Kempower reported third-quarter revenue of EUR 66.2 million, down 10% from a year earlier, as demand for public electric-vehicle charging infrastructure weakened. Order intake fell 19% to EUR 60.8 million, and operative EBIT was negative EUR 1.7 million. The company said the quarter came in below expectations and reduced its full-year outlook.

Kempower now expects 2026 revenue to grow by about 5% compared with 2025, and operative EBIT to be lower than last year. CEO Bhasker Kaushal said weaker market activity was the main reason for the revenue revision, with public charging operators prioritizing the use and profitability of existing networks over expansion. Fleet customers are also taking longer to close deals, the company said.

The slowdown was particularly pronounced in North America. Revenue there fell 37% in Q3, although it remained 32% higher for the first nine months of the year. In Europe outside the Nordics, revenue increased 10% in the quarter and 26% year to date. Across Europe and North America, new public DC fast-charging installations were down 11% in the first nine months, while Kempower’s revenue grew 12% over the same period.

Gross margin was 45.9%, compared with 45.8% a year earlier, supported by product cost reductions and pricing discipline. Aftermarket revenue rose 83% to EUR 5.1 million in Q3. For the first nine months, total revenue reached EUR 201.7 million, up 12% year on year, while order intake was down 4% to EUR 199.6 million.

Kempower increased its fixed-cost reduction target to more than EUR 15 million as it reshapes its cost base. The company said it is assessing potential provisions and write-downs related to the measures, which could affect 2026 operative EBIT. It expects the savings to reach their full run rate around Q3 2027.

Operating cash flow was negative EUR 5.9 million in Q3, an improvement from negative EUR 11.7 million in Q2. Kempower ended the quarter with EUR 91 million in cash and financial instruments, EUR 64 million in unused credit facilities and an order backlog of EUR 128 million.

The company’s shares fell 18.53% to $6.60 from $8.10, placing them close to the bottom of their reported 52-week range of $6.05 to $17.35. Management said challenging market conditions are likely to continue in the near term, while maintaining that the longer-term demand outlook remains supported by growth in electric vehicles.

Sources: Investing.com News.