Revenue growth reached 11.1% in 2025Q2, yet operating margins remain constrained between 4.6% and 8.5% due to significant pricing pressure from consolidated OEM customers.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 |
|---|
| Sales/Revenue | 696.27M | 765.74M | 650.93M | 576.35M | 529.55M | 497.99M | 417.64M | 431.43M | 496.16M | 499.06M | 462.05M | 443.53M | 466.77M | 415.16M | 336M | 347.97M | 345.93M | 255.6M | 163.18M | 133.6M | 95.77M | 63.57M | 58.19M | 55.33M | 0 | 13.5K | 0 |
| Revenue Growth % | 17.08% | 17.64% | 12.94% | 8.84% | 6.34% | 19.24% | -3.2% | -13.05% | -0.58% | 8.01% | 4.17% | -4.98% | 12.43% | 23.56% | -3.44% | 0.59% | 35.34% | 56.64% | 22.14% | 39.5% | 50.64% | 9.26% | 5.17% | - | -100% | - | - |
| Cost of Goods Sold | 581.33M | 620.27M | 541.75M | 472.6M | 446.16M | 425.91M | 362.3M | 369.41M | 430.75M | 414.43M | 381.13M | 363.99M | 379.3M | 338.53M | 275.25M | 279.88M | 265.62M | 182.93M | 115.92M | 88.27M | 62.86M | 41.11M | 35.04M | 30.4M | 0 | 0 | 0 |
| COGS % of Revenue | - | 81% | 83.23% | 82% | 84.25% | 85.53% | 86.75% | 85.63% | 86.82% | 83.04% | 82.49% | 82.07% | 81.26% | 81.54% | 81.92% | 80.43% | 76.79% | 71.57% | 71.04% | 66.07% | 65.64% | 64.66% | 60.22% | 54.95% | - | - | - |
| Gross Profit | 114.94M | 145.46M | 109.18M | 103.75M | 83.39M | 72.08M | 55.34M | 62.02M | 65.41M | 84.63M | 80.92M | 79.55M | 87.47M | 76.63M | 60.75M | 68.1M | 80.3M | 72.67M | 47.26M | 45.32M | 32.91M | 22.47M | 23.14M | 24.93M | 0 | 13.5K | 0 |
| Gross Margin % | 16.51% | 19% | 16.77% | 18% | 15.75% | 14.47% | 13.25% | 14.37% | 13.18% | 16.96% | 17.51% | 17.93% | 18.74% | 18.46% | 18.08% | 19.57% | 23.21% | 28.43% | 28.96% | 33.93% | 34.36% | 35.34% | 39.78% | 45.05% | - | 100% | - |
| Gross Profit Growth % | - | 33.23% | 5.24% | 24.41% | 15.7% | 30.25% | -10.76% | -5.19% | -22.71% | 4.59% | 1.72% | -9.06% | 14.15% | 26.14% | -10.79% | -15.2% | 10.51% | 53.77% | 4.27% | 37.72% | 46.48% | -2.92% | -7.15% | - | -100% | - | - |
| Operating Expenses | 73.52M | 85.93M | 68.93M | 64.51M | 75.44M | 66.56M | 63.49M | 55.83M | 68.32M | 65.36M | 57.9M | 49.9M | 43.04M | 39.91M | 32.95M | 36.2M | 27.38M | 35.84M | 30.34M | 24.06M | 20.15M | 14.44M | 12.37M | 14.14M | 9.92M | 9.13K | 5.94K |
| OpEx % of Revenue | - | 11.22% | 10.59% | 11.19% | 14.25% | 13.37% | 15.2% | 12.94% | 13.77% | 13.1% | 12.53% | 11.25% | 9.22% | 9.61% | 9.81% | 10.4% | 7.92% | 14.02% | 18.59% | 18.01% | 21.04% | 22.72% | 21.27% | 25.56% | - | 67.62% | - |
| Selling, General & Admin | 41.26M | 45.51M | 40.61M | 35.01M | 34.35M | 35.31M | 31.14M | 31.89M | 38.71M | 34.59M | 29.75M | 28.13M | 28.3M | 23.7M | 19.49M | 26.2M | 19.39M | 30.33M | 22.97M | 18.7M | 15.58M | 10.83M | 10.01M | 11.76M | 9.92M | 9.13K | 5.94K |
