The discharge of the brand new SUV “R2” is anticipated to stimulate demand.
Rivian Automotive (Riven 2.76%) Shares soared final week after the corporate introduced fourth-quarter outcomes on February 12 and predicted sturdy car deliveries in 2026. Nevertheless, even after the large rise in inventory costs, the inventory continues to be down about 15% because the starting of the yr on the time of writing.
Let’s take a more in-depth have a look at the electrical car (EV) maker’s earnings and outlook to see if it is too late to purchase the inventory.
Picture supply: Getty Pictures.
Rivian administration gives sturdy steering
The surge in Rivian inventory was prompted by administration steering that the corporate will ship 62,000 to 67,000 automobiles this yr, and the introduction of a brand new low-cost SUV, the R2. This can be a vital improve from the 42,247 items delivered final yr and the 51,579 items offered in 2024.
The R2 will price round $50,000 and is anticipated to enchantment to a a lot wider viewers than the R1, which might price greater than $100,000 relying on its variant. R2 manufacturing will start with one manufacturing shift, with a second shift added towards the tip of the yr, and a 3rd shift anticipated in 2027.
Rivian’s fourth-quarter income was $1.3 billion, down 26% from a yr earlier, as the corporate produced and delivered fewer automobiles because it ready to start manufacturing of the R2. The corporate produced 10,974 automobiles and delivered 9,745 automobiles within the quarter, in comparison with 12,277 automobiles and 14,183 deliveries in the identical interval final yr.
Automotive income fell 45% yr over yr to $839 billion, whereas software program and companies income greater than doubled from $214 million to $447 million. Roughly 60% of our software program and companies income was derived from our three way partnership with Volkswagen.
Given the power of its high-margin software program enterprise, Rivian was in a position to obtain a gross margin of 9%, posting a gross revenue of $120 million. Rivian expects 2026 to be a transition interval for its automotive gross revenue margin because it strengthens its R2 merchandise, however it has set a purpose of accelerating its automotive gross revenue margin to twenty% in 2027 and the company-wide gross revenue margin to 25% or extra.
Adjusted EBITDA loss widened to $435 million from $277 million within the year-ago interval. In the meantime, free money movement for the quarter was $1.14 billion, in comparison with a constructive free money movement of $856 million in the identical interval final yr.
Trying forward, the corporate expects adjusted EBITDA to be damaging within the vary of $2.1 billion to $1.8 billion, and capital expenditures (capex) to be within the vary of $1.95 billion to $2.05 billion. Which means that a big amount of money will proceed to be consumed this yr.
Right this moment’s modifications
(-2.76%) -$0.43
present worth
$15.16
Key knowledge factors
Market capitalization
$19 billion
day by day vary
$15.01 – $15.40
52 week vary
$10.36 – $22.69
quantity
527K
common quantity
38M
gross revenue
-276.59%
Is it too late to purchase Rivian inventory?
Rivian continues to be a speculative inventory at this level, and 2026 shall be one other yr of transition. Nevertheless, the discharge of R2 must be a superb alternative, and if the financial system progressively expands, it might be a stepping stone to a growth in 2027. As such, risk-tolerant buyers might think about including to a small place right here. Even after its meteoric rise, this isn’t a inventory for the faint of coronary heart.
