Q2 2026 NIO Inc. Earnings Call Transcript
Key Points
- Delivered 107,658 vehicles in Q2 2026, a 49.4% year-over-year increase, with all three brands (NIO, ONVO, FIREFLY) achieving growth in sales and average transaction price.
- Achieved a gross margin of 18.4% and a vehicle margin of 18.5%, driven by a favorable product mix and cost optimization, despite rising raw material and chip costs.
- Reported a non-GAAP operating profit and positive operating and free cash flow, increasing cash reserves to RMB56.7 billion.
- Strong demand for flagship models ES8 and ES9, with ES9 orders requiring a 3-4 month wait and ES8 surpassing 140,000 deliveries in 335 days, leading the premium SUV segment.
- Rolled out the latest NIO World model smart driving system to over 700,000 users, increasing urban NOP mileage by 9.8% for NIO users and 127.8% for ONVO users.
- Expanded the power network to 4,123 swap stations, including the first fifth-generation station, which supports all three brands and has a lower cost per station (RMB1.4 million) than the previous generation.
- Facing significant cost pressure from rising raw material and chip costs, with an average cost increase of RMB14,000 per vehicle in Q2, expected to rise by another RMB2,000-3,000 in Q3 and Q4.
- ONVO brand's sales momentum has moderated due to intense competition in its segment, with brand awareness still low, comparable to NIO's level five to six years ago.
- Net loss increased 59% quarter-over-quarter to RMB0.5 billion, despite a year-over-year improvement, due to higher SG&A expenses from new product launches.
- SG&A expenses rose 22.5% quarter-over-quarter, driven by one-off sales and marketing costs of approximately RMB500 million, which may pressure near-term profitability.
- Q3 delivery guidance of 108,000-111,000 units implies a sequential decline from Q2's 107,658 units, indicating potential slowdown in growth momentum.
- The company's R&D expenses decreased 28.7% year-over-year, which may raise concerns about future innovation and competitiveness in the rapidly evolving EV market.
Hello, ladies and gentlemen. Thank you for standing by for NIO Inc. second-quarter 2026 earnings conference call. please note this call is being recorded.
I will now turn the call over to your host, Mr. Rui Chen, AVP and Head of IR corporate finance and strategic investments of the company. Please go ahead, Rui.
Good morning and good evening, everyone. Welcome to NIO's second quarter 2026 earnings conference call. The company's financial and operating results were published in the press release earlier today and are posted on the company's IR website. On today's call, we have Mr. William Li, Founder, Chairman of the Board and Chief Executive Officer; and Ms. Stanley Qu, Chief Financial Officer.
Before we continue, please be kindly reminded that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As
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