Microvast Holdings, Inc. Q2 FY2025 earnings call

• Core mission: Microvast is a global leader in advanced battery technology, founded in 2006, with over 810 patents. - Milestones: Launched ME6 overhaulable LFP-based energy storage system, made progress in silicon-based cell technologies and all-solid-state batteries. - Financial highlights: Record second quarter revenue, improved gross margin to 34.7%, achieved operating profit of $16.2 million, adjusted net profit of $16.3 million, and adjusted EBITDA of $25.9 million. - Huzhou Phase 3.2 expansion: Clean rooms and utility equipment installed, now installing and commissioning production equipment, anticipated to add ~2 gigawatt-hour annual capacity with first qualified production in Q4 2025. - All-solid-state battery progress: Proprietary 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 with uniform series-connected architecture.

In the second quarter of 2025, Microvast reported a record revenue of $91.3 million, representing a solid 9.2% year-over-year growth. Year-to-date revenue reached $208 million, a 25.9% increase from the prior year. The gross margin improved to 34.7%, a 2.2 percentage point improvement from the same period last year. Geographically, EMEA accounted for 43% of the quarterly revenue, down slightly year-over-year but up 31% over the 6-month period. The U.S. increased from 2% to 5% of revenue share for both the quarter and year-to-date. The APAC region grew 34% in the quarter and 13% year-to-date compared to 2024.

• Remainder of 2025 revenue guidance: Target year-over-year increase of 18% to 25%, projecting range $450 million to $475 million. - Full year gross margin target: Updated from 30% to 32% focusing on stronger performing, higher-margin products. - APAC: Phase 3.2 expansion at Huzhou facility expected to come online later in 2025. - EMEA: Expected to maintain strong momentum, driving significant year-over-year revenue increases. - Americas: Anticipated continued revenue growth with proactive customer acquisitions and financial support for strategic objectives.