Rivian Automotive on Thursday beat Wall Street’s fourth-quarter expectations and said it’s targeting a significant increase in vehicle deliveries this year, but the automaker also cautioned that it will continue losing money as it launches its crucial R2 next-generation vehicle.
Rivian’s 2026 guidance includes increasing vehicle deliveries to between 62,000 and 67,000 units, which would be up by 47% to 59% compared with 2025. That increase is expected to be assisted by the launch of the R2 SUV during the second quarter.
Rivian CEO RJ Scaringe told CNBC’s Phil LeBeau on Thursday that the R2 is expected to be the “majority of the volume” of the business by the end of 2027, as it ramps up production at its sole factory in Normal, Illinois.
The electric vehicle maker also said it expects adjusted pre-tax losses for 2026 of between $1.8 billion and $2.1 billion and capital expenditures between $1.95 billion and $2.05 billion. That compares with nearly $2.1 billion in adjusted pre-tax losses and $1.7 billion in capital expenditures last year.
Scaringe described 2025 to investors Thursday as a “foundational year” for Rivian, while saying 2026 will mark “an inflection point” for the company.
Shares of Rivian were up more than 20% during premarket trading Friday after closing at $14, down roughly 5%.
Here’s how the company performed in the fourth quarter compared with average estimates compiled by LSEG:
- Loss per share: 54 cents adjusted vs. a loss of 68 cents expected
- Revenue: $1.29 billion vs. $1.26 billion expected
Rivian’s full-year 2025 revenue, including $1.7 billion during the fourth quarter, was up 8% compared with $4.97 billion in 2024.
The company was able to achieve its first annual gross profit, which is closely watched by investors, of $144 million in 2025, including $120 million during the fourth quarter. That was driven by its software and services joint venture with Volkswagen offsetting $432 million in losses for its automotive business last year.
This year’s gross profit may not be as fruitful, with Rivian CFO Claire McDonough describing it as a “transition year” as it ramps up R2 production.
Investors view gross profit as a key indicator of a business’s profitability before operating expenses, interest and taxes.
Rivian’s net loss last year was $3.6 billion, an improvement from a loss of $4.75 billion in 2024. That includes an $804 million loss during the fourth quarter, accelerated by a decrease in earnings from the sale of regulatory credits, which was expected after changes by the Trump administration to federal fuel economy and emissions standards.
Rivian ended the fourth quarter with $6.59 billion in total liquidity, including nearly $6.1 billion in cash, cash equivalents, and short-term investments.
It’s needed capital for Rivian. This year is a crucial one for the automaker as it attempts to deliver on promises of technological advancements and improved profitability with the R2.
The roughly $45,000 midsize vehicle, per Rivian, is expected to cut build material costs in half, reduce production complexity and significantly grow demand and sales.
Rivian said the R2 is expected to initially be produced by one plant shift, followed by a second shift by the end of this year. The company said additional R2 details by model such as pricing, options and more will be available on March 12.
Rivian has made important strides with its first-generation R1 pickup and SUV, but the market for such pricey EVs, which both start in the $70,000s, has slowed. It also continues to produce an all-electric delivery van, historically purchased by its largest shareholder, Amazon.
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