China Yuchai International Limited (NYSE: CYD) reported a robust fiscal year 2025, with total revenue rising 28.9% to RMB 24.7 billion (US$ 3.5 billion) from RMB 19.1 billion in FY 2024. Net profit attributable to equity holders increased 66.3% to RMB 537.4 million (US$ 76.5 million), while diluted earnings per share climbed 74.4% to RMB 14.32 (US$ 2.04) from RMB 8.21 (US$ 1.14) the prior year. Operating profit surged 82.7% to RMB 1.1 billion (US$ 155.2 million), and operating margin expanded to 4.4% from 3.1%. Gross profit grew 44.3% to RMB 4.1 billion (US$ 578.7 million), with gross margin improving to 16.5% from 14.7%.
In the second half of 2025, revenue reached RMB 11.8 billion (US$ 1.7 billion), up 33.5% from the same period in 2024, and gross margin rose to 18.9% versus 15.9% in 2H 2024. Total engine units sold increased 29.4% to 461,309 units, driven by a 42.8% jump in truck and bus engine sales and a 13.0% rise in off‑road engine sales. High‑horsepower engines for data centers and marine applications accounted for a significant portion of the unit growth, with sales of combined MTU Yuchai Power and Yuchai‑branded HHP engines to data centers exceeding 2,000 units in 2025, up from 750 units in 2024.
The revenue and margin expansion were largely attributable to higher unit sales volume and a favorable product mix that shifted toward heavy‑duty and high‑horsepower engines. Cost‑reduction initiatives also contributed to the improved gross margin, while R&D investment rose 37.3% to RMB 1.4 billion, reflecting the company’s focus on meeting stricter emission standards and expanding its high‑margin data‑center and marine engine lines. Income tax expense increased 156% due to higher profitability, and the company noted ongoing R&D and tax costs as headwinds to future earnings growth.
President Weng Ming Hoh said, "We maintained our strong sales growth in the second half and fiscal year of 2025, with total unit sales increasing by 28.7% and 29.4% YoY, respectively." He added, "In addition to our continued expansion in China, we enhanced our footprint in overseas markets with a strategic agreement in Vietnam, shipped high‑quality castings to Germany, and delivered buses powered by Yuchai natural gas engines in Mexico. New partnerships with additional global industrial leaders will further strengthen market access in the future."
Investors reacted cautiously, focusing on future growth prospects despite the company’s strong results. The market’s attention to the company’s outlook highlights concerns about sustaining momentum amid rising R&D and tax expenses, even as the firm demonstrates solid demand in high‑horsepower engine segments and expanding international presence.
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