Earnings call transcript: Wallbox NV Q2 2025 revenue misses forecast, stock dips

Wallbox NV reported its Q2 2025 earnings, revealing a significant miss in revenue forecasts and a subsequent decline in stock price. The company’s revenue for the quarter was €38.3 million, falling short of the anticipated €169.12 million. This resulted in a revenue surprise of -77.36%. The stock reacted negatively, with a notable drop in price by 11.05% to €4.83 during the open market session. According to InvestingPro analysis, the company’s current market valuation suggests it may be undervalued, despite receiving a WEAK overall Financial Health score. For detailed insights into Wallbox’s valuation and 11 additional key ProTips, explore the comprehensive Pro Research Report available on InvestingPro.

Key Takeaways

• Wallbox NV’s Q2 2025 revenue was €38.3 million, a 22% decrease YoY.
• The company’s stock price dropped 11.05% following the earnings announcement.
• Wallbox launched Quasar Two, a bidirectional charger, in North America.
• Operational efficiencies led to a 33% improvement in adjusted EBITDA YoY.
• The company provided a cautious outlook for Q3 2025 with revenue guidance of €38-41 million.

Company Performance

Wallbox NV’s performance in Q2 2025 was marked by a 22% year-over-year decrease in revenue, amounting to €38.3 million. Despite the revenue decline, the company achieved a 33% improvement in adjusted EBITDA compared to the previous year, reflecting successful cost management and operational efficiencies. The global EV market’s growth of 23% YoY contrasts with Wallbox’s challenges, particularly in the North American market, which saw a 5% decrease. InvestingPro data shows the company’s trailing twelve-month revenue at $174.3 million, with a gross profit margin of 32.3%, highlighting the ongoing profitability challenges in this competitive market.

Financial Highlights

• Revenue: €38.3 million, down 22% YoY
• Gross Margin: 37.8%, within the guided range of 37-39%
• Adjusted EBITDA: -€7.5 million, a 33% improvement YoY
• Cash and Equivalents: €32.4 million
• Total Debt: €182 million

Earnings vs. Forecast

Wallbox NV’s actual revenue of €38.3 million was significantly below the forecasted €169.12 million, resulting in a revenue surprise of -77.36%. This substantial miss highlights challenges in meeting market expectations and contrasts with the company’s historical performance trends.

Market Reaction

Following the earnings release, Wallbox NV’s stock experienced a sharp decline of 11.05%, closing at €4.83. This drop reflects investor disappointment with the earnings miss and the company’s current valuation near its 52-week low of €4.15. The stock’s movement indicates a cautious market sentiment amid broader industry trends. InvestingPro data reveals the stock has fallen 85.3% over the past year, with analyst price targets ranging from $5.98 to $9.00, suggesting potential upside from current levels. Discover more detailed analysis and 11 additional ProTips with an InvestingPro subscription.

Outlook & Guidance

Looking ahead, Wallbox NV provided guidance for Q3 2025, projecting revenue between €38 million and €41 million and maintaining a gross margin forecast of 37-39%. The company anticipates a stronger second half of 2025, focusing on strategic partnerships and product innovations to drive growth.

Executive Commentary

Henrique Assassion, CEO of Wallbox NV, emphasized the company’s strategic direction, stating, "We believe the global platform we have built with an innovative product portfolio is leading the industry." He highlighted the launch of Quasar Two as a significant milestone, noting, "The Quasar two puts our customers in charge of their energy choices."

Risks and Challenges

• Revenue Miss: Significant deviation from forecasted revenue raises concerns about market demand and execution.
• Market Competition: Intense competition in the EV charging sector may impact market share.
• Economic Conditions: Macro-economic pressures could affect consumer spending and investment in EV infrastructure.
• North American Market: Decline in the North American EV market presents growth challenges.
• Debt Levels: High total debt of €182 million poses financial risk amidst revenue shortfalls.

Q&A

During the earnings call, analysts inquired about the Generac partnership and its potential impact on home charger commercialization. Additionally, questions were raised regarding the strategic focus following the ABL acquisition and efforts to reduce personnel costs while expanding in Germany.

