Battery maker Microvast Q3 revenue beats estimates, driven by strong demand for battery solutions

Reuters11-11
Battery maker Microvast Q3 revenue beats estimates, driven by strong demand for battery solutions

Overview

  • Microvast Q3 revenue rose 21.6% yr/yr, beating analyst expectations

  • Adjusted net income for Q3 missed analyst expectations

  • Adjusted EBITDA for Q3 missed analyst expectations

Outlook

  • Company maintains 2025 revenue guidance of $450 mln to $475 mln

  • Microvast updates 2025 gross margin outlook to 32%-35%

  • Company to complete Huzhou Phase 3.2 expansion by year-end

Result Drivers

  • REVENUE GROWTH - Co attributes 21.6% revenue increase to strong demand for battery solutions

  • GROSS MARGIN IMPROVEMENT - Co cites efficiency and product mix as reasons for 4.4 percentage point gross margin increase

  • ADJUSTED EBITDA - Positive adjusted EBITDA of $21.9 mln reflects focus on profitability and operational excellence, per CEO Yang Wu

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$123.3 mln

$120.02 mln (2 Analysts)

Q3 Adjusted Net Income

Miss

$11.9 mln

$17.34 mln (1 Analyst)

Q3 Net Income

-$1.5 mln

Q3 Adjusted EBITDA

Miss

$21.9 mln

$25.13 mln (2 Analysts)

Q3 Operating Expenses

$33.5 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the electrical components & equipment peer group is "buy"

  • Wall Street's median 12-month price target for Microvast Holdings Inc is $5.50, about 10.4% above its November 7 closing price of $4.93

  • The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nGNX1BkqV6

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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