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Growing sales at 23% to $467 million, little battery maker also making a huge swing to profitability.
2026 topline projected to cross $600 million for 29% growth, with profits expected to nearly double to $0.24.
In a field of Goliaths, the valuation for this David is barely 2X forward sales.
Microvast ((MVST - Free Report) ) is a $1.25 billion provider of lithium-ion battery solutions for transportation, heavy equipment, and energy storage.
Growing sales at 23% to $467 million this year, the little battery maker is also making a huge swing to profitability.
With 2 analysts providing estimates, next year's topline is projected to cross $600 million for 29% growth, and profits are expected to nearly double to $0.24.
Given this growth, and the valuation of only 2X forward sales, I was inspired to start a new position last week.
Let's dive into the fundamentals...
How Does this David Compete in World of Goliaths?
Microvast specializes in the design, development, and manufacture of advanced battery components and systems primarily for electric commercial vehicles and utility-scale energy storage solutions.
Operating from its HQ in Stafford, Texas, the company also maintains manufacturing facilities in China and Germany, positioning itself to serve a diverse and expanding global customer base.
With nearly two decades of experience in battery development, they are accelerating the adoption of clean energy with the installation of more than 31,000 battery systems in 34 countries.
Microvast is vertically integrated with absolute control from the R&D process to the manufacturing of their battery packs and energy storage systems (ESS), including core battery chemistry (cathode, anode, electrolyte, and separator).
The investment case here centers on its strong positioning within the rapidly growing electric vehicle (EV) and energy storage system (ESS) markets. The company’s product portfolio includes lithium titanate oxide (LTO), lithium iron phosphate (LFP), and nickel manganese cobalt (NMC) battery chemistries, catering to a wide range of applications from commercial vehicles to grid-scale storage.
This technological diversity, combined with a focus on innovation and R&D, gives Microvast a competitive edge in addressing the evolving needs of the energy transition.
Key Partners and Customers
Evoy: Microvast has formed a groundbreaking partnership with Evoy, integrating its MV-I battery packs into Evoy’s electric boats, marking an expansion into the marine electrification sector.
Gaussin: The company is a long-term partner for Microvast, having been nominated as the battery supplier for Gaussin’s next-generation electric and hydrogen-powered skateboard truck platforms. This collaboration forecasts a volume of over 1.5 GWh in the next five years and up to 29 GWh by 2031, highlighting a substantial commitment.
REE Automotive: Microvast is the battery pack supplier for REE Automotive’s P7 commercial EV platforms, providing high-energy, fast-charging lithium-ion battery solutions tailored for commercial fleets.
Oshkosh Corporation: Microvast has a joint development agreement with Oshkosh Corporation, a leading manufacturer of specialty vehicles and access equipment.
FPT Industrial: The company is listed among Microvast’s marquee customers, supplying battery solutions for industrial and commercial applications.
SAFRA: Microvast supplies batteries for full-electric, hybrid, and retrofit buses manufactured by SAFRA, a French bus maker.
General Motors: Microvast, in collaboration with General Motors, was selected by the U.S. Department of Energy to receive a $200 million grant, underscoring its role in advancing domestic battery technology.
BMW and Argonne National Laboratory: Microvast engages in R&D partnerships with BMW and the United States Council for Automotive Research, as well as with Argonne National Laboratory, to further battery technology innovation.
Minespider: Microvast has partnered with Minespider to implement battery passports compliant with the EU Battery Regulation, ensuring regulatory compliance and sustainability leadership in the European market.
These relationships demonstrate Microvast’s ability to secure high-profile collaborations and supply agreements, positioning it as a key player in the global battery and electrification ecosystem.
Financial Performance and Growth Prospects
Recent financial results indicate a significant turnaround for Microvast. The company reported a 43% year-over-year revenue surge in Q1 2025, achieving $116.5 million in revenue and a net profit of $61.8 million after years of losses. Gross margins improved to 36.9%, a 15.7-point increase from the previous year, driven by cost discipline and high-margin sales in the EMEA (Europe, Middle East, and Africa) region, which now accounts for over half of total revenue. Adjusted EBITDA turned positive at $28.5 million, signaling a durable shift toward profitability.
Looking ahead, Microvast’s revenue guidance for 2025 projects growth between $450 million and $475 million, representing an 18–25% increase over 2024 results. This outlook is supported by a robust backlog of $351 million and ongoing capacity expansion at its Huzhou facility. The company’s focus on high-margin products and its ability to secure partnerships with European commercial vehicle manufacturers position it well for sustained growth.
Total Addressable Market (TAM)
Microvast’s TAM is substantial, driven by the global shift toward electrification in transportation and energy storage. The commercial vehicle market alone is expected to exceed $20 billion, with additional opportunities in grid-scale storage and industrial applications. The company’s presence in the EMEA region, where it has achieved a 108% revenue explosion year-over-year, highlights its ability to capture significant market share in high-growth geographies.
Competitive Landscape
Microvast faces intense competition from both established industry leaders and innovative startups. Key competitors include Tesla, LG Chem, Panasonic, CATL, and BYD, all of which command significant resources and market share in the battery sector. These companies benefit from vertical integration, extensive R&D budgets, and global manufacturing footprints, making the competitive landscape challenging for Microvast.
In addition to these large players, Microvast competes with public companies such as QuantumScape (QS), Eos Energy Enterprises (EOSE), and Fluence Energy (FLNC), which are also focused on advanced battery and energy storage solutions. Despite this competition, Microvast differentiates itself through proprietary technology, a diverse product portfolio, and strategic partnerships with automotive OEMs, which help it access established supply chains and distribution networks.