| SG&A % of Revenue | - | 5.94% | 6.24% | 6.07% | 6.49% | 7.09% | 7.46% | 7.39% | 7.8% | 6.93% | 6.44% | 6.34% | 6.06% | 5.71% | 5.8% | 7.53% | 5.61% | 11.86% | 14.07% | 14% | 16.27% | 17.04% | 17.2% | 21.25% | - | 67.62% | - |
| Research & Development | 30.96M | 45.06M | 27.65M | 29.18M | 36.11M | 28.23M | 25.72M | 27.99M | 33.55M | 33.54M | 27.71M | 22.34M | 22.97M | 20.89M | 14.89M | 10.01M | 7.99M | 2.56M | 2.26M | 1.67M | 1.07M | 966.78K | 1.52M | 1.02M | 0 | 0 | 0 |
| R&D % of Revenue | - | 5.88% | 4.25% | 5.06% | 6.82% | 5.67% | 6.16% | 6.49% | 6.76% | 6.72% | 6% | 5.04% | 4.92% | 5.03% | 4.43% | 2.88% | 2.31% | 1% | 1.38% | 1.25% | 1.11% | 1.52% | 2.61% | 1.84% | - | - | - |
| Other Operating Expenses | -1.01M | -4.64M | 674K | 313K | 4.98M | 3.02M | 6.63M | -4.05M | 1.17M | 678K | 0 | 844K | 1.02M | 1.1M | 461K | 0 | 0 | 2.96M | 5.11M | 3.69M | 3.5M | 2.65M | 848.01K | 1.37M | 0 | 0 | 0 |
| Operating Income | 41.42M | 59.53M | 40.26M | 39.24M | 7.95M | 5.52M | -8.15M | 6.19M | -2.91M | 19.27M | 23.02M | 29.65M | 44.43M | 36.72M | 27.8M | 33.38M | 54.05M | 37.66M | 16.92M | 21.27M | 12.76M | 8.02M | 10.77M | 10.79M | -9.92M | 4.37K | -5.94K |
| Operating Margin % | 5.95% | 7.77% | 6.18% | 6.81% | 1.5% | 1.11% | -1.95% | 1.43% | -0.59% | 3.86% | 4.98% | 6.69% | 9.52% | 8.84% | 8.27% | 9.59% | 15.62% | 14.74% | 10.37% | 15.92% | 13.33% | 12.62% | 18.51% | 19.5% | - | 32.38% | - |
| Operating Income Growth % | - | 47.88% | 2.57% | 393.59% | 44.09% | 167.71% | -231.73% | 312.72% | -115.09% | -16.28% | -22.38% | -33.26% | 21.01% | 32.09% | -16.72% | -38.24% | 43.5% | 122.56% | -20.42% | 66.6% | 59.1% | -25.5% | -0.16% | 208.78% | -227010.76% | 173.52% | - |
| EBITDA | 60.05M | 73.79M | 60.48M | 57.95M | 33.12M | 32.63M | 13.91M | 24.04M | 13.89M | 33.97M | 36.92M | 44.92M | 59.95M | 51.3M | 41.71M | 46.88M | 63.55M | 46.35M | 26.85M | 28.62M | 19.24M | 12.93M | 12.78M | 12.15M | -9.92M | 4.37K | -5.94K |
| EBITDA Margin % | 8.62% | 9.64% | 9.29% | 10.06% | 6.26% | 6.55% | 3.33% | 5.57% | 2.8% | 6.81% | 7.99% | 10.13% | 12.84% | 12.36% | 12.41% | 13.47% | 18.37% | 18.13% | 16.45% | 21.42% | 20.09% | 20.34% | 21.96% | 21.97% | - | 32.38% | - |
| EBITDA Growth % | -5.02% | 22.01% | 4.36% | 74.96% | 1.51% | 134.62% | -42.14% | 73.03% | -59.11% | -7.98% | -17.83% | -25.07% | 16.86% | 23.01% | -11.03% | -26.23% | 37.1% | 72.63% | -6.17% | 48.72% | 48.79% | 1.22% | 5.11% | 222.57% | -227010.76% | 173.52% | - |
| D&A (Non-Cash Add-back) | 18.62M | 14.26M | 20.22M | 18.71M | 25.17M | 27.11M | 22.06M | 17.85M | 16.8M | 14.7M | 13.9M | 15.27M | 15.52M | 14.59M | 13.91M | 13.5M | 9.5M | 8.68M | 9.92M | 7.35M | 6.48M | 4.91M | 2.01M | 1.37M | 0 | 0 | 0 |
