CATL reported a sharp increase in first-half earnings and announced plans for a share buyback of up to 40 billion yuan, as the world’s largest electric vehicle battery manufacturer posted higher revenue across its core businesses.
The company said net profit attributable to shareholders reached 43.28 billion yuan ($6.37 billion) during the first six months of 2026, an increase of 41.98% from the same period a year earlier.
Revenue rose 54.80% year over year to 276.92 billion yuan, supported by continued growth in both its power battery and energy storage operations.
Battery and Energy Storage Businesses Drive Growth
CATL’s power battery segment remained its largest source of revenue, generating 192.12 billion yuan during the first half, up 46.02% from a year earlier. The business recorded a gross margin of 20.63%.
The company’s energy storage division delivered faster growth, with revenue climbing 87.54% year over year to 53.26 billion yuan. Gross margin for the segment reached 23.96%.
Overall gross profit increased 48.03% to 66.26 billion yuan.
The company’s gross margin stood at 23.93%, down 1.09 percentage points compared with the first half of 2025.
Net profit excluding non-recurring items totaled 39.01 billion yuan, representing a 43.44% increase from a year earlier.
Operating cash flow remained strong, with net cash generated from operating activities reaching 60.22 billion yuan, up 2.61%.
Basic earnings per share rose 37.43% to 9.51 yuan, while weighted average return on equity improved to 12.08%, an increase of 0.45 percentage points.
As of June 30, CATL reported total assets of 1.14 trillion yuan, an increase of 16.83% from the end of 2025. Cash and cash equivalents totaled 372.05 billion yuan, while the company’s debt-to-asset ratio stood at 63.65%.
Company Announces Major Share Buyback
Alongside its earnings report, CATL’s board approved a plan to repurchase between 20 billion yuan and 40 billion yuan worth of A-shares through centralized market bidding.
The company said the repurchase price will not exceed 573 yuan per share, equivalent to 150% of the average trading price during the 30 trading days preceding the board’s approval.
Based on the maximum buyback amount and the price cap, CATL estimates it could repurchase approximately 69.81 million shares, representing about 1.51% of its total outstanding share capital.
The company said all repurchased shares will be canceled, reducing registered share capital and increasing earnings per share while enhancing shareholder returns.
CATL added that even if the full 40 billion yuan authorization is used, the buyback would represent about 10.75% of its cash holdings at the end of June and is not expected to have a material impact on the company’s operations or financial position.
The share repurchase proposal remains subject to shareholder approval and, if authorized, is expected to be completed within 12 months of approval.