ECD Automotive Design reports Q1 EPS (8c) vs. (9c) last year

Reports Q1 revenue $6.4M vs. $7M last year. Scott Wallace, CEO, stated, “The end of the first quarter of 2025 represents the first full year-over-year period as a public company for ECD Automotive, and what an experience it has been, with many lessons learned along the way. During the quarter, we titled 20 vehicles at an average price of $320,000, resulting in revenue of $6.4 million, a sequential increase over the prior quarter. This quarter’s average price compares favorably to last year’s average price of $300,000 on 23 vehicles and has contributed to gross margins amongst the top in the industry. “Our first quarter results demonstrate that ECD can produce industry-leading unit economics while building custom, one-of-one classic luxury vehicles. We can achieve this level of gross profitability through our dedication to continually evolving an immersive, luxury customer design journey that ignites the creativity of our customer base. Within our customer design journey, we constantly integrate new customization options that allow for additional individuality while bolstering our margin profile as a business. With the signing of the largest custom order contract in our company’s history, a Jaguar E-Type GTO at $620,000, our design process has established a robust foundation that is able to deliver unit economics on par with larger exotic car manufacturers. As the only domestic producer of one-of-one classic luxury restomods within a manufacturing line, we are uniquely positioned in the current market environment and believe we have a distinct advantage versus many of our peers who lack our manufacturing capabilities or ability to customize. Strong customer demand persists across our production lines, and we continue to see opportunities to enhance profitability through additional customization and operational efficiencies. While we’ve made significant progress scaling operations to date, adding additional channels to fill the factory and establishing a strong process that encourages accretive customization, we are challenged by the company’s current balance sheet. We are working diligently to improve our liquidity profile through various channels, including rationalizing public company expenses and leaning into businesses that generate cash quicker, like our retail strategy. We continue to have strong support from our convertible note holder and recently completed a partial debt-to-preferred equity swap. We believe such actions will help right size the company’s balance sheet on a go-forward basis.”