| EBIT | 49.98M | 63.1M | 45.94M | 49.26M | 24.49M | 9.84M | -10.61M | 5.55M | 427K | 22.61M | 26.17M | 33.38M | 47.87M | 39.81M | 30.17M | 56.07M | 74.92M | -10.12M | 16.19M | 21.27M | 12.76M | 8.38M | 11.56M | 11.03M | 0 | 0 | 0 |
| Net Interest Income | 229K | -107K | 550K | 290K | -203K | -195K | 409K | -816K | -1.22M | 1.21M | 815K | 1.49M | 588K | 1.27M | -1.66M | -3.4M | -2.92M | -3.81M | -1.24M | -566.99K | -832.84K | 0 | -730.96K | -344.72K | 0 | 0 | 0 |
| Interest Income | 2.48M | 1.59M | 2.36M | 1.52M | 1.25M | 1.24M | 2.28M | 2.22M | 2.27M | 3.44M | 2.08M | 3.42M | 2.96M | 2.84M | 1.42M | 726.93K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 2.25M | 1.7M | 1.81M | 1.23M | 1.45M | 1.44M | 1.87M | 3.42M | 3.5M | 2.23M | 1.26M | 1.93M | 2.37M | 1.57M | 3.08M | 3.98M | 2.92M | 3.81M | 1.24M | 566.99K | 832.84K | 0 | 730.96K | 344.72K | 0 | 0 | 0 |
| Other Income/Expense | 6.31M | 3.96M | 3.54M | 8.99M | 17.47M | 9.21M | 41K | 2.79M | 407K | 1.1M | 1.89M | 2.4M | 1.65M | 1.52M | -743K | 21M | 17.35M | -1 | 769.11K | -528.52K | -738.59K | -655.37K | 920.6K | 199.25K | 9.91M | 0 | 0 |
| Pretax Income | 47.73M | 63.49M | 43.79M | 48.23M | 25.43M | 14.73M | -8.11M | 8.97M | -2.5M | 20.38M | 24.9M | 32.05M | 46.08M | 38.24M | 27.05M | 52.1M | 71.4M | 36.4M | 17.69M | 20.74M | 12.03M | 7.37M | 11.69M | 10.98M | -9.92K | 0 | 0 |
| Pretax Margin % | 6.86% | 8.29% | 6.73% | 8.37% | 4.8% | 2.96% | -1.94% | 2.08% | -0.5% | 4.08% | 5.39% | 7.23% | 9.87% | 9.21% | 8.05% | 14.97% | 20.64% | 14.24% | 10.84% | 15.52% | 12.56% | 11.59% | 20.09% | 19.84% | - | - | - |
| Income Tax | 9.03M | 11.58M | 5.89M | 5.14M | 3.08M | 4M | 2.16M | 586K | -1.47M | 41.63M | 2.48M | 4.49M | 6.79M | 5.48M | 4.39M | 4.35M | 8.48M | 5.11M | 185.88K | 2.23M | 1.67M | 1.37M | 618.4K | 1.75M | 9.91M | -2.19K | 2.97K |
| Effective Tax Rate % | 18.91% | 18.23% | 13.45% | 10.65% | 12.12% | 27.18% | -26.68% | 6.53% | 58.58% | 204.33% | 9.97% | 14.01% | 14.72% | 14.34% | 16.23% | 8.36% | 11.88% | 14.04% | 1.05% | 10.76% | 13.88% | 18.62% | 5.29% | 15.95% | -99900% | - | - |
| Net Income | 29.32M | 42.84M | 29.98M | 37.66M | 21.18M | 11.05M | -4.98M | 9.96M | 2.38M | -19.35M | 22.51M | 27.39M | 33.54M | 26.79M | 20.74M | 40.79M | 51.74M | 23.41M | 12.44M | 8.86M | 4.81M | 3.32M | 6.87M | 3.87M | -9.92M | 2.19K | -2.97K |
| Net Margin % | 4.21% | 5.59% | 4.61% | 6.53% | 4% | 2.22% | -1.19% | 2.31% | 0.48% | -3.88% | 4.87% | 6.17% | 7.19% | 6.45% | 6.17% | 11.72% | 14.96% | 9.16% | 7.62% | 6.63% | 5.02% | 5.22% | 11.8% | 7% | - | 16.19% | - |
