Q3 2025 Wallbox NV Earnings Call

November 5, 2025

In listen only mode to prevent any background noise.

Operator: All participants' lines have been placed in listen-only mode to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. Analysts who wish to ask a question can place themselves into the queue by pressing star 1. I would now like to turn a call over to Michael Wilhelm from Wallbox. Michael, please go ahead.

After the Speakers' remarks, there will be a question and answer session.

Analysts, who wish to ask a question can place themselves into the queue by pressing star one I would now like to turn the call over to Michael Wilhelm from Wall box. Michael. Please go ahead.

Thank you and good morning, and good afternoon to everyone listening and thank you for joining today's webcast to discuss warbucks first quarter 'twenty 75 results.

Michael Wilhelm: Thank you, good morning and good afternoon to everyone listening in. Thank you for joining today's webcast to discuss Wallbox Q4 2025 Results. This event is being broadcast over the web and can be accessed from the investor section of our website at investors.wallbox.com. I am joined today by Enric Asunción, Wallbox CEO, and Luis Boada, Wallbox CFO. Earlier today, we issued our press release announcing results from the Q4 ended 30 September 2025, which can also be found on our website. Before we begin, I would like to remind everyone that certain statements made in today's call are forward-looking. They 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.

This event is being broadcast over the web and can be accessed from the investors section of our website at investors still boardwalks dot com.

I'm joined today by Eric assertion mobile seal and Lewisville other global CFO.

Earlier today, we issued a press release announcing results for the third quarter ended September 30th trained 25, which can also be found Hello website.

Before we begin I would like to remind everyone that certain statements made in 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 Companys. Most recent public filings with the SEC, including in the annual report on form 20-F for the fiscal year ended December 31, 2024 filed on May six 2025.

Michael Wilhelm: 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 31 December 2024, filed on 6 May 2025. We will be presenting unaudited financial statements in IFRS format that reflects management's best assessment of actual results. 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 investor section of our website. A copy of these prepared remarks can be obtained from the investor relation website under the Q4 results section, so you can more easily follow along with us today. With that out of the way, I will turn it over to Enrique.

We will be presenting on all of its financial statements in <unk> format that reflects management's best assessment of actual results.

Also please note that we use certain non <unk> 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 he can more easily follow along with us today.

So with that out of the way I will turn it over to Eric.

Thank you Michael and thanks, everyone for joining us today.

Enric Asunción: Thank you, Michael, and thanks everyone for joining us today. We will start today's call with an overview of our Q4 2025 results, provide our perspective on the EV market, and spend time discussing our strategic progress. Luis, we'll 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 remainder of the year. Q3 revenue landed at EUR 35.5 million, below our expectations but up 2% compared to the same period last year. The largest offender has been AC sales across all global regions. In the case of Europe, there have been operational headwinds and changing product regulation creating delivery challenges, impacting the overall order intake. For the North American market, the strong contrast in terms of EV market growth between the US and Canada creates a blurred view. The US.

We will start today's call with an overview of our third quarter 2025 results.

Provides a perspective on maybe market and spend time discussing our strategic progress, which we will offer a closer look at our financial results and our key financial metrics before I close a conversation to highlight why we are focused on for the remainder of the year.

Q3 revenue landed at $35 45 billion euros.

Below our expectations, but up 2% compared to the same period last year.

The November sales across all regions.

In the case of Europe that have been operational headwinds and Tianjin product regulation, creating delivery challenges impacting the overall or do you think.

For the North American market, a strong contrast in terms of EV market growth within the U S and Canada creates a broader view.

The U S heart, one of the strongest quarters ever while Canada, and one of the slowest quarter since Q1, 'twenty two 'twenty three in terms of sales.

Enric Asunción: had one of the strongest quarters ever, while Canada had one of the slowest quarters since Q1 2023 in terms of EV sales. These market trends we see are reflected in our results. The contribution of APAC and South America has been limited, and resources have been shifted to focus on our key markets. DC sales have been the highlight of this quarter, reflecting the ongoing strong recovery we have seen during 2025. This category is showing strong growth compared to both last quarter, up 40%, and last year, up 34%. We have seen progress with our commercial partners and solid demand for our new-generation Supernova product due to its solid performance and reliability. In total, during the Q3, we delivered over 33,000 ACD units and close to 170 DC units. Gross margin was 39.8% in the Q3, which exceeds the 37% to 39% guided range.

These market trends, we see are reflected in our results.

The contribution of APAC and South America has been limited purpose have been shifted to focus on our key markets.

This is sales have been the highlight of this quarter, reflecting the ongoing strong recovery we have seen during 2025.

