China Yuchai (NYSE: CYD) 2025 profit surges with higher margins and cash
Rhea-AI Filing Summary
China Yuchai International reported strong unaudited results for the second half and full year 2025. In 2H 2025, revenue rose 33.5% to RMB 11.8 billion, gross profit grew 58.4% to RMB 2.2 billion, and operating profit jumped 193.1% to RMB 469.2 million. Profit for the period increased 77.7% to RMB 275.7 million, with basic and diluted EPS up 108.7% to RMB 4.57, helped by a 28.7% increase in engine unit sales.
For FY 2025, revenue grew 28.9% to RMB 24.7 billion and gross profit rose 44.3% to RMB 4.1 billion, lifting gross margin to 16.5%. Operating profit increased 82.7% to RMB 1.1 billion and net profit attributable to shareholders rose 66.3% to RMB 537.4 million, with EPS up 74.4% to RMB 14.32. Cash and bank balances reached RMB 7.9 billion at year-end, while loans and borrowings declined to RMB 2.0 billion.
The company highlighted faster growth than its truck and bus markets, strong demand for heavy-duty and high-horsepower engines, and rising data-center power needs, with combined MTU Yuchai Power and Yuchai-branded HHP engine sales to data centers exceeding 2,000 units in 2025. It also noted a July 2025 cash dividend of US$ 0.53 per share for 2024 and an application to list indirect subsidiary Guangxi Yuchai Marine and Genset Power Co. Ltd. on the Hong Kong Stock Exchange, subject to regulatory review and market conditions.
Positive
- Strong revenue and profit growth: FY 2025 revenue increased 28.9% to RMB 24.7 billion, operating profit rose 82.7% to RMB 1.1 billion, and net profit attributable to shareholders grew 66.3% to RMB 537.4 million, with EPS up 74.4% to RMB 14.32.
- Margin expansion with higher-value mix: Gross margin improved from 14.7% to 16.5% and operating margin from 3.1% to 4.4%, driven by higher unit sales, more heavy-duty and high-horsepower engines, and cost reduction initiatives.
- Solid cash position and lower debt: Cash and bank balances reached RMB 7.9 billion at December 31, 2025, while short- and long-term loans and borrowings fell to RMB 2.0 billion, supporting financial flexibility.
- Strategic growth initiatives: Engine unit sales to data centers exceeded 2,000 units in 2025 versus 750 a year earlier, and an indirect subsidiary has applied for a listing on the Hong Kong Stock Exchange, subject to approvals and market conditions.
Negative
- None.
Insights
China Yuchai posted broad-based 2025 growth with margin expansion and strong cash, plus a potential HK listing.
China Yuchai delivered substantial scale and profitability gains in FY 2025. Revenue grew 28.9% to
Growth outpaced core markets: truck and bus engine unit sales rose 42.8% versus 4.5% vehicle market growth, and total engine sales increased 29.4% to 461,309 units. Higher sales of heavy-duty and high-horsepower engines and ongoing cost reduction helped expand gross margin from 14.7% to 16.5%, despite higher R&D spending, including fuel cell-related impairments.
Balance sheet metrics show cash and bank balances rising to
