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Microvast Holdings, Inc. (MVST)·Q1 2025 Earnings Summary

Executive Summary

  • Record Q1 2025 revenue of $116.5M (+43.2% y/y) and gross margin of 36.9% (+15.7pp y/y); non-GAAP adjusted EBITDA was $28.5M and adjusted net profit was $19.3M .
  • Street estimates were modest: revenue consensus $106.0M* and Primary EPS consensus -$0.01*; MVST delivered a revenue beat of ~9.9% and an EPS beat to +$0.06*; EBITDA actual $25.7M* vs $9.6M* consensus, a substantial upside. Values retrieved from S&P Global.
  • Guidance maintained: 2025 revenue $450–$475M and full-year gross margin ~30%; Phase 3.2 capacity expansion targeting first qualified production in Q4 2025 .
  • Catalysts: continued EMEA strength (EMEA 52% of revenue; +108% y/y), improving profitability, and backlog of $351M; risks include supply chain/trade disruptions and platform rollout delays .

What Went Well and What Went Wrong

What Went Well

  • Record Q1 revenue and margin expansion: “record Q1 revenue of $116.5 million… gross margin to 36.9%” with adjusted EBITDA $28.5M and adjusted net profit $19.3M .
  • EMEA strength and customer traction: EMEA revenue doubled y/y (+108%) to $60.1M, representing 52% of Q1 mix; win-back of VDL order and launch of EMEA training center to support growth .
  • Operational focus driving profitability: management highlighted efficiency, utilization, and cost control as drivers of gross profit improvements and achieving profitability in the quarter .

What Went Wrong

  • Global headwinds: “Global supply chain and trade disruptions” and customer platform rollout delays impacted delivery timelines .
  • APAC mix shift: APAC revenue was flat to down y/y (-1%) as MVST targeted higher-margin opportunities versus volume growth, underscoring selective growth over scale .
  • Financing/market risks persist: disclosures emphasize going concern execution risk, credit facility restrictions, geopolitical impacts, and tariff exposure on PRC products into the U.S. .

Financial Results

Core P&L and Margins (GAAP and non-GAAP)

MetricQ1 2024Q4 2024Q1 2025
Revenue ($USD Millions)$81.4 $113.387 $116.491
Gross Profit ($USD Millions)$17.225 $41.520 $43.016
Gross Margin (%)21.2% 36.6% 36.9%
Operating Expenses ($USD Millions)$40.877 $43.244 $25.500
Net Income ($USD Millions)$(24.825) $(82.323) $61.790
Diluted EPS ($USD)$(0.08) $(0.26) $0.05
Adjusted EBITDA ($USD Millions, non-GAAP)$(3.723) $8.641 $28.521

Notes: Adjusted EBITDA reconciliations provided in filings; improvements driven by utilization and cost actions .

Segment/Geographic Revenue Mix (Q1)

RegionQ1 2024 ($USD Millions)Q1 2025 ($USD Millions)Y/Y Change
APAC$50.486 $50.051 -1%
EMEA$28.921 $60.050 +108%
USA$1.944 $6.390 +229%
Total$81.351 $116.491 +43%

KPIs and Balance Sheet/Cash Flow Highlights

KPIQ1 2024Q4 2024Q1 2025
Backlog ($USD Millions)n/a$401.3 $351
Adjusted Gross Margin (%)22.6% 36.7% 37.0%
Adjusted OpEx ($USD Millions)$30.1 $42.8 $24.9
Operating Cash Flow ($USD Millions)n/a$2.8 (FY) $7.2
Capex ($USD Millions)$10.2 $49.9 (FY) $6.6
Cash, Cash Equivalents & Restricted ($USD Millions)$86.7 $109.6 $123.0

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025$450–$475M $450–$475M Maintained
Revenue GrowthFY 2025+18% to +25% y/y +18% to +25% y/y Maintained
Gross Margin (Company)FY 2025~30% ~30% Maintained
Phase 3.2 CapacityTimingQ4 2025 first qualified products Q4 2025 first qualified products Maintained
EMEA Revenue GrowthFY 2025>80% y/y (Q3 outlook), general strength >20% y/y Clarified to >20%
Americas ProfitabilityFY 2025Positive adj. EBITDA from APAC/EMEA (2024 focus) Targeting positive quarterly EBITDA and operating profits Elevated ambition

