25 September 2025

CT Automotive Group PLC

("CT Automotive" or the "Group")

"Solid performance with strong margin progression, and multiple new business wins"

CT Automotive, a leading designer, developer and supplier of interior components to the global automotive industry, today announces its results for the half year ended 30 June 2025 ("H1 25").

Simon Phillips, Chief Executive Officer of CT Automotive, commented:

"This has been a productive first six months with eight new contracts secured, worth ~$37m annually, four of which were awarded to our Mexico facility, with customers attracted by the cost-efficient production and being a low tariff jurisdiction for the US market. While the market has been challenging with tariffs adding further complexity, we have remained flexible and responsive to changing customer needs, successfully focusing on new ways to reduce supply chain costs reflected in the new business wins. Our investment in AI, automation and digitisation continue to be key to driving the gross profit margin which has again improved significantly up by 290 basis points.  The Board has taken the strategic decision to continue the investment in our Mexico facility, driven by demand in this market.

The Company remains on track to hit FY 25 market expectations for profitability[1]. Market conditions, including uncertainty around tariffs, resulted in an initial level of customer caution and, combined with recent customer adjustments to program launch timing, revenues are now expected to be slightly softer. Crucially, latest customer information indicates no change to longer term production volumes to FY 26 and beyond."

Listen to CEO Simon Phillips provide further insight on the Interim Results

Financial highlights⁺

* Adjusted for non-recurring items as explained in Notes 4 and 15 of the consolidated condensed financial statements

[1] Note: Immediately prior to this announcement, the Company believes that market expectations for the year ended 31 December 2025 were for revenues of $122.0m and adjusted Profit Before Tax of $10.5m respectively.

** Net debt excludes IFRS 16 lease liabilities

⁺Note: the above figures are derived from continuing operations excluding UK discontinued operations

HY25 financial highlights

·      CT Automotive delivered a resilient financial performance in the first half of 2025 in the face of macroeconomic headwinds, underpinned by margin expansion and disciplined investment to support future growth.

·      Total revenues for H1 25 were $54.1m (H1 24: $60.5m), reflecting  timing adjustments to customer program launches and short-term inventory reductions across the sector. Importantly, there has been no change to long-term production volumes, and production is expected to accelerate as delayed programs begin ramping up in Q1 2026.

·      Eight new program awards in H1 25 worth $37m annually, with four customers relocating production to CT's Mexico facility from competitors for USMCA benefits, reinforcing CT's cost-efficient, high-quality positioning.

·      Strategic investment in Mexico facility ($3.4m), adding 15 injection moulding machines and an automated paint line, ensuring capacity for 2026 growth and in line with the Group's strategy to drive further margin improvement.

·      Gross profit margin strengthened to 30.5% (FY 24: 27.6%), a 290 bps increase over six months driven by ongoing efficiency programmes, AI-led automation, and digitisation initiatives. This improvement underscores the Group's ability to protect and grow profitability, even in a volatile market, through accretive deployment of capex.

·      Adjusted profit before tax was $4.2m (H1 24: $4.1m), a level fully consistent with the strategic investments made to expand the Mexican facility and global sales team. These investments are designed to capture the significant growth opportunity in 2026, ensuring that CT Automotive is positioned to scale quickly and efficiently as volumes ramp up.

·      Net debt increased temporarily to $12.1m at period end (H1 24: $5.8m), primarily due to a customer credit extension. Following receipt of the delayed payment, net debt normalised to $7.4m in July. Reflecting the Board's strategic decision to increase capex investment in Mexico in H2, CT now expects FY 25 to close within the $9-10m range. Looking ahead, the business is increasingly cash generative and net debt is expected to reduce significantly by the end of 2026.

Current trading and outlook

·      Solid H1 25 performance with strong margin growth despite industry-wide tariff-related volatility, placing the Company on track to hit FY 25 market expectations for profitability.

·      Revenues for FY 25 are now expected to be slightly softer reflecting timing adjustments only-no change to long-term production volumes, with demand ramping up in Q1 26.

·      Significant expansion of the global sales team, now covering every major automotive region, driving RFQ book to all-time highs.

·      Overall, the Group's margin progression and a record RFQ pipeline provide a solid platform for a stronger second half with the contractual pipeline giving the Board confidence over current FY 26 market expectations and beyond.

