Microvast Holdings Inc
Q3 2023 Earnings
Did MVST Beat Earnings? Q3 2023 Results
Microvast posted a standout third quarter, with revenue surging 160.5% year over year to $80.12 million as the company's Huzhou 3.1 automated production line in China ramped aggressively and drove a sharp improvement in unit economics. The battery technology company reported a loss of $0.03 per share, while GAAP gross margin expanded to 22.3% from just 5.2% a year ago, reflecting higher facility utilization, a favorable product mix shift toward its 53.5Ah lithium-ion cell, and easing raw material costs. The backlog climbed to $678.70 million, with over 84% tied to that flagship cell chemistry, signaling durable demand across commercial vehicle and energy storage markets. EMEA revenue jumped 455% year over year to $19.03 million, underscoring the geographic broadening of the business. Looking ahead, management guided Q4 revenue of $90.00 million to $100.00 million, with full-year 2023 revenue expected between $292.00 million and $302.00 million, while the Tennessee manufacturing facility targets trial production in early 2024, which would unlock IRA Section 45X manufacturing credits beginning in Q2.
- Increased deliveries of 53.5Ah cells from Huzhou 3.1 automated line to OEM customers
- Gross margin expansion driven by higher utilization, improved yields, product mix changes, and lower raw material prices
- Strong commercial vehicle demand in EMEA and APAC regions
- Growing ESS business in the U.S. market
“In the third quarter, we achieved excellent year over year revenue growth, led by increased deliveries of our 53.5Ah cell from our new Huzhou 3.1 line to our OEM customers.”
Microvast Holdings CEO, on the earnings call
Forward Guidance & Outlook
For Q4 2023, Microvast expects revenue in the range of $90 million to $100 million, with adjusted gross margins of 20–25%. Full-year 2023 revenue is guided at $292 million to $302 million, representing 43–48% growth versus $204 million in 2022. The company anticipates adding major projects to its record backlog of $678.7 million, with continued growth in orders. Huzhou Phase 3.1 targets over 90% utilization by year-end. The Clarksville, Tennessee Phase 1A facility targets trial production in Q1 2024, with qualified product deliveries and IRA Section 45X credits from early Q2 2024. The company plans incremental Phase 3.2 investment in Huzhou (~$35M CAPEX) for an additional 1GWh flexible production line. Two major EMEA projects are expected — a leading bus OEM (up to $230M in revenue, 2024–2027) and a leading truck OEM (up to $160M in revenue, 2025–2027). Management believes a path to profitability is within 2–3 years and expects to be cash flow positive prior to 2027.
MVST YoY Financials
MVST Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.