CATL First-Half Profit Surges 42% on Storage Demand

CATL First-Half Profit Surges 42% on Storage Demand

Quick Reads

• CATL, the world’s biggest EV battery maker, made 42% more profit in the first half of 2026

• The growth came mainly from CATL’s energy storage business (batteries for storing solar and wind power), which grew even faster than its traditional car-battery business.

• CATL also announced it will buy back its own shares worth up to 40 billion yuan, a move meant to reassure investors after a bumpy year for Chinese EV stocks.

Net profit attributable to shareholders climbed to 43.28 billion yuan ($6.37 billion) in the six months to June, up 41.98% year-on-year, the company said in a filing with the Shenzhen Stock Exchange. Revenue rose 54.8% to 276.92 billion yuan, though the results narrowly missed analyst forecasts, according to the South China Morning Post.

The CATL first-half profit growth was driven largely by its fast-expanding energy storage unit, which posted revenue of 53.26 billion yuan, up 87.54% year-on-year, with a healthier gross margin of 23.96%. The core power battery business still dominates, generating 192.12 billion yuan, up 46.02%, but its 20.63% margin trailed storage. Overall gross profit rose 48.03% to 66.26 billion yuan.

Alongside The Earnings

CATL announced a share buyback plan worth 20 to 40 billion yuan, equivalent to roughly 10.75% of its cash holdings as of June 30. The move, pending shareholder approval, designed to shore up investor confidence after a volatile year for Chinese EV stocks.

Reuters reported that robust growth in energy storage offset softer demand in China’s increasingly crowded domestic EV market. CATL still commanded a dominant 42.70% share of China’s domestic power battery market in June, according to CnEVPost data, far ahead of closest rival BYD’s 18.49%.

The results build on a strong 2025, when full-year net profit surged 42.28% to 72.2 billion yuan on record shipments, according to Gasgoo. The Shenzhen-listed firm, traded under ticker 300750.SZ, is also expanding overseas, with plants under construction in Hungary and a supply chain project in Indonesia.

With storage demand accelerating worldwide, CATL’s diversification away from a purely EV-driven model appears to be paying off handsomely for shareholders.