Li Auto LI reported first-quarter 2025 earnings per share (EPS) of 13 cents, down from the prior-year quarter’s EPS of 17 cents. Revenues of $3.57 billion, however, increased from $3.55 million in the year-ago quarter, primarily driven by a 15.5% year-over-year increase in vehicle deliveries.
Key Takeaways
Li Auto delivered a total of 92,864 vehicles in the first quarter of 2025. As of March 31, 2025, the company had 500 retail stores in 150 cities, 502 servicing centers, authorized body and paint shops operating in 225 cities and 2,045 supercharging stations in operation equipped with 11,038 charging stalls.
LI’s vehicle sales in the reported quarter amounted to $3.4 billion, the same as the year-ago period. The vehicle margin was 19.8%, up from 19.3% in the year-ago quarter, due to cost reduction and changes in pricing strategy. Gross profit for the first quarter was $732.9 million and remained flat year over year. Gross margin was 20.5% compared with 20.6% in the prior-year quarter.
Operating expenses fell 14.4% in the reported quarter to $695.5 million. Income from operations amounted to $37.4 million against a loss from operations of $81 million in the same period last year. Operating margin was 1% in contrast to a negative 2.3% in the year-ago quarter. Non-GAAP net income for the quarter amounted to $139.8 million and fell 20.9% on a year-over-year basis.
Net cash provided by operating activities in the first quarter amounted to $234.4 million, representing a significant decrease of 49.4% from the year-ago quarter. Free cash flow was negative $348.7 million compared with negative $700.1 million in the same period last year.
As of March 31, 2025, LI had cash and cash equivalents of $687,000, down from $724,000 as of March 31, 2024. Long-term borrowings as of March 31, 2025, were $1.12 billion, compared with $249.7 million as of March 31, 2024.
For the second quarter of 2025, Li Auto expects vehicle deliveries to be between 123,000 and 128,000, suggesting year-over-year growth of 13.3-17.9%. Total revenues are expected to be between $4.5 billion and $4.7 billion, indicating a year-over-year increase of 2.2% to 6.8%. Li Auto is set to launch the i8 model in July, followed by the i6 model in September.
(Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
LI’s Zacks Rank & Key Picks
Li Auto carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the auto space are CarGurus, Inc. CARG, Strattec Security Corporation STRT and Michelin MGDDY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CARG’s 2025 sales and earnings implies year-over-year growth of 4.96% and 25%, respectively. EPS estimates for 2025 and 2026 have improved 30 cents and 44 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for STRT’s fiscal 2025 sales and earnings implies year-over-year growth of 3.49% and 8.11%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 73 cents and 91 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for MGDDY’s 2025 sales and earnings implies year-over-year growth of 0.43% and 37.76%, respectively. EPS estimates for 2025 and 2026 have improved a penny and 4 cents, respectively, in the past 30 days.
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Strattec Security Corporation (STRT): Free Stock Analysis Report Michelin (MGDDY): Free Stock Analysis Report CarGurus, Inc. (CARG): Free Stock Analysis Report Li Auto Inc. Sponsored ADR (LI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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