CT Automotive shares jump as contracts add to revenue visibility
CT Automotive Group PLC shares jumped on Wednesday as it said it is on track to meet market expectations for revenue and profit in the 2025 financial year.
The Portsmouth, England-based maker of interior components for the automotive industry said it expects to report revenue of $54.2 million in the first half of the year, down 10% from $60.5 million a year ago.
Shares in CT Automotive closed up 18% at 38.90 pence in London on Wednesday.
The company said this reflects customer programme launch timing adjustments and inventory run down.
The firm expects this to ‘normalise’ during the second half. Gross margins continue to improve, CT Automotive added.
In the first half of the year, the company secured eight new contracts worth around $37 million annually, with four set to launch in the fourth quarter or early 2026.
The contracts come as customers ‘look to relocate existing manufacturing programs to our cost-efficient facility in Mexico enabling [original equipment manufacturers] to take advantage of [US-Mexico-Canada] certification,’ the company said.
The remaining four contracts are scheduled to launch in 2027 and early 2028, which adds to ‘strong forward looking revenue visibility’.
CT Automotive said although tariffs have ‘introduced significant uncertainty’ they have also presented opportunities.
To support increased demand, the firm is investing $3.4 million in 2025 to enhance the Mexico facility’s capabilities, including a new automated paint line and 15 new injection moulding machines.
‘Combined with continued investment in innovation, and a focus on operational efficiency, the board remains confident in CT Automotive’s outlook and growth prospects,’ the company said.
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