Revenue growth accelerated to 40.2% in 2025Q4, while the company maintained resilient gross margins of 30.9% despite ongoing raw material price volatility.
| Sales/Revenue | 19.6M | 14.11M | 16M | 20.28M | 21.71M | 11.16M | 9.29M |
| Revenue Growth % | 38.96% | -11.83% | -21.13% | -6.59% | 94.58% | 20.07% | - |
| Cost of Goods Sold | 13.22M | 9.59M | 10.75M | 13.27M | 14.06M | 6.71M | 5.3M |
| COGS % of Revenue | 67.46% | 67.96% | 67.21% | 65.45% | 64.75% | 60.1% | 57.05% |
| Gross Profit | 6.38M | 4.52M | 5.25M | 7.01M | 7.65M | 4.45M | 3.99M |
| Gross Margin % | 32.54% | 32.04% | 32.79% | 34.55% | 35.25% | 39.9% | 42.95% |
| Gross Profit Growth % | 41.13% | -13.84% | -25.15% | -8.44% | 71.91% | 11.54% | - |
| Operating Expenses | 3.95M | 6.1M | 4.23M | 4.09M | 3.72M | 1.98M | 1.11M |
| OpEx % of Revenue | 20.13% | 43.27% | 26.41% | 20.15% | 17.13% | 17.77% | 11.96% |
| Selling, General & Admin | 2.95M | 6.1M | 3.14M | 2.59M | 2.18M | 1.18M | 1.11M |
| SG&A % of Revenue | 15.06% | 43.27% | 19.66% | 12.78% | 10.06% | 10.6% | 11.96% |
| Research & Development | 994.5K | 818.32K | 962.96K | 1.41M | 1.47M | 643.96K | 325.09K |
| R&D % of Revenue | 5.07% | 5.8% | 6.02% | 6.96% | 6.75% | 5.77% | 3.5% |
| Other Operating Expenses | 0 | -818.32K | 117.89K | 82.29K | 68.54K | 156.51K | -325.09K |
| Operating Income | 2.43M | -1.58M | 1.02M | 2.92M | 3.94M | 2.47M | 2.88M |
| Operating Margin % | 12.41% | -11.22% | 6.38% | 14.4% | 18.12% | 22.13% | 31% |
| Operating Income Growth % | 253.68% | -255.16% | -65.07% | -25.77% | 59.36% | -14.27% | - |
| EBITDA | 3.24M | -640.25K | 2.07M | 3.58M | 4.64M | 3.15M | 3.48M |
| EBITDA Margin % | 16.55% | -4.54% | 12.91% | 17.63% | 21.36% | 28.25% | 37.41% |
| EBITDA Growth % | 606.75% | -130.99% | -42.24% | -22.87% | 47.08% | -9.32% | - |
| D&A (Non-Cash Add-back) | 811.21K | 943.04K | 1.05M | 655.41K | 701.79K | 683.3K | 596.07K |
| EBIT | 2.43M | -1.41M | 1.58M | 3.65M | 3.96M | 2.93M | 2.88M |
| Net Interest Income | -469.71K | -466.39K | -643K | -244K | -537.52K | -372.55K | -256.16K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 469.71K | 466.39K | 643K | 244K | 537.52K | 372.55K | 256.16K |
| Other Income/Expense | -261.76K | -289.95K | -87.97K | 291.11K | -470.12K | 193.93K | -212.76K |
| Pretax Income | 2.17M | -1.87M | 932.46K | 3.21M | 3.47M | 2.66M | 2.67M |
| Pretax Margin % | 11.08% | -13.28% | 5.83% | 15.84% | 15.96% | 23.87% | 28.71% |
| Income Tax | 228.68K | 8.39K | 67.74K | 280.07K | 263.08K | 239.5K | 588.55K |
| Effective Tax Rate % | 10.53% | -0.45% | 7.26% | 8.72% | 7.59% | 8.99% | 22.06% |
| Net Income | 1.94M | -1.88M | 864.72K | 2.93M | 3.2M | 2.42M | 2.08M |
| Net Margin % | 9.91% | -13.34% | 5.41% | 14.46% | 14.75% | 21.72% | 22.38% |
| Net Income Growth % | 203.25% | -317.6% | -70.51% | -8.43% | 32.11% | 16.57% | - |
| Net Income (Continuing) | 1.94M | -1.88M | 864.72K | 2.93M | 3.2M | 2.42M | 2.08M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.03 | -0.03 | 0.07 | 0.24 | 0.27 | 0.20 | 0.17 |
| EPS Growth % | 203.52% | -134.78% | -69.33% | -11.11% | 35% | 17.65% | - |
| EPS (Basic) | 0.03 | -0.03 | 0.07 | 0.24 | 0.27 | 0.20 | 0.17 |
| Diluted Shares Outstanding | 73.44M | 73.44M | 11.75M | 12.06M | 12.06M | 12.06M | 12.06M |
| Basic Shares Outstanding | 73.44M | 73.44M | 11.75M | 12.06M | 12.06M | 12.06M | 12.06M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Geopolitical and cyclical exposure
