• Revenue: EUR34.7 million, up 7% year-over-year.
• Gross Margin: 23%, impacted by a one-off inventory provision.
• Adjusted EBITDA Loss: EUR21.8 million for the quarter.
• Cash and Cash Equivalents: Approximately EUR71 million at the end of the quarter.
• Long-term Debt: Approximately EUR84 million at the end of the quarter.
• AC Sales: EUR23.7 million, representing 68% of global consolidated revenue.
• DC Sales: EUR4.4 million, representing 13% of revenue.
• Software Services and Others: EUR6.6 million, representing 19% of total revenue.
• Inventory: EUR76.5 million, a 10% reduction sequentially.
• CapEx: EUR1.7 million spent in the third quarter, a 60% decrease year-over-year.

• Warning! GuruFocus has detected 7 Warning Signs with WBX.

Release Date: November 06, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Wallbox NV (NYSE:WBX) reported a 26% year-to-date revenue growth, significantly outpacing the 3% growth of the EV market in their operating regions.
• The company has successfully reduced labor costs and OpEx by 14% and CapEx spending by 48%, indicating improved operational efficiency.
• Wallbox NV (NYSE:WBX) has sold over 1 million chargers in more than 100 countries, reinforcing its position as a global leader in EV charging solutions.
• North American sales showed strong growth with a 45% year-over-year increase, contributing significantly to the company's revenue.
• The company is implementing a business unit-driven organizational structure to better align resources and improve customer focus, which is expected to enhance profitability.

Negative Points

• Wallbox NV (NYSE:WBX) faced a softer market in Europe, impacting overall revenue growth, with a one-off revenue charge of EUR1.6 million due to a return from a specific customer.
• The company's gross margin was negatively impacted by a one-off inventory provision, reducing it to 23% for the quarter.
• The third-quarter adjusted EBITDA loss was EUR21.8 million, reflecting a setback in the improvement trend due to inventory provisions.
• The EV market in Europe saw a 13% decline, which affected Wallbox NV (NYSE:WBX)'s performance despite their growth in market share.
• The transition to EVs is taking longer than expected, with current growth slowing, impacting Wallbox NV (NYSE:WBX)'s long-term growth expectations.

Q & A Highlights

Q: Can you provide insight into when Wallbox expects to achieve EBITDA neutrality or profitability, and how you plan to strengthen the balance sheet to support future growth in the EV sector? A: Enric Escorsa, CEO, stated that the focus is on profitability and cash generation. Wallbox is growing in key markets like North America, despite volatility in Europe. The company aims to adapt its structure to current revenue levels and expects 2025 to be a profitable year. The goal is to achieve a positive EBITDA within two to three quarters, adapting to a volatile market while capturing market share.

Q: Is there still an inventory issue in the AC segment in Europe, and how is the inventory situation in North America, particularly with the Generac channel? A: Enric Escorsa, CEO, clarified that there is no inventory issue in the AC segment in Europe, as Wallbox is outperforming the EV market growth. In North America, the partnership with Generac is progressing well, with Generac becoming a top customer. Generac is managing inventory levels effectively, and Wallbox is seeing strong sellout and adding more products to the portfolio.

Q: What are Wallbox's expectations for EV sales growth across different regions for the next year and beyond, and what factors could reignite demand for EVs? A: Enric Escorsa, CEO, expects growth in both North America and Europe, driven by new regulations and new EV models. Wallbox is preparing for a potential 10% to 15% growth in the EV market but is structuring the company to be profitable even in a flat market. The focus is on being ready for growth while ensuring profitability.

Q: Does it still make sense for Wallbox to maintain manufacturing in both the US and Europe, and are there any plans to move towards outsourced manufacturing? A: Enric Escorsa, CEO, emphasized the advantage of having manufacturing capacity in North America, especially with potential regulatory benefits. Wallbox's own supply chain and manufacturing capabilities are seen as key advantages for maintaining gross margins and supporting strategic partnerships. The company is prepared for future growth with existing facilities.

Q: Could you elaborate on Wallbox's manufacturing footprint and any strategic considerations regarding outsourcing? A: Luis Boada, CFO, added that Wallbox has already incurred capital expenditure for its manufacturing footprint, positioning the company well for future growth. The focus remains on maintaining control over manufacturing to achieve margin improvements, with strategic partnerships enhancing purchasing power and cost efficiency.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.