China Automotive Systems, Inc. reported third‑quarter 2025 net sales of $193.2 million, up 17.7% from $160.5 million in Q3 2024. Gross profit rose to $33.4 million, giving a gross margin of 17.3% versus 16.0% a year earlier, a 1.3‑percentage‑point improvement driven by a higher mix of electric power‑steering (EPS) units that command stronger pricing power.
Net income attributable to the parent company climbed to $9.7 million, up from $5.5 million in Q3 2024, while diluted earnings per share increased to $0.32 from $0.18—a 77.8% jump. The earnings beat is largely attributable to disciplined cost management: operating expenses grew only 12% to $18.8 million, compared with a 20% rise in revenue, allowing the company to preserve margin expansion.
International sales were the primary growth engine. North American revenue surged 77.3% to $33.1 million, driven by strong demand for high‑margin EPS modules in the U.S. automotive market. Brazilian sales grew 30.5% to $18.6 million, reflecting a rebound in the country’s new‑energy vehicle (NEV) segment. Domestic operations also expanded: Henglong’s sales increased 7.7% to $88.8 million, while Jiulong’s commercial‑vehicle EPS sales jumped 44.4% to $24.9 million, underscoring the company’s penetration into the commercial‑vehicle market.
Research and development expenses rose to $10.4 million from $6.4 million in Q3 2024, a 62% increase that reflects intensified investment in next‑generation R‑EPS technology and active rear‑wheel steering. Selling expenses grew to $6.3 million from $4.4 million, largely due to higher salaries and marketing spend aimed at expanding the company’s global OEM footprint.
Management raised the full‑year 2025 revenue guidance to $730 million, up from the prior $700 million outlook, signaling confidence in sustained demand for advanced steering solutions. The company also announced a new R‑EPS order from a major European automaker, expected to generate over $100 million in annual sales starting in 2027, and highlighted the launch of its active rear‑wheel steering system.
Chief Executive Officer Qizhou Wu emphasized that the quarter’s performance “demonstrates the strength and breadth of our product portfolio” and that the company remains a tier‑1 supplier to large global OEMs across North America, Europe, Asia, and South America. Chief Financial Officer Jie Li underscored the importance of maintaining a strong balance sheet and financial resources as the company scales its high‑margin technology portfolio.
The market reacted positively to the results, with investors expressing confidence in the company’s earnings beat, raised guidance, and the new R‑EPS order. The strong international sales growth and the company’s focus on high‑margin, technology‑driven products are viewed as key tailwinds, while the increased R&D and selling expenses are acknowledged as short‑term investments that support long‑term growth.
Overall, China Automotive Systems’ Q3 2025 results reflect a company that is successfully transitioning to higher‑margin, technology‑centric products, expanding its global OEM relationships, and positioning itself for continued growth in the electrified automotive market.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.