ECD Automotive 2025 Q3 Earnings Remarkable Turnaround with 186.9% Net Income Surge

ECD Automotive (ECDA) reported its fiscal 2025 Q3 earnings on Nov 20th, 2025, marking a significant reversal from a year-ago loss. The company returned to profitability with a 186.9% surge in net income, driven by strategic cost reductions and operational efficiency initiatives. Despite a 10.2% revenue decline to $5.78 million, the turnaround highlights resilience amid ongoing market headwinds.

Revenue

ECD Automotive’s total revenue fell 10.2% year-over-year to $5.78 million in Q3 2025, reflecting completion of legacy builds and tariff-related costs. The decline was primarily driven by the Builds segment, which contributed $5.53 million, while Warranty and other services added $253,652. Total revenues, net, amounted to $5.78 million, underscoring challenges in maintaining prior-year levels.

Earnings/Net Income

The company achieved a remarkable turnaround, reporting a net income of $2.23 million in Q3 2025—a 186.9% positive swing from a $2.57 million loss in 2024 Q3. Earnings per share (EPS) surged to $1.56 from a $3.03 loss, reflecting non-cash gains from debt conversion and cost-containment efforts. This significant improvement underscores strong cost management and strategic initiatives.

Price Action

ECD Automotive’s stock faced downward pressure, with a 4.60% drop on the latest trading day, a 19.29% weekly decline, and a 76.05% monthly slump. Despite the post-earnings rally strategy showing a 12.5% mean return over three years, short-term volatility remains pronounced.

Post-Earnings Price Action Review

The strategy of buying ECDA shares after its Q3 2025 earnings release and holding for 30 days demonstrated promising returns, with a mean return of 12.5% over the past three years. Maximum and minimum returns stood at 24.8% and 6.1%, respectively, indicating consistent positive momentum post-earnings. This suggests investor confidence in the company’s ability to sustain profitability despite recent price declines.

CEO Commentary

Scott Wallace, CEO & Co-Founder, emphasized progress in strengthening ECD’s operational foundation and cost structure. He highlighted $1 million in annualized savings from headcount and overhead reductions while maintaining craftsmanship and production capabilities. The CEO also noted diversification efforts, including collaborations with Chelsea Truck Company and the debut of Porsche 911 builds, as key growth drivers. The tone was cautiously optimistic, balancing near-term challenges with long-term strategic gains.

Guidance

The company outlined a cost-containment plan targeting >$1 million in annualized savings and prioritized product diversification. Forward-looking metrics include revenue recovery, gross margin normalization, and Adjusted EBITDA improvement over the next 4-8 quarters. Management aims to scale faster-turn products like Chelsea collaborations and Porsche builds to enhance capital efficiency.

Additional News

ECD Automotive unveiled Project Camel Trophy, a full-frame restoration of a Land Rover Defender 110, emphasizing heritage and modern performance. The company also announced a collaboration with Chelsea Truck Company to expand its product lineup with affordably priced, capital-efficient builds. Additionally, ECD launched an inaugural Porsche 911 boutique build, which won Best in Show at a 2025 festival, signaling new growth avenues. These initiatives underscore the company’s focus on innovation and market expansion.