Kempower (KEMPOWR) Q4 2024 earnings summary

Executive summary

• Q4 2024 was the strongest quarter of the year, with revenue of EUR 71.7 million, positive operative EBIT of EUR 0.8 million, and the second highest order intake ever at EUR 67.8 million, ending a challenging year on a high note.

• North America revenue grew 84% year-over-year, now contributing 15% of total order intake and gaining market share.

• Strategic progress included a full transition to the next-generation charging platform and successful pilot deliveries of Megawatt Charging Systems.

• 66 significant new customers were onboarded in 2024, expanding the customer base and strengthening future growth prospects.

• Organizational changes, leadership reform, and cost reductions position the company for future growth.

Financial highlights

• Q4 revenue was EUR 71.7 million (down 13% year-over-year), the highest quarterly revenue in 2024; full-year revenue declined 21% to EUR 223.7 million.

• Q4 order intake reached EUR 67.8 million, up year-over-year and the second highest in company history.

• Q4 2024 operative EBIT was EUR 0.8 million (margin 1.1%); full-year 2024 operative EBIT was EUR -26.4 million (margin -11.8%).

• Positive operating cash flow of EUR 12.4 million was generated in Q4, supported by profit and reduced net working capital.

• Inventory levels were reduced by EUR 6.1 million in Q4; order backlog at year-end was EUR 95.0 million.

Outlook and guidance

• Revenue for 2025 is guided to grow between 10% and 30% from EUR 223.7 million, with significant improvement in operative EBIT expected, though Q1 2025 will be negative.

• Market conditions in H1 2025 are expected to remain challenging due to excess customer inventories, with recovery anticipated in H2 2025.

• Long-term targets remain unchanged: EUR 750 million annual revenue by 2028 and operative EBIT margin of 10–15% between 2026–2028, with a minimum 15% margin long-term.

• No dividends planned in the short term.