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01/11 10:50
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reflects a positive sentiment overall, with improvements in cost management, EBITDA, and inventory reduction. The company shows strong growth in software and services, and strategic partnerships with Generac and Kia are progressing. Despite some regional revenue challenges, the guidance indicates stable financials with a focus on future growth. The Q&A session highlights promising developments in product offerings and market expansion, with no evasive responses. The positive factors outweigh the negatives, suggesting a likely positive stock price movement.
Q2 revenue EUR 38.3 million, within the EUR 37 million to EUR 39 million guidance range, up 2% compared to last quarter but down 22% from a record high Q2 last year. The decline was attributed to weaker performance in Europe compared to the record high quarter last year, despite some positive outliers in certain countries.
Gross margin 37.8% in the second quarter, within the 37% to 39% guided range. It remained stable compared to last quarter due to a similar revenue mix. Opportunities for future improvement include reducing inventory and reviewing Bill of Material costs.
Labor costs and operating expenses EUR 24.3 million, down 3% compared to last quarter and declined 25% compared to the same period last year. Cash costs, excluding R&D activation, non-cash items, and one-off expenses, achieved a 35% year-over-year reduction. The improvement is attributed to organizational efficiency and cost optimization.
Adjusted EBITDA Minus EUR 7.5 million, within the guided range and reflecting a small improvement compared to last quarter. Year-over-year, adjusted EBITDA improved 33%. The improvement is due to consistent organizational efficiency improvements.
Europe revenue contribution EUR 26.1 million, or 68% of total revenue, reflecting a soft performance but with quarter-over-quarter improvement. The European EV market showed 30% growth year-over-year, but Wallbox's performance varied across countries.
North America revenue contribution EUR 11.4 million, or 30% of total revenue, consistent with last quarter. The EV market in the region decreased 5% year-over-year, but Wallbox continued to grow through partnerships and new product deliveries.
APAC and LatAm revenue contribution APAC contributed approximately EUR 260,000 (1%) and LatAm EUR 550,000 (1%) for the quarter. These regions are not top priorities but have significant future potential.
AC sales EUR 26.6 million, representing 69% of global consolidated revenue, with a 4% improvement compared to last quarter but down 18% year-over-year. The decline is attributed to weaker performance in Europe compared to the record high quarter last year.
DC sales EUR 4.2 million, or 11% of sales, consistent with last quarter but down compared to the same quarter last year. The decline is attributed to a conservative approach from CPO customers regarding infrastructure roll-out, but backlog growth indicates future improvement.
Software, services, and others EUR 7.6 million, or 20% of total revenue, growing 27% year-over-year. The growth was driven by strong software performance, particularly Electromaps, and increased demand for public charging in Europe.
Inventory EUR 56.6 million, reflecting a 33% decrease year-over-year and 11% compared to last quarter. The reduction is attributed to better operational efficiency and cash release.
Loans and borrowings Approximately EUR 182 million, comprising EUR 80 million in long-term debt and EUR 102 million in short-term debt. Total debt decreased EUR 18 million (9%) compared to last quarter, due to lower use of working capital facilities and debt repayments.
Quasar 2: First units installed in Menifee, California, as part of a collaboration with Kia and the University of California, Irvine. This product supports bi-directional charging, offering features like back-up power and smart charging.
Pulsar Pro Socket and Pulsar Max Socket: Orders received from Rexel, Sonepar, Libra, and others, indicating ramping up of sales.
European Market: Revenue of EUR 26.1 million, contributing 68% of total revenue. Strong growth in Spain and Italy, with a collaboration with PowerGo to deploy EV charging solutions in the Netherlands.
North American Market: Revenue of EUR 11.4 million, contributing 30% of total revenue. Partnerships with Stellantis, Florida Power & Light, Ensol, and Generac. Expansion of partnership with Ensol into DC fast charging.
Operational Efficiency: Labor costs and operating expenses down 25% year-over-year. Cash costs reduced by 35% year-over-year. Inventory reduced by 33% year-over-year.
Gross Margin: Stable at 37.8%, with future improvements expected through better Bill of Materials and price increases in certain regions.
Smart Energy Solutions: Launched virtual power plants in California and New York through a partnership with Leap, enabling users to earn incentives by contributing to grid flexibility.
Geographical Diversification: Focus on Europe and North America due to market dynamics, while deprioritizing APAC and LatAm regions.