This category is showing strong growth compared to both last quarter up 40% on last year up 34%.

We have seen progress with our commercial partners and solid demand for our new generation to promote our product due to its solid performance and reliability.

In total during the third quarter, we delivered over 60000, ACD units and close to 170 D C units.

Whereas volume was 39, 8% in the third quarter, which exceeds the 37% to 39% neither bridge.

This reflects a 200 basis point increase compared to last quarter, because it will be from improved bill of material cost higher prices and the impact of carbon credits.

Enric Asunción: This reflects a 200 basis points increase compared to last quarter, resulting from improved bill of material costs, higher prices, and the impact of carbon credits. Looking ahead, there are several levers we believe can be pulled to sustain and improve the gross margin, which Luis will comment on later. Moving to the organizational setup, labor costs and operating expenses landed at EUR 22.9 million. This reflects a 6% improvement compared to last quarter and a 28% improvement compared to the same period last year. In the case of cash costs, which is defined as labor costs and OpEx excluding R&D activation, non-cash items, and one-off expenses, the result is even more impressive as we achieve a 34% year-over-year reduction. I am pleased with the ongoing progress on efficiency while we are achieving consistent revenue levels, allowing us to make steps toward profitability every quarter.

Looking ahead there are several levers we believe can be pool.

Tenant improvement of margin, which Luis will comment on later.

Moving to the organizational set up labor costs and operating expenses landed at $22 9 million.

This reflects a 6% improvement compared to last quarter.

28% improvement compared to the same period last year.

In the case of cash costs, which is a fine is labor cost and opex, excluding around the activation noncash items and one off expenses that result is even more impressive as we execute that 34% year over year reduction.

I'm pleased with the ongoing progress on efficiency, while we are achieving consistent revenue levels, allowing us to make steps toward profitability evercore.

Going forward, we can get into Atlanta, corporate action and investments to achieve a net positive efficiency back with.

Enric Asunción: Going forward, we continue to balance cost reduction and investments to achieve a net positive efficiency impact. We plan to accelerate investments to reinforce our sales organization, including customer service, to support revenue growth. One of the first major steps in this plan is the appointment of our new CBO, Ignasi Alastuey. Ignasi brings experience and expertise in developing scalable commercial models and driving expansion in strategic markets. In addition, we will integrate our different sales team across product segments for a more holistic approach, centralized execution, and additional efficiency gains. Adjusted EBITDA for Q4 2025 was EUR 6.9 million, below our guided range but improving 8% quarter-over-quarter. Compared to the same period last year, adjusted EBITDA loss narrowed by 58%, but this comparison is impacted by one-off items incurred in Q3 2024. The main reason for the guided shortfall was softer-than-expected sales, as mentioned before.

We plan to accelerate investments to reinforce our sales organization, including customer service to support revenue growth.

Although the first major steps in this plan is the appointment of our new CTO nausea, lastly, inactivity and her experience and expertise in developing a scalable commercial models and diving ex biogen in strategic markets.

In addition, we reiterate our different sales team across product segments for a more policing approach centralized integration and additional efficiency gains.

Adjusted EBITDA for the third quarter, Australia identify was minus $6 9 million euros below our guided range, but improving 8% quarter over quarter.

Compared to the same period last year, adjusted EBITDA loss narrowed by 58%.

This comparison is impacted by one off items in core in Q3 total revenue for.

The main reason for the guidance shortfall was softer than expected sales as mentioned before as a global player. We operate in a competitive environment characterized by volatile market demand.

Enric Asunción: As a global player, we operate in a complex environment characterized by volatile market demand, driven by evolving subsidy frameworks and continually developing product regulations across countries and regions. To manage this, resiliency is crucial, and we believe we are well-positioned for growth with a strong brand name, complete product portfolio, well-known commercial partners, global reach, and a more efficient organizational structure. The main area of focus to accelerate our path to profitability is restoring revenue growth. For this reason, we are reinforcing our sales function and leveraging our existing market positioning to elevate our performance across geographies and segments. For the Q4 of 2025, Europe contributed €23.6 million of consolidated revenue, or 66% of total top line. This reflects a 3% increase in revenue for the region compared to last year, but was subdued compared to the European EV market growth.

Driven by evolving subsidy frameworks and continually developing product regulations across countries and regions.

To manage this resiliency is crucial and we believe we are well positioned for growth with a strong brand name complete product portfolio, well known commercial partners global reach and a more efficient organizational structure.

The main area of focus to accelerate our path to profitability in restoring revenue growth.

The reason we are reinforcing our sales function are leveraging our existing market positioning.

Elevate our performance across geographies and segments.