Full transcript - Wallbox NV (WBX) Q2 2025:

Call Operator: Hello, everyone, and welcome to Wabox’s Second Quarter twenty twenty five Earnings Conference Call and Webcast. I would now like to turn the call over to Michael Wilhelm from Wabox. Michael, please go ahead.

Michael Wilhelm, Investor Relations, Wallbox: Thank you, and good morning and good afternoon to everyone listening in. Thank you for joining today’s webcast to discuss Wallbox’s second quarter twenty twenty five results. This event is being broadcast over the web and can be accessed from the Investors section of our website at investors.wallbox.com. I am joined today by Henrique Assassion, Wallbox’s CEO and Luis Buela, Wallbox’s CFO. Earlier today, we issued our press release announcing results from the second quarter ended 06/30/2025, which can also be found on our website.

Before we begin, I would like to remind everyone that certain statements made on today’s call are forward looking and may be subject to risks and uncertainties relating to future events and or the future financial performance of the company. Actual results could differ materially from those anticipated. The risk factors that may affect results are detailed in the company’s most recent public filings with the SEC, including in the annual report on Form 20 F for the fiscal year ended 12/31/2024, filed on 05/06/2025. We will be presenting unaudited financial statements in IFRS format that reflect management’s best assessment of actual results. Also, please note that we use certain non IFRS financial measures on this call, and reconciliations of these measures are included in the presentation posted on the Investors section of our website.

Also, a copy of these prepared remarks can be obtained from the Investor Relations website under the Quarterly Results section, so you can more easily follow along with us today. So with that out of the way, I will turn it over to Henrik.

Henrique Assassion, CEO, Wallbox: Thank you, Michael, and thanks, everyone, for joining us today. We will start today’s call reviewing highlights from the second quarter twenty twenty five and spend time discussing commercial wins, strategic achievements and the EV market. Luis will offer a closer look at our financial results and our key financial metrics before I close the conversation to highlight what we are focused on for the second half of the year. Q2 revenue was €38,300,000 within our €37,000,000 to €39,000,000 guidance range, up 2% compared to last quarter, but down 22% from a record high Q2 last year. The different revenue lines contributed similarly as the previous quarter, with the growth resulting from increased AC sales and software.

Sales in Europe incrementally improved compared to last quarter, with countries such as Spain and Italy showing strong growth. But considering the solid market growth in the region, we are looking forward to improvements and further growth ahead. We are seeing sales accelerating with larger partners, and we have decided to selectively invest in parts of our sales structure to capture the renewed market growth with smaller customers. North America has remained a strong contributor as we continue to develop our position in this region with existing and new partners. DC sales have been flat quarter over quarter, but we signed new partnerships and already see the results in orders for the second half of the year.

In total, during the second quarter, we delivered over 39,000 AC units and more than 140 DC units. Most importantly, we built a significant backlog for both AC and DC, which increased by more than €5,000,000 We aim to continue building our backlog to increase sales visibility and as a result, improve our operational efficiency. Gross margin was 37.8% in the second quarter, which is within the 37% to 39% guided range. Compared to last quarter, the gross margin was stable as the revenue mix was similar as well. The additional gross margin improvements we are working on are not visible yet in the results.

As we have been able to significantly reduce our inventory, which Luis will comment on later, this give us an opportunity to improve gross margin in the future. On top of that, we continue to review our bill of material costs and are increasing our prices in certain regions. Improving the operational efficiency by rightsizing the organization remains on track. For the 2025, labor costs and operating expenses are down 3% compared to last quarter and declined 25% compared to the same period last year. In the case of cash cost, which is defined as labor cost and OpEx, excluding R and D activation, noncash items and one off expenses, the result is even more impressive as we achieved a 35% year over year reduction.

It is great to see our efficiency improve each quarter as we edge closer towards profitability. We are achieving this expanded efficiency, meanwhile, consciously taking care of how our setup is best serving our markets, business units and allowing us to capture maximum growth. If this means we need to selectively invest in the sales structure or customer support, we are doing so, but always with a profitability and return on investment mindset. The second quarter twenty twenty five adjusted EBITDA is within our guided range, landing at minus €7,500,000 and reflecting a small improvement compared to last quarter. If we compare to the same period last year, adjusted EBITDA improved 33%.

