BYD quarterly profit rises 28% to 10 billion yuan, missing analyst estimates

Key Facts

Dow Jones reported that overseas sales exceeded 40% of the company’s total sales during the quarter, while exports topped 550,700 vehicles. The report highlights a divergence between improved profitability in the latest quarter and weaker performance since the start of the year. Net profit fell 4.2% in the first nine months to 22.34 billion yuan, while revenue was little changed at 566.30 billion yuan. That came despite quarterly revenue returning to growth after declining in the second quarter.

Third-quarter revenue was 221.5 billion yuan, up 13.6% from the same period a year earlier, according to Reuters. The growth reversed a 3% year-on-year decline in the second quarter and ended four consecutive quarters of falling revenue. The shift offers a more positive picture of quarterly activity, but has yet to change the nine-month tally, with revenue still little changed. Profit also fell short of the lower end of brokerage estimates cited by Reuters. The comparison between the quarter and the nine-month period puts quarterly growth in the context of a recovery that has yet to be reflected in overall performance since the start of the year.

Overseas markets were a prominent driver of sales. Dow Jones reported that those sales accounted for more than 40% of BYD’s total sales in the third quarter and that the company’s exports exceeded 550,700 vehicles. Global vehicle sales rose 17% to 463,561 in September, marking an increase for the fifth consecutive month, according to Reuters. But the pace of global sales growth in September eased from a 17.8% increase in August. In the same month, overseas shipments of passenger cars and pickups jumped 153.9% to 179,877 vehicles, according to Reuters calculations based on the company’s disclosure. The figures reflect the growing role of exports in BYD’s growth, alongside continued expansion in global sales.

The expansion in overseas sales was also reflected in working capital. Inventory rose 60% from the end of 2025 to 221.58 billion yuan on September 30, with the company attributing the increase mainly to growth in overseas vehicle sales. Net cash flow from operating activities rose 33% in the first nine months to 54.47 billion yuan. The figures place higher inventory alongside improved operating cash flow over the same period, while the company linked inventory growth to the expansion of its overseas auto business. The impact of overseas expansion in the data is not limited to sales; it is accompanied by higher inventory, while operating cash flow grew year on year.

BYD shares listed in Hong Kong closed at 68.65 Hong Kong dollars on October 29, down 2.56% on the day, according to MarketScreener data. On the outlook, Reuters reported, citing brokerages, that BYD expects overseas exports to exceed 2.5 million vehicles in 2027. That figure comes as overseas sales accounted for more than 40% of the total in the third quarter, according to Dow Jones. September data also showed global sales growing for the fifth consecutive month, alongside a surge in overseas shipments of passenger cars and pickups. The 2027 export threshold remains a future target cited by brokerages, while the quarterly and nine-month results reflect performance recorded through September 2026.