Sign in

You're signed outSign in or to get full access.

MH

Microvast Holdings, Inc. (MVST)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 delivered record revenue of $113.4M and gross margin of 36.6%, materially above prior guidance; adjusted EBITDA turned positive at $8.6M while GAAP net loss widened due to fair value changes and impairments .
  • Full-year 2024 revenue grew 23.9% to $379.8M with gross margin up 12.8 pp to 31.5% as scale, mix, and cost control drove margin expansion .
  • 2025 guidance introduced: revenue $450–$475M (+18–25% YoY) and 30% gross margin target; EMEA expected to grow >20% YoY, Americas ~50% YoY, APAC capacity expansion (Huzhou Phase 3.2) targeted Q4 2025 .
  • Backlog reached $401.3M, led by strong EMEA demand and commercial vehicle wins across heavy industry; management removed “substantial doubt” going concern language following 2H performance and improved liquidity .

What Went Well and What Went Wrong

What Went Well

  • Record Q4 revenue and margin: “We achieved record quarterly revenue… beating revenue guidance… delivered these revenues at a gross margin also above guidance” .
  • Operating leverage and efficiencies: Q4 gross profit rose to $41.5M (+80% YoY) and adjusted EBITDA reached $8.6M, reflecting utilization gains and disciplined cost control .
  • Strategic focus and outlook: “We expect 2025 revenue to increase 18% to 25%… and aim to maintain a gross margin target of 30%” (CEO) .

What Went Wrong

  • GAAP net loss widened: Q4 2024 GAAP net loss was $82.3M vs $24.6M in Q4 2023, driven by changes in fair value of warrants/convertible loan and impairments .
  • APAC headwinds: Revenue declined 19% YoY as MVST repositioned away from low-margin segments amid intense LFP price competition in China/India .
  • Financing environment and supply constraints: Management cited 2024 challenges in financing, supply constraints, and increased APAC competition; strategic cost control and operational adjustments implemented .

Financial Results

Quarterly Progression (sequential and YoY context)

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$83.675 $101.388 $113.387
Gross Margin %32.5% 33.2% 36.6%
GAAP Net Income (Loss) ($USD Millions)$(78.441) $13.247 $(82.323)
Adjusted EBITDA ($USD Millions)$(55.260) $28.610 $8.641
Adjusted Net Income (Loss) ($USD Millions)$(64.743) $16.782 $(0.572)

Q4 YoY Comparison

MetricQ4 2023Q4 2024
Revenue ($USD Millions)$104.575 $113.387
Gross Margin %22.0% 36.6%
Operating Expenses ($USD Millions)$46.037 $43.244
GAAP EPS ($USD)$(0.08) $(0.26)
Adjusted EPS ($USD)$(0.04) $(0.01)

Estimates vs Actuals (Wall Street Consensus – S&P Global)

MetricQ4 2024 ConsensusQ4 2024 Actual
Revenue ($USD Millions)$92.50*$113.387
Primary EPS ($USD)$0.00*$(0.01)*

Values retrieved from S&P Global.*

Segment/Regional Revenue Breakdown (Annual)

Region ($USD Thousands)FY 2023FY 2024
APAC (Ex. China)62,653 50,558
China156,480 127,138
EMEA84,358 187,718
USA3,126 14,387
Total306,617 379,801

KPIs

KPIQ4/FY PeriodValue
Backlog ($USD Millions)Q4 2024$401.3
Gross Margin %Q4 202436.6%
Adjusted EBITDA ($USD Millions)Q4 2024$8.6
Operating Cash Flow ($USD Millions)FY 2024$2.8
Cash, Cash Equivalents & Restricted Cash ($USD Millions)FY 2024 Year-End$109.6

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025N/A$450–$475M New
Company Gross Margin TargetFY 202525–30% (2024 target) 30% Maintained profile; midpoint set
Q4 RevenueQ4 2024$90–$95M (issued in Q3) Actual $113.4M Beat guidance
EMEA Revenue GrowthFY 202580% YoY expected for 2024 >20% YoY expected Normalized growth
Americas Revenue GrowthFY 2025N/A~50% YoY expected New