Revenue Decline: Q2 revenue was down 22% from a record high Q2 last year, indicating challenges in maintaining growth momentum.
European Market Performance: While Europe showed some recovery, the performance was inconsistent across countries, with weak results in certain areas despite overall market growth.
North American Market Challenges: The EV market in North America declined by 5% year-over-year, and the region faces potential impacts from the removal of key subsidies like the 30D tax credit and changing emission policies.
DC Sales Weakness: DC sales have been the weakest link compared to the same quarter last year, reflecting challenges in this product segment.
Operating Expenses: A slower than expected decrease in operating expenses impacted Q2 results, with unexpected additional freight, duty, and tariff costs.
Debt Levels: The company has EUR 182 million in loans and borrowings, with a significant portion being short-term debt, which could pose liquidity risks.
Inventory Management: While inventory levels have decreased, the company still holds EUR 56.6 million in inventory, which could tie up cash flow.
Market Volatility: The company faces regional EV market volatility, requiring a flexible and resilient organizational structure to adapt to changing dynamics.
Profitability Challenges: Despite improvements, the company remains unprofitable with an adjusted EBITDA loss of EUR 7.5 million in Q2.
Regulatory and Policy Risks: Changing emission policies and the removal of subsidies in key markets like the U.S. could adversely impact future growth.
Revenue Expectations: For Q3 2025, revenue is expected to be in the range of EUR 38 million to EUR 41 million.
Gross Margin Projections: Gross margin is projected to be between 37% and 39% for Q3 2025.
Adjusted EBITDA: Negative adjusted EBITDA is expected to be between EUR 6 million and EUR 4 million for Q3 2025.
European Market Growth: The European EV market is recovering strongly, with 30% year-over-year growth in Q2 2025. Wallbox expects incremental growth opportunities in this region for the upcoming quarters.
North American Market Outlook: North America remains a key contributor, with consistent performance and growth opportunities through partnerships. However, the region faces potential volatility due to the removal of key subsidies and changing emission policies.
DC Sales Outlook: DC sales have stabilized and are expected to improve in the upcoming quarters, supported by backlog growth and new partnerships.
Software and Services Growth: Software and services, including Electromaps, are performing well, with 27% year-over-year growth. This category is expected to continue contributing significantly to overall business performance.
Quasar 2 and Smart Energy Solutions: The launch of Quasar 2 and virtual power plants in California and New York are expected to drive future growth and innovation in energy solutions.
Operational Efficiency and Profitability: Wallbox is focused on achieving adjusted EBITDA breakeven through continuous organizational efficiency improvements and expected revenue growth in the coming quarters.
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The earnings call revealed several negative factors: operational challenges in Europe, significant debt with uncertain stability, and negative adjusted EBITDA below guidance. Despite some growth in DC sales and improved gross margins, the overall financial performance was lackluster, with subdued revenue growth and product transition risks. The Q&A highlighted market share challenges and uncertainty around debt resolution. These factors, combined with the missed revenue guidance, suggest a negative stock price reaction in the short term.
The earnings call reflects a positive sentiment overall, with improvements in cost management, EBITDA, and inventory reduction. The company shows strong growth in software and services, and strategic partnerships with Generac and Kia are progressing. Despite some regional revenue challenges, the guidance indicates stable financials with a focus on future growth. The Q&A session highlights promising developments in product offerings and market expansion, with no evasive responses. The positive factors outweigh the negatives, suggesting a likely positive stock price movement.
The earnings call highlights strong financial performance, with improved gross margins and reduced costs. Strategic partnerships with Nissan and Francis Energy, along with new product launches, signal growth potential. Despite competitive pressures and regulatory challenges, the company's operational efficiency and cost management initiatives are promising. The Q&A section reveals positive sentiment towards market opportunities and product mix improvements. Although there are concerns about debt and inventory, the optimistic guidance and strategic initiatives suggest a positive stock price movement in the short term.
The earnings call highlights several challenges: EV market slowdown, competitive pressures, regulatory issues, and supply chain challenges. Despite some financial improvements, gross margins are below target, and significant debt remains. The Q&A section reveals uncertainty regarding profitability and cash flow, with vague management responses on capital needs. The shareholder return plan includes a capital raise, which may dilute value. Overall, the negative factors outweigh the positives, suggesting a likely negative stock price movement.
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