Kempower (KEMPOWR) Q2 2026 earnings summary

Executive summary

• Revenue grew 10% in Q2 and 28% in H1 year-over-year, with strong gains in North America (+54% in Q2, +106% in H1) and APAC & MEA (+166% in Q2, +92% in H1), driven by new customer wins and aftermarket expansion.

• Aftermarket revenue increased 35% in Q2 and 40% in H1, reflecting successful expansion of service offerings.

• Order backlog reached EUR 138 million (+18% year-over-year), providing a solid foundation for future quarters.

• Gross margin improved sequentially to 47.2% in Q2, reflecting successful cost reduction initiatives, though it declined year-over-year due to price pressure and regional mix.

• Operative EBIT improved 40% in H1, reaching EUR -5.4 million, but remained negative.

Financial highlights

• Q2 revenue: EUR 68.6 million (+10% YoY); H1 revenue: EUR 135.5 million (+28% YoY).

• Gross margin: 47.2% in Q2 (up 1.9pp sequentially, down 3.4pp YoY); H1 gross margin: 46.3% (down from 50.1%).

• Operative EBIT: EUR -1.9 million in Q2 (margin -2.8%), EUR -5.4 million in H1 (margin -4.0%), both improved from prior year.

• Operating cash flow was EUR -11.7 million in Q2, impacted by higher receivables from strategic partners; H1 cash flow from operations: EUR -12.8 million.

• Liquidity remains solid at EUR 102 million.

Outlook and guidance

• 2026 revenue expected to grow 10–25% over 2025 (previously 10–30%), reflecting slower market development among CPOs.

• Operative EBIT for 2026 expected to improve significantly compared to 2025.

• Fixed cost reduction program launched, targeting over EUR 5 million in savings, ramping up in 2027.

• Long-term targets: 15–25% CAGR revenue growth and 10–15% operative EBIT margin by 2030.