Rivian (RIVN) earnings Q4 2024

Rivian Automotive beat Wall Street’s fourth-quarter earnings expectations and achieved its first gross quarterly profit – a target closely watched by investors – but is forecasting lower sales in 2025.

The electric vehicle maker reported a gross profit, which includes production and sales but does not factor in other expenses, of $170 million during the final quarter of last year. Rivian said it plans to achieve another “modest gross profit” in 2025. It has not said when it expects to be profitable on a bottom-line basis.

For 2025, Rivian also expects to narrow its adjusted losses to a range of $1.7 billion to $1.9 billion – down from a loss of $2.69 billion in 2024. The company forecasted deliveries of 46,000 to 51,000 units for 2025, compared with 51,579 vehicles delivered last year.

Shares of Rivian were up about 7% during afterhours trading Thursday. The stock closed at $13.61 a share, down 2.3%.

Rivian CEO RJ Scaringe told CNBC that there’s “a lot of uncertainty” surrounding the automotive industry, specifically the potential removal of federal incentives for EVs and tariff policies that could impact the company.

“We believe external factors could impact our 2025 expectations, including changes to government policies and regulations, and a challenging demand environment. While uncertainties persist, we remain focused on executing against our key value drivers and are confident in electrifying the world in the long term,” Rivian said Thursday in a shareholder letter.

Rivian said it expects capital expenditures this year to be between $1.6 billion and $1.7 billion, up from $1.41 billion last year as it prepares to launch its new “R2” midsize vehicles in 2026.

Here’s how the company performed in the fourth quarter, compared with average estimates compiled by LSEG:

• Loss per share: 46 cents vs. a loss of 65 cents expected
• Revenue: $1.73 billion vs. $1.4 billion expected

Rivian’s quarterly gross profit and revenue were helped by $299 million from the sale of regulatory credits as well as $214 million in software and services revenue. Rivian sells regulatory credits to other automakers to help them meet emissions standards, however future sales could be impacted by changes to such regulations by the Trump administration.

The company’s net loss for the fourth quarter was $743 million, or 70 cents per share, compared to a loss of $1.52 billion, or $1.58 per share, during the same period a year earlier.

For the full year, Rivian lost $4.75 billion, or $4.69 per share.

Rivian’s 2024 revenue was $4.97 billion, up roughly 12% from $4.43 billion in 2023. Fourth-quarter revenue was up more than 31% from the prior-year period.