CATL H1 2026 Revenue Jumps 55%, Net Profit Rises 42%, Gross Margin Slips to 23.2%

Contemporary Amperex Technology Co. Ltd. (CATL) reported first-half 2026 operating revenue of RMB 276.92 billion, up 54.80% year-on-year, and net profit attributable to shareholders of RMB 43.28 billion, up 41.98%. Second-quarter revenue hit a quarterly record of RMB 147.79 billion, increasing 56.9% from a year earlier.

Battery output reached 498 GWh and sales totaled 434 GWh in the first half, both up 61% year-on-year, with energy-storage battery sales surging 102%. Energy storage business revenue of RMB 53.26 billion accounted for 19.2% of total revenue, versus 19% previously. Power battery revenue rose 46% to RMB 192.1 billion, while China's new-energy vehicle production grew only 6.7% in the same period.

Gross margin weakened markedly. Second-quarter gross profit was RMB 34.22 billion, translating to a margin of 23.2%, close to the lowest level since early 2024. Lithium carbonate prices rebounded from a 2025 trough of RMB 58,000 per tonne to nearly RMB 190,000 per tonne, yet CATL did not fully pass on cost pressure downstream. Battery unit prices stabilized around RMB 0.56 per Wh, broadly flat with 2025. Expense ratios remained steady, with combined SG&A, R&D and financial costs below 7% of revenue in Q2.

Contract liabilities fell sequentially for two quarters, dropping from RMB 49.2 billion at end-2025 to RMB 45.6 billion at end-Q1 2026 and further to RMB 36.5 billion by end-June. Capacity utilization rose to 95%, while capital spending stayed elevated, drawing down backlog orders. Inventory surpassed RMB 130 billion, with finished-goods stock rising to 37% of total from 26% at the start of the year.

New-energy vehicle production growth slowed to just 6.7% in the first half of 2026. The average curb weight of new-energy passenger cars reached 1,939.3 kilograms, up 27.5% from 2020. Average battery capacity per vehicle remained below 65 kWh. CATL's domestic passenger-car market share climbed to 47%.