China Automotive Systems beats Q4 estimates, shares edge higher

Published 28/03/2025, 11:56
China Automotive Systems beats Q4 estimates, shares edge higher

WUHAN, China - China Automotive Systems, Inc. (NASDAQ:CAAS) reported fourth quarter earnings and revenue that surpassed analyst expectations on Friday.

The company’s shares were up 0.76% in premarket trading following the release.

The power steering components supplier posted adjusted earnings per share of $0.30, beating the consensus estimate of $0.16. Revenue for the quarter came in at $188.7 million, topping expectations of $147.52 million.

Net sales increased 18.6% year-over-year in Q4, which the company attributed to higher demand for passenger automobiles and commercial vehicles compared to the same period last year. However, gross margin declined to 15.6% from 21.8% in Q4 2023 due to changes in product mix.

For the full year 2024, China Automotive Systems reported record annual revenue of $650.9 million, up 12.9% from 2023. The company highlighted 29.9% year-over-year growth in electric power steering (EPS) sales, which comprised 38.9% of total 2024 revenue compared to 33.8% in 2023.

"We had a solid year in 2024 with record annual revenue, continued profitable operations, positive cash flow from operations, provided a special cash dividend to reward shareholders and initiated a share repurchase program," said CEO Qizhou Wu.

Looking ahead, the company provided 2025 revenue guidance of approximately $700 million, above the analyst consensus of $593.1 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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