PowerCell (PCELL) Q3 2025 earnings summary

Executive summary

• Achieved 90% revenue growth in Q3 year-over-year and over 50% growth year-to-date, with continued positive EBITDA on a rolling 12-month basis.

• EBITDA remains positive on a rolling 12-month basis, despite absorbing 5 MSEK in restructuring costs.

• Maintained industrial stability and operational resilience, completing major deliveries and ramping up production for large marine and power generation projects.

• Strategic investments in new product platforms and organizational changes position the company for future growth.

• Consolidation of product platforms and management structure has streamlined operations, enabling growth without cost-based inflation.

Financial highlights

• Q3 2025 net sales: 85.8 MSEK (71.9), up 19% year-over-year; gross profit: 33.1 MSEK (23.1), gross margin 38.6% (32.1%).

• YTD net sales: 289.9 MSEK (190.2), up 52%; gross profit: 140.7 MSEK (58.6), gross margin 48.5% (30.8%).

• Gross margin improved, supported by a significant Q2 Bosch IP deal, though this high level is not expected to persist in the near term.

• EBITDA nearly break-even at minus $2 million, despite a $5 million provision for reorganization.

• Operating cash flow impacted by working capital tied up in large project deliveries, with expected improvement as deliveries are completed.

Outlook and guidance

• Entering Q4 2025 with a strong foundation, healthy margins, and a stable order backlog.

• Confident in maintaining break-even at SEK 400 million revenue, with plans to operate 2026 on a lower overhead cost base.

• Enhanced product offerings for power generation and data centers to be introduced in Q4, targeting more price-sensitive segments.

• Growth expected to continue, driven by regulatory clarity and proven delivery capacity.

• Continued focus on OEM contracts and scaling existing product generation, while investing in next-generation fuel cell technology.