Q2 2026 Microvast Holdings, Inc. Earnings Call Transcript
Key Points
- European sales increased 35% in Q2 2026, with the region now accounting for 61% of quarterly revenue, up from 43% in the prior year.
- Gross profit remained positive at $25.8 million with a gross margin of 29.5%, despite headwinds from higher raw material costs and lower utilization.
- The Huzhou Phase 3.2 expansion is on track, with equipment commissioning completed and SOP expected in 2026, adding up to 2 GWh of annual capacity.
- Significant R&D progress in solid-state battery technology, including a 17-layer bipolar cell delivering 72 volts with 88.5% capacity retention after 200 cycles and no safety issues in hotbox tests up to 200°C.
- The Clarksville, Tennessee pack line assembly remains on schedule for initial output by year-end, supporting U.S. market expansion.
- Revenue decreased 4.5% year-over-year in Q2 2026, partly due to a $2.7 million tariff refund issued to a customer.
- Gross margin declined to 29.5% from 34.7% in Q2 2025, driven by higher raw material prices and lower production utilization.
- Adjusted net loss was $5.3 million in Q2 2026, compared to an adjusted net profit of $16.3 million in the prior year period.
- APAC sales declined 23% in Q2 and 45% year-to-date, impacted by shifting regulatory dynamics and demand shift to lower-cost products in India.
- Operating cash flow turned negative at -$33.3 million for the first half of 2026, versus +$44.3 million generated in the same period of 2025.
Thank you for standing by. This is the conference operator. Welcome to the Microvast second quarter 2026 earnings call. As a reminder, all participants are in a listen-only mode, and this conference is being recorded.
I would like to turn the conference over to the Microvast Investor Relations. Please go ahead.
Thank you, operator, and thank you, everyone, for joining our update today. This is Rodney Worthen, Chief Financial Officer of Microvast. And with me on today's call is Mr. Yang Wu, Founder, Chairman and Chief Executive Officer of Microvast. I'll start off with a review of the second quarter results before handing it to Mr.
Wu to provide some operational and business updates. Ahead of this call, Microvast issued its second quarter earnings press release, which can be found on the Investor Relations section of our website, ir.microvast.com. We have also posted a slide presentation to accompany management's prepared remarks for today's call.
As a reminder, please
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
