BYD (BYDDY) kicked off 2025 with a big earnings beat, but a revenue miss reminded investors that even the strongest EV players aren’t immune to global headwinds.
Net income for the first quarter hit RMB 9.16 billion ($1.26 billion), more than double what the company earned a year ago. That profit jump came largely on the back of strong electric vehicle sales, particularly in China, where BYD is holding its lead in the market.
Earnings per share came in at RMB 3.12 ($0.43), beating the consensus estimate of $0.35. The company’s aggressive pricing strategy offering tech-forward cars at competitive price points helped keep margins in solid shape despite tough conditions.
Still, the revenue line fell short. Analysts were looking for RMB 179.66 billion ($24.78 billion), but BYD posted RMB 170.36 billion ($23.38 billion). That surprise shortfall spooked some in the market, especially considering BYD’s strong showing in key segments.
At home, BYD’s market share rose to 13.6%, edging past Volkswagen’s 12.1%. Its standard features like God’s Eye driver-assist and faster charging tech are helping it stand out enough to put pressure on rivals like Geely, Toyota, and even Tesla (NASDAQ:TSLA), which is also navigating fierce pricing pressure in China.
Looking abroad, things get trickier. With the U.S. holding firm on a 25% tariff on Chinese EV imports and the EU continuing its subsidy investigation, BYD’s global push is facing real challenges. Still, the company aims to export 800,000 vehicles this year no small goal.
What investors didn’t see in the report? Share buybacks. Despite strong earnings, BYD didn’t announce any repurchase program this quarter, something that might have boosted confidence given recent market volatility in Chinese EV names.
All in, BYD’s Q1 report showed strength where it mattered, but the revenue miss along with global friction makes the road ahead one to watch.
This article first appeared on GuruFocus.