Our improvements towards operational breakeven are consistent. However, our Q2 results would have been on the higher end of our guidance range. The main reason for this relative softness is a slower than expected decrease in operating expenses, which Luis will comment on. We are confident about our potential for the coming quarters. Overall, in the last couple of quarters, we have consistently been achieving our guidance, reflecting our ability to control the business.

This control is crucial as the European EV market resumes strong growth, allowing us to leverage the Wolbox platform. Wolbox has a leading setup with a full product portfolio, geographically diversified position with a targeted market approach and strong commercial partnerships. We believe the combination of these elements sets us up for success. For the 2025, Europe contributed €26,100,000 of consolidated revenue or 68% of total top line. The European EV market has continued to recover well and showed 30% growth year over year for the second quarter.

We have seen this growth trend reflected in our performance in certain countries, but not across the board. We recognize the importance of focusing on capturing the growth now that the market improves. With our strategic position across Europe, with a complete product portfolio, we expect there are incremental growth opportunities in this region for the coming quarters. North America continued to be a cornerstone of our business performance and contributed €11,400,000 or 30% of the total revenue, same as last quarter. The EV market growth has slowed down in this region, decreased 5% compared to last year.

But we continue to build out our position with our main partners such as Stellantis, Florida Power and Light, ENSOL and Generac. In parallel, we aim to replicate this type of partnership with new partners and new regions. Both APAC and LATAM remains a small region for WALLOX, now contributing contributing approximately €260,000 or one percent and €550,000 or 1%, respectively, for the quarter. These regions continue to have significant future potential. However, considering our efficiency efforts and refocus are not our top priorities.

AC sales of €26,600,000 including ABL and Quasar, represented approximately 69% of our global consolidated revenue with a 4% improvement compared to last quarter and down 18% year over year. Compared to a record high quarter last year, the results in Europe have been weak, but with positive outliers in certain countries and a stronger outlook. For example, we have announced a collaboration with Powerwall to deploy EV charging solutions across hotels in The Netherlands. The installations will feature Volvo’s EM4 and the Supernova DC fast charger. This collaboration brings together Volvo’s advanced charging technology and PowerGhost’s renewable energy power infrastructure to support the growing demand for sustainable mobility in The Netherlands.

Besides, we are working on ramping up sales with new products such as the Pulsar Pro socket and the Pulsar Max socket, with orders from Rexel, Sonepa, Libra and others. AC cells in North America remained strong, growing 9% year over year. As mentioned before, we have continued to expand the scope of activities with our commercial partners in the region. In addition, we delivered the first units of Quasar two, contributing more than €100,000 in this quarter. This is a very exciting step for Wallbox and our partners as we spearhead bidirectional charging, allowing us to create more value beyond driving your EV.

Shortly, I will provide more about this milestone. DC has been the weakest link in our results compared to the same quarter last year. But after a weak performance in the second half of last year, we believe it has now stabilized and we expect that its performance will improve in the upcoming quarters. This sales in the second quarter landed at €4,200,000 or 11% of sales, the same contribution to our total result as last quarter. After a period with a conservative approach from CPO customers regarding the rollout of their infrastructure, we see opportunities to grow again with our existing partner and new partners, and we saw our backlog for the second half of the year grow accordingly.

Recently, we announced expansion of our partnership with Emsolve, which provides EV charging infrastructure in Texas, Florida and Georgia. Initially, this partnership was focused on installing Wallbox Pulsar line of AC chargers at residential and commercial sites. The new phase extends our partnership into easy fast charging for the first time, centered around Wobo Supernova charger, now certified under both CTEP and NTEP standards. Overall, the upward trend we see in the DC sales compared to last quarter is exciting, both for top line growth and margin improvement. Software, services and others have been the best performing business activities compared to the same period last year, growing 27% year over year.

These activities generated €7,600,000 or 20% of the total revenue. Specialty software showed strong performance compared to last quarter, mainly driven by Electromaps, our eMSP service. The growing European ED market is creating more demand for public charging, which we can see in the increase of charging sessions managed by our software. Installation services continue to be the largest contributor of this category, but less than last quarter. Overall, we are happy to see that the category software services and others is performing well and is contributing significantly to the overall business performance.

