ECD Automotive Design Reports Q1 2025 Financial Results with Revenue Decline and Increased Gross Profit

ECD Automotive Design, Inc. reported its financial results for the first quarter of 2025, revealing a decline in revenue to $6.42 million, down 8.1% from $6.99 million in the same period last year. The company experienced a gross profit increase of 15.7%, reaching $1.76 million, attributed to a higher average selling price per vehicle despite a decrease in the number of units sold. The net loss for the quarter was $2.75 million, a slight improvement from a net loss of $2.86 million in the prior year.

The company's operating expenses surged by 47% to $3.72 million, primarily driven by a significant increase in general and administrative expenses, which rose by 58.3% to $3.39 million. This increase was largely due to costs associated with transitioning to a public company, including higher legal and compliance expenses. Additionally, the company recorded a provision for credit losses of $9,295, marking its first such expense. Interest expenses also rose sharply, totaling $1.86 million, reflecting the costs associated with its convertible notes.

ECD Automotive Design has been actively pursuing strategic growth initiatives, including the acquisition of assets from BNMC Continuation Cars LLC in April 2024, which is expected to enhance its production capabilities for Mustang vehicles. The company has also expanded its retail presence with new showrooms in West Palm Beach, Florida, and Nantucket, Massachusetts. As of March 31, 2025, ECD employed 102 individuals, including 72 craftsmen and technicians, reflecting its commitment to maintaining a skilled workforce.

The company’s liquidity position remains a concern, with cash and cash equivalents decreasing to $677,473 from $1.48 million at the end of 2024. ECD reported a working capital deficit of approximately $5.5 million. To address its financial needs, the company has relied on customer deposits and loans, including a recent $1.82 million term loan secured in April 2025. Management has expressed uncertainty regarding its ability to continue as a going concern without additional financing, highlighting the need for ongoing capital to support operations and growth initiatives.

Looking ahead, ECD Automotive Design aims to leverage its recent acquisitions and expand its product offerings while navigating the challenges posed by market conditions and operational costs. The company is focused on improving its financial performance and operational efficiency to enhance shareholder value.