As indicated by the most recent quarterly data, Hongli Group achieved a 40.2% year-over-year revenue growth in 2025Q4, marking a significant recovery from the stagnant performance observed throughout 2024 and suggesting that the company is successfully capturing renewed demand within the heavy machinery and mining equipment sectors.
The recent acceleration in top-line growth appears to validate the company's focus on specialized cold-formed steel profiles, which are increasingly utilized in high-tolerance industrial applications. Investors should monitor whether this momentum is sustainable or if it represents a temporary catch-up in procurement cycles following the previous period of contraction.
Based on reported financial statements, Hongli Group has maintained gross margins consistently above 30%, with the 2025Q4 figure of 30.9% demonstrating the company's ability to preserve value-add despite the inherent price fluctuations of raw hot-rolled steel coils used in their proprietary cold-forming manufacturing process.
The stability of these margins suggests that the company possesses a degree of pricing power derived from the bespoke nature of its steel profiles. However, the slight compression from the 35% levels seen in 2022 warrants investigation into whether rising input costs or competitive pressures are beginning to erode the company's structural profitability.
According to the income statement history, operating income has shown a marked improvement, reaching $1.1 million in 2025Q4, which indicates that the company is successfully leveraging its fixed manufacturing costs as revenue scales back toward the $10 million quarterly threshold observed in previous peak periods.
The return to positive operating margins of 11.5% in the most recent quarter highlights the sensitivity of the company's bottom line to facility utilization rates. Future analysis should focus on whether SG&A expenses remain contained as the company attempts to capture further market share in international export markets.
As highlighted by the provided financial data, the company's cash-to-revenue ratio remains thin, with only $1.88 million in cash against nearly $20 million in annual revenue, which may limit the firm's ability to absorb unexpected supply chain disruptions or sudden shifts in global steel pricing dynamics.
While the low debt-to-equity ratio is often viewed as a sign of financial health, in this context, it may also reflect limited access to traditional credit facilities, forcing the company to operate with a narrow margin for error. Investors should remain cautious regarding the potential for dilutive financing if the company requires additional working capital to sustain its current growth trajectory.
Quick answers to the most common questions about buying HLP stock.
For fiscal year 2025, Hongli Group Inc. (HLP) reported total revenue of $19.6M. This represents a 110.9% increase compared to $9.3M in 2019.
Hongli Group Inc. (HLP) is profitable, generating $1.9M in net income for the fiscal year ending 2025 with a net profit margin of 9.9%.
Hongli Group Inc. (HLP) reported an operating income of $2.4M, resulting in an operating profit margin of 12.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Hongli Group Inc. (HLP) generated $6.4M in gross profit for the year, representing a gross profit margin of 32.5%. This demonstrates the company's core pricing power and production efficiency.