For the third quarter of 285, Europe contributed 23.6 million euro of consolidated revenue.

Or 66% of total top line.

This reflects a 3% increase in revenue for the region compared to last year at Wassa do compared to the European EU market growth.

We showed solid year over year improvement in selected countries, such as Spain, France, Belgium, and the UK.

Enric Asunción: We showed solid year-over-year improvements in selected countries such as Spain, France, Belgium, and the UK. However, growth for the entire region has been softer than expected. This can partly be attributed to operational headwinds and product regulations. In the quarter, the Radio Equipment Directive came into force in the EU, which required us to switch to a new product which has additional functionality but comes at a higher price point. This product shift and the related market education time impacted overall order of delivery. In addition, shipments were subdued due to longer lead times as we shifted one of our most popular products, the Pulsar Max, to a new technology platform for additional functionalities and improved cost.

However, blow for the beverage can has been softer than expected.

This is partly be attributed to operational scale winter product installations in the quarter. The radio equipment directive came in two four in the EU.

We can acquire ask if reached a new product, which has additional functionality, but comes at a higher price point.

These products ship and the latest market dislocation impacted overall order delivery.

In addition shipments were subdued due to longer lead times at Wuxi for one of our most popular products the ultra Max joining technology platform for automation of internal ideas and improve cost.

Although we believe the positive trend in every market for the European region will provide additional opportunities, which we believe we can capitalize on with our strategic position and complete product portfolio.

Enric Asunción: Overall, we believe the positive trend in the EV market for the European region will provide additional opportunities, which we believe we can capitalize on with our strategic position and complete product portfolio. North America contributed EUR 11 million, or 31% of the total revenue. Compared to the same period last year, this region is up 13% and 18% at cost and effects. This is consistent with the trend we have seen in the last quarters as we continue to perform well in the North American market. However, breaking down the region in terms of revenue growth compared to last quarter, we saw growth in the US offsetting a slowdown in Canada. This performance is even more impressive considering the Canadian EV market in the Q3 is down 49% compared to the same period last year.

North America contributed 11 million or three 1% of the total revenue.

Compared to the same period last year. This region is up 13% and 18% at constant FX.

This is consistent with the trend we have seen in the last quarters as we continue to perform well in the North American market, However, breaking down the region in terms of revenue growth compared to last quarter.

We saw growth in the U S. Offsetting a slowdown in gorilla. This performance is even more impressive considering the current media market in the third quarter is down 49% compared to the same period last year.

Both APAC and Latam remains a small region for waterworks.

Enric Asunción: Both APAC and LATAM remain small regions for Wallbox, now contributing approximately EUR 160,000, or 1%, and EUR 725,000, or 2%, respectively, for the Q. As mentioned last Q, we believe these regions have significant future potential but are currently not prioritized in our resource distribution. AC sales of EUR 22.4 million, including ABL and Quasar, represented approximately 63% of our global consolidated revenue, down 16% compared to last Q and down 5% year-over-year. This product category had a weak performance across all global regions, partly due to the operational headwinds in Europe and the soft EV market in Canada just discussed. On the positive side, we continue to roll out the innovative Quasar 2 solution as commercial traction is gaining momentum and have discussions with additional OEMs to become compatible with the product.

Now on TV in approximately 160000 euros or 1%.

725000 euros are 2% respectively for the quarter.

As mentioned last quarter, we were leaving lesion has suddenly forgotten.

Regional potential at our correlate not prioritize in order to source distribution.

AC sales of $22 4 million euros, including AVR laser represented approximately 60% of our rollout complete that revenue.

116% compared to last quarter and down 5% year over year.

These product categories at a weak performance across all regions, partly due to the operational headwinds in Europe and the soft <unk> market in Canada has discussed on the positive side, we continue to rollout the northeast rental solution as commercial traction is gaining momentum and have discussion with additional Oems to become compatible with the <unk>.

Okay.

We are providing additional warranty on our pulsar Max and extra costs. In addition to reinforcing the sense organization.

Enric Asunción: We are providing additional warranty on our Pulsar Max at no extra cost in addition to reinforcing the sales organization. This change reflects the product's outstanding reliability and our commitment to delivering long-term value to every customer. In addition, we have launched and expect to launch new features for additional customer value and an improved competitive edge. Earlier this year, we introduced the Time-of-use tariffs, allowing customers to optimize their energy consumption. Now we introduce a State of Charge feature for additional insights into the charging status of the car. Shortly, I will share more details about these functionalities and the expected long-term strategic impact. DC sales in the Q3 landed at €5.8 million, or 16% of sales, resulting in a significantly higher contribution to our total revenue for the quarter as compared to prior periods. year-over-year, this category is up 34% and sequentially up 40%.

