Kempower Q2'25 flash comment: Overall results exceeded analysts' expectations

Translation: Original published in Finnish on 7/24/2025 at 10:13 am EEST.

Kempower reported its Q2 half-year review today. Order intake grew strongly and exceeded preliminary expectations. The margin level also developed favorably, likely relieving market concerns that price competition could weaken the company's excellent margin profile. While we consider the report to be positive overall, the company's share price has also risen significantly ahead of the earnings report, setting a higher bar for market expectations.

Source: Inderes & Modular Finance (consensus: 8 analysts)

Orders grew very strongly in newer markets

Kempower reported orders worth 74 MEUR for Q2, representing a 37% year-on-year increase. Order intake was slightly stronger than expected, surpassing our forecast by 5% and the consensus by 13%. The company has recently been successful in acquiring new customers in both Europe and North America, which we believe has supported order development. Order intake declined in the Nordics (–24%), but grew strongly in the rest of Europe (50%) and very strongly in North America (150%). North America already accounted for 23% of the order intake in Q2.

Total deliveries did not yet increase significantly

Kempower reported a revenue worth 62 MEUR for Q2, representing a moderate 9% increase year-on-year. The revenue development shows a similar geographical trend as orders, i.e. the significance of the Nordics is declining and the role of other geographical areas is becoming more prominent as a result of geographical expansion in recent years. Operative EBIT was -1.7 MEUR, which was a clear improvement from the weak level in the comparison period (Q2’24: -8.5 MEUR). Revenue and operative EBIT were close to consensus expectations but slightly below our forecasts. One positive detail is the gross margin of 50.6%, which exceeds our and the consensus forecasts by 1.4–2.4 percentage points. This reinforces our view that the company has not had to significantly compromise its pricing to achieve growth, at least not yet. Additionally, the company has also likely managed to streamline production, which has probably helped offset the expected tightening of the pricing environment.

Guidance unchanged, some customers still have charger inventory

Kempower reiterated its guidance that revenue is expected to grow by 10-30% year-on-year in 2025 and that operative EBIT is expected to improve significantly from 2024 (-26.4 MEUR). The company previously expected increased inventory levels among customers to affect its sales until mid-2025. The company now expects elevated inventory levels among certain long-term customers to persist until 2026, which will moderate their order activity. However, the company's newer customers, acquired in 2024–25, have normal inventory levels, supporting steady demand for Kempower's charging solutions. Nevertheless, we are not particularly concerned about the inventory levels of a few customers because the company has demonstrated that new customer acquisitions can compensate for the temporary pause in orders from long-term customers.