James McIlree

James McIlree from Chardan Capital Markets asked about the expected percentage of Q4 sales originating outside Vietnam, given the high domestic sales in the first three quarters. He also inquired about the magnitude of increased R&D spending for the new vehicle platform and the projected percentage of 2026 sales that will come from this new platform.

Answer

Chairwoman Thuy Le indicated a slightly larger proportion of Q4 sales from international markets, primarily India and Indonesia, with significant growth expected next year. Regarding R&D, she stated that $1.1 billion of the $1.6 billion targeted CapEx and R&D for the year has been spent, with most new platform spending already incurred. CFO Lan Anh Nguyen added that R&D for the new platform is focused on 2025-2026, normalizing from 2027. Thuy Le estimated that 70-80% of 2026 sales, particularly in Asia, would come from the new platform, with a gradual rollout.

James McIlree asked for an estimate of the proportion of VinFast's Q4 sales expected to come from outside Vietnam, contrasting it with the first three quarters. He also sought clarification on the anticipated increase in R&D spending for the new vehicle platform and the projected percentage of 2026 sales that will originate from this new platform.

Answer

Chairwoman of the Board, Thuy Le, indicated a slightly higher proportion of Q4 sales from international markets, particularly India and Indonesia, with significant growth expected next year. For R&D, Ms. Le noted that most of the spending for the new platform has already occurred, with a target of $1.6 billion for CapEx and R&D this year. CFO Lan Anh Nguyen clarified that R&D for the new platform is concentrated in 2025-2026, with spending normalizing from 2027. Ms. Le estimated that 70-80% of 2026 sales would come from the new platform, with a gradual rollout throughout the year.

James McIlree of Chardan Capital Markets asked for a projection on the trajectory of vehicle Average Selling Prices (ASPs) for the rest of 2025. He also questioned the drivers of the adjusted gross margin, which held steady despite lower volumes, and inquired about the expected timeline for achieving positive variable and full gross margins.

Answer

CFO Nguyen Thi Lan Anh projected that the full-year 2025 ASP would likely remain under $20,000, influenced by a higher mix of smaller models like the VF3 and VF5. Regarding margins, she explained that the adjusted gross margin improved to -20% in Q1 2025 from -26% in Q4 2024, even with lower delivery volumes. This improvement was attributed to successful BOM optimization and production cost reduction efforts, which keeps the company on track for its previously stated gross margin targets for 2026.

James McIlree of Chardan Capital Markets questioned the outlook for capital spending in 2025 and 2026 compared to 2024 levels, and also asked if the sales mix of the VF 3 and VF 5 models in 2025 would be similar to Q4 2024.

Answer

CFO Anh Thi Nguyen stated that the 2025 cash burn is projected to be around $2.5 billion, with $1.8 billion allocated to CapEx and R&D for new CKD facilities. She noted the cash burn from operations is expected to decrease slightly to around $800-$900 million. Executive Thuy Thu Le clarified that the sales contribution from the VF 3 and VF 5 in 2025 will be less than 50%, a smaller share than in Q4 2024, due to the introduction of the new 'Green series' which is expected to account for nearly a quarter of deliveries.

James McIlree from Chardan Capital Markets asked for quantification of the revenue associated with the recent contract renewals. He also sought to reconcile the company's description of its insurance market re-entry as 'early stages' with the announcement of a newly signed insurance partner, and inquired about the typical sales cycle length. Lastly, he asked when non-recurring transaction and restructuring costs are expected to cease.

Answer

CEO Matt Booth clarified that the renewals secured so far account for approximately 40% of the revenue up for renewal this year. He explained the insurance funnel includes a broad marketing campaign alongside early contract wins with an automotive OEM insurance company and a mid-market provider. He characterized the sales cycle as standard. Corporate Controller & Principal Accounting Officer, Andrea Makkai, indicated that significant non-recurring costs related to the Autonomous business are not expected to continue.

James McIlree inquired about the percentage of revenue accounted for by the recent contract renewals. He also asked for clarification on the insurance market sales funnel and the typical sales cycle length. Finally, he questioned when non-recurring transaction and restructuring costs are expected to diminish to zero.

Answer

CEO Matthew Booth reported that the renewals secured so far represent about 40% of the revenue up for renewal in the current year. He clarified that the sales funnel is active, with early wins from a broad marketing campaign that leverages the company's AI simulation capabilities. He characterized the sales cycle as standard for the industry. Corporate Controller Andrea Makkai explained that the significant non-recurring cost in Q2 was a final one related to Autonimo and that no large, ongoing non-recurring costs are anticipated.

James McIlree of Chardan Capital Markets asked for quantification of the revenue covered by recent contract renewals and sought clarification on the insurance sales funnel progress. He also inquired about the typical sales cycle length and whether non-recurring transaction and restructuring costs are expected to diminish soon.

Answer

CEO Matt Booth explained that the renewals secured so far represent about 40% of the revenue up for renewal in the current year. He clarified that early contract wins are progressing alongside a broader marketing campaign targeting the insurance market. He characterized the sales cycle as standard for the industry. Corporate Controller Andrea Makkai confirmed that the significant non-recurring cost in Q2 related to Autonomo is not expected to continue, though minor costs could arise from future transactions.

James McIlree asked for quantification of the revenue covered by the recent contract renewals. He also sought to reconcile the company's description of its insurance market entry as 'early stages' with the announcement of a newly signed insurance partner, and inquired about the sales cycle length. Finally, he asked when non-recurring transaction and restructuring costs are expected to cease.

Answer

CEO Matt Booth clarified that the renewals secured so far account for approximately 40% of the revenue up for renewal this year. He explained the insurance progress involves both a broad new marketing campaign and specific early wins, with the sales cycle proceeding as expected. Corporate Controller Andrea Makkai stated that the significant non-recurring costs related to Autonomous are not expected to continue, though minor costs from future transactions could occur.

James McIlree of Chardan Capital Markets asked what factors limit the digital asset management strategy to 40% of the HODL balance and inquired how the current U.S. administration's energy strategy might impact the company's expansion.

Answer

CFO Gary Vecchiarelli explained that the 40% allocation is a conservative risk management decision, representing the maximum portion of the treasury they are willing to place at some risk. President and CEO Zachary Bradford commented that the administration's focus on new generation is a positive long-term tailwind for U.S. power costs, though the impacts will be felt over the medium to long term, further solidifying the U.S. as a strategic place to grow.

Inquired about how Profire is positioning itself to capitalize on the expected growth in natural gas demand, asking about necessary changes in geography, products, or sales strategy. He also asked for clarification on whether the current high inventory levels are the new normal.

Answer

The company's systems are used equally on natural gas and oil wells, and the growing LNG infrastructure will also utilize their products, so no significant expansion or new products are immediately needed. Regarding inventory, higher levels are expected to persist due to supply chain uncertainties and the ongoing transition from the legacy 2100 system to the new 2200 system. They are building up stock of the new system to ensure a stable supply before fully transitioning customers.