How BYD (Boyd Gaming) Makes Money in 2026: A Deep-Dive With Income Statement

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Understanding how a leading electric vehicle and battery manufacturer like BYD makes money is essential for investors and anyone interested in the business of new energy vehicles and advanced batteries. In this post, we break down BYD's quarterly income statement (Q4 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick BYD Overview

BYD operates as a global leader in electric vehicles (EVs), rechargeable batteries, and photovoltaic products, with a vertically integrated business model spanning manufacturing, R&D, and sales. Revenue comes primarily from its core operations in EVs, batteries, and related new energy solutions, consolidated under "Other" in segment reporting for this period. The company benefits from strong demand in China and expanding international markets, supported by its proprietary Blade Battery technology and cost-efficient production.

Revenue Breakdown

• Total Revenue (Q4 2025): $1.06B (+2.0% YoY)
  • Other: $1.06B (100% of total)
  • Growth is powered by steady demand for EVs and batteries amid global electrification trends, despite segment-specific reporting showing all revenue consolidated.

Gross Profit and Margins

• Gross Profit: $0.20B (19.3% gross margin)
  • Cost of Revenue: $0.86B (+73.8% YoY)
  • BYD maintains robust margins due to its scalable manufacturing, vertical integration in battery production, and economies of scale in EV assembly.
• Most costs come from raw materials, direct labor in vehicle and battery production, and supply chain logistics.

Operating Income and Expenses

• Operating Income: $0.29B (+12.8% YoY, 27.8% margin)
• Operating Expenses: $0.09B (+0.0% YoY)
  • R&D: Not specified
  • SG&A: $0.17B (+18.6% YoY, 15.6% of revenue) — Covers sales efforts, administrative overhead, and general management to support global expansion.
  • BYD continues to prioritize innovation while maintaining efficiency in core operations and expanding sales infrastructure.

Net Income

• Pre-Tax Income: $0.14B (-34.1% YoY, 13.4% margin)
• Income Tax: $0.004B (2.5% effective tax rate)
• Net Income: $0.14B (-17.7% YoY, 13.2% net margin)
• BYD converts a significant portion of sales into profit due to operational efficiencies, pricing power in the EV market, and low tax burden.

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What Drives BYD's Money Machine?

• Core Operations (Other): 100% of revenue, driven by EV sales, battery production, and energy storage solutions.
• Gross Margin Strength: 19.3% reflects cost controls and high-volume production of competitive EVs like the Atto and Seal models.
• R&D and Expansion Investments: Heavy focus on next-gen batteries and international plants to capture global market share.
• International Growth Areas: Overseas EV exports and partnerships, though margins may vary due to tariffs and localization efforts.

Visualizing BYD's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A) and cost of revenue taking the largest chunks.
• Even after significant costs like other expenses $0.13B and net interest $0.02B, 13.2% of revenue drops to the bottom line.

Key Takeaways

• BYD's money comes overwhelmingly from core operations in EVs and batteries.
• High gross and net margins illustrate the power of BYD's vertically integrated business model.
• Heavy investment in SG&A for expansion, balanced by efficiency in operating costs.
• Ongoing growth is driven by global EV adoption and battery technology leadership.

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FAQ About BYD's Income Statement

1. What is the main source of BYD's revenue in 2025?

BYD generates over 100% of its revenue from core operations (Other). This encompasses electric vehicles, batteries, and energy solutions.

2. How profitable is BYD in Q4 2025?

BYD reported net income of $0.14B in Q4 2025, with a net margin of approximately 13.2%, reflecting strong profitability driven by gross margin expansion and cost efficiencies.

3. What are the largest expense categories for BYD?

The biggest expenses on BYD's income statement are operating expenses, particularly Sales, General & Administrative (SG&A) costs and cost of revenue. SG&A investment reached $0.17B in Q4 2025, as BYD prioritizes global sales expansion and administrative scaling.

4. Why does Other operate at a loss?

Not applicable; Other generated $1.06B in revenue with overall profitability, as costs were managed effectively despite high cost of revenue growth.

5. How does BYD's effective tax rate compare to previous years?

BYD's effective tax rate in Q4 2025 was 2.5%, lower than typical corporate rates. This low rate is primarily due to tax incentives for new energy sectors, international structuring, and R&D credits in key markets like China.