NIO forecasts first-ever quarterly profit as deliveries hit record

NIO (NYSE:NIO) issued a surprise profit alert on Thursday, projecting its first-ever quarterly operating profit for the final months of 2025, a landmark turnaround fueled by a record-breaking surge in vehicle deliveries and aggressive cost-cutting.

The Shanghai-based electric vehicle pioneer expects to report an adjusted operating profit (non-GAAP) of between RMB700 million and RMB1,200 million (approximately $100 million to $172 million) for the fourth quarter.

This represents a massive swing from the RMB5,543.6 million adjusted loss recorded in the same period last year.

On a GAAP basis, the company anticipates an operating profit of RMB200 million to RMB700 million.

The pivot to profitability follows a blowout fourth quarter in which NIO delivered a record 124,807 vehicles, a 71.7% increase year-over-year.

The surge was driven by a robust product mix, including the premium ES8 SUV and the scaling of its family-oriented ONVO brand.

CEO William Li previously indicated that the company’s flagship ES8, which commands significantly higher margins, helped NIO achieve its vehicle gross margin target of 17% to 18% during the period.

For the full year 2025, total deliveries reached 326,028 vehicles, up nearly 47% from 2024.

Operational efficiency also played a critical role in the turnaround.