Microvast Holdings, Inc. Q1 FY2025 earnings call

• Record first-quarter revenue of $116.5 million with 43% year-over-year growth and a gross margin of 36.9%, a 15.7 point improvement year-over-year.
• EMEA had 108% year-over-year growth. The company achieved profitability in the quarter with a net profit of $61.8 million.
• Phase 3.2 expansion at Huzhou is on track, with clean rooms nearly completed, utility equipment installed, and production equipment being installed, anticipating first qualified production in Q4 2025.
• Significant traction in the commercial vehicle sector, especially in EMEA, with partnerships and customer engagements like King Long, Blackbuck, VDL, Lovol, Tonly Heavy, and Irimoly utilizing their battery packs.
• Advancements in next-generation battery technologies, including progress in 3D-printing capabilities for all solid-state batteries and positive early results from bipolar stack cell architecture testing.

Microvast posted record first-quarter revenue of $116.5 million, representing a 43% year-over-year growth. The gross margin was 36.9%, a 15.7 point improvement year-over-year. EMEA saw triple-digit percentage growth of 108% year-over-year. Geographically, EMEA accounted for 52% of quarterly revenue, up from 36% a year ago. The U.S. increased from 2% to 5% of revenue share, while the APAC region saw a decrease of less than 1% year-over-year. The company booked a net profit of $61.8 million, with adjusted net profit of $19.3 million and adjusted EBITDA of $28.5 million.

• Anticipated year-over-year revenue increase of 18% to 25% for 2025, targeting a range of $450 million to $475 million.
• Aim for full-year gross margin of approximately 30%.
• APAC operations focused on bringing the Phase 3.2 expansion at Huzhou online later in 2025 to meet customer demand.
• EMEA business expected to maintain strong momentum and pursue new strategic partnerships.
• Continued focus on revenue growth in the U.S. while assessing financial needs and evaluating options to support strategic objectives.

• Headwinds from global supply chain uncertainties and trade disruptions impacting the rollout timelines for certain light commercial vehicle platforms.