CBAK Energy Technology Inc (NASDAQ:CBAT) Reports Mixed Q2 2025 Results with Revenue Beat but EPS Miss

CBAK Energy Technology Inc (NASDAQ:CBAT) reported mixed financial results for the second quarter of 2025, with revenue exceeding analyst expectations but earnings per share (EPS) falling short. The company’s unaudited results reflect ongoing challenges in its battery business, though management remains optimistic about a recovery in the latter half of the year.

Key Financial Highlights

• Revenue: $40.52 million, down 15% year-over-year (YoY) but beating analyst estimates of $34.23 million.
• EPS: -$0.03, missing the consensus estimate of -$0.0408.
• Gross Profit: $4.46 million, a sharp 65% decline YoY, with gross margin shrinking from 26.6% to 11%.
• Net Loss: $3.07 million attributable to shareholders, compared to a net income of $6.45 million in Q2 2024.

Market Reaction

Despite the earnings miss, the stock saw a 1.2% pre-market gain, suggesting investors may be focusing on the revenue beat and management’s forward-looking statements. Over the past month, shares have declined by 10.98%, but the recent uptick indicates cautious optimism about the company’s transition to new battery models.

Segment Performance and Outlook

The decline in revenue was primarily driven by weaker performance in the residential energy supply sector, where customers are transitioning from the older Model 26650 to the new Model 40135. Meanwhile, demand for Model 32140 remains strong, with capacity fully booked at the Nanjing facility.

Management expects a gradual recovery in Q4 as production ramps up for the new models. CEO Zhiguang Hu stated:

"We anticipate a strong rebound in production and sales once Model 40135 enters mass production in Dalian and additional Model 32140 capacity in Nanjing comes online by year-end."

Analyst Estimates vs. Company Guidance

• Full-Year 2025 Estimates: Analysts project an EPS of -$0.1224 and revenue of $143.69 million.
• Q3 2025 Estimates: EPS of -$0.0306 on revenue of $35.35 million.

The company did not provide explicit guidance, but its commentary suggests confidence in improving financial performance in the coming quarters.

Conclusion

CBAK Energy’s Q2 results reflect a transitional phase, with revenue outperforming expectations but profitability under pressure. The market’s muted positive reaction indicates cautious optimism about the company’s product upgrades and expansion plans.

For more detailed earnings estimates and historical performance, visit CBAK Energy’s earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research before making any financial decisions.