NIO, a prominent Chinese electric vehicle (EV) producer, recently announced a significant financial milestone, achieving its inaugural quarterly net profit in the fourth quarter of 2025. This positive development led to a substantial increase in its US-listed stock value. The company's exceptional performance was primarily driven by an unprecedented volume of vehicle deliveries and marked improvements in profit margins, underscoring its growing strength in the fiercely competitive electric vehicle sector. This achievement not only highlights NIO's successful operational strategies but also signals a promising outlook for its future growth and market position.
The Shanghai-based electric vehicle company, a significant player among China's emerging EV brands alongside XPeng and Li Auto, reported a remarkable surge in its US-listed shares by nearly 10%. This boost followed the announcement of its first-ever quarterly net profit in the fourth quarter of 2025. This historic financial turning point was attributed to record-setting vehicle deliveries and enhanced profit margins. During this period, the company successfully delivered 124,807 vehicles, marking a substantial 71.7% increase compared to the fourth quarter of 2024, and a 43.3% rise from the preceding third quarter of 2025. December deliveries alone hit an all-time high of 48,135 units, contributing significantly to the quarterly success.
For the entire year, cumulative deliveries across NIO's diverse brand portfolio, including NIO, ONVO, and Firefly, reached an impressive 326,028 units, reflecting a robust 46.9% increase over the figures from 2024. This strong sales performance directly translated into significant revenue growth. The company's quarterly revenues soared to RMB34.65 billion (approximately US$4.95 billion), an increase of 75.9% year-over-year. Vehicle sales were a primary contributor, accounting for RMB31.61 billion (about US$4.52 billion) of the total revenue, an 80.9% increase from the same period in 2024.
The financial health of the company also saw considerable improvement, with vehicle margins escalating to 18.1% from 13.1% in the prior year. Similarly, the gross margin improved to 17.5% from 11.7%. These enhanced margins played a crucial role in the company's profitability, leading to a net profit of RMB282.7 million (US$40.4 million) for the fourth quarter. On an adjusted non-GAAP basis, excluding share-based compensation, the net profit was even higher, reaching RMB726.8 million (US$103.9 million). Furthermore, adjusted operating profit stood at RMB1.25 billion (US$178.9 million), a stark contrast to the non-GAAP loss of RMB5.54 billion recorded in the fourth quarter of 2024.
William Bin Li, the Chief Executive Officer of NIO, expressed his satisfaction with the robust performance across all three brands. He particularly emphasized the record-breaking quarterly deliveries for each of the NIO, ONVO, and Firefly brands. Looking ahead, Li provided an optimistic forecast for the first quarter of 2026, projecting deliveries to range between 80,000 and 83,000 units, which would signify a year-over-year increase of approximately 90% to 97%. This forward-looking statement suggests continued confidence in the company's growth trajectory and market demand for its electric vehicles.
