Strong Revenue Performance Drives Pre-Market Gains
VinFast Auto Ltd. (NASDAQ:VFS) shares rose 6.73% in pre-market trading Monday following the release of better-than-expected first-quarter financial results, despite missing earnings estimates.
Financial Results: Revenue Beats, Loss Narrows
The Vietnamese electric vehicle manufacturer reported Q1 revenue of 16.31 trillion Vietnamese dong (approximately 6.565billion),surpassinganalysts′forecastsof13.5trilliondong.However,thecompanypostedawider−than−expectednetlossof0.30 per share, compared to analysts’ expectations of $0.28 per share loss.
Delivery Numbers Show Mixed Trends
VinFast delivered 36,330 electric vehicles in Q1, representing a 296% year-over-year increase but a 32% sequential decline from Q4 2024. Electric motorcycle deliveries grew even more dramatically, rising 473% year-over-year to 44,904 units.
“Although Q1 is typically our weakest quarter, our 2025 first-quarter deliveries exceeded the total deliveries from the first half of last year – marking a strong start to 2025 amid ongoing global uncertainties,” said Ms. Thuy Le, VinFast’s Chairwoman.
Maintaining Aggressive Growth Targets
The company reiterated its goal of at least doubling its 2025 global deliveries compared to 2024 levels. VinFast noted that as sales volume increases and its streamlined operations generate greater cost efficiencies, the company is beginning to see improvements in operating leverage.
Margin Improvement Continues
While still operating at a negative gross margin, VinFast demonstrated significant progress, improving its gross margin from -58.7% a year ago to -35.2% in Q1. The company emphasized that margins remain negative as it continues to scale production and sales.
Financial Position and Support
At quarter-end, VinFast held $96.6 million in cash and cash equivalents. The company confirmed it continues to receive financial support from parent company Vingroup and its founder to fund operations and growth initiatives.
The results come as VinFast continues its aggressive international expansion, particularly in North American and European markets, while facing intense competition in the rapidly evolving EV sector. The company’s ability to maintain momentum in deliveries while gradually improving margins will be critical to its long-term success.
Related topics:
