CATL posted a sharp increase in first-half earnings for 2026 and announced plans for one of its largest-ever share repurchase programs, underscoring confidence in its financial position as demand for battery technologies continued to expand.
The Chinese battery manufacturer reported net profit attributable to shareholders of 43.28 billion yuan ($6.37 billion) for the six months ended June 30, up 41.98% from the same period a year earlier. Revenue climbed 54.80% year over year to 276.92 billion yuan, according to the company’s interim financial results.
Energy Storage Becomes Larger Growth Engine
While power batteries remained CATL’s primary business, the energy storage segment continued to outpace it in growth.
Revenue from power battery products rose 46.02% to 192.12 billion yuan during the first half, generating a gross margin of 20.63%.
Meanwhile, the energy storage business recorded revenue of 53.26 billion yuan, an increase of 87.54% from a year earlier. Gross margin for the segment reached 23.96%, higher than that of the company’s power battery operations.
Overall gross profit increased 48.03% to 66.26 billion yuan. Gross margin edged down to 23.93%, compared with 25.02% in the first half of 2025.
Net profit excluding non-recurring items rose 43.44% to 39.01 billion yuan.
Operating activities generated net cash inflows of 60.22 billion yuan, while basic earnings per share increased 37.43% to 9.51 yuan. Weighted average return on equity improved to 12.08%.
At the end of June, CATL reported total assets of 1.14 trillion yuan and cash reserves of 372.05 billion yuan. Its debt-to-asset ratio stood at 63.65%.
Buyback to Reduce Share Capital
CATL’s board also approved a proposal to repurchase between 20 billion yuan and 40 billion yuan of A-shares through open-market transactions.
The company set a maximum repurchase price of 573 yuan per share. Based on the upper limit of the program, CATL estimates it could buy back approximately 69.81 million shares, representing about 1.51% of its issued share capital.
Rather than holding the shares as treasury stock, CATL said the repurchased shares will be canceled.
The company said the move is intended to reduce registered capital, enhance earnings per share and improve long-term shareholder returns.
Even if the full 40 billion yuan authorization is used, CATL said the expenditure would account for only about 10.75% of its cash holdings as of June 30 and would not materially affect its financial position or day-to-day operations.
The repurchase plan is subject to shareholder approval and, if approved, is expected to be completed within 12 months.
Source: EVMagz