- Earlier this month, Nio issued a rare profit alert, projecting fourth-quarter non-GAAP operating profit between RMB 700 million and RMB 1.2 billion.
- Following a robust fourth-quarter performance, Nio and its domestic peers now confront fresh industry headwinds as they enter 2026.
Nio Inc (NYSE: NIO, HKG: 9866) announced Thursday it will release its unaudited financial results for the fourth quarter and full year of 2025 before US market hours on March 10.
The market is currently highly focused on this earnings report, as the company is expected to announce its first ever quarterly profit since its founding.
Earlier this month, Nio issued a rare profit alert, projecting non-GAAP operating profit for the fourth quarter to reach RMB 700 million to RMB 1.2 billion ($100 million to $172 million).
The company also expects to record operating profit of RMB 200 million to RMB 700 million under the stricter GAAP standards.
This milestone projection, demonstrating the viability of its business model, previously propelled its US-listed shares higher.
The historic financial turnaround stems from record-breaking deliveries and strong sales of high-margin models.
Nio delivered 124,807 vehicles in the fourth quarter of 2025, setting a new record and approaching the upper end of its previously said guidance range of 120,000 to 125,000 units.
The third-generation ES8 model, with a starting price exceeding RMB 400,000 and a gross margin of about 20%, emerged as the primary driver of profitability.
Furthermore, the company's cost control measures — including a significant 28% year-on-year reduction in R&D expenses during the third quarter — paved the way for fourth-quarter profitability.
However, following this robust performance, Nio and its domestic peers now face new industry headwinds as they enter 2026.
Multiple factors — including production disruptions during the Chinese New Year holiday, the transition period for new energy-vehicle (NEV) trade-in subsidies, and consumers facing additional purchase tax costs — combined to dampen automotive demand in the first quarter.
William Li, founder, chairman, and CEO of Nio previously warned that the entire Chinese EV industry would face significant growth pressure in the first quarter as national stimulus policies taper off.
Furthermore, rising prices for raw materials like memory chips and metals may once again threaten automakers' profit margins.
Nio management will host an earnings conference call on March 10 at 8:00 am US Eastern time (8:00 pm Beijing time).
Investors will closely scrutinize management's specific delivery guidance for the first quarter of 2026 and the sustainability of its profitability amid macroeconomic challenges.
