KISSIMMEE, Fla. - ECD Automotive Design, Inc. (NASDAQ:ECDA), known for its luxury restoration of classic automobiles, announced a partnership with Roush, a leading engineering firm specializing in high-performance engines. This collaboration will introduce Roush engines to ECD's custom classic 1967-68 Ford (NYSE:F) Mustang projects, promising to enhance the vehicles' performance and craftsmanship.
The initiative will see ECD offering the ROUSH 347 SR engine as the base powerplant for their Mustang builds, with options for upgrades to more potent configurations such as the ROUSH 347 IR, 427 SR, and 427 IR engines. These engines are designed to deliver a blend of modern performance with the aesthetic of the iconic Mustangs.
Elliot Humble, Co-Founder and CTO of ECD, expressed enthusiasm for the partnership, highlighting the alignment of Roush's engineering prowess with ECD's commitment to quality and innovation. Similarly, Jason Furr, Roush VP of Business Development, noted the synergy between Roush's performance focus and ECD's dedication to detail and craftsmanship.
The standard ROUSH 347 SR engine boasts 410 horsepower and 400 ft-lbf of torque, featuring a steel crankshaft, forged aluminum pistons, and a CNC-machined intake port, among other high-quality components. Each engine undergoes thorough machining, balancing, assembly, and dyno-testing to ensure reliability and top-tier performance.
ECD Auto Design's decision to integrate Roush engines into its custom Mustangs is indicative of its ongoing efforts to offer clients the finest in custom vehicles. The partnership is poised to elevate the driving experience of ECD's custom classic Mustangs through the combination of timeless design and cutting-edge engineering.
This news is based on a press release statement from ECD Automotive Design, Inc.
In other recent news, ECD Automotive Design Inc. faces potential delisting from the Nasdaq Stock Market due to non-compliance with market value requirements. The company, renowned for its restoration and electrification of classic automobiles, was initially notified in February 2024 of its failure to meet the Nasdaq's $50 million market value threshold. Despite being granted 180 days to regain compliance, ECD received a subsequent notice indicating that it had not achieved compliance and its securities are set to be delisted from the Nasdaq Global Market.
The company has expressed its intention to appeal this decision and has until late August 2024 to request a hearing with the Nasdaq Hearings Panel, which could potentially halt any suspension or delisting actions depending on the outcome. However, if ECD does not appeal or if the appeal is unsuccessful, trading of the company's common stock and warrants will be suspended, followed by a formal removal of the company's securities from listing and registration on Nasdaq.
These recent developments mark an important stage in ECD's journey, which began in 2013 by three British car enthusiasts and now operates from a 100,000-square-foot facility in Florida, employing 80 craftsmen and technicians. The company also maintains a logistics center in the U.K. to source and transport vehicles for restoration. Each vehicle produced by ECD is a custom, hand-built project requiring approximately 2,200 hours of work.
InvestingPro Insights
As ECD Automotive Design, Inc. (NASDAQ:ECDA) embarks on its venture to integrate Roush's high-performance engines into its luxury classic Mustangs, the company's financial health and market performance provide key insights for investors and automobile enthusiasts alike. With a significant revenue growth of 123.27% in the last twelve months as of Q2 2024, ECD Automotive Design showcases a robust upward trajectory in sales, further emphasized by an even more impressive quarterly revenue growth of 129.38% in Q2 2024.
The company's gross profit margin stands at a healthy 31.14%, indicating a strong ability to manage cost of goods sold relative to sales. This is a critical factor for investors to consider, as it reflects the company's efficiency and potential for profitability as it scales up production with the integration of Roush engines into its builds.
InvestingPro Tips highlight the importance of keeping an eye on a company's return on assets (ROA), which for ECD Automotive Design is currently negative at -17.14%. While this may raise concerns about asset utilization, the partnership with Roush could be a strategic move to enhance the value proposition of ECD's offerings and, potentially, its financial ratios. Moreover, the company's recent price performance shows a 28.9% increase over the past month, suggesting a growing investor confidence which could be tied to the market's positive reception of the Roush partnership news.
For those interested in a deeper analysis, InvestingPro offers additional tips, providing a comprehensive understanding of ECD Automotive Design's market potential and future outlook. With the next earnings date scheduled for September 26, 2024, stakeholders will be keen to assess the impact of the Roush partnership on the company's financials. Meanwhile, the InvestingPro Fair Value estimate stands at 1.34 USD, offering a data-driven perspective on the company's valuation.
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