Earnings Call Themes & Trends

TopicQ2 2024 (Previous Mentions)Q3 2024 (Previous Mentions)Q4 2024 (Current Period)Trend
Technology/R&D (ME6, silicon cells, ASSB)Launched 565Ah LFP cell and ME6 ESS; R&D pipeline emphasized Unveiled silicon-based cells in Germany; progress on ME6 Continued progress on ME6; ASSB and silicon cells; more news anticipated Steady advancement; commercialization focus
Supply chain/capacityHuzhou production for 21Ah cells; Clarksville consolidation Operational efficiencies; utilization gains Huzhou Phase 3.2 expansion targeting Q4 2025 (+2 GWh) Capacity build toward demand
Macro/policy/tariffsU.S. IRA (45X) tailwind for LFP Policy shifts in Europe/U.S. slowed some LCV rollouts Continued EMEA demand; APAC price competition noted Mixed: EMEA strength vs APAC pricing pressure
Product performance (CV/heavy industry)New CV customers; Evoy marine partnership Wins with Propel, XCMG, LGMG; Gen 3/4 pack adoption Exclusive supplier to Zoomlion hybrids; mining/ag projects; backlog up Broadening verticals; deepening relationships
Regional trendsEMEA +401% YoY in Q2; APAC/EMEA ramp EMEA +212% YoY; 59% of Q3 revenue EMEA +123% YoY FY; USA +360% YoY FY; APAC down 19% YoY FY EMEA leadership; U.S. early-stage growth; APAC repositioning
Regulatory/legal/going concernCost actions; impairment recognized Liquidity commentary; profitability milestone Management concluded no substantial doubt as going concern Risk posture improved
Profitability/OpEx disciplineImpairment drove OpEx spike; adj. metrics reconciled OpEx reduced; adj. EBITDA positive OpEx down YoY in Q4; adj. EBITDA positive; margin >36% Margin trajectory improving

Management Commentary

  • “We achieved record quarterly revenue in the fourth quarter of 2024, beating revenue guidance… delivered these revenues at a gross margin also above guidance.” — Yang Wu, CEO .
  • “We recorded revenue of $113.4 million… gross margin of 36.6%… adjusted EBITDA was $8.6 million in Q4 2024.” — CFO Fariyal Khanbabi .
  • “Based on our current performance… management has concluded that there is no substantial doubt about our ability to continue as a going concern.” — CFO .
  • “We expect 2025 revenue to increase 18% to 25% year-over-year… and aim to maintain a gross margin target of 30%.” — CEO .

Q&A Highlights

  • The provided Q4 2024 transcript materials capture prepared remarks and outlook; explicit Q&A content was not available in the documents reviewed. Management clarified going concern resolution, regional mix, and 2025 revenue/margin targets within prepared remarks .

Estimates Context

  • Revenue beat: Q4 2024 revenue of $113.4M vs $92.5M consensus; significant upside driven by EMEA demand and operational throughput. Primary EPS printed $(0.01) vs $0.00 consensus; adjusted EPS was $(0.01), and GAAP EPS was $(0.26) due to warrant/convertible loan fair value and impairments . Consensus sample sizes were limited (Revenue: 1–2 estimates; EPS: 1 estimate)*.
  • FY 2025 consensus: Revenue ~$462.4M*, broadly consistent with company guidance ($450–$475M), suggesting limited near-term revisions unless EMEA momentum or APAC pricing dynamics shift materially .

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Q4 revenue and margin substantially exceeded guidance; sequential improvements and positive adjusted EBITDA confirm operating leverage and cost discipline .
  • The GAAP loss reflects non-operational items (fair value changes, impairments); adjusted metrics show underlying profitability trending favorably .
  • Backlog ($401.3M) and EMEA strength underpin 2025 growth; U.S. revenue is small but up 360% YoY, offering optionality as domestic programs ramp .
  • 2025 guide ($450–$475M revenue, 30% GM) aligns with consensus, reducing estimate risk; upside catalysts include new CV programs, ME6 ESS commercialization, and capacity adds (Huzhou) .
  • APAC competitive pricing remains a headwind; mix shift away from low-margin segments is prudent but may cap near-term APAC growth .
  • Liquidity improved (year-end cash ~$109.6M) and going concern doubt removed, but financing options and balance sheet items (convertible loan, borrowings) warrant monitoring .
  • Near-term trading: Expect focus on margin durability and order conversion from backlog; medium-term thesis hinges on EMEA CV traction, technology differentiation (silicon/ASSB), and execution on U.S./APAC strategies .