VinFast Auto (VFS) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw strong volume growth with 36,330 EVs delivered (up 296% year-over-year) and 44,904 e-scooters (up 473% year-over-year), despite a 32% sequential decline in EV deliveries and seasonality impacts.

• Maintained #1 position in Vietnam's auto market, delivering over 35,100 vehicles, surpassing the next three competitors combined.

• B2C deliveries made up over 70% of total sales for three consecutive quarters, with related party deliveries (GSM) at 21%.

• Expansion in Southeast Asia, India, and Europe is underway, with new CKD factories opening in 2025 and a shift to a dealer-led distribution model in Europe and North America.

• The company is investing in next-generation vehicle platforms and zonal EE architecture to drive cost efficiencies and scalability, with the first model debuting in Q3 2025.

Financial highlights

• Q1 2025 net revenue was $657 million (VND16,306.4 billion), up 150% year-over-year and flat sequentially.

• Cost of goods sold was $888 million, up 113% year-over-year but down 25% quarter-over-quarter.

• Gross margin improved to -35% from -59% a year ago and -79% in Q4 2024; adjusted gross margin (excluding NRV and one-offs) was -28%.

• EBITDA was -$396 million (-60% margin), a significant improvement from -130% margin last year; net loss was -$712 million (-109% margin), up 20% year-over-year but improved 42% sequentially.

• CapEx for the quarter was $147 million, down 24% year-over-year and 40% sequentially.

• Operating cash flow was -$607 million, with cash burn at 115% of revenue, improved from 256% last year.

Outlook and guidance

• Targeting to at least double vehicle deliveries in 2025, driven by affordable models and new CKD facilities in Indonesia, India, and Vietnam, increasing designed capacity by up to 300,000 vehicles per year.

• Full-year 2025 ASP expected to remain under $20,000, with smaller models contributing about 50% of deliveries.

• CapEx planned at $1.4 billion for 2025, with over 50% allocated to R&D.

• Break-even gross margin targeted for 2026, driven by BOM optimization and scale.

• Total cash burn for 2025 expected at $2–2.5 billion.