CT Automotive Group Plc (LSE:CTA) delivered a resilient performance for FY25 despite continued disruption across the automotive industry linked to volatile trade policies and reduced production volumes from major OEMs.
Revenue declined 4% to $114.8 million as customer de-stocking and delayed programme launches affected sales volumes. However, gross margin improved to 31%, while adjusted profit before tax increased 20% to $9.5 million. The company said this marked a third consecutive year of profit improvement, supported by cost efficiencies and wider adoption of AI, automation and robotics across operations.
Mexico expansion and technology strategy
CT Automotive continued expanding its manufacturing operations in Mexico, securing 15 new contracts representing approximately $47 million in annualised revenue. Management said the facility is increasingly positioned as a near-shoring solution for customers seeking more tariff-resilient supply chains.
The company also highlighted a record request-for-quotation pipeline alongside ongoing investment in both Mexico and China. In addition, CT Automotive has begun rolling out an agentic AI factory system designed to improve manufacturing efficiency and operational performance.
Management also addressed recent changes to the board and finance function while reiterating plans to reduce net debt as newly awarded programmes move into production through FY27.
Outlook and valuation considerations
The company’s outlook is supported by improving operational performance, including stronger margins, manageable leverage levels and solid operating cash generation. Its comparatively low price-to-earnings ratio also suggests an inexpensive valuation relative to earnings.
However, these positives are partially offset by weak technical indicators, with the shares trading below major moving averages and momentum readings pointing to heavily oversold conditions.
More about CT Automotive
CT Automotive Group Plc designs, develops and manufactures bespoke automotive interior finishes and kinematic assemblies for global OEMs and Tier One automotive suppliers. Headquartered in the UK, the company operates low-cost manufacturing facilities in China, Mexico and Türkiye, with distribution networks spanning Europe, Asia and the United States.
The group follows a price-leadership strategy serving both mass-market and premium automotive brands, including major electric vehicle manufacturers.
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