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Shares of Rivian (NASDAQ:RIVN) are losing ground in Tuesday’s after-hours trading after the electric vehicle manufacturer reported weaker-than-expected second quarter profits and lowered its adjusted EBITDA guidance for FY25.
Selling pressure was blunted, however, by slightly better than expected second quarter sales.
As a result of higher operating expenses, the company reported an unadjusted loss of $0.97 per share, narrowing from a loss of $1.46 per share a year ago, but $0.33 worse than Wall Street expected. Adjusted EBITDA loss also narrowed from a year ago to $(667M) but was almost double the adjusted EBITDA loss posted last quarter.
Total revenue of $1.30B was down 12.5% from a year ago but above $1.29B estimates.
On the balance sheet, the company was free cash flow negative by $398M, an improvement from $(1.04B) in Q2 2024.
The company produced 5,979 vehicles at its Normal, Illinois manufacturing facility and delivered 10,661 vehicles, a decline of 37% and 22% year-over-year, respectively. Production during the quarter for both R1 products and commercial vans was limited primarily due to supply chain complexities, partially a result of shifting U.S. trade policy.
“While Rivian believes its long-term opportunity to drive meaningful growth and profitability remains strong, some of the recent policy actions had had and are expected to continue to have an impact on its results and cash flows of its business,” CEO RJ Scaringe said in a statement.
Because of some of the recent changes associated with regulatory credits and its second quarter performance, Rivian now expects to report an adjusted EBITDA loss of $2M to $2.25M from previous guidance for a loss of $1.7M to $1.9M. The company continues to expect to deliver 40,000 to 46,000 vehicles in FY25.
Capital expenditures target remains at $1.8M to $1.9M.