BYD quarterly profit rises 28% to 10.02 billion yuan, missing forecasts
Key Facts
Net profit attributable to BYD shareholders rose 28% to 10.02 billion yuan in the third quarter of 2026, while revenue increased 13.6% to 221.49 billion yuan, according to an Investing.com report based on Reuters. Profit fell short of analysts’ expectations despite the improvement in quarterly revenue. Revenue growth ended a run of four consecutive quarters of year-on-year declines, after a 3% drop in the second quarter. Earnings per share also rose 29% to 1.10 yuan. But the quarterly result came against a weaker nine-month backdrop, with cumulative net profit declining despite broadly stable revenue.
Excluding non-recurring items, profit rose 25% to 8.63 billion yuan, according to Investing.com. Those items added 1.39 billion yuan to the quarter’s result, including 1.13 billion yuan in gains from changes in the fair value of financial assets. They also included government grants of 825 million yuan, most of them related to vehicles. Adjusted profit therefore grew more slowly than reported net profit, with gains and grants contributing to the overall result. The figures show that quarterly profit growth was not limited to profit excluding non-recurring items, while that profit remained higher than in the same period a year earlier.
In the nine months ended September, net profit fell 4.2% to 22.34 billion yuan, while revenue was nearly flat at 566.30 billion yuan, according to Reuters. Operating cash flow rose 33% to 54.47 billion yuan over the same period, according to Investing.com. But financial expenses reached 7.37 billion yuan, compared with a gain of 2.94 billion yuan a year earlier. The company attributed the shift to foreign-exchange losses. The improvement in cash flow therefore contrasts with lower cumulative net profit and higher financial expenses, explaining part of the divergence between the nine-month result and third-quarter profit growth.
On sales, BYD’s global deliveries reached 463,561 vehicles in September, marking a fifth consecutive month of year-on-year growth, according to Reuters via MarketScreener. Sales rose 17% from September a year earlier, while Reuters said exports of passenger cars and pick-up trucks increased 153.9% to 179,877 vehicles. Overseas sales accounted for more than 40% of total sales in the third quarter, according to a Dow Jones report. New energy vehicle exports exceeded 550,700 vehicles, more than double their level a year earlier. Total vehicle sales rose 19% to 1.3 million units in the quarter, at a slower pace than exports.
The expansion of overseas sales was accompanied by increases in working-capital items. Inventories rose 60% from the end of 2025 to 221.58 billion yuan, while trade receivables increased 53% to 56.47 billion yuan, according to Investing.com. The report attributed the inventory increase mainly to growth in overseas vehicle sales. Meanwhile, China’s auto sector is facing slowing domestic demand and intensifying competition, according to Dow Jones. BYD’s ability to sustain overseas growth will depend on navigating trade barriers and building local production capacity in key markets, the report said. These challenges put new manufacturing requirements in target markets alongside the international expansion that supported sales in the quarter.
Bernstein analysts said demand for the latest fast-charging models remained strong in China and deliveries were poised to accelerate in the coming months as battery supply constraints eased. BYD’s new factory in Hungary is expected to begin production soon, according to Dow Jones. The plant will add a production base in Europe as the European Union moves to limit imports of plug-in hybrid cars made in China. On October 28, BYDDY shares closed at $8.92, according to EL7 data. The outlook for overseas growth depends on expanding local production and navigating trade barriers, alongside demand for new models and developments in battery supplies.