Chinese electric-vehicle manufacturer NIO said on Thursday it anticipates posting an adjusted operating profit for the fourth quarter of 2025, marking the first time the company will report a positive adjusted operating result for a quarter.
Management provided a quarterly adjusted operating profit range of 700 million to 1.2 billion yuan, compared with an adjusted operating loss of 5.54 billion yuan in the same quarter a year earlier. The company framed the expected turnaround as the result of rising vehicle deliveries, an improved product mix that raised vehicle margins, and continued efforts to lower costs and enhance operational efficiency.
NIO reported delivering 124,807 vehicles in the fourth quarter, a 72% increase from the prior-year quarter. For the full year, the automaker delivered 326,028 vehicles, representing a 47% year-on-year rise. The company said the annual growth was largely driven by demand for its premium models, including the ET5 and ES6, and by beginning deliveries of the lower-cost Firefly subcompact EV midway through the year, which broadened its customer base and contributed incremental volume.
Investors reacted positively to the guidance: NIO's U.S.-listed shares rose more than 8% in premarket trading. The company noted that the improvement in its quarterly results reflects both top-line growth from stronger deliveries and bottom-line gains from a more favourable mix and continued efficiency measures.
NIO has also been streamlining operations amid fierce competition and an extended price war in China’s crowded electric vehicle market. The company said it would continue to advance its operations within Europe, following the European Commission's announcement of conditions under which China-made electric vehicles could replace EU tariffs with minimum price plans. The company reiterated those plans as it looks to expand its presence in the region.
Exchange rate used in the company's disclosure: $1 = 6.9414 Chinese yuan renminbi.
Key points
- NIO expects adjusted operating profit of 700 million to 1.2 billion yuan in Q4 2025, versus an adjusted operating loss of 5.54 billion yuan a year earlier.
- Q4 deliveries rose to 124,807 vehicles, up 72% year-on-year; full-year deliveries were 326,028, up 47% year-on-year, helped by demand for premium models and the midyear launch of the Firefly subcompact EV.
- Company actions include cost reductions and operational streamlining amid intense competition and a prolonged price war in China; NIO plans to continue advancing its European operations under new regulatory conditions.
Risks and uncertainties
- Ongoing intense competition and a prolonged price war in China could continue to pressure margins and volumes in the domestic EV sector.
- The projected turnaround depends on sustained delivery growth and a favourable product mix; any deceleration in deliveries or deterioration in mix could affect profitability.
- Regulatory conditions in Europe remain a factor as the company pursues expansion there; implementation details of the European Commission's framework could influence market access and pricing strategies.