ECD Automotive Design Announces Agreement to Increase Factory Utilization and Drive Fixed-Cost Absorption

Rhea-AI Summary

ECD Automotive Design (NASDAQ: ECDA) signed an agreement to integrate select builds from a regional 4×4 restoration shop into its Kissimmee factory, allocating a minimum of 10% of annual production capacity to the program.

The company expects this collaboration to add at least 20 units per year to backlog, deliver a positive contribution margin, and improve fixed-cost absorption by deploying its existing skilled workforce and smoothing production planning.

Positive

• Production commitment of at least 10% annual capacity
• Adds a minimum of 20 units per year to backlog
• Positive contribution margin expected from the agreement
• Improves overhead absorption and fixed-cost utilization

Negative

• None.

Key Figures

Allocated capacity Minimum 10% of annual production capacity Capacity dedicated to regional 4x4 collaboration

Added backlog units Minimum 20 units per year Expected incremental builds from new agreement

Market Reality Check

$0.2930 Last Close

Volume Volume 1,054,415 is 0.7x the 20-day average of 1,498,560 shares, indicating subdued trading pre-news. normal

Technical Shares at $0.293 are trading below the $10.53 200-day moving average, reflecting a prolonged downtrend.

Peers on Argus

Peers showed mixed moves pre-news: LOBO +4.14%, AYRO +7.35%, FLYE +2.2%, while EVTV -2.59% and CJET -3.58%. ECDA’s slight -0.78% decline appears more stock-specific than sector-driven.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 10	Community project support	Positive	-20.4%	Support for youth Land Rover restoration project and promotional outreach.
Nov 20	Q3 2025 earnings	Negative	-2.5%	Revenue decline, gross loss, negative EBITDA and widened operating loss.
Nov 20	Showcase build launch	Positive	-2.5%	Announcement of high-spec Project Camel Trophy Defender 110 build.
Nov 12	Bitcoin treasury support	Neutral	-23.8%	Engagement of Arca Labs for operational support on Bitcoin treasury.
Nov 10	Design partnership deal	Positive	-17.3%	U.S. agreement with Chelsea Truck Company for bespoke Defender/Grenadier builds.

Pattern Detected

Recent positive or neutral announcements have often coincided with negative price reactions, while weaker financial updates also saw selling pressure.

Recent Company History

Over the last two months, ECDA has combined branding and partnership news with challenging financial and liquidity disclosures. Community and product stories on Nov 10, Nov 20, and Dec 10, 2025 highlighted bespoke builds and outreach but were followed by declines of -17.29% to -20.4%. Earnings and regulatory filings for Q3 2025 showed gross losses and going-concern language. Today’s capacity-utilization agreement fits the pattern of operational initiatives aimed at efficiency and growth, set against a backdrop of heavy stock pressure and structural challenges.

Market Pulse Summary

This announcement outlines an agreement to integrate builds from a regional 4×4 shop, with ECD dedicating at least 10% of annual production capacity and expecting a minimum of 20 units per year added to backlog. It targets improved fixed-cost absorption, contribution margin, and unit economics. In the context of recent gross losses and liquidity pressure, investors may watch how effectively this incremental volume translates into sustained margins and whether similar collaborations follow.

Key Terms

production capacity financial

"ECD allocating a minimum of ten percent of Its annual production capacity"

Production capacity is the maximum amount of goods or services a factory, plant, or company can produce in a given time under normal operating conditions, usually expressed per day, month or year. Think of it like the number of seats in a theater or the flow from a faucet: it sets the limit on how much can be sold. For investors, capacity shows potential revenue, reveals whether a company can meet demand or needs new investment, and highlights risks of idle assets or bottlenecks.

backlog financial

"we expect to add a minimum of twenty units per year to our backlog"

A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.

unit economics financial

"smooth production planning, and strengthen unit economics."

Unit economics analyzes the profitability of a single product or service by comparing the revenue it generates to the costs involved in producing and delivering it. It helps determine whether each sale contributes to overall profit, much like assessing if selling one item covers its production costs and leaves money left over. Investors use this to judge if a business model is sustainable and capable of growth.

AI-generated analysis. Not financial advice.

