Original-Research: LION E-Mobility AG - from NuWays AG
Classification of NuWays AG to LION E-Mobility AG
H1 underpins confidence in successful op. turnaround; chg. More importantly, management was able to turn the bottom-line around, improving EBITDA from a € 4.8m loss a year ago to a positive € 1.3m thanks to a tight grip on costs, the absence of development costs for the new chemistry cells but mainly positive implications from a better fix-cost coverage. The EBITDA margin for H1 stood at 12.1%, clearly ahead of our estimates for FY25 (0.9%). Operating cash flow also turned positive, € 3.3m compared to a € 5.8m deficit last year thanks to the notably improved operational performance as well as further optimized inventory levels. Thanks to good visibility through the order book which should allow a continuation of the momentum, management confirmed its FY25 guidance of € 28-35m sales (eNuW: € 32m) and positive EBITDA (eNuW: break-even). Strategic partnership with LeapEnergy to unlock access to the thriving but highly competitive energy storage market. This deal grants LION exclusive BESS distribution and service rights in major European markets and Canada, diversifying beyond e-mobility into a fast-growing segment. Combining LeapEnergy's manufacturing scale with LION's integration expertise and market access creates new, scalable revenue streams, strengthens growth visibility, and enhances the investment case through portfolio expansion and improved margin potential. This bodes well with the announced strategic partnership with Münchner Solarkraftwerke, which has over 40 hybrid (PV + BESS) projects in its pipeline. As most of those projects are at an early stage, potential revenue recognition will span over several years, starting with H2 2026 (eNuW). Immersion cooled LIGHT battery update. While the project with the premium OEM is experiencing delays due to adjustments to their Innovation projects (~1 year as mentioned during the earnings call), LION launched a new/additional development project with a German truck manufacturer looking to create an electric truck that can sufficiently recharge its battery during mandatory breaks to cover the distance between two mandatory breaks. Further, LION is testing integration with advanced heat exchanger and pump technology. Our take: LION's H1 performance with a return to profitability and positive cash flows underscores the likelihood of a successful operational turnaround. This coupled with BESS sales gaining momentum during the next few years, LION looks well positioned to sustainably generate cash and hence also turn the balance sheet around. BUY with a € 2.9 PT based on DCF. You can download the research here: lion-e-mobility-ag-2025-08-15-previewreview-en-b5437 For additional information visit our website: https://www.nuways-ag.com/research-feed Contact for questions: NuWays AG - Equity Research Web: www.nuways-ag.com Email: research@nuways-ag.com LinkedIn: https://www.linkedin.com/company/nuwaysag Adresse: Mittelweg 16-17, 20148 Hamburg, Germany ++++++++++ Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte. Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse. ++++++++++ The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. | ||||||||||||||||||||
2184368 15.08.2025 CET/CEST
