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Introduction & Market Context
Ebusco Holding BV ( AMS (VIE:AMS2):AS:EBUS) presented its full year 2024 results on April 30, 2025, revealing a dramatic deterioration in the company’s financial position. The Dutch electric bus manufacturer’s stock has plummeted over 90% in the past year, with shares currently trading at €0.17, down 71% on the day of the presentation alone.
The company characterized 2024 as "an extremely challenging year" marked by production nearly grinding to a halt and multiple order cancellations, resulting in a reversal of revenues. These challenges have created significant liquidity constraints that management acknowledged pose "a material uncertainty regarding our ability to continue."
Executive Summary
Ebusco reported revenue of just €10.7 million for 2024, a staggering 89.6% decline from €102.4 million in 2023. The company posted an EBITDA loss of €132.6 million, substantially worse than the €95.7 million loss recorded in 2023. The net loss for the year ballooned to €200.8 million, nearly doubling from the previous year’s €105.7 million loss.
Despite these severe financial challenges, management highlighted that the company delivered 157 buses in 2024 and successfully reassigned 74 canceled buses to other customers. The company’s order book stands at 581 buses, which management claims secures production utilization into the first half of 2026.
Detailed Financial Analysis
The unaudited financial statements reveal the extent of Ebusco’s deteriorating position. Gross profit turned deeply negative at -€34.6 million compared to -€6.8 million in 2023. Employee benefit expenses increased to €42.5 million from €38.5 million, while other operating expenses rose to €55.5 million from €50.4 million.
The balance sheet shows total assets declined by 43.7% to €180.1 million, with cash and cash equivalents plummeting to just €2.4 million from €27.9 million a year earlier. Perhaps most concerning is the collapse in total equity, which fell by 84.6% to €27.5 million from €178.3 million in 2023.
The cash flow statement further illustrates the company’s precarious position, with negative cash flow from operating activities of -€43.2 million, though this represents an improvement from -€103.8 million in 2023. The company raised €36 million through issuing shares and secured €4 million in additional borrowings during the year.
The balance sheet reveals significant write-downs, with intangible fixed assets declining by €44.5 million to just €5.4 million. Contract assets and inventory decreased by €48.9 million to €125.2 million, while receivables fell by €13.8 million to €5.5 million.
Strategic Initiatives
Facing these existential challenges, Ebusco’s management outlined three key focus areas for its turnaround strategy. The company is continuing to execute its turnaround plan, which includes optimizing its production footprint, maintaining flexibility in casco production, and consolidating facilities in Deurne and Venray.
Management is also actively working to address liquidity constraints and emerging refinancing needs. The company disclosed that €5 million of a €22 million February 2025 loan has not been paid, which impacts its ability to reopen letters of credit. Both the February loan (of which €12 million may be converted into shares after the June AGM) and outstanding LC facilities must be repaid by mid-August.
The third strategic focus involves exploring options for the company’s future, including preparations for the legal separation of its bus and energy business and exploring options to address the mid-August refinancing deadline.
Operationally, Ebusco has shifted from an Original Equipment Manufacturer (OEM) to an Original Equipment Designer (OED) operating model, likely to reduce capital requirements and production costs.
Forward-Looking Statements
The company’s order book provides some forward visibility, with 581 buses on order at year-end 2024. This includes 247 Ebusco 2.2 models and 334 Ebusco 3.0 models. Additionally, the energy business has orders for 20 Mobile Energy Containers, 2 Maritime Batteries, and 12 Charging Systems.
However, management was candid about the challenges ahead, stating that "2025 continues to be challenging, with liquidity remaining a major challenge." The company’s cautionary statement noted that the 2024 financial statements included in the presentation remain unaudited due to delays in the audit process, adding another layer of uncertainty for investors.
CEO Christian Schreyer acknowledged the severity of the situation, stating that "the absence [of the €5 million loan payment] constitutes a material uncertainty regarding our ability to continue." This stark assessment, combined with the requirement to repay the February loan and LC facilities by mid-August, suggests that Ebusco faces significant hurdles to remain operational beyond the summer of 2025.
Investors will be closely watching the company’s efforts to secure additional financing and implement its turnaround strategy in the coming months, with the stock’s dramatic decline reflecting serious market doubts about the company’s future prospects.
Full presentation:
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