TLDR
- Nio projects first quarterly adjusted operating profit of RMB 700M-1.2B in Q4 2025
- Fourth quarter deliveries surged 72% to 124,807 vehicles versus prior year
- Annual deliveries hit 326,028 vehicles, marking 47% growth from 2024
- Profitability driven by volume growth, improved margins, and cost reductions
- Shares jumped over 8% in premarket trading after the announcement
Nio announced a historic milestone Wednesday. The Chinese electric vehicle manufacturer expects to report its first quarterly adjusted operating profit when it releases Q4 2025 results.
The company forecasts adjusted operating profit between RMB 700 million and RMB 1.2 billion for the quarter. This marks a dramatic shift from the RMB 5.54 billion adjusted operating loss recorded in Q4 2024.
Nio shares climbed more than 8% in premarket trading. The profitability forecast represents a major turning point for the EV maker.
The preliminary figures are unaudited and based on internal management accounts. Nio cautioned investors to await full financial results before drawing conclusions.
Delivery Numbers Power Profit Turnaround
Fourth quarter deliveries reached 124,807 vehicles. That’s a 72% increase compared to the same period last year.
Full-year 2025 deliveries totaled 326,028 vehicles. The annual figure represents 47% growth over 2024.
Nio credits three main factors for the profitability shift. Higher vehicle deliveries provided the foundation. An improved product mix boosted vehicle margins. Cost-cutting initiatives enhanced operational efficiency.
Premium models like the ET5 and ES6 saw strong demand throughout the year. These higher-margin vehicles helped lift overall profitability.
The company also introduced its Firefly subcompact EV during 2025. The lower-cost model expanded Nio’s reach to new customer segments while adding incremental volume.
Competition and Efficiency Push Results
China’s EV market remains intensely competitive. A prolonged price war has pressured profit margins across the sector.
Nio has responded by streamlining operations and improving efficiency. The cost-reduction efforts appear to be paying off as the company reaches profitability.
The combination of volume growth and operational discipline drove the Q4 results. Management expects both GAAP and non-GAAP operating profits for the quarter.
GAAP operating profit is projected between RMB 200 million and RMB 700 million. The non-GAAP figures exclude certain items to provide adjusted profitability metrics.
European Operations Continue
Nio reaffirmed its commitment to European markets last month. The statement came after the European Commission outlined new conditions for Chinese EV makers.
The company can replace EU tariffs with minimum price commitments under the new framework. Nio plans to continue advancing its European business operations.
The most recent analyst rating on Nio carries a Sell recommendation. The price target sits at HK$34.00.
Nio’s market capitalization stands at HK$79.91 billion. Average daily trading volume is 6.32 million shares.
