Kempower (KEMPOWR) Q4 2023 earnings summary

Executive summary

• FY2023 revenue rose 174% YoY to €283.6m; operative EBIT was €40.7m, a 14.3% margin, and net profit was €33.7m.

• Q4 revenue reached a record €82.8m, up 119% YoY; operative EBIT margin was 6.7%, affected by provisions and North American expansion costs.

• Growth strategy focused on market expansion, capacity additions in Europe and North America, and a next-generation fast-charging portfolio rollout in 2024.

Financial highlights

• FY2023 order intake was €275.3m versus €208.9m; revenue was €283.6m versus €103.6m, and year-end backlog was €110.6m versus €118.9m.

• FY2023 gross profit was €147.7m and gross margin 52.1%, versus €48.2m and 46.5%; net income was €33.7m versus €3.6m.

• Q4 order intake was €66.7m versus €61.7m; gross margin was 53.1% versus 46.9%, and net income was €5.3m versus €2.5m.

• Operating cash flow was €39.7m for FY2023 versus -€5.4m; Q4 operating cash flow was €0.7m versus -€8.4m.

Outlook and guidance

• FY2024 revenue guidance is €360m–€410m, assuming no major FX impact; operative EBIT margin guidance is 5%–10%.

• Q1 2024 revenue is expected at €51m–€56m, with operative EBIT significantly below Q1 2023 as customer inventories and delayed purchasing decisions weigh on results.

• Fixed costs for growth initiatives are expected to outpace revenue growth in the short term; guidance assumes successful launch of the next-generation portfolio. 2026–2028 targets are €750m revenue and 10%–15% operative EBIT margin; long-term target is at least 15%.