Nio swings to profit as premium SUVs, cost cuts drive turnaround

Core Insights - Nio has reported its first quarterly profit with a net income of 282.7 million yuan, marking a significant financial turnaround after years of losses [1] - The company attributes this success to strong demand for premium electric SUVs, record vehicle deliveries, and effective cost management [1] Financial Performance - Nio's revenue for the fourth quarter rose by 75.9% year on year to 34.65 billion yuan, with an overall gross margin of 17.5%, up from 11.7% in the same quarter of 2024 [1] - Adjusted non-GAAP net income reached 726.8 million yuan, aligning with the profit alert issued previously [1] Vehicle Deliveries - The company delivered 124,807 vehicles in the fourth quarter, a year-over-year increase of 71.70%, with the ES8 model accounting for about 32% of total deliveries [1] - The ES8, priced over 400,000 yuan, has a gross margin of approximately 20%, significantly contributing to revenue growth [1] Cost Management - Nio successfully reduced research and development expenses by 44.3% year on year to 2.03 billion yuan, alongside a 27.5% decrease in selling, general, and administrative costs to 3.54 billion yuan [1] - These reductions were achieved through organizational optimization and lower personnel costs [1] Future Outlook - For the first quarter of 2026, Nio expects deliveries between 80,000 and 83,000 vehicles, indicating a year-on-year increase of about 90.1% to 97.2% [1] - Projected revenue for the first quarter is estimated between 24.48 billion yuan and 25.17 billion yuan, reflecting growth of roughly 103.4% to 109.2% from the same period in 2025 [1] - Challenges such as fading stimulus policies, rising material costs, and changing market conditions may impact future growth [1]