On our last earnings call, we commented on the preorders opening for Quasar two and the importance of this product as part of our smart energy solutions. Now the first units have been installed in Menifee, California. This groundbreaking project in collaboration with Warbucks, Kia and the University of California Irvine has the goal of accelerating EV infrastructure and enabling fully electric energy resilient communities. We are very excited about these developments as our mission is to be the ultimate energy player, and we believe these developments bring us closer to that reality. The Quasar two puts our customers in charge of their energy choices and offers innovative solutions such as backup power and smart charging to create value.

Bringing this product live requires significant research and development efforts internally, but also in collaboration with automotive partners to develop the product standards and protocols we know today, lowering the threshold and investment for white scale application in the future. After all these efforts, we are happy that the product is being installed and is already delivering real value to customers and communities across The U. S. In addition, as part of our smart energy solutions, we have launched built to power plants in California and New York through our partnership with EV. The initiative is part of WALLBOX Rewards, and we will launch smart charging program that enable WALLBOX users to earn incentives by contributing to reach flexibility through their EV home chargers.

We are going to leverage our installed base by connecting an aggregated pool of thousands of residential chargers with local energy programs, which will help utilities manage demand peaks, balance the variability of renewable generation and improve overall grid stability. On top of the financial incentives to contribute to grid stability, users will enjoy the benefit of charging when it is cleaner and more affordable. The EV sales in our addressable market, which we define as all regions except China, continues to show growth in the second quarter and strengthens our belief that the future is electric. Promotion reported 1,900,000 EVs sold in Europe, North America and rest of world combined, which represents a 23% increase compared to last year. The rest of world and Europe both approximately 30% growth compared to the same period last year, while the North American market contributed negatively with a 5% decrease year over year.

Europe is showing a strong recovery due to a large range of more affordable vehicles and government support in certain countries. We are excited to see this turnaround, and we believe it will provide us with tailwinds as Europe remains our largest market. While this recovery does differ per country and is not across the board, we see strong growth in countries that historically had low adoption of EVs such as Spain. In the second quarter of twenty twenty five, more than 66,000 EVs were sold in Spain, which is more than EV’s leading countries such as Norway, Belgium and Netherlands. This is reflecting how quick the EV transition can accelerate in terms of absolute numbers once large car markets in our addressable scope are becoming electric.

For the North American region, in The U. S, the EV market is about to lose key subsidies, such as the 30D tax credit and is facing changing emission policies. In 2025, approximately 50% of EVs sold in The U. S. Have been eligible for the 30D tax credit according to Raw Motion.

The removal of these credits and the changing sentiment under the new administration are expected to have an impact on the EV market. Nevertheless, we are confident regarding our capabilities to continue growing in The U. S. This year due to our strategic partners and the visibility on sales. However, we recognize the volatility and its potential impacts for future growth.

Historically, Europe was the initial front runner of the video option. Then the North American market proved to be the largest growth opportunity. And now Europe is recovering fast. These market dynamics are another proof point of the importance of being geographically diversified and the reason why we focus and redistribute our resources to cope with regional EV market volatility. If we look at our total addressable market, the EV market has been consistently growing, and we believe the EV transition is on an irreversible path.

However, adapting to the market dynamics with a flexible and resilient organizational structure is key until markets become more mature. Our objective is to have the right organization set up, capture growth where it takes place and achieve profitability. Luis, I’ll turn it over to you to comment further on our financial details.

Luis Buela, CFO, Wallbox: Thank you, Henrik. Good morning and good afternoon to everyone. The second quarter revenue landed within our guided range with €38,300,000 reflecting a quarter over quarter improvement of 2%, but down compared to the record high quarter last year. Europe was soft, but did improve quarter over quarter, and we expect further growth ahead. North America is consistent compared to last quarter and remains a large contributor to the overall business, growing nicely.

