CATL, the global leader in power batteries, recently released its Q3 2025 financial results, showcasing robust growth despite intense industry competition.
**Strong Q3 Performance** In Q3 2025, CATL reported revenue of RMB 104.2 billion, up 13% YoY and 11% QoQ. Net profit attributable to shareholders reached RMB 18.55 billion, surging 41% YoY and 12% QoQ, marking a record quarterly high. Gross margin stood at 25.8%, down 5.4 percentage points YoY but up 0.2 percentage points QoQ. The company shipped nearly 180GWh of power and energy storage batteries combined, with energy storage accounting for about 20%. Contract liabilities rose 46% YoY to RMB 40.7 billion, reflecting solid order momentum.
Despite a decline in market share to 41.7%—a five-year low—CATL maintained premium pricing and profitability, underscoring its dominance in high-end segments. Its average battery price per vehicle remains significantly higher than competitors like CALB, EVE Energy, and Gotion High-Tech.
**Strategic Positioning** CATL’s focus on brand-building and high-end positioning has paid off. Many automakers highlight CATL batteries in marketing, reinforcing its premium image. The company’s strategy to avoid price wars preserves margins while securing long-term customer loyalty.
**Long-Term Growth Drivers** Beyond electric vehicles, CATL’s technology is pivotal for emerging sectors like AI wearables, humanoid robots, and medical nanobots. As battery innovation advances, these applications could unlock massive demand. Commercial vehicles, low-altitude aircraft, and energy storage also offer substantial growth potential.
**Valuation Outlook** With annual net profit likely exceeding RMB 70 billion in 2025, CATL’s RMB 1.7 trillion market cap reflects its leadership but leaves room for upside as global electrification accelerates. The company’s technological edge and scale make it well-positioned to dominate future battery demand.
In summary, CATL’s Q3 results reaffirm its resilience and growth trajectory, supported by strategic differentiation and expanding applications for lithium batteries.