Rivian Automotive RIVN reported a fourth-quarter 2024 loss of 52 cents per share, narrower than the Zacks Consensus Estimate of a loss of 66 cents per share as well as the year-ago period’s loss of $1.36. Revenues of $1.73 billion beat the Zacks Consensus Estimate of $1.43 billion and increased 31.9% on a year-over-year basis, fueled by higher sales of regulatory credits to other automakers, growth in software and services revenues, and a rise in R1’s average selling price due to the expanded availability of its Tri-Motor variant.

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Key Q4 Highlights of RIVN

Rivian recorded a total production of 12,727 units in the reported quarter, down from 17,541 units in the year-ago quarter. The company delivered a total of 14,183 units, up from 13,972 units a year ago.

Total gross profit amounted to $170 million, as against a gross loss of $606 million in the prior-year quarter. The gross margin for the reported quarter was 10%. Total adjusted operating expenses were $620 million, down from $706 million in the prior-year quarter. Adjusted loss before interest, taxes, depreciation and amortization was $277 million, marking a major improvement from the $1 billion loss incurred in the fourth quarter of 2023.

Net cash from operating activities for the reported quarter was $1.18 billion, compared to a negative $1.11 billion for the same period of 2023. Capital expenditures for the fourth quarter were $327 million as compared to $298 million for the same period last year. Free cash flow in the fourth quarter was $856 million.

RIVN's Q4 Segmental Performance

The Automotive segment recorded revenues of $1.52 billion and increased 31.9% year over year, driven primarily by solid vehicle delivery and a strong pricing mix. The total cost of revenues of this segment in the fourth quarter was $1.41 billion, down 22.5% on a year-over-year basis. The segment generated a gross profit of $110 million in the reported quarter, compared to a gross loss of $611 million in the prior-year quarter.

The Software and Services segment recorded revenues of $214 million and doubled year over year, primarily due to remarketing sales, repair and maintenance services, and new vehicle electrical architecture and software development services provided by the joint venture of Rivian and Volkswagen Group. The total cost of revenues of this segment in the fourth quarter amounted to $154 million and increased 51% on a year-over-year basis. The segment generated a gross profit of $60 million for the fourth quarter compared to $5 million for the same quarter in 2023.

Financial Position of RIVN

Rivian had $5.29 billion in cash and cash equivalents as of Dec. 31, 2024, compared to $7.86 billion as of Dec. 31, 2023. Long-term debt was $4.44 billion as of Dec. 31, 2024, compared to $4.43 billion as of Dec. 31, 2023.

2025 Guidance

In 2025, RIVN expects to deliver 46,000 to 51,000 vehicles. Adjusted EBITDA is expected to remain negative, in the band of $1.7 billion to $1.9 billion. Capital expenditures are expected to be between $1.6 billion and $1.7 billion. 

RIVN's Zacks Rank and Key Picks

RIVN currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space are Dana DAN, Garrett Motion GTX and Custom Truck One Source CTOS. DAN, GTX and CTOS carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

The Zacks Consensus Estimate for DAN’s 2025 earnings has moved north 15.4% over the past 30 days and suggests year-over-year growth of 79.17%. It is currently pegged at $1.50 per share.

The Zacks Consensus Estimate for GTX’s 2025 earnings has moved up by 1 cent over the past 30 days and suggests year-over-year growth of 17.92%. It is currently pegged at $1.25 per share.

The Zacks Consensus Estimate for CTOS’ 2025 loss has remained steady at 5 cents per share over the past 90 days and suggests year-over-year growth of 75.05%.

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