DC sales have stabilized and show an upward trend with backlog buildup. Gross margin was within our guided range and remained relatively stable quarter over quarter, reaching 37.8%. The probe mix was similar with higher buildup material costs and freight marginally reducing gross margin. As mentioned by Henrik, we see opportunities to improve gross margins as we increase our shipments of new inventories with more efficient build of materials and increased prices in certain regions. Q2 labor costs and OpEx totaled €24,300,000 representing a 25% improvement compared to the same period last year.

We continue to optimize the organization while revenue levels remain consistent, and we believe there is opportunity to grow significantly with this cost structure, especially as we focus our investments towards sales to capture the current EV market uplift in Europe. Cash costs, which is defined as labor costs and OpEx excluding R and D capitalization, noncash items and one off expenses declined even further, down 35% year over year. Even though we are making progress on the combined labor cost and OpEx result, this quarter showed a slight increase in OpEx due to additional freight, duty and tariff costs. This was unexpected as we had to react to the consistent high demand in The U. S.

Going forward, we see opportunities to better manage and mitigate these variances for greater margin read through. Consolidated adjusted EBITDA loss for the quarter was €7,500,000 on the lower side of the guided range. This was due to lower gross margin and limited quarter over quarter improvement in OpEx. However, when the result is compared with the 2024, the adjusted EBITDA improved 33% year over year. Overall, we show continuous organizational efficiency improvements, which combined with the expected revenue improvements in the quarters to come, will help us achieve our goal of becoming adjusted EBITDA breakeven.

We ended the quarter with approximately €32,400,000 of cash, cash equivalents and financial instruments. During the quarter, we closed another investment round of approximately US50 million dollars with more than US9 million dollars from the government of Spain through the Spanish Society for Technological Transformation and US5 million dollars from existing investors, including Iberdrola and Origa Asset Management. We appreciate the continued support of our investors and their alignment regarding the future potential of the company and welcome the strong addition of SET to our cap table. Loans and borrowings totaled approximately €182,000,000 at the end of the quarter, comprising €80,000,000 in long term debt and €102,000,000 in short term debt. Total debt increased €18,000,000 9% compared to last quarter.

The main reason for the decline was a lower use of our working capital facilities combined with repayments of small portion of debt that were due. For the majority of our loans and borrowings, we have an eighteen month interest only period with our primary lenders, as commented in our previous earnings call. CapEx remained light and totaled €1,000,000 of which €400,000 was related to investments in property, plant and equipment. This reflects an already expected increase compared to last quarter, as mentioned in the Q1’s earnings call. If we compare to the same period last year, CapEx investment decreased 62%.

On inventory, we have made better than expected progress and continue to release cash. At the end of Q2, inventory landed at €56,600,000 reflecting a 33 decrease year over year and 11% compared to last quarter or €7,000,000 another proof point that operationally, on the items we can control, we are making solid progress. Henrik, I’ll turn it back to you to provide some closing commentary.

Henrique Assassion, CEO, Wallbox: Thank you, Luis. Our second quarter twenty twenty five results were in line with our guidance. The consistent improvement on the items we can control and the stable results give us confidence in our ability to accelerate improvements. As the EV market in Europe, our largest region, is recovering and our growth in the North American market remains, we believe we may print a stronger second half of the year. I can’t stress enough that I strongly believe that the global platform we have built with an innovative product portfolio is leading the industry.

As we start to leverage this platform and in parallel continue to work on the right organizational setup, we believe profitability is within reach. With that, I would like to discuss next quarter’s guidance. For the 2025, we have the following expectation: revenue in the EUR 38,000,000 to 41,000,000 range gross margin between 3739% and negative adjusted EBITDA between EUR 6,000,000 and EUR 4,000,000. With that, we’ll raise the questions from our analysts.

Michael Wilhelm, Investor Relations, Wallbox: Welcome back, everyone. To our analysts, we ask that you pose one question with a follow-up if needed, then reenter the queue if there’s more. This will allow each of you to ask your questions upfront, and we’ll get to as many additional questions as time allows. Paul, I think you have some instructions for our analysts.

Luis Buela, CFO, Wallbox: Thank you.

Call Operator: And the first question today is coming from John Wyndham from UBS. John, your line is live.

