Chinese EV maker Nio anticipates first adjusted operating profit

• Nio delivered 326,028 vehicles in 2025, a 47% year-over-year increase, driven by premium EVs and the mid-year launch of its lower-cost Firefly subcompact model
• Q4 2025 adjusted operating profit is projected at 700 million to 1.2 billion yuan, marking a turnaround from a 5.54 billion yuan adjusted operating loss in Q4 2024
• The profitability milestone stems from higher vehicle sales volume and improved cost controls across operations

Summary: Nio Anticipates First Adjusted Operating Profit

Chinese electric vehicle manufacturer Nio announced Thursday it expects to achieve its first-ever adjusted operating profit in Q4 2025, marking a significant milestone for the company amid intense competition in China's EV market.

Key Financial Metrics:

• Projected Q4 2025 adjusted operating profit: 700 million to 1.2 billion yuan ($100.84 million to $172.88 million)
• This compares to an adjusted operating loss of 5.54 billion yuan in Q4 2024
• Represents a turnaround of approximately $273 million to $446 million year-over-year

Performance Drivers:

• Total 2025 vehicle deliveries: 326,028 units, up 47% year-over-year
• Growth attributed to strong sales of premium EV models
• New lower-cost Firefly subcompact EV launched mid-2025, contributing to overall volume
• Improved cost controls enhanced profitability margins

Market Implications:

This represents a critical turning point for Nio, demonstrating the company's ability to achieve profitability despite China's highly competitive EV landscape. The successful launch of the more affordable Firefly model suggests Nio is effectively expanding its market reach beyond the premium segment while maintaining profitability. The strong 47% delivery growth indicates robust demand and market acceptance.

The profitability achievement comes as Chinese EV makers face pricing pressures and intensifying competition. Nio's ability to balance volume growth with cost management while transitioning to operating profit could strengthen investor confidence and validate its business model. This milestone may also improve the company's position for future capital raising and expansion plans.