CATL posts strong Q3 earnings as innovation, market share drive profitability

Shanghai (Gasgoo)- On the evening of October 20, CATL released its financial results for the third quarter of 2025, highlighting its dominance in the global battery industry.

The company reported quarterly revenue of 104.186 billion yuan, up 12.9% year-on-year, while net profit attributable to shareholders surged 41.2% from a year earlier to 18.549 billion yuan. This marks a profit growth rate more than three times that of revenue, translating to an average daily profit of roughly 201 million yuan over the 92-day quarter—underscoring CATL's exceptional profitability.

Photo credit: CATL

The company's performance for the first three quarters was equally strong. Cumulative revenue reached 283.072 billion yuan, up 9.28% from a year earlier, while net profit attributable to shareholders leapt 36.2% to 49.034 billion yuan. Excluding non-recurring items, net profit came in at 43.619 billion yuan, a 35.6% year-on-year jump, reflecting a continuous improvement in earnings quality.

CATL's balance sheet also showed a solid expansion trend. By the end of September 2025, total assets stood at 896.082 billion yuan, up 13.91% from the end of last year. Inventory rose 34.05% year-on-year to 80.212 billion yuan, which the company attributed to its growing business scale. Operating cash flow remained robust, climbing 19.6% from a year ago to 80.66 billion yuan for the first nine months, providing ample liquidity to support R&D and capacity expansion.

Behind the strong financial growth lies CATL's dual edge in technological innovation and market dominance. According to data from the China Automotive Power Battery Industry Innovation Alliance ("CAPBIIA"), domestic power battery installations reached 493.9 GWh from January to September, up 42.5% year-on-year. CATL maintained its leadership position with 210.67 GWh of installed capacity and a 42.75% market share. In September alone, installations totaled 32.51 GWh, including 22.86 GWh of lithium iron phosphate (LFP) batteries and 9.64 GWh of ternary batteries, with 25.23 GWh supplied to passenger vehicles—demonstrating broad penetration across both BEV and PHEV segments.

Technological upgrades have become the key driver of profit expansion. In the third quarter, new-generation products such as Shenxing and Qilin batteries accounted for around 60% of total shipments, while the company's NP3.0 platform delivered improvements in both energy density and structural rigidity. CATL is also advancing in sodium-ion battery development, with pilot applications already underway in commercial vehicles and mass production for passenger models expected to begin next year. By refining its product mix toward higher-margin offerings, maintaining disciplined cost control, and deepening vertical integration across the supply chain, CATL continues to strengthen its profitability and reinforce its global leadership in battery innovation.