Q4 revenue soared by 267% yoy to € 12m (eNuW: € 11.8m), due to recovering customer demand from bus manufacturers in North America and Karsan. EBITDA doubled to € 5.1m from € 2.5m in the previous Q4, based on higher profitability within the orders processed. This led to an excellent EBITDA margin of 42.5%, which we view as partly driven by customer-specific, urgency-related pricing and therefore not fully indicative of the sustainable run-rate.
FY25 revenue rose by 67.5% yoy to € 28.3m (eNuW: € 28.1m), due to the significant demand acceleration in Q4, meeting the guidance of € 28m to € 35m. The positive EBITDA of € 7.5m (eNuW: € 5.1m) showed a marked improvement over € -3.6m a year prior. The implied EBITDA margin came in at 26.4%, largely driven by improved procurement efficiency and the positive one-off effects in Q4.
LION made significant progress in its turnaround. The Operating CF improved considerably from € -8.9m in FY24 to € 7.7m. Total debt was reduced by approx. € 6.8m (eNuW) through the conversion of convertible bonds held by shareholders into equity. This strengthened the equity ratio from 22.0% in FY24 to 38.1% in FY25.
Mobility: In FY25, utilization of its state-of-the-art factory improved as demand strengthened. Initial deliveries of the new NMC+ battery packs commenced in Q4. With a maximum annual production capacity of approximately 40k battery packs still largely underutilized, the company is well positioned to support the continued ramp-up of the NMC+ rollout in FY26e. Given the product's superior technological profile, we expect a broad transition of existing customers to NMC+, alongside a likely expansion of the customer base.
Storage: In April 2025, LION formed its strategic partnership with LeapEnergy, which gave LION access to assembled BESS solutions. Now offering one-stop-shop solutions (product, integration and after-market services), LION can successfully address the rapidly emerging energy storage market.
The total project pipeline of >7.5 GWh (not signed yet), represents revenue potential of € 280m (eNuW) at low double-digit EBITDA margins (eNuW: 10-12%). Installation on its first grid-scale project in Germany (20 MW/h) with potential sales of € 750k (eNuW) is scheduled for Q1 2026.
Looking to FY26e, revenue is projected to grow by approx. 30% to € 36.4m (eNuW), driven by strong mobility product momentum and opportunities in storage opening up with new partnerships formed in 2025. FY26e guidance: revenue of above € 35m. With a rising storage contribution in the product mix, we anticipate lower margins (15.6% vs. 26.5%). EBITDA is expected to normalize to € 5.7m (eNuW) following a stronger one-off contribution in FY25. FY26 guidance: strongly positive EBITDA.
With achieving sustainable cash generation in FY25 under ongoing cost control efforts and improved procurement, the company should continue to gradually turn the balance sheet around as it scales up. Maintaining BUY with an unchanged € 3.20 PT, based on DCF.
ISIN: CH0560888270
