REEAF (REE Automotive) EBIT: $-56.84 Mil (TTM As of Dec. 2025)

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What is REE Automotive EBIT?

REE Automotive REEAF EBIT is $-56.84 Mil as of Dec. 2025. The stock has 7 warning signs investors should review.

REE Automotive's earnings before interest and taxes (EBIT) for the six months ended in Dec. 2025 was $-31.17 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2025 was $-56.84 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. REE Automotive's annualized ROC % for the quarter that ended in Dec. 2025 was -132.57%. REE Automotive's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was -290.94%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. REE Automotive's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was -892.17%.

REE Automotive  (OTCPK:REEAF) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

REE Automotive's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=-51.618 * ( 1 - 0.53% )/( (50.605 + 26.857)/ 2 )
=-51.3444246/38.731
=-132.57 %

where

Invested Capital(Q: Jun. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=89.542 - 12.967 - ( 54.668 - max(0, 35.155 - 61.125+54.668))
=50.605

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=38.181 - 9.073 - ( 14.246 - max(0, 12.71 - 14.961+14.246))
=26.857

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

REE Automotive's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-62.346/( ( (23.998 + max(-8.824, 0)) + (18.861 + max(-8.769, 0)) )/ 2 )
=-62.346/( ( 23.998 + 18.861 )/ 2 )
=-62.346/21.4295
=-290.94 %

where Working Capital is:

Working Capital(Q: Jun. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.053 + 0 + 4.09) - (12.967 + 0 + 0)
=-8.824

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.024 + 0 + 0.28) - (9.073 + 0 + 0)
=-8.769

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

REE Automotive's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2025 )
=-56.84/6.371
=-892.17 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

REE Automotive EBIT Related Terms

REE Automotive EBIT Historical Data

* Premium members only.

The historical data trend for REE Automotive's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

REE Automotive EBIT Chart

REE Automotive Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial -515.50 -105.67 -115.49 -108.77 -56.84

REE Automotive Semi-Annual Data
Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only -60.48 -34.21 -74.56 -25.67 -31.17

REEAF vs INEO, FFLO, OMTK: EBIT Comparison

For the Auto Parts subindustry, REE Automotive's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

REE Automotive EV-to-EBIT vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, REE Automotive's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where REE Automotive's EV-to-EBIT falls into.


REE Automotive EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was $-56.84 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $-56.84 Mil mean?
REE Automotive (REEAF) has a EBIT of $-56.84 Mil as of Dec. 2025. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on REE Automotive.
Is REE Automotive's EBIT too high?
REE Automotive's current EBIT is $-56.84 Mil.
How does REE Automotive's EBIT compare to INEO and FFLO?
REE Automotive's EBIT of $-56.84 Mil can be compared against companies in the Vehicles & Parts industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Vehicles & Parts company?
A good EBIT depends on the Vehicles & Parts industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on REE Automotive. REE Automotive's current EBIT is $-56.84 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REE Automotive stock overvalued right now?
Based on GuruFocus' analysis, REE Automotive (REEAF) is currently considered Possible Value Trap. The stock's GF Value™ is $2.75, compared to a current price of $0.05 — trading 98.2% below its estimated fair value. The current EBIT is $-56.84 Mil. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For REE Automotive (REEAF), the current EBIT is $-56.84 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

REE Automotive Business Description

Address Kibbutz Glil-Yam, Herzliya, ISR, 4690500
REE Automotive Ltd is an automotive technology company focused on building commercial electric vehicles controlled fully by-wire. The company is in early stages of commercialization and develop and produce software-defined vehicle (SDV) technology that manages vehicle operations and features through proprietarily-developed software. The company has geographical preference in Israel, Germany, United States, United Kingdom, and other regions.