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.

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

• Adjusted EBITDA margin dropped to 6.8% from 12.7% in Q3 2023, reflecting tempered growth in EV charging and energy storage.

• Cost-saving and rightsizing measures are underway, targeting up to 15% workforce reduction, with P&L impact expected from January 2025 and a restructuring provision to be booked in Q4 2024.

• New financing arrangement secured with the bank, providing more flexibility on covenant calculations from 2025.

Financial highlights

• Q3 2024 revenue: €106.2 million, down 22% year-over-year.

• Gross margin: 32.7%, up from 29.4% in Q3 2023, aided by a one-off in energy storage.

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

• Free cash flow: €1.6 million positive in Q3, improved from H1.

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

Outlook and guidance

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

• Adjusted EBITDA margin for 2024 projected at mid-single digit; negative but improved full-year cash flow versus 2023.

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

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