Microvast Q1 revenue falls 48% on lower demand from Indian and Korean markets

Microvast Holdings

11/05/2026 22:11

Overview

US battery technology provider's Q1 revenue fell 48% yr/yr due to delivery timing and regional headwinds

Adjusted net loss for Q1 was $14.6 mln, compared to adjusted net profit last year

Gross margin declined to 31.6% from 36.9% yr/yr, reflecting lower production utilization

Outlook

Microvast anticipates a recovery in delivery schedules and steady revenue ramp through the rest of 2026

Company aims to maintain resilient gross margin amid cost absorption from expansion and raw material volatility

Microvast expects serial production at Huzhou Phase 3.2 expansion in 2026, adding up to 2 GWh capacity

Result Drivers

REGULATORY AND GEOPOLITICAL HEADWINDS - Co said revenue decline was primarily due to evolving regulatory and geopolitical dynamics, including in the Indian and Korean markets, and demand shift toward lower-cost products in India

PRODUCTION UTILIZATION - Lower production utilization reduced fixed cost absorption, contributing to the decline in gross margin

Company press release: ID:nGNXhJdGw

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$60.61 mln
$99.02 mln (1 Analyst)
Q1 Adjusted Net Income
Miss
-$14.61 mln
$82,000 (1 Analyst)
Q1 Net Income
$48.21 mln
Q1 Adjusted EBITDA
-$5.49 mln
Q1 Operating Expenses
$27.09 mln


Analyst Coverage

The one available analyst rating on the shares is "buy"

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 $6.00, about 181.7% above its May 8 closing price of $2.13

The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 13 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)