China Automotive Systems reports Q1 revenue growth, reaffirms outlook

Published 14/05/2025, 11:16
China Automotive Systems reports Q1 revenue growth, reaffirms outlook

WUHAN, China - China Automotive Systems, Inc. (NASDAQ:CAAS) reported first quarter revenue growth and reaffirmed its full-year guidance On Wednesday.

The company’s shares were up 1.9% in pre-market trading following the release.

The power steering components supplier posted revenue of $167.1 million in Q1 2025, up 19.9% YoY from $139.4 million. Adjusted earnings per share came in at $0.24, down from $0.27 in the year-ago quarter.

Sales of electric power steering (EPS) products surged 54% YoY to $73 million, accounting for 43.7% of total revenue compared to 34% a year earlier. Traditional hydraulic steering product sales rose 2.3% to $94.1 million.

Gross profit increased 18.8% to $28.6 million, while gross margin dipped slightly to 17.1% from 17.3% last year. Income from operations declined 10.5% to $8.6 million due to higher operating expenses.

"The shift to our more advanced electric power steering products reached a pivotal stage in the first quarter of 2025 with sales growth of 54.0% year-over-year," said CEO Qizhou Wu.

The company reiterated its full-year 2025 revenue guidance of $700 million.

China Automotive Systems ended the quarter with $89.9 million in cash, cash equivalents and short-term investments. Net cash provided by operating activities rose to $18.1 million from $10.5 million a year ago.

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