Zaptec (ZAP) Q4 2024 earnings summary

Executive summary

• Q4 2024 marked a breakthrough with all KPIs improving, a turning point in sales and installations, and a focus on product development and expansion in Central Europe.

• Strong order intake and backlog provide visibility for 2025, with new products unlocking major European markets.

• Installation rates in 2024 exceeded sales, indicating strong underlying demand and clearing of distributor inventories.

• Inventory and Opex further reduced, resulting in significant cash flow and enhanced financial flexibility.

• Strategic focus on expanding in Europe, launching new products, and maximizing cash flow and profit.

Financial highlights

• Q4 revenue was 327 MNOK, down from 408 MNOK in Q4 2023 but up 37% over Q4 2022.

• Order intake in Q4 reached 456 MNOK, up 26% year-over-year and nearly double the previous quarter.

• Gross margin increased to 40%, continuing a four-quarter upward trend.

• EBITDA improved to 19 MNOK from -8 MNOK in Q4 2023; full-year EBITDA up over 30% despite lower revenue.

• Opex reduced to 111 MNOK from 158 MNOK year-over-year, with personnel expenses down 18% and other operating expenses down 40%.

• 24 MNOK one-off financial revenue from sale of non-core asset in Q4 2023.

Outlook and guidance

• Entering 2025 with over NOK 1 billion in order backlog visibility, including firm and forecasted orders.

• Positive momentum in order intake and strong sales pipeline expected to drive growth and higher EBITDA in 2025.

• Management forecasts 2025 as a record year with all-time high results.

• Market recovery for EV sales is underway, with new products targeting growth markets launched in Q1 2025.