Microvast's Revenues Escalate: Can it Sustain This Trajectory?

Microvast Holdings MVST registered 21.6% year-over-year and 35% sequential growth in its top line during the third quarter of 2025. It is certainly an impressive feat achieved post the sequential decline in its second-quarter revenues. Focusing on the recently reported quarter, MVST witnessed a rising demand for advanced battery solutions across multiple regions, improving the top line. The EMEA region stood at the top of the podium, contributing toward 64% of the top line, a significant increase from the year-ago quarter’s 59%. This growth is attributed to MVST’s interest in European transport, as evidenced by the partnership with the SKODA Group.

Meanwhile, contributions from the APAC region were moderate, backed by its efforts in Phase 3.2 expansion of the Huzhou facility aimed at boosting annual battery production by 2 GWh. We expect this capacity expansion to be crucial in meeting the surging demand post the beginning of initial production operation in the first quarter of 2026. On the U.S. front, MVST witnessed its revenue share increase to 5% from the year-ago quarter’s 3%. Despite generating the least volume of revenues, the region’s enhanced contribution margin while navigating through competitive and regulatory headwinds validates Microvast’s effective international growth strategy.

This impressive top-line trajectory heightens the probability of meeting the target of $450-$475 million in revenues for 2025. The ability to scale production and capitalize on international markets while ducking competitive pressures in the United States is fundamental to the outcome. It is the distant view that maintains our optimistic stance. With the electric vehicle battery market anticipated to witness a CAGR of 8.5% through 2035 (per Future Market Insights), the resulting exponential demand makes us remain bullish on MVST’s ability to sustain the trajectory.

MVST’s Price Performance, Valuation & Estimates

Microvast has gained 73.9% in the year-to-date period, significantly outperforming Byrna Technologies BYRN, Coherent Corp. COHR and the industry as a whole. The industry has rallied 18.4%. Byrna Technologies has declined 41.2% while Coherent has gained 46.8%.

YTD Share Price Performance

From a valuation standpoint, MVST trades at a 12-month forward price-to-earnings ratio of 18.32, below the industry’s 23.69. It is also discounted when compared with Byrna Technologies’ 33.17 and Coherent’s 25.25.

P/E - F12M

Microvast and Byrna Technologies have a Value Score of D, while Coherent holds a Value Score of C.

The Zacks Consensus Estimate for MVST’s earnings for 2025 and 2026 has decreased 10.5% and 31%, respectively, over the past 60 days.

Microvast carries a Zacks Rank #4 (Sell) at present.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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