| Net Income Growth % | -18.06% | 42.89% | -20.39% | 77.79% | 91.68% | 321.89% | -149.99% | 319.1% | 112.29% | -185.94% | -17.81% | -18.35% | 25.21% | 29.15% | -49.15% | -21.16% | 120.97% | 88.29% | 40.35% | 84.13% | 45.13% | -51.72% | 77.39% | 139.04% | -453921.51% | 173.52% | - |
| Net Income (Continuing) | 38.71M | 51.91M | 37.9M | 43.1M | 22.34M | 10.73M | -10.27M | 8.38M | -1.04M | -21.26M | 22.42M | 27.56M | 39.3M | 32.76M | 22.66M | 47.75M | 62.92M | -18.65M | 17.51M | 8.86M | 10.36M | 6M | 11.07M | 4M | -9.92M | 2.19K | -2.97K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 171K | -1.88M | 0 | 0 | 0 | 0 | 0 | 0 | -4.18M | 0 | 0 | 0 | 0 |
| Minority Interest | 44.5M | 49.36M | 40.22M | 23.96M | 15.76M | 16.41M | 16.69M | 20.16M | 18.95M | 6.68M | 5.41M | 8.25M | 8.91M | 45.07M | 38.85M | 43.03M | 35.97M | 27.17M | 23.22M | 23.17M | 23.11M | 21.75M | 17.57M | 18.69M | 0 | 0 | 0 |
| EPS (Diluted) | 0.97 | 1.42 | 0.99 | 1.25 | 0.69 | 0.14 | -0.46 | 0.22 | 0.08 | -0.61 | 0.70 | 0.85 | 1.15 | 0.95 | 0.70 | 0.69 | 1.10 | -0.98 | 0.46 | 0.37 | 0.21 | 0.15 | 0.30 | 0.18 | -0.47 | 0.10 | -0.00 |
| EPS Growth % | -17.8% | 43.43% | -20.8% | 81.16% | 392.86% | 130.43% | -309.09% | 192.94% | 112.31% | -187.14% | -17.65% | -26.09% | 21.05% | 35.71% | 1.45% | -37.27% | 212.24% | -313.04% | 24.32% | 76.19% | 40% | -50% | 66.67% | 138.3% | -570% | - | - |
| EPS (Basic) | - | 1.42 | 0.99 | 1.25 | 0.69 | 0.14 | -0.46 | 0.22 | 0.08 | -0.61 | 0.70 | 0.85 | 1.15 | 0.96 | 0.70 | 1.30 | 1.65 | -0.98 | 0.48 | 0.37 | 0.21 | 0.15 | 0.30 | 0.18 | -0.47 | 0.10 | -0.00 |
| Diluted Shares Outstanding | 30.17M | 30.17M | 30.18M | 30.19M | 30.64M | 30.86M | 31.08M | 31.46M | 31.65M | 31.65M | 31.96M | 32.13M | 29.08M | 28.06M | 28.22M | 31.51M | 31.57M | 26.99M | 29.67M | 23.96M | 23.21M | 22.59M | 22.58M | 22.08M | 20.91M | 20M | 18.5M |
| Basic Shares Outstanding | 30.17M | 30.17M | 30.18M | 30.19M | 30.64M | 30.85M | 31.08M | 31.46M | 31.64M | 31.64M | 31.95M | 32.12M | 29.06M | 28.04M | 28.21M | 27.93M | 27.1M | 26.99M | 25.71M | 23.95M | 23.2M | 22.57M | 22.57M | 21.77M | 20.91M | 20M | 18.5M |
| Dividend Payout Ratio | - | 5.11% | 74.83% | - | - | - | - | - | - | - | 2.42% | 0.92% | 12.79% | 0.25% | - | - | 6.99% | 17.84% | 49.85% | - | - | - | 65.08% | 68.37% | - | - | - |
Geopolitical and OEM concentration
According to the provided quarterly financial data, CAAS has demonstrated a resilient revenue growth trajectory, achieving a 17.64% year-over-year increase in the most recent period, which suggests successful penetration into the competitive Chinese NEV market despite broader cyclical headwinds impacting the automotive parts manufacturing sector.
