BYD quarterly profit rises 28.08% to 10.02 billion yuan, missing broker estimates
Key Facts
BYD said net profit attributable to shareholders reached 10.020 billion yuan in the third quarter of 2026, up 28.08% year on year, but below estimates from three brokerages compiled by Reuters, which ranged from 11.4 billion to 12.95 billion yuan. The company's quarterly report, published on October 30, showed revenue of 221.488 billion yuan, up 13.59% from the same period. The company therefore recorded year-on-year growth in both profit and revenue, but profit came in below the range of estimates cited by Reuters. The results put improving revenue alongside slower profit growth as the company faces stiffer competition in China and its overseas markets. Available data did not establish the share-price movement on October 30, so the results are not linked to a price decline that day.
Revenue ended four consecutive quarters of year-on-year contraction, rising 13.6% to 221.5 billion yuan in the third quarter, according to Reuters. It had fallen 3% in the second quarter, making the return to growth the most notable change in the revenue trajectory over the two periods. Reuters' figures are close to the company's report, which recorded a 13.59% annual increase to 221.488 billion yuan. But the revenue improvement did not prevent net profit from falling short of the estimates of the three brokerages. In the first nine months, revenue rose just 0.01% to 566.304 billion yuan, while net profit fell 4.24% to 22.345 billion yuan.
Adjusted net profit, excluding non-recurring items, was 8.630 billion yuan in the third quarter, up 25.25% year on year, according to the quarterly report. Total non-recurring items amounted to 1.389 billion yuan, including 1.131 billion yuan from gains on changes in fair value and disposals of financial assets, and 825.062 million yuan in government grants. Over the first nine months, net cash flow from operating activities rose 33.36% to 54.470 billion yuan. This contrasts with the decline in net profit over the same period, highlighting the differing paths of cash flow and accounting profit. Financing expenses also reached 7.37 billion yuan in the nine months, compared with a financing gain of 2.94 billion yuan a year earlier; Investing.com attributed the shift to foreign-exchange losses.
Investing.com said investment income fell 88% to 247 million yuan in the nine months, affected by losses from write-offs of financial assets and disposals of current assets. Trade receivables rose 53% to 56.47 billion yuan through September, while contract liabilities related to customer advances climbed 81% to 92.95 billion yuan. On inventory, the company's report showed 221.578 billion yuan on September 30, up 60.08% from the end of 2025. The company attributed the increase to growth in its overseas auto business and preparations to hold more inventory. The figures come amid expanding sales outside China, but do not change the fact that nine-month profit was below its year-earlier level.
BYD's global sales rose 18.8% to more than 1.32 million vehicles in the third quarter, according to Reuters calculations based on company disclosures, while overseas shipments more than doubled from a year earlier. A Dow Jones report said the company's exports of new-energy vehicles topped 550.7 thousand during the quarter and overseas sales accounted for more than 40% of the total. Reuters, however, attributed the profit miss to intensifying competition in China and its spread to overseas markets. Auto analyst Felipe Munoz said: "Competition for BYD in these export markets is increasing, and the coming quarters will be more difficult for it." The contrast between export growth and competitive pressure shows that a wider overseas market alone does not guarantee that the pace of expansion will continue or profitability will improve.
BYD is seeking regulatory approval to double the annual production capacity of its plant in Brazil to 600 thousand vehicles, according to Reuters. Meanwhile, Executive Vice President Stella Li said geopolitical risks were the biggest challenge to the company's international growth. Reuters reported that Chinese automakers face the prospect of tighter European scrutiny, and that Chinese hybrid-car exports to the European Union could face new restrictions under an agreement aimed at curbing imports. Munoz said BYD's rapid expansion was cooling as other Chinese companies entered the market, warning that the coming quarters would be difficult. By contrast, Dow Jones cited Bernstein analysts as saying demand for the latest fast-charging models was strong in the Chinese market and deliveries could accelerate in the coming months as battery supply constraints ease.