ADS-TEC Energy PLC (ADSE) Q4 2024 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call presents a mixed picture: while financial performance shows improvement with positive EBITDA and gross profit, the operating loss indicates ongoing challenges. The Q&A highlights market volatility and regulatory challenges, but also potential growth in energy trading. The convertible note and shareholder loans provide financial flexibility. However, management's lack of clarity on key projects and future revenue from energy trading raises concerns. Overall, the sentiment is neutral, with some positive financial trends offset by uncertainties and risks.
Key Financial Performance
Revenue EUR110 million for the full year 2024, up 2.5% from EUR107.4 million in 2023 due to market uncertainties and a more than 200% increase in customer base to 55 customers.
Service Revenue EUR5.6 million for 2024, nearly tripling from EUR2 million in 2023, driven by the growing base of installed fast charging solution units.
Gross Profit Positive gross profit of EUR90.4 million (70.7% margin) for 2024, a significant improvement from a negative gross profit of EUR9.2 million (-2.7% margin) in 2023, mainly due to reduced material costs and higher margins.
Operating Result Operating result of -EUR8.6 million for 2024, an improvement of EUR35.9 million compared to -EUR44.5 million in 2023.
Adjusted EBITDA Positive adjusted EBITDA of EUR2.2 million for 2024, up from -EUR38.1 million in 2023, with the change attributed to excluding inventory write-downs from the calculation.
Cash and Cash Equivalents EUR22.9 million at the end of December 2024.
Operating Cash Flow Operating cash flow improved to EUR16.3 million from -EUR20.7 million in 2023, an improvement of EUR4.4 million, with a year-to-year real comparison showing an improvement of EUR12 million.
Convertible Note Secured a convertible note of EUR50 million in May 2024.
Shareholder Loans Extended existing shareholder loans by EUR25.6 million until August 31, 2024.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
Service Revenue Growth: Service revenues almost tripled to EUR5.6 million in 2024 from EUR2 million in 2023.
New Product Launches: ChargeBox and ChargePost have been proven by real operational data from clients.
Customer Base Expansion: Customer base increased by more than 200% to 55 customers across Europe, U.S., and Canada.
New Market Opportunities: Improved momentum in North America with new customers like Parkland.
Large-Scale Projects: Developing large-scale battery projects with over 500 megawatts planned.
Cost Reduction: Cost of sales reduced by 80%, leading to a positive gross profit for the first time.
Operating Cash Flow Improvement: Operating cash flow improved from -$20.7 million to $16.3 million.
Partnership Focus: Strengthening partnerships with existing and new customers.
Business Model Shift: Transitioning to a full-service provider for infrastructure projects.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Market Volatility: The company acknowledged market volatility, particularly in the EV sector, which could impact future revenues and customer demand.
Regulatory Challenges: The CEO mentioned the need to adapt business models to changing regulations, indicating potential risks associated with compliance and market entry.
Supply Chain Issues: There were references to reduced material costs, suggesting previous supply chain challenges that needed to be addressed to improve margins.
Customer Dependency: The CFO highlighted a significant risk that arose from a major customer's business difficulties, which the company mitigated by acquiring affected end customers directly.
Financial Stability: Despite achieving positive gross profit and adjusted EBITDA, the company still reported an operating loss, indicating ongoing financial challenges.
Investment Risks: The company is planning to invest in operating units and expand its business model, which carries inherent risks related to capital allocation and market acceptance.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Customer Base Growth: Increased customer base by over 200% to 55 customers across Europe, U.S., and Canada.
Service Revenue Growth: Service revenues almost tripled to EUR5.6 million, indicating a significant growth in recurring revenue.
Partnership Focus: Strengthening partnerships with existing and new customers is a key strategic initiative.
Multi-Revenue Streams: Focus on a long-term resilient business model with multiple revenue streams, including charging, energy trading, and advertisement.
CNI Projects: Renewed focus on commercial, industrial, and utility scale battery projects, with plans for large-scale projects in 2025.
Own-and-Operate Business Model: Transitioning to a full-service provider model, where ADS-TEC will finance, operate, and own infrastructure projects.
Revenue Expectations: Achieved revenue of EUR110 million for 2024, a 2.5% increase from EUR107.4 million in 2023.
Profitability Outlook: First-time positive gross profit and adjusted EBITDA reported for 2024.
