CBAK Energy Technology, Inc. reported full‑year 2025 revenue of $195.19 million, an 11% increase from $176.61 million in 2024, while the company posted a net loss of $9.38 million versus a net income of $11.79 million the prior year. Gross profit fell to $18.42 million, shrinking the gross margin to 9.4% from 23.7% in 2024. The battery segment, which generated $105.98 million in 2025, declined 22% as the firm phased out legacy 26650 cells in favor of the new 40135 format.
The revenue mix shift explains the overall growth despite the battery decline. Hitrans raw‑materials revenue surged 123% to $89.21 million, driven by higher raw‑material prices and new customer wins. The Light Electric Vehicle (LEV) battery business grew 252.4%, offsetting the 22% drop in the core battery segment. The transition to the 40135 line, commissioned in October 2025, has already generated strong demand, with the order book outpacing current production capacity.
Operating loss of $18.44 million reflects the cost of ramping up the 40135 and 32140 production lines. The company cited transitional inefficiencies, friction costs, and high fixed‑cost absorption as the main drivers of margin compression. These expenses, combined with a lower mix of high‑margin legacy products, pushed gross profit margin down to 9.4% and turned operating income into a loss.
Analysts had projected a full‑year EPS of $0.14 and a Q4 EPS of –$0.03. CBAK Energy reported a Q4 EPS of –$0.08, missing the consensus by $0.05, and revenue of $58.8 million, falling short of the $64.57 million estimate by $5.77 million. The miss reflects the ongoing transition costs and the slower uptake of the new battery format, while the revenue shortfall is largely attributable to the 22% decline in the battery segment.
CEO Zhiguang Hu described the year as “a definitive transitional period for CBAK Energy, characterized by our comprehensive structural upgrade of our product portfolio, aggressive capacity expansion and deliberate pivot toward next‑generation form factors.” He added that the Dalian facility’s transition “from legacy 26‑series battery products to the new Model 40135 cells as a ‘paradigm shift,’ noting that the new line’s 2.3 GWh capacity was ‘fully sold out and order backlog exceeding ramp‑up capabilities.’” Hu also said the company “view[s] this as a necessary and highly strategic investment as our customers complete their transition” and that it is “exploring further collaborative models, including the potential establishment of a dedicated corporate entity within the Africa region.”
Cash and cash equivalents stood at $75.68 million as of December 31, 2025, and capital expenditures totaled $44.65 million. Management reiterated its confidence in 2026, projecting “record‑breaking sales” as the new battery lines scale and the LEV market expands. The company’s cash position and ongoing investment in capacity expansion position it to capture the growing demand for next‑generation batteries while navigating short‑term margin pressure.
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