China Automotive Systems hits record sales as electric steering demand accelerates

China Automotive Systems (NASDAQ:CAAS), a leading supplier of power steering components and systems in China, announced record-breaking financial results for the fiscal year ended December 31, 2025.

The company’s performance was bolstered by a significant transition toward high-margin electric power steering (EPS) products and an expanding footprint in international markets, including South America and Southeast Asia.

For the full year 2025, net sales rose 17.6% to a record $765.7 million, compared to $650.9 million in the previous year.

The bottom-line growth was even more pronounced, with diluted earnings per share (EPS) jumping 43.4% to $1.42, up from $0.99 in 2024.

This profitability was supported by a 33.2% increase in gross profit to $145.5 million, driven by improved product mix and manufacturing efficiencies.

A key driver of the year's success was the company's technology pivot; sales of EPS products grew by 25.5% in 2025, reflecting the automotive industry’s broader shift toward electric and intelligent vehicle platforms.

In the fourth quarter alone, net sales reached $229.2 million, a 21.4% year-over-year increase, with gross margins climbing to 23.1%.

Operationally, 2025 was a transformative year for the company’s corporate structure.

CAAS successfully completed its redomiciliation from Delaware to the Cayman Islands, a move management believes better aligns the firm with its China-focused peers and provides a more efficient platform for global capital management.

Additionally, the company strengthened its liquidity position, ending the year with $256.7 million in total cash and short-term investments and generating $111.3 million in operating cash flow.

Looking ahead, management issued optimistic revenue guidance for 2026, targeting $810 million.