Cavendish Hydrogen (CAVEN) Q2 2024 earnings summary

Executive summary

• Listed on the Oslo Stock Exchange on June 12, 2024, following a spin-off from Nel Hydrogen, with EUR 2.6 million in non-recurring costs related to the listing.

• Achieved a record high of seven hydrogen station installations in Q2 2024, totaling nine in the first half of the year.

• Acquired a strategically located site near Herning, Denmark, for high-capacity pilot station testing to support next-generation product development.

• Well-funded with a cash balance of EUR 53.6 million at quarter-end, supported by a capital increase from Nel ASA.

• Maintains a strong position to target the heavy-duty fueling market and benefit from regulatory and market tailwinds.

Financial highlights

• Q2 2024 revenue rose 38% year-over-year to EUR 9.2 million (Q2 2023: EUR 6.7 million); H1 2024 revenue was EUR 18.9 million.

• EBITDA improved to EUR -6.6 million from EUR -6.7 million; adjusted EBITDA at EUR -4.0 million excluding non-recurring IPO costs.

• Net loss narrowed to EUR -7.9 million from EUR -10.3 million year-over-year; H1 2024 net loss was EUR -14.0 million.

• Order intake dropped 70% year-over-year to EUR 5.1 million; order backlog at quarter end was EUR 25.6 million, down 39% year-over-year.

• Net cash flow from operating activities was EUR -15.5 million in Q2 2024.

Outlook and guidance

• Next-generation high-capacity hydrogen fueling stations for heavy-duty vehicles expected to be available for sale in 2025.

• Profitability and positive EBIT are expected through increased volumes and new product introduction, but no specific timing for positive EBIT was provided.

• H2 2024 equipment sales expected to match H1, with slightly lower installation and commissioning activity.

• Cavendish aims to capture 15% of the high-capacity hydrogen fueling market in Europe and the Americas over time.

• Positioned to capture growth from EU's AFIR regulation, with 428 high-capacity stations supported by EUR 1.5 billion in subsidies through 2030.