Service Revenue Projections: Service revenue expected to continue growing due to an increased install base.
Financial Resources: Secured EUR50 million convertible note and extended shareholder loans, providing sufficient financial resources for growth.
Operating Cash Flow: Improved operating cash flow from minus EUR20.7 million to EUR16.3 million.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Convertible Note: The company secured a convertible note in the aggregate principal amount of EUR50 million in May 2024.
Shareholder Loans: Existing shareholder loans were extended for one third of the year until August 31st, providing an additional EUR25.6 million as a credit line.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:What are some challenges and opportunities for companies like ADS-TEC?
A:The opportunities remain the same, with ongoing transformation in the EV market and increasing demand for flexibility in energy systems. Challenges include diverse regulations across regions and some market segments experiencing delays.
Q:How do we see the competition with regard to the large corporations in the same business?
A:ADS-TEC positions itself as a partner to utilities rather than a competitor. The focus is on enabling others to participate in the business rather than competing directly with large corporations.
Q:Can you provide some view on the financials for the large 500-megawatt project? Who has this been signed with?
A:The project is under development and not yet signed. The first step of securing sites has been completed, and the next step involves applying for grid access.
Q:Could you expand on how the EUR50 million financing will only result in the number of new shares?
A:The financing involves a convertible note that will be exchanged for shares, with the price determined in the coming months.
Q:Given the change in strategy, will it impact the numbers short-term? Should we expect weaker short-term financials?
A:There is no change in strategy; ADS-TEC remains an eco-platform provider. The extension of business may lead to changes in revenue development, but it is not a shift in the business model.
Q:Could you share how many operational charges you acquire and the deal where you acquired your customers?
A:Details are under NDA, but the first sites will be in the range of 100 to 500.
Q:In a year or two, how much of the revenues do you see coming from power or energy trading?
A:It's hard to predict, but flexibility in the market is expected to grow, and there will be a bigger market for flexibility.
Q:Review of Unclear Management Responses
A:Management avoided providing specific details on the financials for the large 500-megawatt project, stating it is under development and not yet signed. They also did not provide a clear estimate on how much revenue would come from energy trading in the future.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Act disclaimer
America colleague
America example
Berndt Bülow
Bülow CFO
Bülow Chief
CFO financials
CNI commercial
CNI utility
Canada Customer
Canada potential
Communication Berndt
Customer case
ET Welcome
EVs election
Energy Berndt
Energy event
Energy grid
Energy result
Europe Canada
Litigation Reform
Officer Results
Parkland customer
Porsche battery
Private Securities
QA review
Reform Act
Results Conference
advertisement
charge post
client partner
ecosystem
energy trading
focus
project
stack
utility scale
ADSE Transcript
ADS-TEC Energy PLC (ADSE) Q4 2024 Earnings Call Transcript
Unknown5-12
The earnings call presents a mixed picture: while financial performance shows improvement with positive EBITDA and gross profit, the operating loss indicates ongoing challenges. The Q&A highlights market volatility and regulatory challenges, but also potential growth in energy trading. The convertible note and shareholder loans provide financial flexibility. However, management's lack of clarity on key projects and future revenue from energy trading raises concerns. Overall, the sentiment is neutral, with some positive financial trends offset by uncertainties and risks.
ADS-TEC Energy PLC (ADSE) Q2 2024 Earnings Call Transcript
Unknown9-12
While the company showed strong revenue growth and improved financial metrics, challenges such as regulatory issues, supply chain difficulties, and rising electricity costs pose risks. The lack of a shareholder return plan and unclear management responses in the Q&A further contribute to uncertainty. Despite these concerns, the optimistic outlook for the U.S. market and achieving breakeven cash flow balance the sentiment, resulting in a neutral stock price prediction.
ADS-TEC Energy PLC (ADSE) Q4 2023 Earnings Call Transcript
Positive4-30
The earnings call presents a mixed but overall positive outlook. Revenue growth is strong, especially in the U.S., and the company has optimistic guidance for 2024. However, challenges like supply chain issues and regulatory hurdles persist. The Q&A highlights strategic U.S. expansion and local manufacturing plans, which are positive indicators. Despite some management ambiguities, the strong revenue and EBITDA improvements, coupled with a robust backlog, suggest a positive stock reaction.
ADSE Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
