Wallbox N.V. Q2 FY2025 earnings call

• Revenue: Q2 revenue was EUR 38.3 million, within the EUR 37 million to EUR 39 million guidance range, up 2% quarter-over-quarter but down 22% year-over-year. Growth resulted from increased AC sales and software. Europe saw incremental improvement with countries like Spain and Italy showing strong growth. North America remained a strong contributor. DC sales were flat quarter-over-quarter but had new partnerships. Over 39,000 AC units and more than 140 DC units were delivered, and backlog for both AC and DC increased by over EUR 5 million. - Gross margin: 37.8% in the second quarter, within the 37% to 39% guided range, stable quarter-over-quarter. Inventory reduction provides opportunity to improve gross margin in future. - Operational efficiency: Labor costs and operating expenses down 3% quarter-over-quarter and 25% year-over-year. Cash costs (labor costs & OpEx excluding R&D activation, non-cash items and one-off expenses) down 35% year-over-year. - Regional performance: Europe's EV market recovered well with 30% year-over-year growth in Q2. North America's EV market faced challenges like subsidy removal but had strategic partners. APAC and LatAm had small contributions but potential. - Product progress: Quasar 2 first units installed, collaboration with Kia and University of California, Irvine. Partnership with Generac in North America, including reselling chargers and integrating apps. Supernova sales and collaboration with Pramac for fast charging solutions.

In the second quarter of 2025, Europe contributed EUR 26.1 million of consolidated revenue, accounting for 68% of the total topline. North America contributed EUR 11.4 million, also 30% of the total revenue. APAC and LatAm each contributed approximately EUR 260,000 and EUR 550,000 respectively, each making up 1% of the total revenue. AC sales were EUR 26.6 million, representing approximately 69% of global consolidated revenue, with a 4% improvement quarter-over-quarter but down 18% year-over-year. DC sales were EUR 4.2 million, 11% of sales, stable quarter-over-quarter but showing an upward trend. Software, services, and others generated EUR 7.6 million, 20% of total revenue, growing 27% year-over-year.

• For the third quarter of 2025, revenue is expected in the EUR 38 million to EUR 41 million range. - Gross margin is expected between 37% and 39%. - Adjusted EBITDA is expected to be between negative EUR 6 million and negative EUR 4 million.

• North American EV market may be impacted by removal of key subsidies like the 30D tax credit and changing emission policies. - European market recovery varies by country, posing risks to growth across the region. - Volatility in regional EV market dynamics could affect future growth and require flexible organizational adjustments.

Q: Just wanted to level set, it's been almost two years since the Generac investment. Just any color or commentary you have around the status of progress with that relationship.

A: It's been two years since the first investment. We have commercialized home chargers with them in North America, Generac resells our chargers under their brand. We've integrated apps and platforms in the Generac ecosystem. We have traction in revenue with several thousand units delivered, and are working on fast charging solutions with Generac internationally.

Q: You have [ Matt ] on here for George. Just to start off, it seems like the Supernova backlog is growing nicely. What kind of cadence should we expect for deployments going into the back half of this year and into '26? And what does that look like from a geographic standpoint.

A: Our backlog increased by over EUR 5 million last quarter, mostly from AC sales in Europe and North America. We're focusing on fast charging part of the business. We expect to convert backlog in Q3 and see more orders in Q4, with fast charging having growth potential both in North America and Europe.

Q: Could you give us the latest updates on the ABL acquisition? How is momentum tracking in Germany and kind of the other key markets for that?

A: We're satisfied with the integration, having achieved cost reductions. Germany's EV sales and plug-in hybrid sales are up over 40% year-to-date. We're planning to hire more salespeople in Germany, change leadership for the sales organization, and see growth potential in cross-selling. There's more growth opportunity through cross-selling products like double socket commercial chargers.