Microvast's second quarter 2026 revenue fell 4.5% to $87.3M as gross margins compressed

Microvast reported a second quarter 2026 revenue decline of 4.5% to $87.3 million, primarily pressured by a $2.7 million tariff refund and lower production utilization. While European revenue grew 35% to $52.4 million, significant APAC volume declines and raw material price volatility weighed on the bottom line.

Key Highlights

• Gross margins contracted to 29.5% from 34.7% in the prior year period, driven by higher input costs and lower fixed-cost absorption.
• Cash and restricted cash declined to $143.1 million, representing a $26.2 million decrease since the end of fiscal year 2025.
• Huzhou Phase 3.2 capacity expansion is underway, targeting 2 GWh of annual modular capacity to support next-generation cell demand.