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Microvast Q3 revenue drops 63% on weak vehicle demand; net loss widens

By Reuters News


Overview

  • Battery technology firm's Q3 revenue fell 62.8% yr/yr amid weaker commercial vehicle demand

  • Company posted a significantly wider net loss in Q3 2026

  • Company says substantial doubt remains about its ability to continue as a going concern


Outlook

  • Company is implementing cost reduction initiatives and deferring discretionary capital expenditures

  • Production ramp-up at Huzhou facility depends on customer demand and working capital availability

  • Clarksville facility construction resumption contingent on additional financing or strategic partnerships


Result Drivers

  • SOFTER VEHICLE DEMAND - Co said revenue decline was mainly due to lower sales volume from weaker demand for heavy-duty trucks and equipment in Europe and APAC, and regulatory and geopolitical factors

  • INVENTORY WRITE-DOWN & PRICING PRESSURE - Co said gross margin was hit by a $9.3 mln inventory write-down and continued industry pricing pressure

  • ASSET IMPAIRMENTS - Co recorded $35.7 mln in non-cash impairment charges due to lower sales and operating performance


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

$45.80 mln

Q3 Adjusted Net Loss

$76 mln

Q3 Net Loss

$76.80 mln

Q3 Adjusted EBITDA

-$60.80 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 $4.50, about 615.8% above its November 6 closing price of $0.63

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago


Reuters Recommended Reads

  • Nov 9 - Sable Offshore sinks to record low after warning of going-concern risk

  • Nov 9 - Charging network operator EVgo's Q3 revenue falls 1%, misses estimates

  • Nov 9 - Lucid expands credit line from top investor by $1.75 billion amid turnaround


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.)

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