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01/11 12:52
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
VinFast's earnings call highlights strong growth prospects, with international expansion, robust demand for the Green series, and significant R&D investments. Despite some uncertainties in management's responses, the strategic focus on expanding manufacturing capacity and maintaining ASP stability is reassuring. The positive market sentiment is further bolstered by declining battery costs and a strong liquidity position. While some guidance details were vague, the overall outlook suggests a positive stock price movement, driven by ambitious delivery targets and strategic market entry plans.
Vehicle Deliveries (EVs) 38,195 EVs delivered in Q3 2025, a 74% increase year-over-year and 7% quarter-over-quarter growth. Reasons include strong domestic and international market momentum.
Total EV Deliveries (First 9 Months) 110,362 EVs delivered globally in the first 9 months of 2025, a 149% increase year-over-year. Growth attributed to expanding market presence and product lineup.
E-Scooter and E-Bike Deliveries 120,052 units delivered in Q3 2025, a 535% increase year-over-year and 73% quarter-over-quarter growth. Driven by policy changes in Vietnam restricting gasoline motorbikes and increased consumer demand.
Revenue USD 719 million in Q3 2025, a 47% year-over-year increase and 9% quarter-over-quarter growth. Growth driven by strong order backlog and increased deliveries.
Cost of Goods Sold (COGS) USD 1.1 billion in Q3 2025, an 85% year-over-year increase and 21% quarter-over-quarter growth. Increase due to ramp-up in deliveries and timing differences in revenue recognition.
Gross Margin Negative 56.2% in Q3 2025, compared to negative 24% in Q3 2024 and negative 41.1% in Q2 2025. Impacted by timing differences in revenue recognition and higher warranty costs in the U.S. and Europe.
R&D Expenses USD 106 million in Q3 2025, a 28% year-over-year increase and 15% quarter-over-quarter growth. Increase due to development costs for new vehicle platforms and models.
SG&A Expenses USD 172 million in Q3 2025, a 25% year-over-year increase and 27% quarter-over-quarter growth. Increase due to impairment charges for battery projects and closure of showrooms in the U.S. and Europe.
Adjusted EBITDA Negative USD 576 million in Q3 2025, with a margin of negative 80.2%. Excluding delayed revenue recognition and NRV adjustments, margin would have been negative 33.1%, showing improvement from the previous year.
Net Loss Negative USD 953 million in Q3 2025, with a margin of negative 132.7%. Excluding delayed revenue recognition and NRV adjustments, margin would have been negative 81.8%, an improvement from negative 109.1% in the same period last year.
CapEx USD 261 million in Q3 2025, a 108% year-over-year increase and 24% quarter-over-quarter growth. Increase driven by new factories overseas and expansion in Vietnam.
Vehicle Sales: VinFast surpassed 100,000 vehicle sales in the first 3 quarters of 2025, with 38,195 EVs delivered in Q3, a 74% YoY and 7% QoQ growth. VX 3 and VX 5 contributed 47% of total deliveries, while the Green series accounted for 25%.
E-Scooters and E-Bikes: Delivered 120,052 units, a 535% YoY and 73% QoQ growth. Two new e-scooter models with expanded range are planned for 2026.
New Models: Launched the Limo Green 7-seater MPV and the Lac Hong 900 LX armored EV certified to VPAM VR7 standards.
Vietnam: VinFast grew 82% YoY in Q3 2025, ramped up VF 3 production, and expanded its EV e-scooter lineup. Policies to phase out gasoline motorbikes are accelerating demand for electric 2-wheelers.
India: Commenced operations at Tamil Nadu CKD factory, partnered with 38 local suppliers, and opened 20 dealer stores. Sales exceeded internal forecasts, ranking in the top 8 for EV registrations in October.
Indonesia: Captured 5% of the BEV market, expanded dealership network to 33 locations, and introduced a green mobility ecosystem in partnership with GSM.
Philippines: Expanded battery subscription model and introduced residual value guarantee programs. GSM Philippines partnered with Xentro Motors to deploy 2,000 VinFast EVs.
U.S.: Opened first dealership in California and participated in major events to strengthen brand visibility. Planning continues for a North Carolina manufacturing facility.
Europe: Debuted at Busworld Brussels with the EB 12 city bus, meeting UNECE and CE standards. EB 8 will be introduced later.
Middle East: Partnered with Arabian Automobile Association to launch roadside assistance across 6 countries.
R&D Investments: Focused on vehicle platform, electrical and electronic architecture, and autonomy. Introduced a centralized computing hub for rapid OTA updates and cost efficiency.
Financial Performance: Total revenue was USD 719 million, a 47% YoY increase. Gross margin was negative 56.2%, impacted by delayed revenue recognition. R&D expenses were USD 106 million, marking 15% of revenue.
Green Mobility Ecosystem: Expanded globally with V-Green charging infrastructure and GSM partnerships, enhancing brand differentiation.
Multi-Brand Strategy: Announced three distinct brands: VinFast (mainstream EVs), Green series (commercial EVs), and Lac Hong series (ultra-luxury EVs).
Gross Margin: Gross margin was negative 56.2% in Q3 2025, worsening from negative 24% in Q3 2024 and negative 41.1% in Q2 2025. This was primarily due to the recognition of cost of goods sold for vehicles already delivered under customer contracts, while revenue recognition will occur in subsequent periods. Higher warranty costs in the U.S. and Europe also contributed to the negative margin.