John Wyndham, Analyst, UBS: Hey, perfect. Thanks for taking the questions. I just wanted to level set. It’s been almost two years since the Generac investment. Just any color or commentary you have around the status or progress with that relationship?

Thank you.

Henrique Assassion, CEO, Wallbox: Hi, John. This is Enrique. Good morning. So yes, you’re right. So it’s two years since the first investment of Generac as maybe at the end of this year.

Since then, we have started to commercialize our home chargers with them in North America. Today, the one of the product lines of Generac is EV charger, home EV chargers, and that’s our winning product that the world of full supply that they resell under the Generac brand to their different dealers. Also, another thing we’ve been doing for these last two years has been integrating our apps platforms in the generic ecosystem and the products also in the generic ecosystem. So it’s not only that we have today a wall they have a wall of charger. They also have an app that can manage the wall of charger.

So I think the solution we’re offering to generic dealers and customers is the number one solution you can get in North America. So in that regard, we already have traction in terms of revenue and several thousands of units have been already delivered to Generac to resell to their customers. Another important topic is our commercial sales, you know, the supernova sales. This is something we are working on not only in North America but also in in Europe because Generac internationally has another brand. It’s called Framac in Europe.

And we’re very happy here because together, we have launched a new solution for fast charging. One of the main challenges of charge point operators when they install fast chargers is the availability of power. You know, you might have maybe 100 kilowatts in a given location, but you want to be able to offer to your customers more power than that. No? And a good solution is to add industrial battery that when paired with a supernova and our our software, you know, series controller, it can help, you know, to bring high power more than 200 kilowatt or 300 kilowatts.

And then when there’s no one charging, you recharge back that battery. So that’s something we already launched couple of one quarter ago, if I’m wrong, with Pramek, and we are already starting to see some customers interested on the first pilots to test this technology. So we’ll say the partnership is going well. We would like maybe to go a little bit faster, but obviously, there’s a lot of integrations and products we are developing together.

John Wyndham, Analyst, UBS: Perfect. Appreciate it. And if you’ll allow me as a follow-up, probably different question. Can you talk a little bit more about the QUASAR two, what that project is, and just if you could just provide some details about the offtake size, who’s the partners are? Thank you so much.

Henrique Assassion, CEO, Wallbox: Yeah. So these are very exciting, and this is, you know, for me, it’s one of the most innovative projects that have ever been done in the EV charging world. You know, we are the first CCS bidirectional charger being certified and delivered in North America. And I think we are several months, if not years, ahead of of competition. No?

What what this product does, and I think we commented in the past, but I think it’s good to remind everyone, is not only a charger. It’s also a bidirectional charger. So it allows you to discharge the battery of your electric car. And that means that in case of a blackout, it can behave as a backup generator. So you can power your home with the battery of your electric car.

Electric car battery is a massive battery. It’s a 100 kilowatt hour battery in the case of the Kia AV9, which is the the car that we are starting to to sell this this product. Now we are we have partnered with Kia, and we are doing the first deliveries to Kia AV nine owners. And, you know, 100 kilowatt hours allows you to power a home for more than a day or even almost three days depending on your your power consumption. So even if you don’t have the car fully charged, you still will be able to to use it as a backup generator.

And it’s not only a backup generator. It’s also it gives you the opportunity that if you have solar panels or the the pricing of energy changes by the hour, you can charge when energy is cheaper and discharge when energy is more expensive. So this after, you know, lots of months and more than a year of working on this project, we have delivered the first units to key AB nine users. That’s something we are doing slowly because we are slowly ramping up. You know, it’s we wanna make sure that everything goes smooth and well because we have more preorders and more demand than we are delivering today.

So, you know, this last quarter, we delivered a few tens of units. But this is something we’ll start to ramp up. And at the end of the year, in Q4, we believe we can exceed the 100 units or more per quarter and continue growing. I think this is a potential very important potential revenue growth for the company. And, you know, just to to repeat about the the opportunity here, it’s not only a charger.

It’s something that can power your home. And and to give you an idea, you 100 kilowatt hours, whatever what which I was referring to, it’s the equivalent of seven Tesla power watts. You know? So it’s a it’s a massive battery that you have basically for free because when you buy your electric car, you you already have electric car. So Tesla enables this this potential.

