Alfen (ALFEN) H2 2025 earnings summary

Executive summary

• Revenue declined 10.7% year-over-year to €435.6m in 2025, mainly due to lower EV Charging and Smart Grid Solutions sales, while operational discipline maintained a stable adjusted EBITDA margin at 5.8% of revenue.

• Company-wide transformation launched to focus on customer centricity, product excellence, and digitalisation, with cost control measures reducing personnel costs by 15.2% and other operational expenses by 21.1%.

• Net loss narrowed to €0.2m from a €27.0m loss in 2024; adjusted net profit stable at €3.2m.

• Sustainability efforts are strong, with SBTI-validated CO2 reduction targets on track and a top 9th percentile ESG ranking by Sustainalytics in 2025.

Financial highlights

• Adjusted gross margin was €122.5m (28.1% of revenue), nearly flat year-over-year, compared to €139.4m (28.6%) in 2024.

• Adjusted EBITDA was €25.5m (5.8% margin), down from €28.5m (5.8%) in 2024.

• Net debt improved to €20.7m from €32.7m at end-2024; operating cash flow was €32.5m, positively impacted by inventory reductions.

• Net working capital reduced from €92.0m to €77.0m, mainly via inventory and receivables reductions.

• CAPEX was €14.0m (3.2% of revenue), down from €24.6m (5.0%) in 2024.

Outlook and guidance

• 2026 revenue guidance is €435m–€475m, with adjusted EBITDA margin expected between 4% and 7% and CAPEX below 4% of revenue.

• 2026 is seen as a transformational year, with profitable growth targeted for 2027 and consistent year-on-year revenue and margin improvement.

• Energy Storage Systems backlog for 2026 is €122.1m, with additional orders expected soon.

• EV Charging segment expected to decline in 2026 as portfolio is renewed and competition persists.