The Lion Electric Company (LEV) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue declined to $30.3 million, with 101 vehicles delivered, mainly due to delayed government funding and lower deliveries, pressuring cash flow and profitability.

• Announced a 30% workforce reduction (~300 positions) and operational streamlining to align costs with demand, targeting up to $25 million in annualized savings.

• Commercial launch of Lion8 Tractor and certification of LionHD battery packs achieved in Q2 2024.

• Order book as of July 30, 2024: 1,994 vehicles (1,804 buses, 190 trucks) valued at $475 million, and 394 charging stations valued at $9 million.

• Received NYSE notice for non-compliance with minimum share price; company is considering options to regain compliance.

Financial highlights

• Q2 2024 revenue was $30.3 million, down from $58.0 million in Q2 2023, with gross loss of $15.2 million and adjusted EBITDA of negative $20.6 million.

• G&A/SG&A expenses decreased to $14.7–$14.8 million, down over $1 million year-over-year.

• CapEx was $1.3 million (down from $19.1 million YoY); R&D was $9.4 million (down from $17.9 million YoY).

• Inventory reduced by $20 million in H1 2024, on track for $50–$75 million reduction target.

• Cash at June 30, 2024, was $2.0 million, with immediate liquidity of ~$25 million.

Outlook and guidance

• Priorities for 2024 include optimizing liquidity, cost reductions, inventory monetization, and growing the order book.

• Integration of new battery products and collaboration with Canadian government to accelerate ZETF approvals.

• CapEx for 2024 expected to be around $5 million.

• Cost reduction measures expected to yield $16 million in annualized savings, with additional OPEX savings anticipated.