Nucor earnings beat by $0.08, revenue fell short of estimates
Introduction & Market Context
Zaptec AS (OB:ZAP) presented its Q1 2025 financial results on May 7, showing significant improvement across key metrics amid signs of recovery in the European electric vehicle market. The Norwegian EV charging infrastructure company reported 16% revenue growth year-over-year and a return to positive EBITDA.
The results come as the broader European EV market shows signs of recovery, with plug-in vehicle sales growing 20% in Q1 2025 compared to the same period last year. This growth varied significantly by country, with Denmark (51%), Norway (46%), and Germany (40%) leading the way, while markets like France experienced a 21% decline.
As shown in the following chart of European EV market growth by country:
According to the presentation, European EV sales are expected to grow approximately 23% annually over the next decade, despite some market uncertainty. The company cited data from Strategy&(PwC) showing three potential growth scenarios through 2035, with the base case projecting 23% annual growth.
Quarterly Performance Highlights
Zaptec reported revenue of 347 million NOK in Q1 2025, representing a 16% increase compared to Q1 2024. The company also highlighted a one-off financial revenue of 24 million NOK related to the sale of a non-core asset.
The following chart illustrates Zaptec’s revenue growth trajectory:
Order intake showed even stronger momentum, increasing 20% year-over-year to 366 million NOK, while the order backlog grew 12% to 507 million NOK. The company noted that Q2 orders are expected to secure a significant portion of second-half revenue.
The order intake growth is visualized in this chart:
Profitability metrics also improved, with gross margin reaching 39% in Q1 2025, up slightly from 38% in the same period last year, despite headwinds from a stronger Norwegian krone. The company expects further margin improvement through lower cost of goods sold and the ramp-up of its new Zaptec Go 2 product.
Most notably, Zaptec returned to positive EBITDA, reporting 14 million NOK compared to -2 million NOK in Q1 2024. The EBITDA margin reached 4%, demonstrating the scalability of the company’s business model.
The EBITDA improvement is shown in the following chart:
Strategic Initiatives
A significant achievement highlighted in the presentation was Zaptec’s recognition as Europe’s largest home charging provider in 2024 by an independent EV market expert. The company captured 11% market share across nine European countries, ahead of competitors like Ohme (8%), Easee (6%), and Wallbox (NYSE:WBX) (5%).
The market share breakdown is illustrated in this chart:
The company reported that installation rates continue to rise, with 55,000 Zaptec chargers installed in Q1 2025, an 18% increase from 47,000 in Q1 2024. This growth in installations reflects strong ongoing demand and lays the foundation for future growth.
Zaptec is also ramping up production of its next-generation products, including the Zaptec Go 2 and Zaptec Pro M&E. The company indicated it has secured significant production capacity for these new products, which are central to its expansion strategy in major European markets.
As shown in the production ramp-up chart:
Regional Growth Analysis
The presentation highlighted strong regional performance, particularly in Benelux, the UK, and Germany. Benelux showed the most impressive growth, with revenue increasing 76% year-over-year to 46 million NOK in Q1 2025, following a successful Zaptec Go 2 launch.
In the UK, Zaptec reported securing "breakthrough contracts" with key players, setting the stage for accelerating deliveries in Q2. UK revenue grew 54% to 14 million NOK in Q1 2025.
Germany, a key target market, showed the most dramatic growth rate, with revenue increasing fourfold from 1 million NOK in Q1 2024 to 5 million NOK in Q1 2025. The company is continuing its ramp-up in the German market with new products and expanding through new and existing partners.
Forward-Looking Statements
Zaptec’s management expressed confidence in the company’s outlook for 2025, citing the ongoing EV market recovery, strong position in core markets, and momentum building in key expansion regions. The company maintains its focus on ramping up production and deliveries of new products targeting major European markets.
On the financial front, Zaptec reported positive cash flow and improved available liquidity of 327 million NOK, a 20% increase. This includes cash, cash equivalents, and an undrawn overdraft facility, which the company believes provides robust financing to navigate future market conditions.
The company has also made progress in inventory normalization, with inventory decreasing by 7% compared to the previous year, and has maintained controlled operating expenses despite its expansion efforts. A one-off cost of 5 million NOK related to a 25% headcount reduction in marketing was noted in the presentation.
Zaptec’s stock closed at 19.08 NOK on May 6, 2025, down 1.45% ahead of the results presentation. The shares have traded in a 52-week range of 8.45 to 20.4 NOK, suggesting investors have been increasingly optimistic about the company’s prospects over the past year despite the recent slight pullback.
Full presentation:
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