NIO Inc reported a quarterly profit for the fourth quarter of 2025, a marked reversal from a year-earlier loss, and its Hong Kong-listed shares responded with a strong gain in trading on Wednesday.
Market reaction
Shares of NIO rose as much as 19.7% to HK$45.66 as of 02:08 GMT, reflecting investor enthusiasm for the company’s return to profitability and heightened delivery momentum during the quarter.
Quarterly earnings and revenue
The company recorded a net profit of 282.7 million yuan for the fourth quarter of 2025, compared with a net loss of 7.11 billion yuan in the same quarter a year earlier. Fourth-quarter revenue climbed 75.9% year-on-year to 34.65 billion yuan.
Vehicle deliveries, sales and margins
Vehicle deliveries were up 71.7% from the prior-year quarter, reaching 124,807 units in the fourth quarter. Vehicle sales for the period increased 80.9% to 31.61 billion yuan.
Margins showed improvement as well. Vehicle margin rose to 18.1% from 13.1% a year earlier, and the company’s overall gross margin increased to 17.5%. NIO attributed the improvement in part to cost controls and stronger sales performance.
Full-year totals and Q1 guidance
For the full year, NIO reported revenue of 87.49 billion yuan and total deliveries of 326,028 vehicles. Looking ahead, the company expects to deliver between 80,000 and 83,000 vehicles in the first quarter of 2026.
Implications
The combination of rising deliveries, expanding margins and a return to profitability prompted the pronounced uptick in Hong Kong trading. These headline metrics - profit, revenue growth, delivery volumes, and margin expansion - are central to investor assessment of NIO’s near-term operating trajectory.
Key points
- NIO swung to a Q4 net profit of 282.7 million yuan from a year-earlier net loss of 7.11 billion yuan.
- Fourth-quarter deliveries rose 71.7% to 124,807 units while revenue increased 75.9% to 34.65 billion yuan.
- Vehicle margin improved to 18.1% and overall gross margin rose to 17.5%; full-year revenue was 87.49 billion yuan with 326,028 total deliveries.
Risks and uncertainties
- Delivery and revenue targets remain sensitive to execution risk - missed production or distribution targets could affect near-term performance.
- Margin improvements rely on continued cost control and sustained sales strength - any reversal could pressure profitability.
- The company’s guidance for 80,000 to 83,000 Q1 2026 deliveries establishes expectations that will be monitored for execution accuracy.