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China · Earnings · EV Market · Li Auto
Li Auto, a prominent Chinese plug-in hybrid vehicle manufacturer, reported a dramatic decline in its fourth-quarter 2025 net profit, plummeting to 6.5 million yuan (approximately $950,000) from 3.52 billion yuan in the prior year.
This figure significantly missed analyst expectations of 150.2 million yuan. Revenue also fell sharply by 35% to 28.78 billion yuan, falling short of the 32.41 billion yuan consensus.
Vehicle deliveries for the quarter decreased by 31% year-over-year to 109,194 units. While the gross margin improved slightly quarter-over-quarter to 17.8%, it was still down from 20.3% a year earlier, attributed to a shift in product mix.
The company's full-year 2025 net profit dropped 86% to 1.12 billion yuan, with revenue down 22% to 112.31 billion yuan. Looking ahead, Li Auto issued weak first-quarter 2026 guidance, projecting deliveries of 85,000 to 90,000 vehicles and a revenue decline of 17% to 21%, ranging between 20.4 billion and 21.6 billion yuan.
These results reflect challenges from slowing demand for plug-in hybrids, a tepid reception for its battery electric vehicle lineup, and intense market competition, leading to a 3.2% drop in its American depositary receipts in premarket trading.
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