VinFast Auto Ltd. ((VFS)) has held its Q4 earnings call. Read on for the main highlights of the call.
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VinFast’s latest earnings call painted a picture of a company racing ahead on operations while still stuck in a tough financial lane. Management highlighted record EV and e‑scooter volumes, surging revenue, and improving unit economics, yet persistent losses, negative margins, and heavy investment needs underscored the execution risk and uncertain timeline to profitability.
Record Deliveries Underscore Rapid Scale-Up
VinFast reported full‑year 2025 EV deliveries of 196,919, more than doubling 2024 and beating its own targets. Q4 2025 alone saw a record 86,557 vehicles delivered, setting a high base as the company aims for at least 300,000 EV deliveries in 2026.
Top-Line Growth Surges Triple Digits
Revenue momentum was striking, with Q4 2025 revenue reaching USD 1.6 billion, up 118% quarter‑on‑quarter and 139% year‑on‑year. For full‑year 2025, revenue climbed to USD 3.6 billion, representing 105% growth versus 2024 and confirming strong scale effects.
Gross Margins Improve But Stay Deeply Negative
VinFast’s reported gross margin improved to -40% in Q4 2025 from -79% a year earlier, while full‑year margins narrowed to -43% from -57% in 2024. Adjusting for one‑offs, Q4 margins would have been -28% and full‑year -24%, showing progress but still firmly in loss‑making territory.
2-Wheeler Business Accelerates With Network Build-Out
The company’s 2‑wheeler segment delivered about 406,496 units in 2025, a 5.7x jump that management expects to at least 2.5x again in 2026. Supporting this growth, the V‑GREEN battery‑swapping network reached roughly 4,500 stations in Vietnam by January 2026, reinforcing the ecosystem.
Global Manufacturing Footprint Reaches Scale
VinFast now runs four manufacturing facilities with combined annual capacity of about 600,000 EVs and 500,000 e‑scooters. New plants in India’s Tamil Nadu and Indonesia’s Subang came online in 2025, while the Hai Phong site produced around 26,000 EVs in December and celebrated its 200,000th vehicle.
BOM Cuts Anchor Cost-Down Roadmap
Management highlighted material bill‑of‑materials savings, with the VF‑6 down roughly 13% and VF‑7 around 23%. Looking ahead, next‑generation platforms are expected to cut BOM by 20–40%, with ongoing annual optimization of about 5% driven by EE 2.0 architecture and component consolidation.
Tech Partnerships Bolster Autonomy and In-House R&D
The company is collaborating with Autobrains and Tensor on autonomous systems while expanding internal ADAS and EE 2.0 development and tying in more closely with VinRobotics. R&D spend reached USD 114 million in the quarter, up 7% year‑on‑year, but fell to 7% of revenue, its lowest share in five quarters.
Loss Margins Narrow, Yet Profitability Remains Distant
Adjusted EBITDA margin improved to -65% in Q4 2025 from -80% in Q3 and -129% a year earlier, with the full year at -66% versus -103% in 2024. Net loss margin also improved to -89% in Q4 and -108% for 2025, but the business remains far from breakeven even on adjusted metrics.
Liquidity Cushion Supports Near-Term Plan
VinFast closed 2025 with total liquidity of USD 3.1 billion, including USD 1.1 billion from its founder and a Vingroup borrowing commitment of USD 413 million. This cash buffer gives the company room to pursue its scale and expansion strategy despite ongoing heavy losses and investment.
Heavy Losses Highlight Scale of Financial Challenge
Q4 2025 net loss was USD 1.4 billion, with adjusted EBITDA at negative USD 1.0 billion, underscoring the scale of the cash drain. Even as margins trend upward, core profitability remains sharply negative on both GAAP and adjusted bases, keeping financing and execution in sharp focus for investors.
Gross Margins Still a Structural Weak Spot
Despite the improvement narrative, VinFast’s gross margins remained deeply in the red at -40% in Q4 and -43% for 2025. On an adjusted basis they were still negative at -28% and -24%, highlighting how far the company must go before scale and cost reductions can deliver positive unit economics.
U.S. Factory Impairment Flags Execution Risk
Management booked a one‑off USD 236 million impairment in Q4 tied to revised timing for its North Carolina factory. The charge inflated SG&A and spotlighted the uncertainties and delays surrounding the company’s U.S. expansion plans, a key pillar of its global growth story.
Elevated SG&A and Operating Costs Weigh on Margins
SG&A surged to USD 391 million in Q4, up 126% sequentially and 50% year‑on‑year, largely because of marketing and the impairment. Excluding the impairment, SG&A would have been about 10% of revenue, but the absolute cost base remains high and a drag on progress toward profitability.
CapEx Intensity Fuels Cash Burn Concerns
Capital expenditures reached USD 304 million in Q4 and USD 922 million for 2025, reflecting heavy spending on plants and platforms. Management signaled that 2026–2028 will see further substantial CapEx in the hundreds of millions to over USD 1 billion range, implying ongoing significant cash outflows.
Related-Party Sales Cloud Demand Signals
Around 27% of 2025 deliveries went to related parties, mainly GSM, rising to about 33% in Q4. This reliance raises questions about how much of VinFast’s volume reflects genuine end‑customer demand versus intra‑ecosystem placements that may be less indicative of market traction.
Mixed Messaging Complicates Visibility
On the call, management offered varying figures for future CapEx and R&D, which muddied the picture on investment needs. Timelines for achieving positive gross margin and profitability were framed as medium‑term but without a firm year, leaving investors with an imprecise roadmap.
Accounting Adjustments Blur Trend Reading
Revenue comparability was impacted by deferred revenue, NRV adjustments, and a prior free‑charging program that reduced 2024 sales. These moving parts make it harder for investors to cleanly interpret underlying growth and margin trends across reported periods.
Guidance Centers on Scale, Cost Cuts and New Models
For 2026, VinFast is targeting at least 300,000 EV deliveries and plans to grow 2‑wheeler volumes to at least 2.5 times 2025 levels, leveraging its roughly 600,000‑unit EV and 500,000‑unit e‑scooter capacity. The roadmap includes launching next‑gen VF‑6 and VF‑7 in the second half of 2026, a VF‑8 REEV in Vietnam in 2027, restarting U.S. plant construction in 2026, and pursuing 20–30% BOM cuts plus ongoing 5% annual optimization while managing CapEx and R&D within a liquidity base of USD 3.1 billion.
VinFast’s earnings call showcased a company scaling fast, cutting costs and expanding globally, yet still burdened by steep losses and cash‑hungry investments. For investors, the story hinges on whether rising volumes, cost reductions and new products can outrun the burn rate before the balance sheet’s cushioning effect runs thin.