VNET Group, Inc. Sponsored ADR (217A) Q2 2026 Earnings Report

The call presented a predominantly positive operational and financial picture: strong order intake (862 MW YTD), robust wholesale capacity and utilization growth (capacity +49.4% YoY; utilized capacity +45.5% YoY), solid revenue (+14.2% YoY) and sizable adjusted EBITDA growth (+25.4% YoY), improved liquidity and a strategic partnership with CATL. Notable risks include a slight decline in cash gross margin (41.8% vs 43.6% YoY), sizable near-term CapEx needs (RMB 10–12 billion guidance), customer concentration in recent bookings, and industry supply constraints and overseas project cost considerations. On balance, the highlights significantly outweigh the lowlights given accelerating demand, strong backlog and profitability improvements.

VNET reiterated its 2026 outlook, guiding total net revenues of RMB 11.5–11.8 billion (up 15.6%–18.6% YoY) and adjusted EBITDA of RMB 3.55–3.75 billion (up 19.2%–25.9% YoY), with full‑year CapEx expected at RMB 10–12 billion to support planned 2026 deliveries of roughly 450–500 MW; the company has already delivered 117 MW in H1 2026 and expects ~333 MW in H2 2026 (585 MW total over the next 12 months, ~252 MW in H1 2027), while reinforcing strong wholesale demand and a faster move‑in pace in H2; management also highlighted YTD order momentum and backlog visibility (862 MW YTD orders, 355 MW reservations, >1.2 GW orders+reservations and a recent order delivery schedule of ~287 MW in 2026, 345 MW in 2027 and 230 MW in 2028+).