China Railway Construction Heavy Industry's net profit in 2025 slightly decreased by 1.65%, with new contracts for special equipment increasing by over 40% | Financial Report Analysis

Ask AI · Overseas revenue share hits a new high—how should the standard “go-global” strategy be laid out?

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Lianhe Securities Daily March 20 News (Reporter Huang Lu) China Railway Construction Heavy Industry (688425.SH) saw revenue flat year over year; net profit fell slightly due to an increase in income tax expense.

Tonight, China Railway Construction Heavy Industry has disclosed its 2025 annual report. In 2025, the company achieved total operating revenue of 10.045 billion yuan, down 0.01% year over year. Total profit was 1.667 billion yuan, up 0.44% year over year. Net profit attributable to shareholders of listed companies was 1.483 billion yuan, down 1.65% year over year.

During the full year of 2025, the company cumulatively completed new contract awards/tender-winning contract amounts of 13.402 billion yuan, including 10.778 billion yuan in mainland China and 2.625 billion yuan overseas. By business segment: for its tunnel boring machine segment, new contract awards/tender-winning contract amounts were 6.372 billion yuan; for its specialized professional equipment segment, new contract award/tender-winning contract amounts were 3.365 billion yuan, with a year-over-year increase of over 40%; for its rail transit equipment segment, new contract awards/tender-winning contract amounts were 3.665 billion yuan, with a year-over-year increase of over 28%.

China Railway Construction Heavy Industry has adopted an “overseas-first” strategy. In 2025, the company developed four core pillar markets for its overseas business. It built new Dubai and Milan spare-parts centers to achieve a shift from “product exports” to “standardized go-global.” Overseas revenue accounted for nearly 30%, reaching a historical high.

At present, the company’s overseas business has already achieved sales of its main products, including tunnel boring machines, drill-and-blast construction equipment, mining equipment, rail transit equipment, and high-end agricultural machinery. Its full range of products has entered more than 50 countries and regions worldwide, and its tunnel boring machine products have already exceeded 30 countries and regions in cumulative coverage.

According to statistics from the China Construction Machinery Industry Association, in 2025 China’s construction machinery exports continued a strong high-growth trend. The industry’s export value reached 60.17 billion US dollars, up 13.8% year over year. Among that, exports to countries along the “Belt and Road” accounted for more than 60%; exports to the EU market grew 59%, and the overseas business performance of industry leading enterprises has been outstanding.

In its financial report, China Railway Construction Heavy Industry said that in 2026, engineering machinery “going global” will shift from product exports to exporting technical standards and transitioning to localized operations. Its market layout in Europe, South Asia, Africa, and other regions will continue to deepen. The share of overseas revenue from customized engineering equipment is expected to further increase, and the advantage of globalized ecosystem synergies will gradually become apparent.

(Lianhe Securities Daily reporter Huang Lu)