Rivian Q1 revenue beats estimates

Overview

• U.S. electric vehicle maker's Q1 revenue rose 11% yr/yr, beating analyst expectations

• Gross profit declined yr/yr, mainly due to lower regulatory credit sales and product mix shift

• Company started R2 vehicle production and received $1 bln investment from Volkswagen Group

Outlook

• Rivian expects 2026 vehicle deliveries between 62,000 and 67,000

• Company forecasts 2026 adjusted EBITDA of $(2.10) bln to $(1.80) bln

• Rivian projects 2026 capital expenditures of $1.95 bln to $2.05 bln

Result Drivers

• REGULATORY CREDIT SALES - Automotive revenue and gross profit were negatively affected by a $100 mln decrease in sales of automotive regulatory credits

• PRODUCT MIX SHIFT - Automotive revenue per unit declined due to a higher mix of commercial vans

• SOFTWARE AND SERVICES GROWTH - Software and services revenue rose 49% yr/yr, driven by higher vehicle electrical architecture and software development services, as well as repair and maintenance

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 15 "strong buy" or "buy", 9 "hold" and 5 "sell" or "strong sell"

• The average consensus recommendation for the auto & truck manufacturers peer group is "buy."

• Wall Street's median 12-month price target for Rivian Automotive Inc is $17.40, about 8.3% above its April 29 closing price of $16.06

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.