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Profitability focusFirst profitable quarter; adj. EBITDA $28.6M; efficiency drives Record Q4 GM 36.6%; path to sustainability Achieved quarterly profitability; adj. EBITDA $28.5M Improving
EMEA strengthEMEA 59% of Q3 revenue; +212% y/y Annual EMEA +123% y/y EMEA 52% of Q1 revenue; +108% y/y Sustained growth
APAC capacity (Phase 3.2)Expansion planned; add up to 2 GWh Progress with Q4 2025 target Clean rooms/utilities complete; Q4 2025 first products On track
Product tech (ME6, silicon, ASSB)New silicon-based cells; ME6 ESS unveiled ME6, silicon, ASSB trajectory ASSB 3D printing; 99.89% CE in early tests Advancing
Supply chain/trade risksPolicy uncertainty impacts LCV rollouts Financing and APAC competition noted Trade disruptions and platform delays Persistent risk

Management Commentary

  • CEO: “record Q1 revenue of $116.5 million… gross margin to 36.9%… net profit of $61.8 million and… adjusted EBITDA of $28.5 million” .
  • CFO: “gross profit… $43 million… 150% improvement driven by operational execution, increased utilization and disciplined cost control… adjusted EBITDA… $28.5 million” .
  • CEO on Phase 3.2: “on track to add up to 2 gigawatt-hour… anticipate first qualified production… in the fourth quarter of 2025” .
  • Technology: “proprietary 3D printing… all-solid-state… preliminary testing… 99.89% Coulombic efficiency” .

Q&A Highlights

  • The posted transcript comprises prepared remarks without a distinct Q&A section; management reiterated FY25 revenue $450–$475M and ~30% gross margin targets, Phase 3.2 timing, and regional priorities (EMEA growth; Americas aiming positive quarterly EBITDA/operating profits) .
  • Clarifications emphasized drivers of margin/profitability (utilization, cost control, mix) and noted near-term headwinds from supply chain/trade disruptions affecting platform rollouts .

Estimates Context

  • Revenue: Consensus $106.0M* vs actual $116.5M → beat of ~$10.5M (~9.9%); EPS: Consensus -$0.01* vs actual +$0.06* → significant beat; EBITDA: Consensus $9.6M* vs actual $25.7M* → large upside. Values retrieved from S&P Global.
  • Estimate breadth was limited (EPS: 2 estimates; Revenue: 3 estimates), suggesting results could prompt upward revisions to full-year revenue/EBITDA trajectories*.
  • Non-GAAP company-reported adjusted EBITDA was $28.5M, providing additional positive signal beyond SPGI-classified EBITDA .

Consensus vs Actual (Q1 2025)

MetricConsensusActualSurprise
Revenue ($USD)$106.0M*$116.5M +$10.5M (~+9.9%)*
Primary EPS ($USD)-$0.01*$0.06*+$0.07*
EBITDA ($USD)$9.6M*$25.7M*+$16.1M*

Values retrieved from S&P Global.

Key Takeaways for Investors

  • Strong execution and mix drove margin and profitability: gross margin 36.9% and adjusted EBITDA $28.5M; continuation of utilization, cost control, and EMEA momentum is the near-term thesis .
  • The revenue/EPS/EBITDA beats vs a light consensus base should support estimate revisions and sentiment; monitor breadth/depth of new coverage and updates*.
  • Guidance is steady with Phase 3.2 capacity on track for Q4 2025; if achieved, capacity expansion can underpin 2026 growth and product roadmap delivery .
  • EMEA is the key growth engine; continued >20% y/y guided growth plus customer wins (e.g., VDL) highlight durability; watch for U.S. traction to build off 5% mix .
  • Risks: supply chain/trade disruption and tariff exposure on PRC-origin products into U.S.; platform rollout delays can affect quarterly cadence; incorporate risk premia accordingly .
  • Balance sheet improved cash position to $123M and positive operating cash flow; backlog at $351M provides revenue visibility, but conversion depends on OEM ramp timing .
  • Trading lens: momentum likely tied to sustained margin profile (~30% FY target) and sequential profitability; downside skew from macro/trade shocks and any Phase 3.2 timing slips .

Appendix: Additional Data Points and Context

  • Q4 2024: revenue $113.4M, gross margin 36.6%, adjusted EBITDA $8.6M; FY 2024 revenue $379.8M and gross margin 31.5% .
  • Product/market updates in Q1 window: mining trucks deployment (Tonly), event showcases (CIBF), ME6 ESS and high-energy/silicon cell progress .