Investor Presentation

The Company will hold an investor presentation to discuss the interim results, followed by a Q&A session, on Monday 29 September 2025 at 10.00am. To attend, please register with Investor Meet Company via this link: 

https://www.investormeetcompany.com/ct-automotive-group-plc/register-investor

Enquiries:

Notes to editors

CT Automotive is engaged in the design, development and manufacture of bespoke automotive interior finishes (for example, dashboard panels and fascia finishes) and kinematic assemblies (for example, air registers, arm rests, deployable cup holders and storage systems), as well as their associated tooling, for the world's leading automotive original equipment suppliers ("OEMs") and global Tier One manufacturers.

The Group is headquartered in the UK with a low cost manufacturing footprint. Key production facilities are located in China, Mexico and Türkiye.

CT Automotive's operating model enables it to pursue a price leadership strategy, supplying high quality parts to customers at a lower overall landed cost than competitors. This has helped the Group build a high-quality portfolio of OEM customers, both directly and via Tier One suppliers including Forvia and Marelli.  End customers include volume manufacturers, such as Nissan, Ford, GM and Volkswagen Audi Group, and premium luxury car brands such as Bentley and Lamborghini.  In addition, the Group supplies our customer base with a range of products for PHEV and BEV platforms and supplies electric car manufacturers, including Rivian and a US based major EV OEM.

The Group currently supplies component part types to over 55 different models for 22 OEMs. Since its formation, the Group has been one of the very few new entrants to the market, which is characterised by high barriers to entry.

Use of alternative performance measures

The commentary uses alternative performance measures, which have been adjusted for certain non-recurring items. An explanation of the items identified as non-recurring and that have been adjusted can be found in Notes 4 and 15 of the consolidated condensed interim financial statements.  Non-recurring items are items which due to their one-off, non-trading and non-underlying nature, have been separately classified by the Directors in order to draw them to the attention of the reader and allow for a greater understanding of the operating performance of the Group. 

CEO Statement

Overview

I am pleased to report a solid and strategically important performance for the first six months of 2025. Despite a backdrop of tariff-related market volatility, CT Automotive has delivered another period of margin growth and new business momentum, demonstrating the resilience and adaptability of our model.

The introduction of tariffs has acted as a catalyst for customer engagement, with OEMs and Tier-1 suppliers increasingly seeking our expertise to reduce supply chain costs and mitigate risk. This shift is reflected in eight new program awards secured during the period, worth an estimated $37m annually, with four programs won from competitors relocating production to our Mexico facility, to take advantage of USMCA benefits. These contracts further validate our ability to provide cost-efficient, high-quality solutions on a global scale.

As a result of delays to program launch timing due to occur in the second half of 2025, full year revenues will now be slightly softer than expected, but we remain confident of achieving market expectations for profitability at materially improved margins.

Trading

As previously signalled, revenues of $54.1m reflect customer program launch timing adjustments and inventory run-downs. Crucially, there has been no change to long-term production volumes, and the gross margin improved sharply again to 30.5%, underlining the benefits of our AI-driven automation, digitisation, and cost-control initiatives. 

During H1 25 we strategically increased capital and operational investment, particularly in Mexico, to ensure we are ready for the step-change in volumes forecast for 2026. This proactive approach positions us to capitalise on accelerating demand rather than simply react to it.

We also expect a stronger second half, driven by tooling revenues and engineering development milestones.

New business development

Momentum in new business is exceptional. Building on last year's expansion, our significant investment in a truly global sales team-now covering every major automotive region-has driven our RFQ book to all-time highs. The team is currently tendering for a significant number of programs spanning the Americas, Asia, and Europe, giving us a robust and diversified pipeline further enhancing revenue growth from FY 27 onwards.

These awards and tenders reinforce CT Automotive's position as a trusted global partner, strengthening our forward revenue visibility and broadening our customer base across both traditional OEMs and emerging EV manufacturers.

Manufacturing base

Our Mexico plant continues to expand rapidly, with $3.4m being invested in 2025 to increase capacity-adding 15 injection moulding machines and a new automated paint line. This investment ensures we can meet rising near-shoring demand and deliver USMCA-certified production efficiently.

China remains the innovation hub for CT Automotive, with successful pilots of digitisation, robotics, and AI-based quality control now rolling out globally. Türkiye continues to operate at full capacity, supported by our cost escalation system and careful economic management. Across all production centres, automation and efficiency gains are strengthening margins and ensuring consistent delivery for customers.

Our Sustainability Strategy

Sustainability remains at the centre of our strategy of achieving growth responsibly, whilst taking careful consideration of our wider impact and global footprint. In 2025 we have strengthened our efforts to lower our carbon emissions through partnerships and certified offsetting-EAC programmes, while preparing for longer-term decarbonisation.

