LION E Mobility (LMIA) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues improved over Q1, with Q2 and H1 revenues at €4.8 million and €6 million, respectively, despite ongoing EV sales slowdown and high pressure on battery cell and module markets.

• Margins improved sequentially, but EBITDA remained negative at -€2.1 million in Q2.

• Operating cash flow needs reduced in H1 2024 due to increased revenues, with H1 operating cash flow at -€4.7 million.

• The company remains focused on high-quality battery packs and the LIGHT Battery project, avoiding price competition.

• The electric storage and vehicle markets faced headwinds from Chinese oversupply and slowing EV demand, impacting order volumes.

Financial highlights

• Q2 2024 revenue reached €1.2 million, up from Q1 2024.

• Q2 gross margin was positive, with H1 gross margin at nearly 11%.

• EBITDA for Q2 was -€2.1 million, totaling -€4.7 million for H1.

• Operating expenses rose to €2.8 million in H1, driven by investments in R&D and market development.

• 1H 2024 result was a net loss of -€4.8 million, compared to -€1.0 million for FY 2023.

Outlook and guidance

• Management expects improved sales and cash flow in H2 2024 and 2025, with bullish sentiment for a market rebound.

• Guidance for 2024 was adjusted downward, with no specific midterm targets due to market uncertainty and pending LIGHT Battery results.

• EBITDA break-even remains a target, but a negative full-year EBITDA is possible.

• Further guidance will depend on the success of the immersion-cooled LIGHT Battery and market developments.