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Microvast Reports Third Quarter 2026 Financial Results
HOUSTON, Nov. 09, 2026 (GLOBE NEWSWIRE) — Microvast Holdings, Inc. (NASDAQ:MVST) (“Microvast” or the “Company”), today announced its unaudited consolidated financial results for the quarter ended September 30, 2026 (“Q3 2026”).
“The third quarter presented a highly challenging operating environment as we navigated softer commercial vehicle demand across our key markets in Europe and APAC, compounded by ongoing industry pricing pressures,” said Yang Wu, Microvast’s Founder, Chairman, and Chief Executive Officer. The material decline in sales, gross margin and operating performance during the quarter have significantly constrained our liquidity. Considering our current balance sheet position, our focus is on the actions within our control: reducing costs, preserving liquidity, and negotiating with our lenders in an attempt to refinance, extend or restructure our near-term debt obligations. Regarding our current operations, installation and commissioning of our Huzhou Phase 3.2 production equipment have been completed and the pack assembly line at our Clarksville facility is substantially completed. We recognize that the outcome of these efforts is uncertain and depends on factors outside our control, including lender decisions and customer demand.”
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Revenues of $45.8 million, compared to $123.3 million in Q3 2025, decreasing by $77.5 million, or 62.8%. The decrease was primarily driven by a 62.2% reduction in sales volume from approximately 501.7 MWh in Q3 2025 to approximately 189.6 MWh in Q3 2026. The decline reflected weaker sales across Europe and APAC as the result of softer end-market demand for heavy-duty trucks, port equipment, and heavy mining equipment, which led to reduced orders from several of our long-standing customers across Europe and APAC. Demand continued to be adversely affected by evolving commercial vehicle regulatory and geopolitical dynamics, including the Indian and Korean markets, and demand shift towards lower cost products in India. The decrease in U.S. sales versus the prior year period was primarily due to our largest customer bringing product into 2025 as a result of uncertainty around tariff outcomes.
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Gross margin decreased to 5.2% from 37.6% in Q3 2025. This change was primarily attributable to a $9.3 million write-down for obsolete inventories related to specialized energy storage system (“ESS”) components and other inventories, which negatively impacted our gross margin by 20.4 percentage points. Excluding the impact of this non-cash charge, the decreased gross margin reflected the significant reduction in sales volume, and continued pricing pressure in the lithium battery industry. The decrease in revenue also reduced the absorption of fixed manufacturing and operating costs, further compressing gross margin.
