VinFast Auto (NASDAQ:VFS) reported sharply higher second-quarter vehicle deliveries and revenue as it expanded its electric vehicle lineup and international operations, while losses widened amid deferred revenue, free-charging costs, technology investment and overseas sales incentives.
The company delivered 70,085 electric four-wheelers in the second quarter, up 20% from the prior quarter and 96% from a year earlier. Electric two-wheeler deliveries reached 286,000, rising 100% sequentially and 311% year over year. First-half deliveries totaled 128,662 four-wheelers and 429,175 two-wheelers.
CEO and Chairman Pham Nhat Quan Anh said VinFast has cumulatively delivered more than 500,000 four-wheelers and 1 million two-wheelers since its founding. The company operates in 15 countries and plans to prioritize production expansion at international factories, product launches, autonomous-driving development, service-network growth and market expansion alongside Green SM.
Revenue rose, but margins remained under pressure
Second-quarter revenue increased 32.9% sequentially and 85.5% year over year to $1.2 billion. CFO Lan Anh Nguyen said reported revenue included an approximately $88 million deduction associated with an extended free-charging program sponsored by founder Pham Nhat Vuong. Excluding that impact, revenue would have been approximately $1.3 billion, she said.
VinFast posted a gross margin of negative 62.8%, compared with negative 21.8% in the year-earlier period. Nguyen attributed the result partly to cost of goods sold for vehicle sales where revenue recognition had been deferred, which represented about 15% of quarterly cost of goods sold, as well as expenses related to the free-charging program. Excluding the charging program, revenue deferrals and net realizable value adjustments, underlying gross margin would have been negative 28.7%, according to the company.
Research and development expense rose 52.8% from the first quarter and 65.9% from a year earlier to $154 million, reflecting work on next-generation vehicles, the EE 2.0 architecture and advanced driver-assistance systems. Selling, general and administrative expenses increased to $209 million, driven primarily by sales programs and incentives in overseas markets where related revenue had not yet been recognized.
Adjusted EBITDA was negative $1.1 billion, compared with negative $728 million in the first quarter and negative $362 million a year earlier. Excluding the charging program, deferred revenue, related overseas incentives and net realizable value adjustments, adjusted EBITDA would have been negative $678 million, with a negative 53.2% margin, VinFast said.
Net loss from continuing operations was approximately $1.2 billion. A $1.5 billion gain on the disposal of manufacturing-related net assets, partially offset by $285 million in discontinued-operation losses before the disposal date, resulted in a total quarterly net loss of $56 million.
Asset-light manufacturing restructuring
VinFast said it has restructured its Vietnam manufacturing operations, classifying the disposed manufacturing activities as discontinued operations and recasting prior-period statements accordingly. The company said the move is intended to create a more capital-efficient operating model while preserving access to manufacturing capacity through long-term agreements.
Nguyen said the restructuring reduced external borrowings by $2.9 billion as of June 30, while property, plant and equipment declined by $2.6 billion and inventory fell by $1.1 billion. Chief Investment Officer Chien Nguyen said VinFast would retain control of key capabilities including product design, research and development, technology, intellectual property, branding, sales and after-sales operations.
Following the divestment, VinFast said its manufacturing partner, VFTP, bears underutilization risk and manufactures vehicles on a cost-plus basis. The company said it has no minimum-volume commitments, capacity guarantees or other financial obligations solely from ordering below available capacity.
New models and international expansion
VinFast launched the VF Wild range-extended electric vehicle in Vietnam during the period. The company said the model, built on its next-generation large-vehicle platform, has more than 1,000 kilometers of total driving range and is expected to enter international markets next year.
The company also began production of the all-new VF 8, which includes VinFast’s first commercial deployment of in-house-developed Level 2 driver-assistance technology. Chien Nguyen said the company previously licensed those capabilities but now develops them internally at a fraction of prior costs.
In Vietnam, VinFast said it had maintained the country’s top automotive-market position for 22 consecutive months through June, with an approximately 38% share of the overall market as of June 30. The company received more than 28,700 VF 2 pre-orders in the first three days after launch and more than 12,700 VF 8 pre-orders in the first eight days.
- International markets represented 11% of EV deliveries during the quarter.
- The Limo Green represented 23% of deliveries, while the VF 3 and VF 5 collectively represented 38%.
- Four-wheeler deliveries to related parties accounted for about 6% of deliveries, while related-party two-wheeler deliveries accounted for about 4%.
- VinFast said it ranked as the top battery-electric vehicle brand in the Philippines, fifth in India and eighth in Indonesia at quarter-end.
VinFast expanded its two-wheeler dealership network by 20 locations in Indonesia and 21 in the Philippines. It is also introducing battery-swapping models and subscription programs in those markets. In India, the company raised prices on the VF 6 and VF 7 by 5% effective July 1 and introduced the MPV 7 and a Limo Green taxi variant.
Liquidity, real estate investment and outlook
Total liquidity stood at $2.3 billion as of June 30, including $281 million in cash and cash equivalents, approximately $968 million available through a Yorkville facility and nearly $1 billion in commitments from Vingroup and VinFast’s founder, management said. The Yorkville facility remains available until Nov. 1, 2026.
Management said it is exploring funding options as certain existing arrangements approach expiration. Chien Nguyen said the company expects its 20% economic interest in the Hanoi International Sports Urban Area project, held through Ngoc Hoi, to provide additional earnings and cash distributions beginning in 2027, subject to project execution and sales progress.
VinFast emphasized that EVs remain its core business and said it has no plans to expand into areas such as engineering, procurement and construction contracting, metro systems, energy or steel projects. The company maintained its medium-term EBITDA break-even goal, with Vietnam expected to be the first market to reach that point.
For 2026, VinFast said it expects Vietnam to account for more than 75% of its 300,000-EV delivery target. Management said the second half should benefit from seasonal demand and increased contributions from newer models, including the Limo Green, MPV 7, new VF 8 and VF 2.
About VinFast Auto (NASDAQ:VFS)
VinFast Auto Ltd. is a Vietnamese automotive company focused on developing, manufacturing and selling electric vehicles. Its product portfolio includes electric sport utility vehicles, cars, scooters and buses, along with related batteries, charging solutions and vehicle services.
Founded in 2017 as part of Vietnam’s Vingroup ecosystem, VinFast began vehicle production at its manufacturing complex in Hai Phong, Vietnam. The company has expanded its sales and market activities beyond Vietnam, serving customers in international markets including North America and parts of Asia.
