Wallbox N.V. Earnings Call: Mixed Results and Strategic Moves

Wallbox N.V. ((WBX)) has held its Q1 earnings call. Read on for the main highlights of the call.

The latest earnings call from Wallbox N.V. painted a mixed picture of the company’s financial health and strategic progress. While there was notable growth in North America and an improvement in gross margins, the company faced challenges with a year-over-year revenue decline and weak performance in Europe. Despite these hurdles, Wallbox is making strides toward profitability through cost reductions and an increasing backlog, although concerns remain over high inventory levels and short-term debt.

Record North American Revenue Growth

North America emerged as a bright spot for Wallbox, contributing €11.4 million or 30% of the total revenue. This represents a remarkable 142% year-over-year growth compared to the first quarter of 2024, highlighting the region’s expanding market presence and demand for Wallbox’s offerings.

Improved Gross Margin

Wallbox reported a gross margin of 38.1% in the first quarter, reflecting a significant 634 basis point improvement compared to the last quarter. This improvement indicates the company’s successful efforts in enhancing operational efficiency and cost management.

Reduction in Labor Costs and Operating Expenses

The company achieved a notable reduction in labor costs and operating expenses, which decreased by 13% quarter-over-quarter and 23% compared to the same period last year. This reduction is a positive step towards achieving sustainable profitability.

Adjusted EBITDA Improvement

Wallbox’s adjusted EBITDA for the first quarter of 2025 was minus €7.8 million, showing a 42% improvement compared to last year. This improvement underscores the company’s ongoing efforts to enhance its financial performance.

Certification and Product Expansion

The company achieved CTEP and NTEP certifications, which are crucial for expanding its fast charging EV solutions in North America. This strategic move positions Wallbox to capture a larger share of the growing EV market in the region.

Strong Performance in Software and Services

Wallbox’s software and services segment generated €8 million in revenue, marking a 60% increase compared to last year. This growth highlights the increasing demand for Wallbox’s digital solutions and services.

Year-over-Year Revenue Decline

The company reported Q1 revenue of €37.6 million, down 13% year-over-year. This decline reflects the challenges Wallbox faces in maintaining its growth trajectory amid market fluctuations.

Weak Performance in Europe

Europe’s revenue was €25.5 million, with AC sales down 14% year-over-year. Despite this weak performance, the market is starting to show signs of recovery, offering a glimmer of hope for future growth.

High Inventory Levels

Wallbox’s ability to improve gross margin is constrained by existing high inventory levels. Managing these levels will be critical for the company to optimize its supply chain and enhance profitability.

Short-term Debt Concerns

The company faces concerns over its short-term debt, with loans and borrowings totaling approximately €199 million, including €132 million in short-term debt. Addressing this financial burden will be vital for Wallbox’s long-term financial health.

Forward-looking Guidance

Looking ahead, Wallbox anticipates Q2 2025 revenue between €37 million and €39 million, with a gross margin of 37% to 39%. The company also expects a negative adjusted EBITDA ranging from €5 million to €8 million. These forecasts reflect cautious optimism as Wallbox navigates its financial challenges while aiming for growth.

In summary, Wallbox’s earnings call highlighted a mixed financial landscape, with strong growth in North America and improved gross margins counterbalanced by challenges in Europe and a year-over-year revenue decline. The company’s focus on cost reductions and strategic expansions positions it for future growth, although managing high inventory levels and short-term debt remains critical. Investors will be keenly watching Wallbox’s next moves as it strives to enhance its financial performance and market position.