Yesterday, LION provided an update on the developments in its mobility segment - specifically the transition to NMC+ battery packs. In detail:
2026 order book nearly filled to planned production capacity. To recap, first prototypes were tested and qualified by existing customers in Q4 25. On this basis significant orders were already in place. With further orders received during recent weeks, the company's FY26 production capacity is already nearly booked out. Importantly, order momentum should remain positive.
FY27 order book also filling up, carried by defence. So far, orders for LION's battery packs were largely stemming from mobility solutions (e.g. small city buses and school buses). Yet, demand from defence customers (solutions recently introduced) seems to quickly gain traction. In fact, for FY27, defence is emerging as a key growth driver.
Progress on transition to NMC+. Currently the conversion of existing production lines in LIONs state-of-the-art factory are well underway. Completion is still expected for June. First mass produced NMC+ battery cells are scheduled to arrive within a month in Germany from China in preparation for the production start and ramp-up of the battery packs.
Operational inflection point likely reached. LION's strong order momentum as well as new the diversification into additional end markets (e.g. defence) and the Storage business showing first signs of increasing revenue contributions (last week, LION delivered first BESS containers to a project in Finsterwalde) underpin our positive view on the case. We remain confident in the company's FY26 guidance of > € 35m (eNuW: € 36m) sales but also sustainable strong growth thereafter; +32% to € 48m in FY27e.
We hence confirm our BUY rating with an unchanged € 3.20 PT based on DCF.
ISIN: CH0560888270
