China Yuchai International (NYSE:CYD) reported higher revenue and profit for the second half of 2025 and for the full year, citing broad-based unit sales gains across most engine categories and a richer sales mix that favored heavy-duty and high-horsepower products.
Second-half 2025 results driven by volume and mix
Management said second-half revenue rose 33.5% year over year to RMB 11.8 billion (about $1.7 billion). Gross profit increased 50.4% to RMB 2.2 billion ($317 million), and gross margin expanded to 18.9% from 15.9% a year earlier. Operating profit rose to RMB 469.2 million ($66.7 million), and basic and diluted earnings per share were RMB 4.57 ($0.65), up from RMB 2.19 in the prior-year period.
Engine unit sales increased 28.7% in the second half to 210,913 units. The company said growth was led by truck and bus engines, which rose 49.2% year over year. Truck engine unit sales increased 59.4%, including a 100.61% increase in heavy-duty truck engines. Off-road engine unit sales rose 7.5%, supported by more than 22% growth in industrial engines and marine and genset engines, partially offset by lower agricultural engine unit sales.
Full-year 2025 revenue, earnings and unit sales increased
For the year ended Dec. 31, 2025, the company reported revenue of RMB 24.7 billion (about $3.5 billion), up 20.9% from RMB 19.1 billion in 2024, according to the CFO’s prepared remarks. Gross profit rose 44.3% to RMB 4.1 billion ($578.7 million) and gross margin improved to 16.5% from 14.7%.
Operating profit increased 82.7% to RMB 1.1 billion ($155.2 million), with operating margin at 4.4% versus 3.1% in 2024. Net profit attributable to shareholders grew 66.3% to RMB 537.4 million ($76.5 million). Basic and diluted EPS rose to RMB 14.32 ($2.04) from RMB 8.21.
For the full year, total engines sold increased 29.4% to 461,309 units. Truck and bus engine unit sales rose 42.8%, while total truck engine sales increased 50.7%. Within trucks, the company reported heavy-duty truck engine sales up 80.1%, medium-duty truck engines up 34.2%, and light-duty truck engine sales up 67.6%. Off-road engine unit sales increased 13%, with industrial engines and marine and genset engines each posting more than 24% unit growth, offset by lower agricultural engine unit sales.
Data center demand and capacity expansion
Management repeatedly pointed to demand for backup generators supporting data center operations as a key growth driver. President Weng Ming Hoh said 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. The company said it is expanding production capacity to meet expected increases in power generation engine demand.
On the call, management said it expects data center-related demand to improve in 2026 and described it as a “bright spot,” though it did not provide a companywide revenue or profit forecast and emphasized uncertainty tied to government policy. Responding to a question on whether the improved product mix could continue, management said providing guidance in China is challenging given the influence of policy-driven replacement programs.
In response to questions on high-horsepower engines and natural gas generator applications, management said Yuchai has natural gas engine technology for power generation. It described a natural gas configuration based on its 16VC engine capable of generating about 2 MW. However, management said natural gas high-horsepower applications are currently focused mainly on industrial uses and that, in China and Asia, customers are not yet using natural gas engines for AI data center needs “at this stage.”
R&D spending increased; focus on new energy and emissions readiness
R&D expenses rose 48% in the second half to RMB 884.9 million ($124.5 million) and increased 37.3% for the full year to RMB 1.4 billion ($192.3 million). Management attributed the increases to higher experimental costs, personnel expenses, mold costs, and impairments related to fuel cell development. Total R&D spending including capitalized costs was RMB 1.5 billion ($217.1 million) for the year, representing 6.2% of revenue, consistent with the prior year on a percentage basis.
Management said R&D initiatives include improving the efficiency and performance of National VI and Tier 4 emissions-compliant engines and advancing new energy products, including hydrogen, methanol and ammonia combustion technologies. The company also said it has begun work to prepare for a potential National VII emissions standard in the next two to three years.
Other operating income, joint ventures, and balance sheet items
Other operating income fell 44.1% in the second half and 22.5% for the year, which the CFO said was primarily due to lower government grants and, for the full year, lower bank interest income as well. Asked about the outlook for other operating income, management said it would not project future government incentives and suggested the trend could remain similar to 2025.
On joint ventures, management said profit contributions rose 9.4% year over year for 2025, driven mainly by MTU Yuchai. In Q&A, MTU Yuchai’s chairman said the joint venture generated net profit of about RMB 211 million in 2025, up 22% from 2024, with revenue up more than 30%. He said profit growth lagged volume and revenue due to a product mix shift, including fewer 20-cylinder engines.
Management also discussed steps to strengthen its technology capabilities and supply chain resilience, including acquiring a 27.97% equity interest in Nanyue Diankong Industrial Technology Company, which it described as specializing in fuel injection systems. The company also became a limited partner in the Guangxi Yuchai Double Growth Fund, a private equity fund focused on emerging and innovative technologies.
Additionally, management said its indirect subsidiary Guangxi Yuchai Marine and Genset Power Company filed an application for listing on the Hong Kong Stock Exchange on Jan. 26, noting that any listing remains subject to regulatory review, approval and market conditions.
On capital returns and liquidity, management said the company paid a cash dividend of $0.53 per ordinary share in July 2025. Cash and bank balances were RMB 7.9 billion ($1.1 billion) as of Dec. 31, 2025, up from RMB 6.4 billion at the end of 2024. The company reported trade and bills receivables of RMB 10.4 billion, inventories of RMB 5.6 billion, trade and bills payables of RMB 11.1 billion, and loans and borrowings of RMB 2.0 billion, down from RMB 2.5 billion a year earlier.
About China Yuchai International (NYSE:CYD)
China Yuchai International Ltd. (NYSE: CYD) is a Cayman Islands–incorporated holding company with principal executive offices in Singapore. Through its subsidiaries, the company is a leading manufacturer and distributor of diesel engines in the People’s Republic of China. Its principal operating subsidiary, Guangxi Yuchai Machinery Company Limited (GYMCL), has been producing diesel engines since 1951 and ranks among the country’s largest heavy-duty engine makers.
The company’s core product portfolio includes high-speed and medium-speed diesel engines for on-highway trucks and buses, off-road vehicles such as construction and agricultural machinery, marine propulsion systems, and power generator sets.
