VinFast Auto Ltd. (VFS) Q3 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
VinFast's earnings call highlights strong growth prospects, with international expansion, robust demand for the Green series, and significant R&D investments. Despite some uncertainties in management's responses, the strategic focus on expanding manufacturing capacity and maintaining ASP stability is reassuring. The positive market sentiment is further bolstered by declining battery costs and a strong liquidity position. While some guidance details were vague, the overall outlook suggests a positive stock price movement, driven by ambitious delivery targets and strategic market entry plans.
Key Financial Performance
Vehicle Deliveries (EVs) 38,195 EVs delivered in Q3 2025, a 74% increase year-over-year and 7% quarter-over-quarter growth. Reasons include strong domestic and international market momentum.
Total EV Deliveries (First 9 Months) 110,362 EVs delivered globally in the first 9 months of 2025, a 149% increase year-over-year. Growth attributed to expanding market presence and product lineup.
E-Scooter and E-Bike Deliveries 120,052 units delivered in Q3 2025, a 535% increase year-over-year and 73% quarter-over-quarter growth. Driven by policy changes in Vietnam restricting gasoline motorbikes and increased consumer demand.
Revenue USD 719 million in Q3 2025, a 47% year-over-year increase and 9% quarter-over-quarter growth. Growth driven by strong order backlog and increased deliveries.
Cost of Goods Sold (COGS) USD 1.1 billion in Q3 2025, an 85% year-over-year increase and 21% quarter-over-quarter growth. Increase due to ramp-up in deliveries and timing differences in revenue recognition.
Gross Margin Negative 56.2% in Q3 2025, compared to negative 24% in Q3 2024 and negative 41.1% in Q2 2025. Impacted by timing differences in revenue recognition and higher warranty costs in the U.S. and Europe.
R&D Expenses USD 106 million in Q3 2025, a 28% year-over-year increase and 15% quarter-over-quarter growth. Increase due to development costs for new vehicle platforms and models.
SG&A Expenses USD 172 million in Q3 2025, a 25% year-over-year increase and 27% quarter-over-quarter growth. Increase due to impairment charges for battery projects and closure of showrooms in the U.S. and Europe.
Adjusted EBITDA Negative USD 576 million in Q3 2025, with a margin of negative 80.2%. Excluding delayed revenue recognition and NRV adjustments, margin would have been negative 33.1%, showing improvement from the previous year.
Net Loss Negative USD 953 million in Q3 2025, with a margin of negative 132.7%. Excluding delayed revenue recognition and NRV adjustments, margin would have been negative 81.8%, an improvement from negative 109.1% in the same period last year.
CapEx USD 261 million in Q3 2025, a 108% year-over-year increase and 24% quarter-over-quarter growth. Increase driven by new factories overseas and expansion in Vietnam.
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Operating Highlights
Vehicle Sales: VinFast surpassed 100,000 vehicle sales in the first 3 quarters of 2025, with 38,195 EVs delivered in Q3, a 74% YoY and 7% QoQ growth. VX 3 and VX 5 contributed 47% of total deliveries, while the Green series accounted for 25%.
E-Scooters and E-Bikes: Delivered 120,052 units, a 535% YoY and 73% QoQ growth. Two new e-scooter models with expanded range are planned for 2026.
New Models: Launched the Limo Green 7-seater MPV and the Lac Hong 900 LX armored EV certified to VPAM VR7 standards.
Vietnam: VinFast grew 82% YoY in Q3 2025, ramped up VF 3 production, and expanded its EV e-scooter lineup. Policies to phase out gasoline motorbikes are accelerating demand for electric 2-wheelers.
India: Commenced operations at Tamil Nadu CKD factory, partnered with 38 local suppliers, and opened 20 dealer stores. Sales exceeded internal forecasts, ranking in the top 8 for EV registrations in October.
Indonesia: Captured 5% of the BEV market, expanded dealership network to 33 locations, and introduced a green mobility ecosystem in partnership with GSM.
Philippines: Expanded battery subscription model and introduced residual value guarantee programs. GSM Philippines partnered with Xentro Motors to deploy 2,000 VinFast EVs.
U.S.: Opened first dealership in California and participated in major events to strengthen brand visibility. Planning continues for a North Carolina manufacturing facility.
