Q2 2026 Lotus Technology Inc Earnings Call Transcript
Key Points
- Deliveries increased 39% year-over-year to 3,904 units, outperforming the premium and luxury segments.
- Revenue grew 23% year-over-year to $268 million, driven by strong China market momentum.
- Gross profit rose 47% year-over-year to $26 million, with gross margin expanding 1.6 percentage points to 10%.
- Operating loss narrowed 63% year-over-year to $97 million, reflecting improved operational efficiency and cost management.
- The launch of the ElectroX hybrid model has been successful, with cumulative orders of 2,200 units in China and a market share of nearly 2% in the premium segment above RMB500,000.
- The acquisition of Lotus UK is expected to drive top-line growth and gross margin improvements through full revenue recognition and service revenue consolidation.
- Average selling price dropped 3% year-over-year due to a higher sales mix of the lower-priced ElectroX.
- European deliveries fell 17% year-over-year amid intensifying competition in the luxury segment.
- Chip price volatility increased battery costs by nearly 2%, pressuring gross margins, with supply-demand rebalance not expected until late 2026 or early 2027.
- Operating expenses, excluding one-off items, only decreased 4% year-over-year, with R&D and marketing costs still elevated.
- The consolidation of Lotus UK's R&D and administrative costs may widen near-term operating losses.
Good day and thank you for standing by. Welcome to the Lotus Technology First Half 2026 Earnings Conference Call.
At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session.
To ask a question during the session, you will need to press 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press 1 and 1 again.
Please be advised today's conference is being recorded. I'd now like to hand the conference over to your first speaker today, Ms. Michelle Marr, Head of Investor Relations. Please go ahead.
Thank you, operator, and welcome to Lotus Tech's first half of 2026 earnings call. My name is Michelle Ma, the Head of Investor Relations here at Lotus. With me today are the CEO, Mr. Qinfeng Feng and the CFO, Dr. Dashi Wang. Our conference call materials were issued today and are available on our Investor Relations website. We
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