ECX Partners with Qualcomm for Advanced Automotive Solutions | E (2025)

21 hours ago

ECARX (ECX, Financial) has unveiled an expanded partnership with Qualcomm Technologies, aiming to develop a dynamic product matrix. This collaboration will capitalize on ECARX's comprehensive expertise in both hardware and software development, alongside Qualcomm’s Snapdragon Cockpit Platform, to create cutting-edge solutions. By merging their research and development strengths, ECARX and Qualcomm intend to assist car manufacturers in swiftly moving towards the era of intelligent, software-driven vehicles.

Wall Street Analysts Forecast

Based on the one-year price targets offered by 5 analysts, the average target price for ECARX Holdings Inc (ECX, Financial) is $4.22 with a high estimate of $7.00 and a low estimate of $3.00. The average target implies an upside of 254.71% from the current price of $1.19. More detailed estimate data can be found on the ECARX Holdings Inc (ECX) Forecast page.

Based on the consensus recommendation from 5 brokerage firms, ECARX Holdings Inc's (ECX, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.

ECX Key Business Developments

Release Date: March 11, 2025

• Quarterly Revenue: RMB1.9 billion, up 4% year over year and 36% sequentially.
• Annual Revenue: RMB5.6 billion, up 18% year over year.
• Gross Margin: 21.2% for the quarter, 20.8% for the full year.
• Quarterly Gross Profit: RMB411 million, down 4% year over year.
• Quarterly Operating Expenses: Decreased 32% year over year.
• Adjusted EBITDA: Gain of RMB74 million for the quarter, compared to a loss of RMB236 million in the same period last year.
• Quarterly Loss Per Share: RMB0.11, compared to RMB0.89 in the same period last year.
• Annual Gross Profit: RMB1.2 billion, down 9% year over year.
• Annual Operating Expenses: Decreased 7% year over year.
• Annual Adjusted EBITDA Loss: RMB592 million, an improvement of RMB190 million from last year.
• Cash and Restricted Cash: RMB367 million at year-end.
• Total Shipments: 2 million units for the year, up 33% year over year.
• Fourth Quarter Shipments: Over 700,000 units, up 10% from the previous quarter.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ECARX Holdings Inc (ECX, Financial) achieved breakeven at the EBITDA level during the fourth quarter of 2024, indicating improved financial health.
• The company reported a 4% increase in quarterly revenue and an 18% increase in full-year revenue, showcasing strong growth momentum.
• ECARX Holdings Inc (ECX) secured a significant project with Volkswagen Group, expanding its global customer base to 18 automakers across 28 brands.
• Total shipments reached a record high of 2 million units in 2024, up 33% year over year, demonstrating strong demand for its products.
• The company launched its AutoGPT in-vehicle AI application, integrating advanced technologies like OpenAI, enhancing its competitive edge in the automotive AI space.

Negative Points

• The global automotive market is growing at a slow pace, presenting a challenging environment for ECARX Holdings Inc (ECX) to navigate.
• Gross margin decreased to 21.2% in the fourth quarter, reflecting pricing pressures and a shift in revenue mix.
• Service revenue decreased by 31% year over year, indicating potential challenges in the engineering and development contract segment.
• The company remains heavily reliant on Geely, with nearly 80% of its revenue coming from Geely and related businesses in 2024.
• ECARX Holdings Inc (ECX) faces industry-wide pricing pressure on hardware products, which could impact margins in the mid-term.