Europe: Debuted at Busworld Brussels with the EB 12 city bus, meeting UNECE and CE standards. EB 8 will be introduced later.
Middle East: Partnered with Arabian Automobile Association to launch roadside assistance across 6 countries.
R&D Investments: Focused on vehicle platform, electrical and electronic architecture, and autonomy. Introduced a centralized computing hub for rapid OTA updates and cost efficiency.
Financial Performance: Total revenue was USD 719 million, a 47% YoY increase. Gross margin was negative 56.2%, impacted by delayed revenue recognition. R&D expenses were USD 106 million, marking 15% of revenue.
Green Mobility Ecosystem: Expanded globally with V-Green charging infrastructure and GSM partnerships, enhancing brand differentiation.
Multi-Brand Strategy: Announced three distinct brands: VinFast (mainstream EVs), Green series (commercial EVs), and Lac Hong series (ultra-luxury EVs).
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Risk or Challenges
Gross Margin: Gross margin was negative 56.2% in Q3 2025, worsening from negative 24% in Q3 2024 and negative 41.1% in Q2 2025. This was primarily due to the recognition of cost of goods sold for vehicles already delivered under customer contracts, while revenue recognition will occur in subsequent periods. Higher warranty costs in the U.S. and Europe also contributed to the negative margin.
Cost of Goods Sold (COGS): COGS increased by 85% year-over-year and 21% quarter-over-quarter, reflecting the continued ramp-up in deliveries. This increase negatively impacts profitability.
Warranty Costs: Higher warranty costs were recorded in the U.S. and Europe due to a shift to third-party service workshops, increasing operational expenses.
SG&A Expenses: SG&A expenses increased by 27% quarter-over-quarter and 25% year-over-year, driven by an impairment charge of USD 49 million for the battery project and closure of D2C showrooms in the U.S. and Europe.
R&D Expenses: R&D expenses increased by 15% quarter-over-quarter and 28% year-over-year, driven by development costs for new vehicle platforms and models planned for 2026. This represents a significant ongoing investment that impacts short-term financials.
Net Loss: Net loss for Q3 2025 was USD 953 million, with a net loss margin of negative 132.7%. This was impacted by delayed revenue recognition and NRV adjustments.
CapEx: CapEx increased by 24% quarter-over-quarter and 108% year-over-year, driven by investments in new factories overseas and expansion in Vietnam. This represents a significant cash outflow.
Market Conditions in Indonesia: The overall auto market in Indonesia declined by 11% year-over-year from January to September, which could pose challenges for growth in this market.
Battery Project Impairment: An impairment charge of USD 49 million was recorded for the battery project, indicating potential challenges in this area.
Delayed Revenue Recognition: Revenue recognition delays for vehicles already delivered under customer contracts created a timing difference, negatively impacting financial results for the quarter.
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Guidance & Outlook
2025 EV Delivery Guidance: VinFast remains on track to at least double its EV delivery volumes in 2025 compared to the previous year.
Vietnam Market Expansion: VinFast plans to broaden its EV e-scooter lineup and deepen its presence in the B2B fleet channel in Vietnam. Two new e-scooter models with expanded range are planned for 2026.
International Market Growth: VinFast is expanding its green mobility ecosystem, dealership network, and introducing new products as international markets mature. Specific plans include expanding local supplier networks in India, growing dealership networks in Indonesia and the Philippines, and launching new programs like residual value guarantees and battery subscription models.
U.S. Market Strategy: VinFast aims to strengthen brand visibility in the U.S. by partnering with dealers, participating in major events, and planning for a North Carolina manufacturing facility to support long-term growth.
European Market Entry: VinFast is entering the European commercial vehicle segment with the EB 12 city bus and plans to introduce the EB 8 compact bus at a later stage.
Middle East Strategy: VinFast has partnered with the Arabian Automobile Association to launch comprehensive roadside assistance for customers across six countries in the region.
R&D Investments: VinFast is focusing R&D investments on vehicle platform, electrical and electronic architecture, and autonomy. Plans include developing a next-generation platform for cost efficiency, reengineering the EE system into zonal architecture, and advancing autonomous driving capabilities.
