CTEK Q3 2025 slides reveal mixed results as stock drops on revenue miss

Introduction & Market Context

CTEK AB (STO:CTEK) presented its Q3 2025 results on October 30, showing a mixed performance that fell short of market expectations. The Swedish battery charging and electric vehicle supply equipment company saw its stock drop 3.68% to 13.1 SEK following the presentation, as investors reacted to revenue figures that missed forecasts.

The company, which operates in over 70 markets globally with key operational centers in Sweden and China, continues to navigate a challenging environment in the electric vehicle charging segment while seeing strength in its consumer battery charging business.

Quarterly Performance Highlights

CTEK reported Q3 2025 net sales of 212 MSEK, down from 222 MSEK in the comparable period and below the market forecast of 221 MSEK. Despite the revenue shortfall, the company achieved improved profitability with a gross margin of 59.1%, up from 56.4% in the previous period.

As shown in the following financial overview:

Adjusted EBITA improved to 32 MSEK from 30 MSEK, while EBIT rose significantly to 25 MSEK from 20 MSEK. However, cash flow from operating activities deteriorated to -19 MSEK from -3 MSEK, primarily due to an increase in trade receivables.

The company highlighted three key takeaways from the quarter: sustained growth in its Low Voltage segment (particularly through Amazon sales), record margins, and upcoming product launches that will expand its addressable market.

Divisional Performance Analysis

CTEK’s performance varied significantly between its two main divisions. The Consumer division, which focuses on battery chargers and boosters, demonstrated robust growth with net sales increasing 12% organically to 161 MSEK. This division also maintained strong profitability with an adjusted EBITDA of 67 MSEK and a margin of 41.4%.

The Consumer division’s performance is illustrated here:

In contrast, the Professional division, which includes EVSE (Electric Vehicle Supply Equipment) products, faced significant headwinds. Net sales decreased by 27% organically to 50 MSEK, though the division managed to improve its adjusted EBITDA to 0 MSEK from -2 MSEK in the previous period.

This divisional disparity reflects broader market conditions, with the EV charging segment experiencing slower-than-expected adoption rates in certain markets, while the traditional battery charging business remains resilient.

Strategic Initiatives & Future Outlook

CTEK presented a clear roadmap for achieving its financial targets through 2028, outlining a phased approach that begins with cost control and profitability improvements before transitioning to growth-focused initiatives.

The company’s strategic plan is detailed in this timeline:

Key upcoming product launches include the CS ONE Wi-Fi, NXT 5 & 15, and RB3000 & RB4000 premium boosters, which are expected to expand CTEK’s addressable market. The company is also targeting significant growth in its EVSE sales in the UK and German markets, aiming for 50 million SEK in revenue from these regions by 2026.

CTEK continues to leverage its strong partnerships with premium automotive brands, with over 50 prestigious vehicle manufacturers choosing CTEK for branded chargers, including Lamborghini, Ferrari, General Motors, and Porsche.

Financial Position & Market Reaction

CTEK’s capital expenditure during Q3 2025 amounted to 14 MSEK, in line with the previous period’s 15 MSEK. The company maintained its net debt ratio at 2.0x, well below its target of 3.0x, indicating a relatively stable financial position despite the challenging operating environment.

However, investors appeared concerned about the revenue miss and ongoing challenges in the Professional division. According to the earnings report, organic growth was negative at -1% overall, primarily affected by the discontinued General Motors business. Excluding this factor, organic growth would have been 4%.

The stock’s negative reaction (down 3.68% to 13.1 SEK) reflects these concerns, though it’s worth noting that according to market data, CTEK shares have shown strong momentum recently with a 108.67% price return over the past six months, despite trading closer to its 52-week low of 11.22 than its high of 18.84.

CEO Henrik Fagrenius emphasized the company’s strong relationship with Amazon during the earnings call, noting, "We are growing with Amazon as a customer, and we have been growing with them for over five years now." He also highlighted potential in the low voltage market for seldom-used vehicles like sports vehicles and boats.

As CTEK continues to execute its strategic roadmap, investors will be watching closely to see if upcoming product launches and market expansion initiatives can offset the challenges in the EV charging segment and return the company to consistent overall growth.

Full presentation:

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