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LONDON - CT Automotive (LON:CTA) Group PLC, a key player in the design and supply of automotive interior components, has disclosed its financial results for the fiscal year ended December 31, 2024. Despite a challenging automotive sector landscape, the company managed to report a slight increase in its adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) to $16.3 million, up from $16.1 million the previous year.
The company faced a 16% drop in year-over-year revenue, totaling $119.7 million for FY24, down from $143.0 million in FY23. This decline was attributed to the normalization of post-pandemic consumer demand, which led Original Equipment Manufacturers (OEMs) to reduce inventory levels. Despite the revenue contraction, CT Automotive achieved a gross profit margin of 28%, a significant improvement from 22% in the prior year, primarily due to the integration of artificial intelligence (AI), automation, and digitization strategies that enhanced operational efficiency.
The adjusted profit before tax (PBT) rose by 5% to $8.7 million, compared to $8.3 million in FY23, driven by the company’s focus on margin efficiencies and reduced fixed and borrowing costs. Net debt increased to $6.2 million, up from $3.8 million, which was in line with expectations as the company realigned vendor payment terms and invested in capital expenditures aimed at driving future growth.
CT Automotive highlighted its operational achievements, including the improvement of all manufacturing centers in China, Mexico, and Türkiye, contributing to the overall gross margin performance. The company also secured eight new contracts valued at $38 million annually, with production expected to commence in the second half of 2025 and into 2026.
For the first quarter of 2025, trading was consistent with management expectations, benefiting from operational efficiencies and the start of new production programs. Despite the uncertain market environment due to tariffs and geopolitical issues, CT Automotive has adapted by near-shoring some production programs from China to Mexico, which is anticipated to add approximately $10 million in annual revenue.
Looking forward, the company remains cautiously optimistic, with a focus on maintaining agility and responding to commercial opportunities. The continued rollout of AI, automation, and digitization is central to the company’s strategy for margin improvement and cost-efficient growth. The board believes that CT Automotive is well-positioned to achieve mid-single-digit revenue growth and further margin expansion in FY25.
This report is based on a press release statement from CT Automotive Group PLC.
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