CYD earnings call summary

Prepared Highlights

• Second half 2025 revenue increased 33.5% YoY to RMB 11.8 billion (USD 1.7 billion); full-year 2025 revenue rose 20.9% to RMB 24.7 billion (USD 3.5 billion) (CEO, CFO).
• Second half 2025 gross profit up 58.4% YoY to RMB 2.2 billion (USD 317 million); gross margin improved to 18.9% from 15.9% (CFO).
• Full-year 2025 gross profit increased 44.3% to RMB 4.1 billion (USD 578.7 million); gross margin rose to 16.5% from 14.7% (CEO, CFO).
• Second half 2025 operating profit surged 193.1% YoY to RMB 469.2 million (USD 66.7 million); operating margin was 4.0% vs. 1.8% (CFO).
• Full-year 2025 operating profit up 82.7% to RMB 1.1 billion (USD 155.2 million); operating margin 4.4% vs. 3.1% (CFO).
• Second half 2025 net profit attributable to equity holders increased 107.4% to RMB 171.6 million (USD 24.4 million); full-year net profit up 66.3% to RMB 537.4 million (USD 76.5 million) (CFO).
• Engine unit sales: Second half 2025 total engines sold up 28.7% YoY to 210,913 units; full-year 2025 up 29.4% to 461,309 units (CFO).
• Truck engine unit sales in second half 2025 rose 59.4% YoY, led by heavy-duty truck engines up 146.1%; full-year heavy-duty truck engine sales up 80.1% YoY (CFO).
• Off-road engine unit sales in 2025 increased 13% YoY; marine & genset and industrial engines each grew over 24% YoY (CEO, CFO).
• Data center engine sales: Combined sales of MTU Yuchai Power and Yuchai branded high horsepower engines to data centers exceeded 2,000 units in 2025, up from 750 units in the prior year (CEO).
• R&D expenses for full-year 2025 increased 37.3% to RMB 1.4 billion (USD 192.3 million); total R&D expenditure including capitalized costs was RMB 1.5 billion (USD 217.1 million), representing 6.2% of revenue (CEO, CFO).
• Cash and bank balances as of December 31, 2025: RMB 7.9 billion (USD 1.1 billion) (CEO, CFO).
• Dividend: Paid a cash dividend of $0.53 per ordinary share in July 2025 (CEO).

Official Guidance

• No official guidance for next quarter or full-year was provided in the prepared remarks.

Management Quotes

• “We are pleased to report a strong sales and profit growth in the second half and full year of 2025.” (CEO)
• “The fast-growing demand for backup generators to provide reliable electric power for data center operations created rapid growth for our engines.” (CEO)
• “Our strategy remains to sell into multiple end markets with a growing and diverse product portfolio.” (CEO)
• “Highlighting the company's confidence in future revenue, profits and cash flow generation, we paid a cash dividend of $0.53 per ordinary share in July 2025.” (CEO)
• “The increase in gross margin was mainly due to higher unit sales volume, a change of sales mix with higher unit sales of heavy-duty and high horsepower engines and continuing cost reduction initiatives.” (CFO)

Prepared Metrics

Q&A Batch (6-7 of 7)

Q6 — Weng Ming Hoh

• Topic: 2026 growth outlook for high-horsepower engines and natural gas engine adoption; truck/bus engine market share sustainability
• Key points:
  • High-horsepower engine growth in 2026 expected to be positive vs. 2025, but no exact figure provided; dependent on ISP data center build speed and pending wireless customer orders.
  • Natural gas engine (using 16VC engine) generates ~2 MW for power generation; current application is industrial, not data center, due to customer cost considerations in China/Asia.
  • Heavy-duty truck engine market share growth in 2025 was driven by certification/design wins with major OEMs, expected to continue into 2026 barring unforeseen events.
• Mgmt stance: Neutral — growth expected but dependent on uncertain customer orders and data center construction pace; no specific guidance for 2026 figures.

Q7 — Yiming Liu

• Topic: Data center engine backlog trend; export business (large horsepower engines) to Europe/Asia
• Key points:
  • For Yuchai high-horsepower engine: component supply from China is not constrained, but raw material cost increases are raising input prices in 2025.
  • For the MTU joint venture: bottleneck exists due to limited component supply from German partners.
  • Backlog order size has not increased recently; delivery time remains 3–4 months.
  • Export: UTai brand large horsepower is ~10% of sales, mainly in Asia; MTU joint venture export opportunity is ~20–25% and growing.
• Mgmt stance: Neutral — backlog unchanged, supply chain mixed (no issue for Yuchai, constrained for JV); export growth modest and regionally limited.