NIO's Net Loss Likely Narrowed on Higher Revenue -- Earnings Preview

Dow Jones
Sep 01
 

By Jiahui Huang

 

NIO is scheduled to report results for the second quarter on Tuesday. Here is what you need to know:

 

NET LOSS: The Chinese automaker likely booked a net loss of 4.96 billion yuan, equivalent to $695.6 million, according to the consensus estimate of analysts polled by Visible Alpha. That would compare with a 5.13 billion yuan loss in the year-earlier period.

REVENUE: NIO's second-quarter revenue is estimated at 19.91 billion yuan, according to Visible Alpha, up from 17.45 billion yuan a year ago.

NIO's Hong Kong-listed shares fell 5.35% in the April-June period. However, a recent rally in its stock price, buoyed by the successful launch of the Onvo L90, has resulted in gains of more than 50% year to date.

 

WHAT TO WATCH:

--OUTLOOK: Investors will have their eye on the Chinese carmaker's third-quarter sales guidance, as it typically releases revenue and vehicle-delivery estimates in its quarterly report. Analysts have flagged weakening auto demand in China in the second half, and investors will be watching how NIO plans to address the challenges.

--PROFITABILITY: Strong volume momentum and cost control are likely to help NIO reach break-even in the fourth quarter of this year, according to Citi. The company's second-quarter margin and other profitability metrics will be of particular interest to investors, who will also focus on its strategy for the rest of the year during the postearnings call.

--NEW MODELS: NIO is expected to launch the ES9, a premium SUV, and the L80, aimed at the mass market, in the first half of 2026, Citi said in a note. Investors will look at the company's model pipeline to evaluate its growth potential.

 

Write to Jiahui Huang at jiahui.huang@wsj.com

 

(END) Dow Jones Newswires

September 01, 2025 04:29 ET (08:29 GMT)

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