(Adds outlook details)
June 26 – Alfen, a Dutch energy storage specialist and electric vehicle infrastructure provider, lowered its revenue and EBITDA forecasts for 2024 amid a slowdown in the energy storage market and decline in sales of electric vehicles in Europe.
WHY IT IS IMPORTANT
A significant number of large transactions planned for the second quarter have been postponed in the energy storage segment. However, contracts concluded after the second quarter will mainly contribute to 2025 revenues.
In its Smart Grid Solutions segment, moisture defects in its precast concrete housing products led the company to take a one-time impairment charge of 7.5 million euros ($8.03 million) for cover the impact.
With EV sales in Europe growing less quickly than expected, Alfen also lowered its outlook for the second half of the year for its EV Charging segment. In addition, a write-down of 3.6 million euros was recorded in this segment due to obsolete stock.
BY THE NUMBERS
Alfen now forecasts revenue of €485 million to €520 million for 2024, up from €590 million to €660 million, and an adjusted EBITDA margin for 2024 of a mid-single digit percentage.
The company’s two impairment charges amount to €11.1 million, and it expects free cash flow for 2024 to be negative.
KEY QUOTES
“Alfen expects customer decision cycles to begin to shorten once battery prices stabilize, with EV demand increasing in line with battery manufacturers’ expectations,” she said in a statement.
“Increased delays in obtaining and completing a grid connection in countries such as the Netherlands and Sweden are causing additional delays,” Alfen said, adding that “EV sales are likely to accelerate again in 2025 once affordable models are launched (from the end of 2024 and until 2025)” ($1 = 0.9344 euros) (Reporting by Nathan Vifflin; Editing by Janane Venkatraman) .
