The Lion Electric Company (LEV) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue fell to $30.6 million, down $49.7 million year-over-year, with 89 vehicles delivered versus 245 in Q3 2023.

• Significant cost reduction initiatives, including headcount reductions and subleasing part of the Joliet facility, are expected to yield $65 million in annual savings.

• Commercial production of the Lion8T truck is delayed to 2025 to preserve liquidity and focus on existing platforms.

• The company faces ongoing liquidity and cash flow pressures, with a going concern note included in financial statements and material uncertainty about meeting obligations over the next 12 months.

• Active efforts are ongoing to secure additional financing and work with debt holders.

Financial highlights

• Q3 2024 revenue was $30.6 million, down from $80.3 million in Q3 2023, with gross loss of $16.0 million and net loss of $33.9 million.

• Adjusted EBITDA was negative $19.5 million for Q3 2024.

• SG&A expenses were $13.1 million, down from $17.4 million in Q3 2023.

• CapEx was $0.4 million, down from $16.2 million year-over-year; R&D was $6.0 million, down from $15.0 million.

• Available liquidity as of September 30, 2024, was approximately $27 million.

Outlook and guidance

• Inventory reduction target for 2024 is $50 million, with $35 million achieved year-to-date.

• Focus remains on liquidity management, cost control, and converting the order book to sales.

• Substantially all vehicle orders are expected to be delivered by end of 2025, subject to subsidy approvals.