China Yuchai International (NYSE:CYD) reported a significant expansion in its fiscal 2025 results, as a recovery in China’s commercial vehicle sector and a shift toward high-horsepower engines drove record unit sales and margin expansion.
The company posted full-year 2025 revenue of RMB 24.7 billion ($3.5 billion), a 28.9% increase compared to 2024.
The growth was primarily volume-driven, with total engine sales rising 29.4% to 461,309 units.
Performance was particularly robust in the truck and bus segment, where unit sales surged 42.8%, drastically outpacing the 4.5% growth reported for the broader Chinese market by the China Association of Automobile Manufacturers (CAAM).
Profitability metrics improved in tandem with the top-line growth.
Full-year gross profit climbed 44.3% to RMB 4.1 billion, with gross margins expanding to 16.5% from 14.7% in the prior year.
This margin improvement reflects a more favorable product mix, led by a 50.7% increase in truck engine sales and continued traction in the marine and power generation markets.
Net profit for the year rose 64.8% to RMB 810.5 million, resulting in diluted earnings per share of RMB 14.32 ($2.04).
The company’s balance sheet remains liquid, with cash and bank balances totaling RMB 7.9 billion at year-end, up from RMB 6.4 billion in 2024.
However, the rapid scaling of operations led to a rise in working capital, with trade receivables increasing 18% to RMB 10.4 billion and inventories up 19% to RMB 5.6 billion.
Management noted that R&D spending also grew to RMB 1.4 billion as the company accelerates its transition toward new energy powertrain solutions, including hydrogen and electric range-extenders.