The Agreement Integrates Production from a Regional 4×4 Restoration Shop Into ECD’s Facility, With ECD Allocating a Minimum of Ten Percent of Its Annual Production Capacity to the Program

KISSIMMEE, Fla., Dec. 12, 2025 (GLOBE NEWSWIRE) -- ECD Automotive Design, Inc. (“ECD” or the “Company”) (NASDAQ: ECDA), the world’s largest Land Rover and Jaguar restoration company known for its custom luxury builds, including bespoke Defenders, Range Rovers, Jaguar E-Types, Ford Mustangs, and Toyota FJs, today announced that it has signed an agreement to assume select builds from a regional 4x4 restoration and modification shop servicing the southern New England market.

CEO Scott Wallace commented, “Since going public, one of ECD’s primary objectives has been to fill our factory, which is a key driver on our path to achieving cash-flow breakeven. We believe ECD operates one of the most advanced facilities in the United States, backed by a deeply skilled team of artisan mechanics, upholsters and painters that produces high-end restomods across a wide variety of models. Working with regional builders that address unique pockets of demand but don’t necessarily have the capacity to fulfill the orders is a win-win for both parties. We’re able to absorb incremental volume efficiently with our existing infrastructure, and they gain access to the craftsmanship, capacity, and reliability that ECD is known for.”

CFO Victoria Hay added, “This agreement is another meaningful step in improving our cost structure, enabling us to deploy our skilled workforce more efficiently, smooth production planning, and strengthen unit economics. By committing at least ten percent of our production capacity to this collaboration, we expect to add a minimum of twenty units per year to our backlog. We anticipate the agreement to have a positive contribution margin, supporting stronger overhead absorption across the business.”

About ECD Auto Design

ECD, a public company trading under ECDA on the Nasdaq, is a creator of restored luxury vehicles that combines classic English beauty with modern performance. Currently, ECD restores Land Rover Defenders, Land Rover Series IIA, the Range Rover Classic, the Jaguar E-Type and we have recently added Ford Mustang and Toyota FJ. Historically, each vehicle produced by ECD was fully bespoke, a one-off that is designed by the client through an immersive luxury design experience and hand-built from the ground up in 2,200 hours by master-certified Automotive Service Excellence ("ASE") craftsmen. The Company was founded in 2013 by three British "gear heads" whose passion for classic vehicles is the driving force behind exceptionally high standards for quality, custom luxury vehicles. ECD's global headquarters, known as the "Rover Dome," is a 100,000-square-foot facility located in Kissimmee, Florida that is home to 98 staff with 67 talented craftsmen and technicians, who hold a combined 66 ASE and three master level certifications. ECD has an affiliated logistics center in the U.K. where its employees work to source and transport 25-year-old work vehicles back to the U.S. for restoration. For more information, visit www.ecdautodesign.com.

Cautionary Note Regarding Forward-Looking Statements

This press release includes express or implied statements that are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Forward-looking statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance and may contain projections of our future results of operations or of our financial information or state other forward-looking information. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” “attempting,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. You should carefully consider the risks and uncertainties that affect our business, including those described in our filings with the Securities and Exchange Commission (“SEC”), including under the caption “Risk Factors” in our Annual Report on Form 10-K filed for the year ended December 31, 2024 with the SEC, which can be obtained on the SEC website at www.sec.gov. These forward-looking statements speak only as of the date of this communication. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our public announcements and filings with the SEC.

Investor Relations
investorrelations@ecdautodesign.com

FAQ

What did ECD (ECDA) announce on December 12, 2025 about factory utilization?

ECD announced an agreement to assume select builds and to allocate at least 10% of annual production capacity to the program.

How many additional units will ECD (ECDA) expect from the new agreement?

The company expects the agreement to add a minimum of 20 units per year to its backlog.

Will the ECD (ECDA) agreement affect the company’s cost structure?

Yes; management said the deal should improve cost structure by smoothing production planning and improving fixed-cost absorption.

Does ECD (ECDA) expect the program to be profitable for each unit?

Management anticipates the agreement will have a positive contribution margin.

Which facility will handle the regional 4×4 builds for ECD (ECDA)?

The builds will be integrated into ECD’s Kissimmee, Florida production facility.