.

The customer segments are clearly delineated by the type of vehicle and whether the sale is for a new assembly line or for service and repair. Here's how the net sales were distributed for the year ended December 31, 2024, which gives you the best real-life snapshot of the current customer structure:

The company's top five customers accounted for 40% of sales for the year ended December 31, 2024. For instance, sales to General Motors Company specifically represented 17% of worldwide net sales in 2024.

Global Light Vehicle and Commercial Truck Original Equipment Manufacturers (OEMs)

This group represents the core of the Original Equipment (OE) business. You can see the split in the table above, combining sales to light passenger vehicles and light commercial vehicles. The Commercial Vehicle and Industrial Applications bucket, at 20% of 2024 sales, is where the heavy-duty truck and initial industrial equipment supply contracts sit. Tenneco Inc. generally sells directly to these OEMs, often under negotiated annual contracts or long-term supply agreements.

Automotive Aftermarket Distributors and Retailers worldwide

This is the most stable revenue stream, covering replacement parts. In 2024, this segment, which includes independent aftermarket customers and Original Equipment Suppliers (OES), accounted for approximately 34% of net sales. This segment is crucial because when new vehicle production slows, the demand for maintenance and replacement parts often remains steady or increases. The company supports this channel with 23 aftermarket distribution centers and warehouses globally.

Off-Highway and Industrial Equipment Manufacturers

This customer segment is embedded within the 20% category labeled Commercial Vehicle and Industrial Applications in the 2024 breakdown. The Powertrain segment, which feeds into industrial applications, was estimated to be 28% of total revenue. A concrete example of success in this broader industrial/emerging market space is the Tenneco Clean Air India subsidiary, which posted a profit of over ₹500 crore (about $56 million USD) in fiscal year 2025.

High Horsepower Engine and Marine Power Customers

These customers are served through the Powertrain segment, which focuses on original equipment powertrain products for heavy-duty and industrial applications. While not broken out separately in the top-level sales percentages, this business is a component of the 20% Commercial Vehicle and Industrial Applications group. The Powertrain Technologies product line itself was estimated to account for 28% of overall revenue.

You should track the regional performance, as 37% of 2024 net sales were generated in the United States, with 63% coming from outside the US. Finance: draft 13-week cash view by Friday.

Tenneco Inc. (TEN) - Canvas Business Model: Cost Structure

You're looking at the cost side of Tenneco Inc.'s business, and honestly, it's dominated by the sheer scale of manufacturing and the heavy debt load from the 2022 buyout. The cost structure is heavy on fixed and semi-fixed expenses, which means profitability hinges on volume and efficiency.

High Cost of Goods Sold (COGS) due to raw materials and manufacturing scale

Tenneco Inc. operates as a massive global manufacturer of emission control and ride control products. This scale, with a Trailing Twelve Months (TTM) revenue as of December 2025 estimated at $18.63 Billion USD, inherently drives a very high Cost of Goods Sold. The cost base is heavily influenced by volatile commodity prices for raw materials like steel and specialized catalysts, even with forward contracts in place. The manufacturing footprint across multiple continents adds complexity and cost to procurement and production overhead.

Significant R&D expenditure for next-gen mobility solutions

To stay relevant in the evolving automotive sector, Tenneco Inc. must commit substantial capital to innovation. For the year ended December 31, 2024, net Research and Development costs totaled $257 million. This spending is directed toward future mobility solutions, which is a necessary, non-negotiable cost to maintain key customer relationships and market share in the Original Equipment (OE) market.

Substantial interest expense on over $4.175 billion in debt

The financial structure is heavily impacted by the leverage incurred during the 2022 acquisition. The parent company's total debt stood at $4.175 billion as of December 31, 2023. This high debt level translates directly into substantial, recurring interest expense, which consumes operating cash flow that could otherwise fund capital expenditures or organic growth. This interest burden is a primary reason why the projected Free Cash Flow (FOCF) for 2025 remains under pressure, following a deficit of over $200 million in 2024.

