Rivian tops fourth-quarter expectations, targets significant production increase

Rivian Automotive on Thursday beat Wall Road’s fourth-quarter expectations and stated it is concentrating on a significant increase in car deliveries this yr, however the automaker additionally cautioned that it’s going to proceed shedding cash because it launches its essential R2 next-generation car.

Rivian’s 2026 steerage contains growing car deliveries to between 62,000 and 67,000 models, which might be up by 47% to 59% in contrast with 2025. That increase is predicted to be assisted by the launch of the R2 SUV through the second quarter.

Rivian CEO RJ Scaringe informed CNBC’s Phil LeBeau on Thursday that the R2 is predicted to be the “majority of the amount” of the enterprise by the tip of 2027, because it ramps up production at its sole manufacturing facility in Regular, Illinois.

The electrical car maker additionally stated it expects adjusted pre-tax losses for 2026 of between $1.8 billion and $2.1 billion and capital expenditures between $1.95 billion and $2.05 billion. That compares with practically $2.1 billion in adjusted pre-tax losses and $1.7 billion in capital expenditures final yr.

Scaringe described 2025 to buyers Thursday as a “foundational yr” for Rivian, whereas saying 2026 will mark “an inflection level” for the corporate.

Shares of Rivian have been up greater than 20% throughout premarket buying and selling Friday after closing at $14, down roughly 5%.

Here is how the corporate carried out within the fourth quarter in contrast with common estimates compiled by LSEG:

• Loss per share: 54 cents adjusted vs. a lack of 68 cents anticipated
• Income: $1.29 billion vs. $1.26 billion anticipated

Rivian’s full-year 2025 income, together with $1.7 billion through the fourth quarter, was up 8% in contrast with $4.97 billion in 2024.

The corporate was in a position to obtain its first annual gross revenue, which is carefully watched by buyers, of $144 million in 2025, together with $120 million through the fourth quarter. That was pushed by its software program and companies three way partnership with Volkswagen offsetting $432 million in losses for its automotive enterprise final yr.

This yr’s gross revenue will not be as fruitful, with Rivian CFO Claire McDonough describing it as a “transition yr” because it ramps up R2 production.

Traders view gross revenue as a key indicator of a enterprise’s profitability earlier than working bills, curiosity and taxes.

Rivian’s internet loss final yr was $3.6 billion, an enchancment from a lack of $4.75 billion in 2024. That features an $804 million loss through the fourth quarter, accelerated by a lower in earnings from the sale of regulatory credit, which was anticipated after modifications by the Trump administration to federal gas financial system and emissions requirements.

Rivian ended the fourth quarter with $6.59 billion in whole liquidity, together with practically $6.1 billion in money, money equivalents, and short-term investments.

It is wanted capital for Rivian. This yr is an important one for the automaker because it makes an attempt to ship on guarantees of technological developments and improved profitability with the R2.

The roughly $45,000 midsize car, per Rivian, is predicted to chop construct materials prices in half, cut back production complexity and considerably develop demand and gross sales.

Rivian stated the R2 is predicted to initially be produced by one plant shift, adopted by a second shift by the tip of this yr. The corporate stated extra R2 particulars by mannequin akin to pricing, choices and extra might be accessible on March 12.

Rivian has made necessary strides with its first-generation R1 pickup and SUV, however the marketplace for such dear EVs, which each begin within the $70,000s, has slowed. It additionally continues to supply an all-electric supply van, traditionally bought by its largest shareholder, Amazon.