Future Product Lines: By 2026, VinFast will offer three distinct brands: VinFast (smart EVs for mainstream consumers), Green series (commercial EV solutions), and Lac Hong series (ultra-luxury EVs).
CapEx and Factory Expansion: VinFast is increasing capital expenditures for new factories overseas and expansion in Vietnam, with a focus on supporting long-term growth.
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Shareholder Return Plan
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Key Q&A
Q:What is the expected timeline and cost expectations for developing the autonomy stack?
A:The autonomy stack is being developed both internally and with suppliers. The plan is to launch a low-cost version for robotaxi in the Vingroup ecosystem by 2026, with further development by 2028.
Q:What are the company's capital needs and when are they targeting a positive gross margin?
A:The company has $3.7 billion in liquidity as of the end of the quarter, sufficient for 18 months based on current projections. They are focusing on operational milestones and waiting for market improvements for EVs.
Q:What percentage of Q4 sales is expected to come from outside Vietnam?
A:A slightly higher proportion of sales is expected from outside Vietnam in Q4 compared to the first three quarters. Growth will primarily come from India, Indonesia, and smaller contributions from the U.S. and Europe.
Q:How much is the expected increase in R&D spending to support the new platform?
A:The company targeted $1.6 billion in CapEx and R&D for the year, with $1.1 billion spent in the first three quarters. Over 35% is capitalized R&D for new models, and most spending for the new platform has already occurred. R&D spending is expected to normalize from 2027.
Q:What percentage of sales in 2026 will come from the new platform?
A:Approximately 70-80% of sales in Asia will come from the new platform in 2026, with a gradual rollout replacing legacy platforms.
Q:What are VinFast's plans for long-term support in the U.S. as dealerships close?
A:VinFast is waiting for the new platform to roll out in North America and Europe to achieve profitability. They are not planning to open more dealerships in the U.S. but will focus on supporting existing dealers to reach profitability.
Q:Why did loss per car increase in Q3 despite a surge in volumes?
A:The increase in loss per car was due to certain orders delivered but not yet recognized as revenue, in line with accounting standards. Adjusted results show slight improvement compared to the previous quarter.
Q:What is the 2026 guidance for 4-wheeler and 2-wheeler delivery volumes and EBITDA expectation?
A:The company plans to release 2026 guidance early next year and expects strong growth, prioritizing volume expansion to achieve economies of scale.
Q:Does the company plan to introduce a hybrid model?
A:Currently, the company is not working on any hybrid models. Their strategy remains focused on fully electric vehicles (EVs).
Q:Which models are seeing the strongest demand within the order backlog?
A:The Green series, particularly the Limo Green, the new MPV 7-seaters, and the Minio Green, make up about 50% of the total backlog. Deliveries in Vietnam surpassed 20,000 units in October.
Q:What is the rationale for entering into a real estate development with Saigon Glory?
A:The investment is a 5-year passive investment of up to $800 million, ensuring full capital recovery and generating a committed pretax profit of approximately $830 million. It is supported by unused funds and does not materially affect operating cash flow for EV manufacturing.
Q:Will ASP need to be much lower compared to Q3 to achieve 2025 volume guidance?
A:ASP is expected to remain roughly flat, with higher ASP from VF 6 and VF 7 offset by slightly lower ASP from the Green series.
Q:What is the update on the production ramp-up at the Hà Tinh plant?
A:The Hà Tinh plant is ramping up well, producing 15 jobs per hour with a maximum capacity of 35 jobs per hour. It has shifted production of smaller models and produced several thousand VF 3 units in Q3.
Q:Which markets or product lines will be the biggest growth drivers in 2026?
A:Growth will come from the Green series, VF 6, and VF 7 platforms, with significant contributions from India, Indonesia, and the Philippines. Vietnam will remain the anchor market, accounting for 70-80% of total deliveries.
Q:How are battery costs trending and expected to trend in the future?
A:Battery costs have declined by approximately 10-12% year-over-year and are expected to continue decreasing due to advancements in battery technology and manufacturing efficiency.
Q:What is the philosophy behind the three new vehicle brands?
A:The three brands aim to sharpen customer segmentation, optimize pricing strategies, and reduce overlap between brands. Financial contributions from each brand will be clearer as the market scales.
Q:How is VinFast accelerating the rollout of its battery swap network for e-scooters?
