Nio Achieves First Profit, Driven by Premium SUVs

The company posted a net income of 282.7 million yuan, or an adjusted non-GAAP net income of 726.8 million yuan. This financial milestone was fueled by a 75.9% year-on-year revenue surge to 34.65 billion yuan and a robust gross margin of 17.5%, up from 11.7% in Q4 2024. The profitability was primarily driven by record deliveries of 124,807 vehicles, a 71.7% increase, with strong demand for premium models like the ES8 SUV, which contributed 32% of total deliveries and boasts a 20% gross margin.

Concurrently, Nio implemented stringent cost controls, reducing R&D expenses by 44.3% and SG&A costs by 27.5% through organizational optimization. Despite this strong performance, Nio faces headwinds in Q1 2026. The company projects lower sequential deliveries (80,000-83,000 vehicles) and revenue (24.48 billion to 25.17 billion yuan), though still representing significant year-on-year growth.

CEO William Li warned of broader sector growth pressures due to fading stimulus, the Chinese New Year holiday, EV trade-in subsidy transitions, and rising material costs. Investors will monitor the sustainability of Nio's profitability amidst these evolving market conditions, supported by a healthy cash reserve of 45.9 billion yuan.