Cost of Goods Sold (COGS): COGS increased by 85% year-over-year and 21% quarter-over-quarter, reflecting the continued ramp-up in deliveries. This increase negatively impacts profitability.
Warranty Costs: Higher warranty costs were recorded in the U.S. and Europe due to a shift to third-party service workshops, increasing operational expenses.
SG&A Expenses: SG&A expenses increased by 27% quarter-over-quarter and 25% year-over-year, driven by an impairment charge of USD 49 million for the battery project and closure of D2C showrooms in the U.S. and Europe.
R&D Expenses: R&D expenses increased by 15% quarter-over-quarter and 28% year-over-year, driven by development costs for new vehicle platforms and models planned for 2026. This represents a significant ongoing investment that impacts short-term financials.
Net Loss: Net loss for Q3 2025 was USD 953 million, with a net loss margin of negative 132.7%. This was impacted by delayed revenue recognition and NRV adjustments.
CapEx: CapEx increased by 24% quarter-over-quarter and 108% year-over-year, driven by investments in new factories overseas and expansion in Vietnam. This represents a significant cash outflow.
Market Conditions in Indonesia: The overall auto market in Indonesia declined by 11% year-over-year from January to September, which could pose challenges for growth in this market.
Battery Project Impairment: An impairment charge of USD 49 million was recorded for the battery project, indicating potential challenges in this area.
Delayed Revenue Recognition: Revenue recognition delays for vehicles already delivered under customer contracts created a timing difference, negatively impacting financial results for the quarter.
2025 EV Delivery Guidance: VinFast remains on track to at least double its EV delivery volumes in 2025 compared to the previous year.
Vietnam Market Expansion: VinFast plans to broaden its EV e-scooter lineup and deepen its presence in the B2B fleet channel in Vietnam. Two new e-scooter models with expanded range are planned for 2026.
International Market Growth: VinFast is expanding its green mobility ecosystem, dealership network, and introducing new products as international markets mature. Specific plans include expanding local supplier networks in India, growing dealership networks in Indonesia and the Philippines, and launching new programs like residual value guarantees and battery subscription models.
U.S. Market Strategy: VinFast aims to strengthen brand visibility in the U.S. by partnering with dealers, participating in major events, and planning for a North Carolina manufacturing facility to support long-term growth.
European Market Entry: VinFast is entering the European commercial vehicle segment with the EB 12 city bus and plans to introduce the EB 8 compact bus at a later stage.
Middle East Strategy: VinFast has partnered with the Arabian Automobile Association to launch comprehensive roadside assistance for customers across six countries in the region.
R&D Investments: VinFast is focusing R&D investments on vehicle platform, electrical and electronic architecture, and autonomy. Plans include developing a next-generation platform for cost efficiency, reengineering the EE system into zonal architecture, and advancing autonomous driving capabilities.
Future Product Lines: By 2026, VinFast will offer three distinct brands: VinFast (smart EVs for mainstream consumers), Green series (commercial EV solutions), and Lac Hong series (ultra-luxury EVs).
CapEx and Factory Expansion: VinFast is increasing capital expenditures for new factories overseas and expansion in Vietnam, with a focus on supporting long-term growth.
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VinFast's earnings call highlights strong growth prospects, with international expansion, robust demand for the Green series, and significant R&D investments. Despite some uncertainties in management's responses, the strategic focus on expanding manufacturing capacity and maintaining ASP stability is reassuring. The positive market sentiment is further bolstered by declining battery costs and a strong liquidity position. While some guidance details were vague, the overall outlook suggests a positive stock price movement, driven by ambitious delivery targets and strategic market entry plans.
VinFast's earnings call reveals strong growth in vehicle deliveries, market expansion, and strategic partnerships, leading to a 296% YoY increase in EV deliveries and 150% revenue growth. Despite a net loss, improved cash flow management and a robust cash balance provide financial stability. Positive guidance on margins and international expansion, coupled with strategic initiatives in green mobility and battery leasing, further bolster sentiment. The Q&A session confirmed management's confidence in overcoming potential headwinds, such as warranty costs. Overall, the positive developments suggest a likely stock price increase over the next two weeks.
VinFast showed strong growth with a 150% increase in revenue and improved margins. The company exceeded its delivery targets and plans significant market expansion. Despite high costs and cash burn, the liquidity position is strong, and the guidance for doubling revenue in 2025 is optimistic. The Q&A revealed confidence in scaling operations and achieving breakeven margins by 2026. However, lack of shareholder returns and some unclear responses on CapEx could be concerns. Overall, the positive growth outlook and strategic expansions are likely to lead to a positive stock price movement in the short term.
The earnings call reveals significant financial challenges, including a net loss of $3.2 billion and negative gross margins, despite revenue growth. The Q&A section highlights concerns about macroeconomic impacts and unclear guidance on tariffs. Management's optimism about future deliveries and margin improvement is overshadowed by increased costs and market expansion risks. The negative impact of the free charging program and the transition to a hybrid model further contribute to the negative sentiment. Overall, the financial struggles and market uncertainties suggest a negative stock price reaction in the short term.
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