Alfen (ALFEN) H2 2024 earnings summary

Executive summary

• 2024 revenue reached EUR 487.6 million, down 3.3% year-over-year and at the lower end of guidance, impacted by lower EV subsidies, battery price declines, and a substation moisture issue.

• Adjusted EBITDA margin was 5.8%, down from 11.3% in 2023, reflecting market headwinds and one-off costs.

• Free cash flow turned positive at EUR 21.4 million, up from negative EUR 27.2 million in 2023, mainly due to inventory reduction and project timing.

• Strategic review led to a sharpened focus on core markets (NL, BE, DE, FR, Nordics), organizational right-sizing with a 15% workforce reduction, and discontinuation of DC charging projects, delivering EUR 13.1 million in expected annual cost savings from 2025.

• Sustainability progress included 99.5% EU taxonomy-aligned revenue and SBTi-validated emission reduction targets.

Financial highlights

• Gross margin declined to 23.7% from 29.9% year-over-year, impacted by warranty provisions, inventory write-downs, and a shift in revenue mix; adjusted gross margin was 28.6%.

• Adjusted EBITDA was EUR 28.5 million, down from EUR 57.1 million in 2023, mainly due to lower gross margin and higher personnel costs.

• Adjusted net profit was EUR 2.9 million, down from EUR 30.7 million in 2023, after significant one-off adjustments.

• Free cash flow improved to EUR 21.4 million positive, driven by inventory reduction and improved working capital.

• Net debt reduced to EUR 32.7 million (including leases), down from EUR 55.1 million in 2023.

Outlook and guidance

• 2025 revenue outlook set at EUR 445–505 million, with a high single-digit adjusted EBITDA margin and CapEx below 4% of revenue.

• Medium-term (2026–2027) ambition: 5–10% annual revenue growth, adjusted EBITDA margin moving toward low double digits, and continued CapEx discipline.

• Revenue in 2025 expected to be backloaded, with stronger H2; Smart Grid Solutions to grow 5–10%, EV Charging to decline 0–10%, and Energy Storage Systems to decline 5–15%.

• Cash flow expected to remain positive in 2025, with further inventory reduction planned.