Rivian reduces 2026 spending plans, narrows earnings guidance
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- Rivian reduced 2026 capital expenditure guidance to $1.7B–$1.8B (from $1.95B–$2.05B) and narrowed its 2025 adjusted loss forecast to $1.8B–$2B (from $1.8B–$2.1B), calling the $250M capex cut at the midpoint a result of "project efficiencies and timing of spend."
- Rivian's Q2 beat expectations, with an adjusted loss of 47 cents per share versus the 63-cent loss analysts expected and revenue of $1.66B versus $1.51B expected.
- Rivian's gross profit flipped to $179M positive from a $206M loss a year earlier, split between a $36M automotive segment loss and a $215M profit from software and services.
- Rivian began delivering its midsize R2 SUV during the quarter and is ramping production at its Normal, Illinois plant, which has 160,000 units of annual capacity.
- CEO RJ Scaringe said R2 will reach per-unit profitability this year but that Rivian needs more scale than the 160,000-unit plant capacity to achieve overall profitability.
- Rivian's net loss attributable to common stockholders narrowed to $837M ($0.63/share), a $278M year-over-year improvement, while automotive revenue climbed 23% on a 14% rise in deliveries and a $103M increase in regulatory credit revenue.
- Rivian's cash position rose to an estimated $5.3B from $4.8B at the end of Q1, with the company expecting $1B in non-recourse debt financing from its Volkswagen Group software deal and a $250M equity investment from its Uber partnership later this year.
Why it matters: Rivian's $250M cut to 2026 capex signals a cheaper path to R2 scaling, but Scaringe's own caveat that the 160,000-unit plant capacity is insufficient for company-wide profitability tempers the bullish read. The $278M narrowing of net losses was structurally driven by software services ($215M profit) subsidizing an automotive segment that remains in the red.
