Microvast Holdings Inc
Q2 2026 Earnings
Market Reaction
Did MVST Beat Earnings? Q2 2026 Results
Microvast Holdings delivered a disappointing second quarter, missing revenue expectations and swinging to an adjusted operating loss as the battery technology company grappled with weakening demand and margin pressure. Revenue came in at $87.26 million, a 4.5% decline year-over-year and roughly 7.56% below the $94.40 million consensus estimate, with the shortfall partly reflecting $2.70 million in IEEPA tariff refunds issued to a U.S. customer that were recorded as a revenue reduction. Adjusted EPS landed at negative $0.01, missing the breakeven estimate of $0, while gross margin contracted sharply to 29.5% from 34.7% a year ago, pressured by higher raw material costs and lower production utilization. The results arrive as multiple securities class action lawsuits allege the company made misleading statements about its margin targets and expansion timeline, adding legal uncertainty to an already challenged operational picture. Looking ahead, Microvast is banking on its Huzhou Phase 3.2 capacity ramp, targeting up to 2 GWh of modular output, alongside year-end launch of localized pack assembly in Clarksville, to rebuild volume absorption and stabilize margins.
- Europe revenue grew 35% YoY to $52.4M, becoming the largest regional contributor at 61% of Q2 revenue
- IEEPA tariff refunds of $4.3M received, with $2.7M passed to U.S. customer as revenue reduction
- Higher raw material prices and lower production utilization pressured gross margins
- Significant reduction in fair value changes of warrant liability and convertible loan improved GAAP net loss
“In the second quarter, Microvast progressed through a pivotal phase of our global capacity expansion. Delivering $87.3 million in revenue and maintaining a 29.5% gross margin highlights our ability to navigate raw material fluctuations and production utilization cycles. While it impacted our net revenue, returning $2.7 million in IEEPA tariff refunds to our U.S. customers reinforces the strength of our long-term commercial partnerships. With Huzhou Phase 3.2 expected to be on track to deliver up to 2 GWh of next-generation modular capacity and Clarksville pack line localization anticipated to commence operations by year end, we are working to position our business to meet capacity demand across high-barrier commercial and transit markets.”
Microvast Holdings CEO, on the earnings call
Forward Guidance & Outlook
Microvast targets a stable gross margin profile through sustained operational discipline and premium product positioning, seeking to balance external pressures including inflationary raw material pricing, duties and tariffs, and elevated logistics and freight expenses against planned absorption of Phase 3.2 ramp-up expenses. Huzhou Phase 3.2 production capacity ramp-up remains the primary operational milestone in 2026, anticipated to bring online up to 2 GWh of modular capacity. Localized pack assembly at Clarksville is on schedule with initial operations anticipated by year-end. The company continues to seek commercial momentum across EMEA, North America, and APAC, focusing on heavy industrial and transit markets with its vertical integration and KAF electric powertrain.
MVST YoY Financials
MVST Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.