CATL storage revenue jumps 88% as H1 profit hits CNY 43.3 billion

Chinese battery manufacturer CATL reported an 87.5% increase in first-half energy storage revenue and announced a record A-share buyback alongside a CNY 6.49 billion ($958.3 million) interim dividend.

CATL reported sharp revenue and profit growth for the first half of 2026, driven by higher battery sales and an 87.5% increase in revenue from energy storage systems.

The company recorded first-half revenue of CNY 276.92 billion, up 54.8% from a year earlier. Net profit attributable to shareholders rose 42% to CNY 43.28 billion, while adjusted net profit increased 43.4% to CNY 39.01 billion.

Operating cash flow increased by a more modest 2.6% to CNY 60.22 billion. CATL’s overall gross margin declined by 1.09 percentage points to 23.93%, reflecting continued pricing pressure despite rapid shipment growth.

Revenue from energy storage battery systems reached CNY 53.26 billion, up 87.5% from a year earlier and accounting for 19.2% of total revenue. The segment generated a gross margin of 23.96%, down 1.56 percentage points but still above the company’s electric vehicle battery margin.

CATL said its energy storage battery shipments ranked first globally during the first six months of 2026, citing data from Chinese research provider ICCSino.

The company’s EV battery business remained its largest division, with revenue rising 46% to CNY 192.12 billion. Its gross margin fell 1.78 percentage points to 20.63%. CATL said its share of global EV battery usage reached 40.2% in the first five months of the year, up 2.2 percentage points.

Battery materials, recycling, and mineral resources generated CNY 18.81 billion in revenue, an increase of 67.2%. The segment’s gross margin rose 5.81 percentage points to 27.04%.

CATL reported 525 GWh of battery system capacity and 764 GWh under construction. First-half output reached 498 GWh, with capacity utilization at 94.86%, indicating that its existing production base was operating close to full capacity.

Overseas revenue rose 42.4% to CNY 87.13 billion, representing 31.5% of total sales. The overseas gross margin reached 29.97%, compared with 21.16% in China, underlining the higher profitability of CATL’s international business.

The company is expanding its localized manufacturing footprint through projects in Hungary, Spain, and Indonesia, alongside its existing German operations. Research and development spending rose 12.7% to CNY 11.38 billion during the reporting period.

CATL also announced plans to repurchase between CNY 20 billion and CNY 40 billion of its Shenzhen-listed shares. The shares will be canceled to reduce registered capital. The proposed plan, which remains subject to shareholder approval, represents the largest single buyback program announced in China’s A-share market.

The company separately proposed an interim cash dividend of CNY 14.11 for every 10 shares, for a total distribution of approximately CNY 6.49 billion, equivalent to 15% of first-half net profit.

Energy storage accounted for a larger share of CATL’s revenue in the first half, while competition continued to weigh on EV battery margins. However, inventory rose 38.4% from the end of 2025 to CNY 130.82 billion, while the company’s large construction pipeline will require sustained demand growth to maintain high utilization rates.