Q2 2026 VNET Group, Inc. Earnings Call Transcript
Key Points
- VNET Group Inc (VNET) secured 347 megawatts of new wholesale orders in Q2 2026, bringing year-to-date total to 862 megawatts, demonstrating strong demand.
- Wholesale capacity in service surpassed 1 gigawatt, growing 49.4% year-over-year to 1,007 megawatts, with a high utilization rate of 73.9%.
- Total net revenues increased 14.2% year-over-year to RMB2.78 billion, driven by a 29.3% growth in wholesale revenues.
- Adjusted EBITDA grew 25.4% year-over-year to RMB918.3 million, with adjusted net income turning positive at RMB7.4 million.
- The company secured a strategic partnership with CATL to develop integrated compute-energy ecosystems, enhancing long-term growth prospects.
- VNET Group Inc (VNET) expanded its resource reserves to over 3.5 gigawatts in China and approximately 500 megawatts overseas, providing a multi-year growth runway.
- Adjusted cash gross margin decreased slightly to 41.8% from 43.6% in the prior year, due to higher utility costs for customers.
- Wholesale revenue growth in Q2 was slightly weaker than expected, partly due to slower customer move-in pace in the early quarter.
- The company's new order wins are concentrated in a single customer, raising concerns about customer concentration risk.
- CapEx for 2026 is expected to be high, ranging from RMB10 billion to RMB12 billion, which may pressure cash flow.
- The overseas expansion strategy is cautious and dependent on securing firm orders before development, limiting near-term revenue contribution.
- The company faces structural supply-demand imbalances in the industry, with potential pricing pressures for new projects.
Hello, ladies and gentlemen. Thank you for standing by for the second-quarter 2026 earnings conference call for VNET Group, Inc. (Operator Instructions)
Participants from our management include Mr. Wen Teng, Rotating President; Mr. Peter Zhang, SVP of Operational Finance; Ms. Sharon Liu, Executive Vice President; Ms. Julia Jiang, Senior Manager of Investor Relations of the company; Mr. Ju Ma, Executive Vice President. Please note that today's conference call is being recorded.
I will now turn the call over to the first speaker today, Ms. Julia Jiang. Please go ahead.
Thank you, operator. Hello, everyone, and welcome to our second-quarter 2026 earnings conference call. Our earnings release was distributed earlier today, and you can find a copy on our IR website, as well as on Newswire services.
Please note that today's call will contain forward-looking statements made under the Safe Harbor provision of the US Private Securities Litigation Reform Act of 1995. Forward
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