China Auto Systems Sales Jump 11 Percent
China Automotive Systems (NASDAQ:CAAS), a leading supplier of automotive steering systems and components for both traditional and electric vehicles, released its second-quarter earnings on August 13, 2025, reporting results for the quarter ended June 30. The most notable result was an 11.1% increase in GAAP revenue to $176.2 million in Q2 2025, propelled by rapid growth in advanced product lines and further international expansion, particularly in Brazil and North America. Gross margin (GAAP) narrowed to 17.3%, down from 18.5% in Q2 2024, as higher tariffs and a greater share of lower-margin products weighed on profitability. While there were no analyst estimates for comparison, management responded to strong sales momentum by raising full-year revenue guidance to $720.0 million for fiscal year 2025, up from $700.0 million. Overall, the period reflected robust sales execution but also pointed to persistent margin pressures and a modest uptick in net income growth.
China Automotive Systems specializes in manufacturing and supplying steering systems, with a diverse product portfolio that covers both electric and hydraulic steering solutions for passenger and commercial vehicles. The company serves major original equipment manufacturers (OEMs) in China and abroad.
Recently, China Automotive Systems has focused on broadening its technology base and expanding internationally. Its push into electric power steering technology is central to its strategy, meeting the increasing demand for advanced steering solutions in the global shift toward electric and intelligent vehicles. Continuous investment in research and development aims to sustain its competitive position, especially as it secures more contracts with global automakers.
Source Fool.com