Costs associated with global operational restructuring and plant optimization

Tenneco Inc. is actively managing its global footprint to improve efficiency, which generates significant, though temporary, costs. For instance, in the first quarter of 2024 alone, restructuring charges hit $127 million. These costs primarily cover employee severance, facility closure expenses, and the logistics of relocating operations to best-cost locations. Management is focused on realizing annualized cost savings from these programs, but the upfront cash outlay is material.

Global logistics and distribution network costs

Moving components globally to serve OE assembly lines and the aftermarket requires a vast and expensive logistics network. These costs are embedded in both COGS and operating expenses. To give you a sense of the operational scale and cost control efforts in a specific region, consider the Tenneco Clean Air India subsidiary:

• FY2025 Revenue: Rs 4,890 crore.
• FY2025 PAT: ₹553.14 crore.
• FY2025 EBITDA Margin: 16.67%.

This subsidiary's margin improvement from 11.05% in FY24 shows that operational efficiency, including logistics optimization, is a key focus area across the entire global structure.

Here is a snapshot of key financial metrics that drive the cost base, using the most recent available full-year data and projections for context:

Finance: draft 13-week cash view by Friday.

Tenneco Inc. (TEN) - Canvas Business Model: Revenue Streams

You're looking at the top line for Tenneco Inc. and need to see exactly where the cash is coming from, especially since the company is now private. The revenue streams are firmly rooted in supplying global automotive Original Equipment Manufacturers (OEMs) and the massive aftermarket repair sector. The sales of Original Equipment (OE) components to OEMs represent the dominant portion of the business, providing large, recurring contracts tied to vehicle production volumes. This is balanced by the sales of Aftermarket Replacement Parts, primarily through the DRiV business group, which captures revenue from vehicle maintenance and repair cycles globally.

The overall scale is significant; the total estimated annual revenue for 2025 is approximately $18.3 Billion. To give you a more current snapshot, the Trailing Twelve Month (TTM) revenue as of November 2025 stands at a formidable $18.63 Billion USD. This revenue base is supported by three core technology pillars, which you can see broken down below. Here is the quick math on how the estimated 2025 revenue is segmented:

The Emission Control Technologies segment is the single largest contributor to Tenneco Inc.'s top line. This revenue stream, estimated at approximately $7.82 Billion, which is 42% of the total, comes from designing and manufacturing complex systems that help vehicles meet increasingly strict global clean air regulations. Tightening standards like China 6b and Euro 7 are forcing Original Equipment Manufacturers (OEMs) to adopt Tenneco Inc.'s advanced emission control systems, which is a clear, regulatory-driven demand driver for this revenue.

Next up is the Ride Performance Solutions revenue, estimated to account for 30% of the total, translating to roughly $5.59 Billion. This stream covers automotive suspension products, including shocks and struts, often sold under well-known brands. While the OE side of this business is tied to vehicle builds, the aftermarket sales of these components provide a steady revenue flow as parts wear out and require replacement, helping to stabilize the overall income.

The remaining portion of the revenue is captured by the Powertrain Technologies segment, which is estimated to be 28% of the total, or about $5.22 Billion. This area is focused more on the aftermarket-the parts you buy for repairs-such as pistons, rings, and bearings. While the overall Powertrain business faces secular headwinds from the transition to electric vehicles (EVs), Tenneco Inc. is focusing on components that EVs still need, like advanced suspension systems, to maintain this revenue base.

• Sales of Original Equipment (OE) components to OEMs are the foundation of the business.
• Sales of Aftermarket Replacement Parts (DRiV) provide counter-cyclical stability.
• The company is actively expanding its aftermarket portfolio, evidenced by the July 2025 launch of new categories like Wagner® HVAC Components.
• Major clients for the OE business include BMW, Toyota, Nissan, Daimler, and Jaguar.