ECD Automotive 2025 Q3 Earnings Profitability Returns with 186.9% Net Income Surge

ECD Automotive (ECDA) reported a significant earnings turnaround for Q3 2025, returning to profitability with EPS of $1.56 and net income of $2.23 million—marking a 186.9% improvement from a $2.57 million loss in the prior-year period. Despite these gains, the stock price continued a sharp decline, dropping 76.05% month-to-date. The results highlight a strategic shift toward cost containment and product diversification, though market skepticism persists amid ongoing operational challenges.

Revenue

ECD Automotive’s total revenue fell 10.2% to $5.78 million in Q3 2025 compared to $6.44 million in Q3 2024. The decline was driven by completion of legacy builds and elevated tariff-related costs, with the Builds segment accounting for $5.53 million of revenue. Warranty and other services contributed $253,652, while net revenues totaled $5.78 million.

Earnings/Net Income

The company achieved a remarkable turnaround, posting net income of $2.23 million—up from a $2.57 million loss in Q3 2024. EPS surged to $1.56, a 151.5% improvement, driven by non-cash debt conversion gains and cost reductions. The earnings reflect a strategic focus on operational efficiency and disciplined cost management. The earnings turnaround reflects effective cost management and operational improvements, signaling a strong recovery from prior losses.

Post-Earnings Price Action Review

A strategy of purchasing ECDA shares immediately after the earnings report and holding for 30 days has historically delivered robust returns. Over the past three years, this approach yielded a mean return of 12.5%, with a high of 18.9% and a low of 6.1%. The data suggests that the market has historically responded positively to the company’s earnings releases, despite recent volatility.

CEO Commentary

Scott Wallace, CEO & Co-Founder of ECD Automotive, emphasized progress in strengthening the company’s operational foundation and reducing costs to support long-term growth. He highlighted the completion of a cost-containment plan expected to generate over $1 million in annualized savings and the launch of new product lines, including collaborations with Chelsea Truck Company and Porsche 911 builds. Wallace noted, “We exited the quarter leaner, more agile, and focused on profitability and execution,” while acknowledging challenges from legacy build completion and tariff headwinds.

Guidance

Management expects continued cost discipline and product diversification to drive profitability in Q4 2025 and beyond. Forward-looking targets include maintaining revenue stability, achieving gross margin normalization, and expanding Adjusted EBITDA over the next 4-8 quarters. Strategic initiatives, such as scaling faster-turn builds and optimizing capital efficiency, are central to long-term value creation.

Additional News

ECD Automotive launched Project Camel Trophy, a full-frame restoration of a Land Rover Defender 110, emphasizing its commitment to bespoke luxury builds. The company also announced a collaboration with Chelsea Truck Company to expand its addressable market with modern Defender and INEOS Grenadier models. Additionally, a cost-containment plan targeting $1 million in annualized savings was outlined, alongside the debut of its first Porsche 911 build, which won Best in Show at a 2025 festival.

Key Dependencies

include realizing cost savings, scaling faster-turn product lines, and managing tariff exposure. Risks include elevated legal and lease expenses and lower recurring revenue from legacy build completion. Investors are advised to monitor quarterly revenue recovery and Adjusted EBITDA trends over the next 4-8 quarters.

Financial Metrics

• Revenue: $5.8 million vs. $6.4 million (Q3 2024)

• Gross Loss: $1.7 million vs. $2.0 million profit (Q3 2024)

• Operating Loss: $5.0 million vs. $0.6 million (Q3 2024)

• Net Income: $2.2 million vs. $2.57 million loss (Q3 2024)

• Adjusted EBITDA: -$4.7 million vs. -$0.5 million (Q3 2024)

Earnings Call

ECD Automotive will host a conference call on November 24, 2025, at 4:30 PM ET to discuss Q3 results. Key discussion points include cost-containment progress, product diversification, and operational efficiency initiatives. A webcast and replay will be available via the company’s investor relations page.