Rivian (RIVN) reported robust fourth quarter outcomes after the bell on Thursday and got here by means of on its objective of posting a “gross revenue” for the quarter. The corporate posted a smaller-than-expected full-year 2024 EBITDA (earnings earlier than curiosity, taxes, depreciation, and amortization) loss as well and sees a smaller loss in 2025 in comparison with a yr in the past.
Regardless of the constructive outcomes, Rivian inventory dipped 3% in early buying and selling on Friday.
NasdaqGS – Nasdaq Actual Time Value•USD
As of 11:38:07 AM EST. Market Open.
Rivian reported a gross revenue of $170 million in the fourth quarter, primarily pushed by “enhancements in variable costs, income per delivered unit, and glued costs,” the corporate mentioned in a press release.
“This quarter we achieved constructive gross revenue and eliminated $31,000 in automotive price of products bought per car delivered in This autumn 2024 relative to This autumn 2023,” Rivian CEO RJ Scaringe mentioned in a press release. “Our deal with price effectivity throughout the enterprise is vital for the launch of our mass market product, R2. The R2 invoice of supplies is roughly 95% sourced and is predicted to be roughly half that of the improved R1 invoice of supplies.”
By way of steerage, Rivian sees its 2025 full-year adjusted EBITDA loss in the vary of $1.7 billion to $1.9 billion, with car deliveries between 46,000 and 51,000.
On the convention name, CFO Claire McDonough mentioned the corporate expects fewer deliveries in Q1 as a consequence of seasonality and the results of the wildfires on the state of California, the place many Rivian purchases are made. McDonough mentioned the corporate expects solely 8,000 deliveries in Q1 and 14,000 models to be produced.
Rivian inventory was up over 3% in after-hours buying and selling however misplaced these good points.
“RIVN supplied comparatively conservative FY25 steerage as the corporate battles a myriad of macro headwinds whereas seeking to steadiness the ramp of its car strains to generate steady income development whereas remaining prudent on spend to drive bottom-line growth,” Wedbush analyst Dan Ives mentioned in a observe to purchasers. “FY25 supply steerage of 46k to 51k automobiles implies unfavorable y/y development in deliveries together with an 8k supply goal for 1Q as the corporate’s deliberate plant shutdown in the 2H25 for R2 integration is impacting supply steerage.”
For the quarter, Rivian reported income of $1.73 billion versus the $1.38 billion anticipated per Bloomberg consensus estimates, 32% increased than the $1.31 billion reported a yr in the past. The corporate reported an adjusted loss per share of $0.46, beating estimates for a $0.65 loss, with an adjusted EBITDA lack of $277 million, higher than the $399.8 million anticipated.
For the yr 2024, Rivian posted an adjusted EBITDA lack of $2.68 billion, decrease than the $2.87 billion loss projected final quarter and an enchancment in comparison with the $3.78 billion loss from a yr in the past.
Rivian founder and CEO RJ Scaringe speaks onstage through the Rivian Reveals All-Electrical R2 Midsize SUV occasion at Rivian South Coast Theater on March 7, 2024, in Laguna Seaside, Calif. (Phillip Faraone/Getty Photographs for Rivian) ·Phillip Faraone by way of Getty Photographs
In early January, the corporate mentioned it produced 49,476 automobiles and delivered 51,579 in 2024. In This autumn, Rivian produced 12,727 automobiles and delivered 14,183 automobiles.
Rivian mentioned it had $5.29 billion in money and money equivalents, down from $7.85 billion a yr in the past.
The fourth quarter was an attention-grabbing one for Rivian. In November, the corporate announced an expansion of its partnership with Volkswagen (VWAGY), with the German automaker pouring extra money right into a three way partnership.
The three way partnership, introduced final June, will use Rivian’s electrical structure — recognized as “zonal structure” — and accompanying software program stack to allow the launch of Rivian’s upcoming midsize R2 SUV in the primary half of 2026.
Learn extra: Are electrical vehicles costlier to insure?
In November, Rivian additionally revealed that it received a “conditional dedication” from the Division of Power (DOE) for a $6.6 billion mortgage, highlighting Rivian’s bettering capital situation. The mortgage, a part of the DOE’s Superior Know-how Autos Manufacturing program, would assist the development of Rivian’s upcoming meeting plant positioned exterior Atlanta.
The brand new Trump White Home, nonetheless, and the Division of Authorities Effectivity say they may scrutinize the deal, doubtlessly placing the DOE mortgage to Rivian in limbo.
A fleet of Rivian Electrical Supply Autos (EDV) are linked to electrical chargers throughout a launch occasion between Amazon and Rivian at an Amazon facility on July 21, 2022, in Chicago. (Mustafa Hussain/Getty Photographs) ·Mustafa Hussain by way of Getty Photographs
“We reiterate our Promote score in gentle of RIVN’s 35% leap since its Q3 earnings launch, the weaker-than-expected 2025 steerage, and dangers associated to a possible clawback of the $6.6B Power Division mortgage accredited late in the Biden administration,” CFRA analyst Garrett Nelson wrote in a observe to purchasers.
One other huge wild card on the regulatory entrance is the standing of the federal EV tax credit score, which the Trump White Home and Republican Celebration have indicated could also be repealed. Pure-play automakers like Rivian, Lucid (LCID), and Tesla (TSLA) could possibly be most affected by elimination of the tax credit score.
Lastly, earlier this month Rivian mentioned it could open up orders for its EDV business supply van, which may open one other income stream for an organization seeking to scale up, develop income, and lower costs.
Rivian Automotive is recalling 17,260 US automobiles over a headlight challenge which will scale back visibility and lift crash dangers, the Nationwide Freeway Visitors Security Administration mentioned Friday.
This story has been up to date.
Correction: An earlier model of this story had an adjusted loss per share of $0.70 for This autumn. That has been corrected to $0.46. The EBITDA loss for final yr was additionally corrected to $3.78 billion. We remorse the errors.
Pras Subramanian is a reporter for Yahoo Finance. You possibly can observe him on X and on Instagram.
Click on right here for the most recent inventory market information and in-depth evaluation, together with occasions that transfer shares
Learn the most recent monetary and enterprise information from Yahoo Finance
