China Yuchai's stock price drops over 5%, despite revenue exceeding expectations

Singapore - China Yuchai International Limited (NYSE: CYD) announced that its performance in the second half of 2025 exceeded revenue expectations.

The company’s stock fell 5.65% in pre-market trading.

In the second half, adjusted earnings per share were $0.65, with revenue up 33.5% year-over-year, rising from 8.8 billion RMB to 11.8 billion RMB ($1.7 billion).

Engine sales increased 28.7% year-over-year to 210,913 units, with truck and bus engine sales surging 49.2%, significantly outpacing the 13% market growth reported by the China Association of Automobile Manufacturers.

For the full year 2025, revenue grew 28.9% to 24.7 billion RMB, with adjusted earnings per share reaching $2.04, a 74.4% increase from 8.21 RMB in 2024. Total engine sales rose 29.4% to 461,309 units.

The full-year gross profit margin expanded from 14.7% to 16.5%, reflecting increased sales, improved product mix (higher proportion of heavy-duty and high-horsepower engines), and cost reduction measures.

Full-year operating profit soared 82.7% to 1 billion RMB, with operating profit margin increasing from 3.1% in 2024 to 4.4%. However, R&D expenses grew 37.3% to 1.4 billion RMB, and income tax expenses surged 156% to 329.7 million RMB due to improved profitability.

Weng Ming Hoh, President of China Yuchai, stated, “We maintained strong sales growth momentum in the second half and full year of 2025, with total sales increasing 28.7% and 29.4% year-over-year, respectively.”

Working capital items saw significant growth, with accounts receivable and notes receivable increasing 18% to 10.4 billion RMB, and year-end inventory rising 19% to 5.6 billion RMB. Cash and bank deposits totaled 7.9 billion RMB, up from 6.4 billion RMB at the end of 2024.

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