UK's CT Automotive H1 revenue rises on Mexico facility ramp-up
UK's CT Automotive H1 revenue rises on Mexico facility ramp-up
Overview
UK automotive interior supplier's H1 revenue grew 14% yr/yr, driven by Mexico facility ramp-up
Adjusted pretax profit and EPS for H1 declined sharply due to higher costs and inefficiencies
Company faces ongoing price escalation negotiations with key customer in Chapter 11, impacting outlook
Outlook
CT Automotive expects FY26 adj PBT between $4.9 mln and $9.4 mln, below prior market view
Company expects FY26 revenue to remain broadly unchanged, supported by strong demand
Net debt is expected to increase at FY26 year end due to delayed VAT and customer payments
Result Drivers
MEXICO FACILITY RAMP-UP - Revenue growth driven by new production launches and increased volumes at Mexico facility
SUPPLY CHAIN DISRUPTION COSTS - Elevated freight, material, and labor costs, plus expedited shipping and demurrage charges, weighed on margins
KEY CUSTOMER CHALLENGES - Ongoing negotiations and Chapter 11 status of major customer led to revenue reduction and working capital tightening
Company press release: ID:nRSP9178Ua
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| $61.70 mln |
|
H1 EPS |
| $0.021 |
|
H1 Adjusted EBITDA |
| $4.40 mln |
|
H1 Adjusted Pretax Profit |
| $1.60 mln |
|
H1 Gross Profit |
| $16.40 mln |
|
H1 Net Debt |
| $12.20 mln |
|
H1 Pretax Profit |
| $1.60 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"
Wall Street's median 12-month price target for CT Automotive Group PLC is GBp70.00, about 112.1% above its September 15 closing price of GBp33.00
The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 3 three months ago
Reuters Recommended Reads
Sept 15 - UK's Wickes Group H1 revenue rises 2.1%, profit up 1.1%
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)