Alfen (ALFEN) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 revenue declined 22% year-over-year to €106.2 million, mainly due to lower energy storage revenue and market softness in EV charging.

• Gross margin improved to 32.7% from 29.4% in Q3 2023, driven by a positive one-off timing effect in energy storage.

• Adjusted EBITDA margin dropped to 6.8% from 12.7% in Q3 2023, reflecting a cost base outpacing revenue and tempered growth in key segments.

• Organizational right-sizing and cost-saving programs, including up to 15% workforce reduction, are underway, with a restructuring provision to be booked in Q4 2024.

• New financing arrangement with the bank provides more flexibility on covenant calculations from 2025.

Financial highlights

• Q3 2024 revenues: €106.2 million, down 22% year-over-year; gross margin: 32.7% (Q3 2023: 29.4%).

• Adjusted EBITDA: €7.2 million (6.8% margin), down from €17.3 million (12.7%) in Q3 2023.

• Free cash flow was positive at €1.6 million for Q3, aided by tax receivables and slight inventory reduction.

• Q3 ending backlog stood at €83.6 million, up from €72.4 million in Q2.

Outlook and guidance

• Full-year 2024 revenue expected at the low end of €485–520 million due to EV market softness.

• Adjusted EBITDA margin for 2024 guided to mid-single digits; negative full-year cash flow expected but improved from 2023’s -€27.2 million.

• Limited revenue growth anticipated for 2025, with continued softness in EV charging and energy storage.

• One-off restructuring provision to be taken in Q4 2024.