A:VinFast is partnering with large retail organizations and Viettel Post to co-locate battery swapping stations. They may explore a franchise or revenue-sharing model to scale faster, especially as internal combustion engine 2-wheelers are restricted in major cities from mid-2026.
Q:What is the outlook for the 2-wheeler business in 2026?
A:The 2-wheeler business is expected to grow significantly, targeting 1.5 million deliveries in Vietnam alone, accounting for 60% of new sales. Expansion is planned for Indonesia, the Philippines, and India.
Q:How does VinFast view international markets in terms of profitability and ecosystem development?
A:VinFast manages profitability at the enterprise level rather than by individual markets. Ecosystem development in international markets will take time to reach scale and maturity.
Q:What is the update on the North Carolina facility?
A:The North Carolina facility is planned to start operations by 2028, with more updates on construction resumption expected in 2026.
Q:What is the liquidity runway for the next 12 months?
A:The company has $3.7 billion in liquidity as of September 30, 2025, providing approximately 18 months of runway. This includes cash, fundraising commitments, and other facilities.
Q:Are new dealerships planned in California?
A:VinFast is exploring dealership candidates in California, with 2-3 territories open for applications. California accounts for 35% of EV sales in the U.S.
Q:How much inventory does VinFast have in the U.S., and do they expect to sell in 2026?
A:VinFast has sufficient inventory in the U.S. for a few months of sales and is planning new shipments for 2026.
Q:Review of Unclear Management Responses
A:Management avoided providing direct answers or lacked clarity on the following questions:
1. Specific cost expectations for developing the autonomy stack.
2. Detailed timeline for achieving positive gross margin.
3. Exact percentage increase in R&D spending for the new platform.
4. 2026 guidance for delivery volumes and EBITDA expectations.
5. Financial contributions of the three new vehicle brands.
6. Detailed profitability outlook for international markets.
7. Specific updates on the North Carolina facility construction timeline.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Association
BEV
Deputy CEO
EB
EVs increase
Green series
Lac Hong
Madam
Mobility Day
Pham
RD road
RD term
VX
VinFast EVs
VinFast line
Vintast
architecture autonomy
competitiveness
computing
country
dealership network
fleet
future
gasoline motorbike
hardware
measure
mobility ecosystem
platform
policy
road map
scooter
standard
technology
term priority
vision
wheeler
VFS Transcript
VinFast Auto Ltd. (VFS) Q1 2026 Earnings Call Transcript
Neutral6-8
VinFast Auto Ltd. (VFS) Q4 2025 Earnings Call Transcript
Positive3-16
VinFast's strategic plan and Q&A responses suggest a positive outlook. Despite a one-off impairment charge, strong growth initiatives in international markets, CapEx focus on expansion, and a robust EV delivery guidance support a positive sentiment. Management's optimistic guidance on cost reduction and profitability, alongside expansion in Vietnam and core Asian markets, further solidify this view. The disciplined dealership and service center expansion in the U.S. and the introduction of e-scooters and e-buses in new markets are additional positive catalysts for stock price movement.
VinFast Auto Ltd. (VFS) Q3 2025 Earnings Call Transcript
Positive11-21
VinFast's earnings call highlights strong growth prospects, with international expansion, robust demand for the Green series, and significant R&D investments. Despite some uncertainties in management's responses, the strategic focus on expanding manufacturing capacity and maintaining ASP stability is reassuring. The positive market sentiment is further bolstered by declining battery costs and a strong liquidity position. While some guidance details were vague, the overall outlook suggests a positive stock price movement, driven by ambitious delivery targets and strategic market entry plans.
VinFast Auto Ltd. (VFS) Q2 2025 Earnings Call Transcript
Positive9-4
VinFast's earnings call reveals strong growth in vehicle deliveries, market expansion, and strategic partnerships, leading to a 296% YoY increase in EV deliveries and 150% revenue growth. Despite a net loss, improved cash flow management and a robust cash balance provide financial stability. Positive guidance on margins and international expansion, coupled with strategic initiatives in green mobility and battery leasing, further bolster sentiment. The Q&A session confirmed management's confidence in overcoming potential headwinds, such as warranty costs. Overall, the positive developments suggest a likely stock price increase over the next two weeks.
VFS Report
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