The revenue growth appears to be driven by volume gains in the EPS segment as domestic OEMs accelerate their transition to electric platforms. However, the inconsistency in quarterly growth rates suggests that the company remains highly susceptible to the timing of OEM purchase orders and broader production cycles in the Chinese automotive industry.
As reported in the income statement, gross margins have fluctuated between 15.2% and 21.8% over the last ten quarters, indicating that CAAS faces significant challenges in maintaining pricing power against large, consolidated OEM customers while managing volatile input costs for steel and electronic components.
The inability to consistently hold gross margins above the 20% threshold suggests that the company operates in a highly commoditized environment where cost-plus pricing models may be prevalent. Investors should monitor whether the shift toward higher-value intelligent steering systems can eventually provide a structural uplift to these thin margins.
Based on the reported figures, operating income has failed to scale linearly with revenue growth, as evidenced by operating margins hovering between 4.6% and 8.5%, which implies that the company is struggling to achieve meaningful operating leverage despite its lean administrative and overhead cost structure.
The lack of consistent operating margin expansion suggests that incremental revenue is being offset by rising production costs or necessary R&D investments to remain competitive. This trend warrants further investigation into whether the company's current scale is sufficient to absorb the fixed costs associated with developing next-generation steering technologies.
Analysis of the income statement reveals that net income has experienced significant quarterly variance, with EPS dropping by as much as 41.9% in 2024Q3, suggesting that the bottom line is highly sensitive to non-operating items and the performance of various joint venture equity interests.
The absence of stock-based compensation is a positive indicator of shareholder alignment, yet the erratic nature of net income suggests that the quality of earnings is heavily influenced by external factors rather than core operational efficiency. Analysts should be cautious of relying on quarterly EPS figures as a proxy for long-term profitability.
While the company maintains a fortress balance sheet, the persistent reliance on transactional OEM revenue without a recurring service component raises concerns about the long-term sustainability of its growth, particularly if Chinese domestic vehicle production rates were to experience a sustained, multi-year cyclical downturn.
Short-sellers might focus on the company's inability to translate revenue growth into consistent margin expansion, viewing the current valuation as a trap. The reliance on a few large state-owned enterprise customers creates a concentration risk that could lead to sudden, material revenue impairment if supply chain relationships shift.
Quick answers to the most common questions about buying CAAS stock.
For fiscal year 2025, China Automotive Systems, Inc. (CAAS) reported total revenue of $765.7M.
China Automotive Systems, Inc. (CAAS) is profitable, generating $42.8M in net income for the fiscal year ending 2025 with a net profit margin of 5.6%.
China Automotive Systems, Inc. (CAAS) reported an operating income of $59.5M, resulting in an operating profit margin of 7.8%. This margin reflects the operational efficiency of the business before interest and taxes.
China Automotive Systems, Inc. (CAAS) generated $145.5M in gross profit for the year, representing a gross profit margin of 19.0%. This demonstrates the company's core pricing power and production efficiency.