As we continue to adopt new technologies and innovation, we remain dedicated to advancing our low-impact operations, innovating sustainably, and partnering with our customers to meet their ESG objectives.

Community

Through our Corporate Social Responsibility (CSR) programmes, we have invested in initiatives that promote healthcare and  welfare, with the aim of delivering lasting positive impact. These efforts not only deepen our engagement with local stakeholders but also demonstrate our commitment to ensuring that sustainable growth creates shared value for the communities in which we operate.

Our People

Our people are our most valuable asset at CT Automotive. We invest in our employees from day one through tailored, professional growth opportunities, with training forming the core of our learning and development strategy. I would like to thank all of our employees, across the globe, for their continued efforts in building an inclusive, collaborative workforce.

Our AI-led Approach

The adoption of new technologies is increasingly becoming a core pillar of our business model, which we believe will allow us to leverage a first-mover advantage against competitors, drive margin improvement and attract new customers. In our China facilities we have successfully piloted the use of digitisation and AI in customer orders all the way through to final assembly, using advanced robotics, full ERP integration, automated assembly lines and AI-based quality control. Going forward, this is being rolled out across our other facilities.  Our disciplined approach ensures every automation project delivers an ROI within one year as a first filter, with subsequent initiatives pursued on a two-year ROI target, a return that remains exceptionally fast by industry standards.

Financial Review

Revenue and margins

During the first half of 2025, the Group generated total revenue of $54.1m, compared to $60.5m in the same period of the prior year. The $6.4m reduction in revenue against H1 24 was mainly driven by market volatility, tariffs, and customer led delays in program launches, resulting in $50.1m of production revenues (H1 24: $56.0m). Although tooling revenue was slightly down from $4.5m in H1 24 to $4.0m in H1 25, due to revenue recognition timing milestones, management are confident of stronger tooling revenues in H2 25.

Gross profit for the period was down to $16.5m (H1 24: $17.4m) due to lower revenue, but gross margin increased to 30.5% from 27.6% at FY 24. This 290 basis points (bps) increase reflects the benefits of the efficiency initiatives and cost controls implemented over previous periods. Gross margin improvements in tooling reflect the decisions to invest in capital equipment to reduce reliance on 3^rd party vendors.

Non-recurring items

During the period, the Group incurred non-recurring expenses totalling approximately $0.9m, comprising:

·      $0.3m (H1 24: $0.3m) relating to hyperinflation adjustments in Türkiye, 

·      $0.2m associated with a one-off tooling amortization,

·      $0.4m of severance costs in Türkiye following union pay increases agreed upon earlier in H1 25.

These items are considered non-recurring and are separately distinguished from ongoing operational costs.

EBITDA and Operating results

Distribution expenses increased marginally to $1.4m (H1 24: $1.1m), primarily due to higher duty costs and increased shipping expenses stemming from recent US tariff changes. Administrative expenses decreased to $10.4m (H1 24: $11.8m), driven by cost control measures implemented in FY 24.

The combined result of EBITDA and operating expenses was as follows:

·      Underlying EBITDA: $8.4m (H1 24: $7.4m).

·      Underlying Profit before tax: $4.2m, (H1 24: $4.1m).

This reflects the core profitability of the Group during the period, supported by operational efficiencies and cost management.

Profit from continuing operations and EPS

Reported profit after tax from continuing operations was $3.4m (H1 24: $3.7m). Basic earnings per share from continuing operations were estimated at approximately 4.6 cents, compared to 4.7 cents in H1 24.

Balance sheet review

The Group's total assets increased from $74.7m at FY 24 to $84.6m as at 30 June 2025.

Total liabilities increased slightly to $54.8.m, compared to $48.5m at FY 24 end, primarily driven by higher loan balances as detailed below and deferred revenue related to H2 25 and H1 26 tooling programs.

 Total non-current assets grew by $0.8m to $18.4m, due to an increase of $1.1m in property, plant, and equipment (PPE) as we expand our Mexican facility for future growth.

Inventories rose by $1.1m to $28.8m, reflecting raw material builds for upcoming projects.

Trade receivables increased by $9.6m to $35.3m, primarily due to a delayed payment from one customer, which was received in July and an increase in tooling prepayments for future programs, which corresponds to an increase in deferred revenue.

Net debt increased from $6.2m at year end to $12.1m. The key contributor was a delay in payment from a key customer which had a net impact of approximately $4m. Net debt normalised in July 2025 at $7.4m following receipt of the one-off delayed payment.

Consolidated Statement of Profit or Loss and Other Comprehensive Income