Ebusco reports H1-2024 results

Executive Team is developing Turnaround Plan

Financial review H1 2024

• Revenue over the first half of 2024 arrived at €38.0 million.
• EBITDA loss of €60.7 million.
• Result for the period of negative €64.7 million.
• Order book of 1,662 buses[i].

Operational review H1 2024

• 98 buses delivered, including first Ebusco 3.0 buses assembled by contract manufacturers.
• Scaling up with contract manufacturers has been hampered by start-up inefficiencies.
• Working with contract manufacturers has nonetheless proven to be the right choice, with unit economics approaching expected levels.
• Ebusco 3.0 showing strong operational performance and market leading energy efficiency.
• Reshaping of the Executive Team completed with recent hires of Co-CEO, COO and CCO.

Guidance 2024 and Turnaround Plan

• As already communicated, guidance of 325 million revenue and positive EBITDA no longer achievable.
• Reshaped Executive Team working on Turnaround Plan.
• Further guidance provided during Q3 update and Capital Markets Day.

Deurne, 31 July 2024 – Ebusco (Euronext: EBUS) today provides insight into its results for the first half of 2024. Disappointing performance to date, have resulted Management to withdraw 2024 guidance, as communicated on 25 June 2024. To take action, the reshaped Executive Team is developing a Turnaround Plan to improve the overall performance and delivery reliability of the company.

With a slower than expected scale up of the adapted production set-up, the company has, as earlier announced in its press release, drawn the conclusion that the provided guidance for 2024 is no longer achievable. Start-up inefficiencies have delayed production compared to the initial plan and will take the remainder of 2024 to resolve.

Although Ebusco was unable to reach the production output it was aiming for, the strategic shift to re-introduce working with contract manufacturers has proven to be the right choice, resulting in accelerated assembly time.

Inefficiencies at our in-house production facility in Deurne continue to hinder the finalisation of buses, slowing down factory output. This not only affects revenue but also delays the full execution of the cost reduction programme.

To improve the performance of the company, the reshaped Executive Team is developing a Turnaround Plan. While the key elements of this plan are clear, details have to be worked out. Ebusco has engaged with an external consultant to assess quality of gross margin, especially in view of production with contract manufacturers. This assessment shows that unit economics per bus will reach the levels allowing the company to execute its Turnaround Plan. For financing of the plan discussions with lenders and investors have been initiated. In this context, we also refer to our disclosures as set forth in the Interim condensed financial statements attached to the full press release.

Peter Bijvelds, Founder and Co-CEO of Ebusco, comments: “As the half-year figures reflect, it has been a disappointing start of the year. Although the decision to work with contract manufacturers for the Ebusco 3.0, as we have successfully done for years with the Ebusco 2.2, has proven to be the right choice, we have faced start-up inefficiencies that take longer than anticipated to resolve. To address these challenges, responsibilities within the Executive Team have been redistributed, and additional strength has been added. I am pleased that Michiel Peters has recently started as Co-CEO and chairman of the Executive Team. With the arrival of two experienced executives from the bus industry, Roald Dogge as COO and Erland Morelissen as CCO, we are ready to get the company back on track based on the turnaround we are developing.”

Michiel Peters, Co-CEO of Ebusco and chairman of the Executive Team, adds: “In the last few weeks I have had the opportunity to get to know Ebusco further and sense the commitment and knowledge of the people. With the Executive Team in a new composition, we have identified both the need and the opportunities to improve the performance of the company. Based on the unique concept of the Ebusco 3.0 and the proven concept of the Ebusco 2.2 we should be able to generate higher volumes and healthy financial returns.”

Guidance 2024 and Turnaround Plan

Guided by Michiel Peters, the new Executive Team is developing a Turnaround Plan to improve performance and reliability. This plan encompasses the following elements:

• Simplify operational footprint and establish reactive supply chain;
• Complete industrialisation of existing product portfolio before launching new products;
• Gradual increase of run rate to 40-50 buses per month by the end of 2025;
• Structural reduce OPEX by €20-30 million in 2025;
• Mobilise organisation by creating clarity with respect to goals, processes, and responsibilities.

During the Q3 update and the Capital Markets Day later this year, Ebusco will provide a more detailed elaboration of the Turnaround Plan, and an updated guidance for 2024.

Click here to read the full press release including interim condensed consolidated financial statements.

[i]  These orders can be divided into three categories: fixed (697), call off contracts (178), additional options within won contract (787).