Microvast Reports Third-Quarter Results Amid Weak Demand and Sales Pressure
Key Facts
Microvast Holdings reported unaudited consolidated financial results on November 9, 2026, for the quarter ended September 30, 2026, saying weak demand in key markets had pressured sales. The company attributed the decline to subdued demand for heavy-duty trucks, port equipment and heavy mining equipment in Europe and Asia-Pacific. It also cited lower orders from existing customers. The company said regulatory and geopolitical factors had affected activity, alongside a shift in demand in India toward lower-cost products. The chief executive said the company faced "an extremely challenging operating environment," with weak demand for commercial vehicles and pricing pressures.
The chief executive added that lower sales, margins and operating performance significantly constrained liquidity, linking the financial pressure to operating conditions during the quarter. Second-quarter results provide a comparison: revenue was $87.3 million, compared with $91.3 million in the same period of 2025, a year-over-year decline of 4.5%. The company said the refund of $2.7 million in tariff fees to a U.S. customer was deducted from second-quarter revenue. Gross margin also fell to 29.5% in that quarter from 34.7% a year earlier. The company attributed the margin decline mainly to higher raw-material prices and lower capacity utilization.
In the first half of 2026, the company recorded revenue of $147.9 million, compared with $207.8 million in the same period a year earlier, a decline of 28.8%. It attributed the decrease to regulatory and geopolitical changes, a shift in demand in India, and delays in production ramp-ups at some original equipment manufacturers. On operations, Microvast said installation and commissioning of the Phase 3.2 production-line equipment in Huzhou had been completed. The pack assembly line in Clarksville was also largely complete. However, increased production in Huzhou remains dependent on demand, product qualification, operational efficiency and working capital availability.
In its second-quarter results, the company had said the Huzhou Phase 3.2 expansion was intended to add up to 2 gigawatt-hours of standardized capacity, and that local pack assembly operations in Clarksville were targeted to begin before the end of 2026. Completion of the equipment in Huzhou marks operational progress, while increased production remains conditional on demand, qualification, efficiency and operating funding. The company scheduled a call to discuss third-quarter results for November 9 at 4 p.m. Central Time, with a live webcast and a replay to be made available later. The call was scheduled after the results were released the same day. The statement did not provide evidence of the company's stock opening price or its high and low on the November 6 session.