PowerCell (PCELL) Q1 2025 earnings summary

Executive summary

• Achieved 42% year-over-year net sales growth in Q1, reaching SEK 74.1m, with 11% growth on a rolling 12-month basis, driven by OEM deliveries and a major 2 MW maritime order.

• EBITDA improved to SEK -6m, moving closer to breakeven, and net loss narrowed to SEK -15.7m from SEK -25.1m year-over-year.

• Secured a SEK 150m OEM order for the new methanol-to-hydrogen M2Power 250 platform, indicating strong early traction for new products.

• Achieved AS9100/AS9100D aviation certification, enhancing credibility and supporting entry into high-spec sectors.

• Transitioned from pilot to scale, with industrial adoption in marine and power generation and increased commercial deliveries.

Financial highlights

• Q1 2025 net sales reached SEK 74.1m, up from SEK 52.1m in Q1 2024, a 42% increase.

• Gross margin declined to 37.1% from 47.2% year-over-year, impacted by currency effects.

• EBITDA improved to SEK -6.0m from SEK -23.7m in Q1 2024.

• Net loss narrowed to SEK -15.7m from SEK -25.1m year-over-year.

• Operating cash flow dropped to SEK -79.3m from SEK 39m in Q1 2024, affected by project-related working capital and procurement timing.

Outlook and guidance

• Strategic focus for 2025 is achieving breakeven on a rolling 12-month basis, not necessarily within the calendar year.

• Continued investment in innovation and next-generation product development to maintain competitiveness, even if it delays breakeven.

• Demand remains steady with more customers moving to industrialization and scaling, though decision cycles are slowed by global uncertainty.

• Management expects ongoing volatility in customer investment timing due to macroeconomic conditions.