Ebusco Holding (EBUS) H1 2024 earnings summary

Executive summary

• Delivered 98 buses in H1 2024, including first Ebusco 3.0 units from contract manufacturers; order book stands at 1,662 buses.

• Operational challenges included start-up inefficiencies and liquidity constraints, leading to delayed deliveries and missed revenue.

• Executive team reshaped with new Co-CEO, COO, and CCO; Turnaround Plan announced to address operational and financial challenges.

• H1 2024 revenue was €38.0 million, down from €41.7 million in H1 2023, with significant operational and financial underperformance.

• Net loss for the period was €64.7 million, compared to a €35.8 million loss in H1 2023.

Financial highlights

• Revenue for H1 2024 was €38.0 million, significantly below plan, mainly due to production delays and lower deliveries.

• EBITDA loss widened to €60.7 million from €43.5 million in H1 2023; net loss increased to €64.7 million.

• Gross margin was -31.6%, impacted by penalties and onerous contract costs; normalized gross margin would have been 19%.

• Cash and cash equivalents at period end were €8.2 million; inventories at €113.1 million.

• Cash outflow from operations was €0.1 million, significantly less than EBITDA loss due to timing of revenue recognition.

Outlook and guidance

• Guidance for 2024 was withdrawn due to production inefficiencies and liquidity restraints; new guidance to be provided in Q3 update and Capital Markets Day.

• Turnaround plan targets operational simplification, supply chain reactivity, and OpEx reduction by €20–30 million.

• Gradual improvement in production rate to 40–50 buses per month targeted for 2025.

• Further details and guidance to be provided at the November 2024 capital markets day.

• Revenue recognition policy shift: more contracts to be recognized at point of delivery, impacting timing of future revenues.