Forsee Power (FORSE) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 54% to €171.2m, exceeding the €160m initial target; Heavy Vehicles drove growth, while adjusted EBITDA loss narrowed to €6.8m.

• Consolidated net loss improved to €28.0m from €32.6m; operating loss was €23.2m.

• 2024 guidance: revenue of €180m–€200m and adjusted EBITDA expected to reach break-even; previously communicated 2028 targets were withdrawn.

Financial highlights

• Revenue was €171.2m versus €111.0m in FY2022, up €60.2m; Heavy Vehicles contributed €145.4m and Light Vehicles and Industrial Tech €25.8m.

• Adjusted EBITDA loss improved to €6.8m from €13.0m under the revised definition; adjusted EBITDA margin improved to (4)% from (12)%.

• Operating loss narrowed to €23.2m from €30.1m; consolidated net loss narrowed to €28.0m from €32.6m.

• Net financial expense increased to €4.7m from €1.7m, mainly reflecting bank fees, warrant fair-value changes and other net financial items.

• Net loss per share was €0.43 versus €0.61 in FY2022.

Outlook and guidance

• FY2024 revenue is forecast at €180m–€200m, with adjusted EBITDA expected to improve significantly and reach break-even.

• Guidance assumes Heavy Vehicles sales growth, steady Light Vehicles and Industrial Tech growth, customer retention and no lasting worsening in supply conditions.

• The North American site was expected to begin production at the end of H1 2024; previously communicated 2028 targets were withdrawn amid early-stage market uncertainty.

• The contracted order book was €133.3m at year-end 2023; the order book for 2024 equalled 73% of FY2023 revenue.