By Jiahui Huang
Contemporary Amperex Technology, the world's largest electric-vehicle battery maker, reported stronger-than-expected net profit in the fourth quarter and 2025 despite higher lithium prices and cooling EV demand in China.
Net profit in the fourth quarter was 23.17 billion yuan, equivalent to $3.35 billion, compared with 14.74 billion yuan in the year earlier period, it said late Monday.
CATL's revenue rose 37% to 140.63 billion yuan.
The Chinese battery giant also recorded stronger annual results. Its total revenue rose 17% to 423.70 billion yuan in 2025, and net profit was 72.20 billion yuan, up from 50.74 billion yuan in 2024.
Analysts had expected a profit of 68.43 billion yuan on a revenue of 430.45 billion yuan in 2025, according to a Visible Alpha consensus estimate.
CATL is the largest manufacturer of EV batteries globally, supplying to dozens of automakers, including Tesla, Volkswagen, BMW and Geely Automobile.
The solid results weren't exactly a surprise. Citi analysts said ahead of the earnings release that CATL was likely better able to weather rising prices of lithium and other commodities than its peers, citing its upstream supply chain investment.
Most of the lithium costs can be passed through, and the company has the most comprehensive investment along the supply chain, which would boost investment gains, Citi analysts wrote in a note.
CATL's major revenue driver, the EV battery system, has seen 25% of revenue rise in 2025. Its strong sales overseas and growing demand for energy-storage systems offset the cooling demand of EVs in China's market.
The company reported a gross profit margin of 26.27% in 2025, compared with 24.44% a year earlier, partly thanks to a higher margin of battery materials and recycling.
"Despite softer EV demand in China and higher metal prices since late last year, the company's outlook remains positive," Bernstein analysts wrote in a note. The brokerage believes that CATL can drive at least 30% growth this year.
CATL said in the annual report that it's also releasing an annual dividend of 21.78 yuan per 10 shares and a special dividend of 47.79 yuan per 10 shares for 2025.
Besides its leadership in the global battery industry, CATL also holds a strong position in its home market of China. It commanded a 51% share of the EV-battery industry as of January, according to data from the China Automotive Battery Innovation Alliance.
The company said in December that its battery plant in Hungary was ready to launch, and that its initial annual capacity of 40 gigawatt-hours was already fully booked by clients.
In a major milestone for the battery maker, CATL was added to the Hang Seng Index during the Hong Kong benchmark stock gauge's March review.
The company listed in Hong Kong last May, and its shares have nearly doubled from their listing price.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
03-09-26 2123ET
