US lithium-ion battery maker Enovix's Q3 prelim revenue beats estimates, helped by defense demand

Overview

• US lithium-ion battery maker's preliminary Q3 revenue rose 38% yr/yr, beating analyst expectations

• Enovix investing $19 mln to double Korean plant capacity amid rising defense demand

Outlook

• Company expects drone, defense and industrial pipeline to continue growing through 2027

• Enovix plans to double Korean plant capacity to meet increased defense demand

• Company to report first cost reduction plan results in Q3’26 report on Nov. 12

Result Drivers

• DEFENSE DEMAND - Co said surge in drone and defense demand, driven by sourcing requirements for non-Chinese batteries, boosted Q3 revenue

• PIPELINE EXPANSION - Co said drone, defense and industrial pipeline grew 18% to $216 mln, with drone pipeline up 48% in Q3

• MANUFACTURING CAPACITY - Co attributed Q3 growth to progress in expanding defense manufacturing capacity at Korean plant

Company press release: ID:nGNX5Ybtvy

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the electrical components & equipment peer group is "buy"

• Wall Street's median 12-month price target for Enovix Corporation is $10.00, about 306.5% above its October 9 closing price of $2.46

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)