China Automotive Systems (2IW) Q2 2026 Earnings Report
DE:2IW Q2 2026 EPS Results
- Actual EPS
- EUR 0.87
- Consensus EPS
- ―
- Beat/Miss
- ―
- One Year Ago EPS
- EUR 0.23
DE:2IW Q2 2026 Revenue Results
- Actual Revenue
- EUR 369.32M
- Expected Revenue
- ―
- Beat/Miss
- ―
- YoY Revenue Growth
- +134.03%
Earnings Announcement Details
- Quarter
- Q2 2026
- Date
- 08/13/2026
- Time
- Before Open
- Conference Call
- Thursday, August 13, 2026
China Automotive Systems's next earnings date is estimated for November 18, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
The call presented strong operational and financial improvements: double-digit revenue growth (+20.1%), large increases in gross profit (+49.7%), operating income (+100.4%), and EPS (+~98%), plus raised full-year guidance and continued investment in R&D and global expansion. These positives outweigh localized and macro headwinds—Brazil revenue decline, Chinese market weakness, forex-driven net finance expense, and elevated receivables/CapEx pressure—but management appears to be investing for future growth and has healthy liquidity and operating cash generation.
Management raised full-year 2026 revenue guidance to $850.0 million (up from $810.0 million), supported by H1 results of $412.5 million in net sales and $88.5 million gross profit, and by planned product rollouts and capacity additions: an expected annual EPS sales volume of 300,000 units for new European models, a South America EPS program slated to start batch production in 2028 that management projects will add about $40.0 million in revenue (roughly a 50% increase to the region’s run rate), roughly 1.0 million units of incremental capacity coming online, and continued investment with H1 CapEx of $30.4 million (including $15.8 million for the Mexico project) and full-year CapEx expected near $50.0 million; financial flexibility is bolstered by $155.6 million in cash and pledged cash (~$5.16/share), $47.8 million net cash from operations in H1, $14.3 million free cash flow in H1, and nearly $249.8 million in working capital.
- Strong Revenue GrowthNet sales increased 20.1% year-over-year to a six-month record of $412.5 million (H1 2026 vs H1 2025). Management raised full-year 2026 revenue guidance to $850 million from $810 million.
- Substantial Gross Profit and Margin ExpansionGross profit rose 49.7% year-over-year to $88.5 million and gross profit margin expanded to 21.5% from 17.2% in the prior-year period, driven by higher volumes and sales of higher-margin products.
- Operating Income and EPS SurgeIncome from operations increased 100.4% year-over-year to $43.3 million. Net income attributable to parent increased 98.8% to $29.3 million and diluted earnings per share rose to $0.97 from $0.49 (approximately +98%).
- Electric Power Steering (EPS) MomentumEPS product sales grew 32.2% year-over-year to $192.3 million and comprised 46.8% of total net sales (up from 42.5%). The first batch of EPS steering was shipped to a global automaker's European division, featured in two new European models with targeted annual sales volume of 300,000 units; planned South America EPS impact is estimated at ~$40 million when production begins.
- Strong Subsidiary and Market Segment GrowthHenglong (largest sales contributor) sales rose 25.3% to $205.7 million. Julong's net sales to the Chinese commercial vehicle market increased 42.9% to $61.7 million, and Wuhu's sales to Cherry Automotive rose 40.3% to $22.7 million. Management noted three operating units achieved net sales growth exceeding 40%.
- Investment in R&D, CapEx and New ProductsR&D spending increased 23.6% to $20.8 million. Capital expenditures were $30.4 million H1 2026 (including ~$15.8 million invested in the Mexico project); management expects full-year CapEx around $50 million. Notable product innovations include second-generation IRCB, active rear-wheel steering, and a high-torque electric motor platform.
- Healthy Liquidity and Operating Cash GenerationNet cash provided by operating activities was $47.8 million in H1 2026. Cash and cash equivalents and pledged cash totaled $155.6 million (~$5.16 per share) and net working capital was $249.8 million. Free cash flow for the six months was $14.3 million.
- Strategic Global ExpansionCompany pursuing a 2026-2030 strategic plan to deepen local presence globally (North America, Europe, Asia, South America), strategic cooperation with KYBUMW (Malaysia-focused manufacturing/supply), Mexico manufacturing investment, and potential M&A to expand chassis/autonomous-driving related product scope.
DE:2IW Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Nov 18, 2026 | 2026 (Q3) | ―- | 0.29 | ― | ― |
| Aug 13, 2026 | 2026 (Q2) | ―0.87 | 0.23 | 284.19% (+0.64) | |
| May 07, 2026 | 2026 (Q1) | ―- | 0.21 | ― | |
| Apr 22, 2026 | 2025 (Q4) | ―- | 0.21 | ― | |
| Nov 12, 2025 | 2025 (Q3) | ―0.29 | 0.16 | 75.82% (+0.12) | |
| Aug 13, 2025 | 2025 (Q2) | ―0.23 | 0.21 | 5.42% (+0.01) | |
| May 14, 2025 | 2025 (Q1) | ―0.21 | 0.24 | -12.59% (-0.03) | |
| Mar 28, 2025 | 2024 (Q4) | ―0.27 | 0.32 | -16.67% (-0.05) | |
| Nov 13, 2024 | 2024 (Q3) | ―0.16 | 0.28 | -41.29% (-0.11) | |
| Aug 13, 2024 | 2024 (Q2) | ―0.21 | 0.31 | -31.43% (-0.10) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