Bottom line: With the turn to profitability and a price/sales valuation of less than 3x, MVST appears to have solid upside from here in a market worth many tens of billions.
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Bull of the Day: Microvast (MVST)
Key Takeaways
Microvast ((MVST - Free Report) ) is a $1.25 billion provider of lithium-ion battery solutions for transportation, heavy equipment, and energy storage.
Growing sales at 23% to $467 million this year, the little battery maker is also making a huge swing to profitability.
With 2 analysts providing estimates, next year's topline is projected to cross $600 million for 29% growth, and profits are expected to nearly double to $0.24.
Given this growth, and the valuation of only 2X forward sales, I was inspired to start a new position last week.
Let's dive into the fundamentals...
How Does this David Compete in World of Goliaths?
Microvast specializes in the design, development, and manufacture of advanced battery components and systems primarily for electric commercial vehicles and utility-scale energy storage solutions.
Operating from its HQ in Stafford, Texas, the company also maintains manufacturing facilities in China and Germany, positioning itself to serve a diverse and expanding global customer base.
With nearly two decades of experience in battery development, they are accelerating the adoption of clean energy with the installation of more than 31,000 battery systems in 34 countries.
Microvast is vertically integrated with absolute control from the R&D process to the manufacturing of their battery packs and energy storage systems (ESS), including core battery chemistry (cathode, anode, electrolyte, and separator).
The investment case here centers on its strong positioning within the rapidly growing electric vehicle (EV) and energy storage system (ESS) markets. The company’s product portfolio includes lithium titanate oxide (LTO), lithium iron phosphate (LFP), and nickel manganese cobalt (NMC) battery chemistries, catering to a wide range of applications from commercial vehicles to grid-scale storage.
This technological diversity, combined with a focus on innovation and R&D, gives Microvast a competitive edge in addressing the evolving needs of the energy transition.
Key Partners and Customers
Evoy: Microvast has formed a groundbreaking partnership with Evoy, integrating its MV-I battery packs into Evoy’s electric boats, marking an expansion into the marine electrification sector.
Gaussin: The company is a long-term partner for Microvast, having been nominated as the battery supplier for Gaussin’s next-generation electric and hydrogen-powered skateboard truck platforms. This collaboration forecasts a volume of over 1.5 GWh in the next five years and up to 29 GWh by 2031, highlighting a substantial commitment.
REE Automotive: Microvast is the battery pack supplier for REE Automotive’s P7 commercial EV platforms, providing high-energy, fast-charging lithium-ion battery solutions tailored for commercial fleets.
Oshkosh Corporation: Microvast has a joint development agreement with Oshkosh Corporation, a leading manufacturer of specialty vehicles and access equipment.
FPT Industrial: The company is listed among Microvast’s marquee customers, supplying battery solutions for industrial and commercial applications.
SAFRA: Microvast supplies batteries for full-electric, hybrid, and retrofit buses manufactured by SAFRA, a French bus maker.
General Motors: Microvast, in collaboration with General Motors, was selected by the U.S. Department of Energy to receive a $200 million grant, underscoring its role in advancing domestic battery technology.
BMW and Argonne National Laboratory: Microvast engages in R&D partnerships with BMW and the United States Council for Automotive Research, as well as with Argonne National Laboratory, to further battery technology innovation.
Minespider: Microvast has partnered with Minespider to implement battery passports compliant with the EU Battery Regulation, ensuring regulatory compliance and sustainability leadership in the European market.
These relationships demonstrate Microvast’s ability to secure high-profile collaborations and supply agreements, positioning it as a key player in the global battery and electrification ecosystem.
Financial Performance and Growth Prospects
Recent financial results indicate a significant turnaround for Microvast. The company reported a 43% year-over-year revenue surge in Q1 2025, achieving $116.5 million in revenue and a net profit of $61.8 million after years of losses. Gross margins improved to 36.9%, a 15.7-point increase from the previous year, driven by cost discipline and high-margin sales in the EMEA (Europe, Middle East, and Africa) region, which now accounts for over half of total revenue. Adjusted EBITDA turned positive at $28.5 million, signaling a durable shift toward profitability.
Looking ahead, Microvast’s revenue guidance for 2025 projects growth between $450 million and $475 million, representing an 18–25% increase over 2024 results. This outlook is supported by a robust backlog of $351 million and ongoing capacity expansion at its Huzhou facility. The company’s focus on high-margin products and its ability to secure partnerships with European commercial vehicle manufacturers position it well for sustained growth.
Total Addressable Market (TAM)
Microvast’s TAM is substantial, driven by the global shift toward electrification in transportation and energy storage. The commercial vehicle market alone is expected to exceed $20 billion, with additional opportunities in grid-scale storage and industrial applications. The company’s presence in the EMEA region, where it has achieved a 108% revenue explosion year-over-year, highlights its ability to capture significant market share in high-growth geographies.
Competitive Landscape
Microvast faces intense competition from both established industry leaders and innovative startups. Key competitors include Tesla, LG Chem, Panasonic, CATL, and BYD, all of which command significant resources and market share in the battery sector. These companies benefit from vertical integration, extensive R&D budgets, and global manufacturing footprints, making the competitive landscape challenging for Microvast.
In addition to these large players, Microvast competes with public companies such as QuantumScape (QS), Eos Energy Enterprises (EOSE), and Fluence Energy (FLNC), which are also focused on advanced battery and energy storage solutions. Despite this competition, Microvast differentiates itself through proprietary technology, a diverse product portfolio, and strategic partnerships with automotive OEMs, which help it access established supply chains and distribution networks.
Bottom line: With the turn to profitability and a price/sales valuation of less than 3x, MVST appears to have solid upside from here in a market worth many tens of billions.