Microvast Q2 revenue falls on tariff refunds; co swings to net loss

Microvast Holdings

10/08/2026 22:10

Overview
U.S. battery maker's Q2 revenue fell 4.5% yr/yr, impacted by tariff refunds to customers
Adjusted EPS for Q2 was negative, as company posted adjusted net loss
Gross margin declined due to higher raw material costs and lower production utilization
Shares of the company were down about 6% in extended trading

Outlook
Company aims to maintain stable gross margin profile despite inflationary and logistics pressures
Huzhou Phase 3.2 capacity ramp-up remains primary operational milestone, with up to 2 GWh expected
Localized pack assembly at Clarksville facility expected to begin operations by year-end

Result Drivers
TARIFF REFUNDS - Revenue decrease was primarily driven by $2.7 mln in tariff refunds issued to a U.S. customer, recorded as a reduction to revenue
RAW MATERIAL COSTS - Higher raw material prices contributed to lower gross margin
PRODUCTION UTILIZATION - Lower production utilization reduced fixed cost absorption and weighed on margins

Company press release: ID:nGNX3HVNzk

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$87.30 mln
$94.40 mln (2 Analysts)
Q2 Adjusted EPS
 
-$0.01
$0 (1 Analyst)
Q2 Adjusted Net Loss
 
$5.30 mln
$452,000 (1 Analyst)
Q2 Net Loss
 
$12 mln
 
Q2 Adjusted EBITDA
 
$3.60 mln
$11.24 mln (1 Analyst)
Q2 Operating Expenses
 
$27.50 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 507.1% above its August 7 closing price of $0.91
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 22 three months ago

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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.)