Microvast Holdings, Inc. Q2 FY2025 earnings call

Core Mission and Milestones - Founded in 2006, Microvast is a global leader in advanced battery technology with over 810 patents. - Launched ME6, a pioneering overhaulable LFP-based energy storage system. - Made progress in silicon-based cell technologies and all-solid-state batteries. ### Financials - Q2 revenue grew 9.2% YOY to $91.3 million; YTD revenue $208 million, up 25.9% YOY. - Gross margin improved to 34.7% in Q2. - Operating profit $16.2 million, adjusted net profit $16.3 million, adjusted EBITDA $25.9 million in Q2. - Huzhou Phase 3.2 expansion: clean rooms and utility equipment installed, now installing production equipment, expected to add ~2 GWh annual capacity with first qualified production in Q4 2025. - All-solid-state battery milestones: 5-layer cell had stable cycling with over 304 charge/discharge cycles at 1C; 12-layer functional prototype achieved 48-volt from a single integrated stack.

Microvast reported a record second quarter revenue of $91.3 million, which is a solid 9.2% growth year-over-year. Gross margin improved to 34.7%, a 2.2 percentage point improvement from the same period last year. Operating profit was $16.2 million, adjusted net profit was $16.3 million, and adjusted EBITDA was $25.9 million. Year-to-date revenue was $208 million, a 25.9% growth from the prior year. Geographically, EMEA accounted for 43% of Q2 revenue, down slightly YOY but up 31% YTD; US increased from 2% to 5% of revenue share for the quarter and YTD; APAC grew 34% in Q2 and 13% YTD compared to 2024.

Revenue Guidance - Target year-over-year revenue increase of 18% to 25% for remainder of 2025, projecting range between $450 million and $475 million. ### Gross Margin - Slightly updating targeted full year gross margin from 30% to 32% focusing on stronger performing, higher-margin products. ### Regional Highlights - APAC: Phase 3.2 expansion at Huzhou facility to come online later in 2025. - EMEA: Expected to maintain strong momentum, pursuing new strategic partnerships. - Americas: Anticipated continued revenue growth, proactive in customer acquisitions and financial needs to support strategic objectives.

Risks - Actual results may differ materially from expectations due to a variety of risks and uncertainties. For more information on material risks and other important factors that could affect financial results, please refer to Microvast's filings with the SEC.

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