Quasar enables this potential. Sorry.

Michael Wilhelm, Investor Relations, Wallbox: Great. Thank you so much.

Call Operator: Thank you. The next question will be from George Gianarikas from Canaccord Genuity. Please proceed with your question, George.

Matt, Analyst, Canaccord Genuity: Hi, good morning. Good afternoon, everyone. You have Matt on here for George. Thank you for taking my questions. Just to start off, it seems like the Supernova backlog is growing nicely.

What kind of cadence should we expect for deployments going into the back half of this year and into ’26? And what does that look like from a geographic standpoint?

Henrique Assassion, CEO, Wallbox: Yeah. So hi, Matt. This is Enrique from. Morning. So in terms of backlog, I understand you wanna speak about the backlog.

The the good thing here is that we generally look at the increase of backlog more than the the we always have backlog now as we move forward. But for us, it’s very relevant. The fact that this last quarter, our backlog has increased more than 5,000,000, actually close to €6,000,000. This is coming mostly from AC sales, coming from in Europe, but also in North America. We are seeing very good traction in North America, but also in fast charging.

So fast charging, we’ve been, the last couple of quarters, focusing our business more in a specific part of the value chain of fast charging. So, you know, we are focusing between 80 kilowatts and 400 kilowatts. We believe that that’s where the biggest volume and biggest the profitability can be achieved for a company like us and for CPOs. So while we’ve been doing this focus in terms of product and service solutions and offering, we’ve been capturing more backlog for So when I look at the second half, one, we take this almost 6,000,000 of increase of backlog.

So that’s something that we should be able to convert in the first couple of quarters of Q3. So that’s an increased potential that we are very excited to. But also in fast charging, we need to start seeing again the growth. And we are seeing it. We are seeing it with the exit backlog, but they also have there will be more orders in Q3 coming into Q4.

So our main focus on backlog growth is going to be in the fast charging part of the business.

Matt, Analyst, Canaccord Genuity: Great. Thank you. And I guess just as a follow-up, could you give us the latest updates on the ABL acquisition? How’s, you know, how’s momentum tracking in Germany and kind of the other key markets for that?

Henrique Assassion, CEO, Wallbox: So I think in terms of profitability, we are very, very excited on the efforts we’ve done here. We’ve been able to integrate the company and, you know, make sure that there’s no were no redundancies in terms of cost. So we we are not taking, like, general, the whole company, no, at least a 40% personnel cost and OpEx cost reduction during the last year while we’ve been able to maintain the revenue levels and the sales of the previous year. Now the focus, since we have done integration and we have been able to obtain these synergies, the focus is the growth basically. You know, Germany is a market that is back to growth.

Actually, for the year to date, the the growth has is more than than 40% on EV sales and proprietary sales. So this is great news because Spain and Germany are our home European markets. Spain because it’s one of home European market and Germany because it’s AVL, and both are growing more than than 40%. You know? So in the case of Spain, yes, we are seeing this growth, and the company is expanding at that rate or even more.

But in Germany, I believe we need to invest more in in in the sales side of the business. We we are applying we are actually working on on hiring more salespeople. We have been working also on changing the leadership for the German for ADL sales organization. And finally, an opportunity that I think we already are seeing, but there’s even more growth potentially, is the cross selling. You know?

When we acquire ABL at Volvo, we were not selling double socket commercial chargers. That’s a product we didn’t have. And today, quarterly sales of this product outside Germany, so these are sales that we do in France or The Netherlands or other markets, amount for more than a million euros a quarter. And this is just three quarters since we started this cross selling process. I believe that in as we move forward, we are adding more opportunities.

And I actually commented in the last earnings call about these opportunities that the AM4 was bringing. So there’s especially growth potential there. So in general, ABL, we are very satisfied with we’re done so far. But I I I believe that the the opportunity here is on growing the the sales organization and the support organization in Germany.

Matt, Analyst, Canaccord Genuity: Great. Thank you so much.

Michael Wilhelm, Investor Relations, Wallbox: Okay. That was our last question. Thank you all for joining us today. We hope you found today’s call a good use of your time. Let us know if we can help you in any way.

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