This change reflects the products or systemic liability and our commitment to delivering long term value to every customer.

In addition, we have launch and expect to launch new features for additional customer value.

And improved competitive edge.

Earlier this year, we entered user time of your studies, allowing customers to optimize their energy consumption and now we introduced a state of charge feature or additional insights into their chosen started overcoat.

Shortly I will share more details of our divisional Ids unexpectedly long term strategy.

This is sales in the third quarter to $105 8 million or 16% of sales.

Hunting in a sneakily higher contribution towards total revenue for the quarter as compared to prior year periods.

Year over year, these categories up three 4% and sequentially up 40%.

As discussed in the previous quarter.

Enric Asunción: As discussed in the previous quarter, we saw strong progress in the recovery of the DC sales, especially due to the introduction of new-generation Supernovas and high demand in North America. Many clients are satisfied with the functionality's quality and efficient installation, resulting in recurring orders. For example, in the Q3, we have announced additional commercial partnerships in both Europe and North America with Hera Group and SureCharge Corp, respectively. In the case of Hera Group, Wallbox N.V. agreed to provide 58 Supernova 120 kW DC fast chargers to be deployed across central and northern Italy by the end of 2025. SureCharge Corp is building a new public charging network in Canada, across Alberta and British Columbia. The project will establish up to 24 high-speed charging sites with 96 charging points along key travel corridors, creating an extensive regional fast charging hub and deploying Supernova 180 kW DC fast chargers.

We saw strong progress with the recovery of NBC sales, especially due to introduction of new generation Triple malls and high demand in North America.

Many clients are satisfied with the evolution of <unk> quality and efficient installation.

I'll begin recording mortgage for example in the third quarter, we have announced additional commercial partnerships in both Europe, and North America with HERA group actual charge core respectively in.

In the case of headroom, while we're sorry to provide 50, a triple rollout 120, Gigawatts DC fast chargers to be deployed across central Northern Italy by the end of 2025.

Sure Josh Corp is building, a new public charging network in Canada, a profile winter in British Columbia.

The project will establish absolutely give floor price detailing sites with 96 testing volumes along key travel corridors.

Creating and.

Tensive regional fast thousands hub and employee supernova 180 kilowatts DC bus testers.

In addition, we are working on an exciting new product, which is leveraging our existing DC technology.

Enric Asunción: In addition, we are working on an exciting new product which is leveraging our existing DC technology. This new product will be announced soon, and we believe it will revolutionize the DC fast charging concept. From a technology perspective, we anticipate this new solution, based on the Supernova platform, will allow for higher power delivery than we ever offered before but still has the cost efficiency, reliability, scalability, and small footprint on our customer value in the existing solutions. We are very excited to launch this product as it underlines our flexibility to continue to innovate and leverage our existing future-proof platform while, in parallel, right-sizing our organization and limited CapEx investment. The categories software, services, and others remain a consistent contributor to our business, this quarter generating €7.3 million, or 21% of the total revenue. This reflects a small decrease compared to last quarter but an 11% year-over-year increase.

This new product will be announced soon and we believe it will revolutionize the DC fast charging clubs.

From a technology perspective, we anticipate these new solution based on the <unk> platform will allow for higher poorly really than we ever offered before but still has the cost efficiency programmability scalability and small footprint our customer value in the existing solutions. We are very excited to launch this product as it underlines our flexi we needed to.

Continuing to innovate and leverage our existing future proof platform, while in parallel right size, the organization and maybe that Capex investment.

The category software services and others remain a consistent contributor to our business this quarter generating $7 3 million or 21% of the total revenue.

This reflects a small increase compared to last quarter, but an 11% year over year increase.

If we breakdown this category, we see the same trend as previous port.

Enric Asunción: If we break down this category, we see the same trend as the previous quarter. Our software activities, with the largest contributor being Electromaps, show the strongest growth, more than doubling the revenue compared to last year. Installation and service remain the largest contributors but decline slightly compared to last quarter. We see opportunities for this category to continue to perform well as the EV fleet using our software continues to grow, and we will have more and more DC fast chargers in the field. Today, we would like to provide you with another update on the innovations we are working on to become the ultimate energy partner and enhance the value of our products for our customers. Last quarter, we talked about our bidirectional charger, Quasar 2, and its capability for enhanced energy management.

So productivity is with the largest contributor being electrum ups.

So the stronger growth more than doubling the revenue compared to last year.

Installation and service remains the largest contributor but declined slightly compared to last quarter.

We see opportunities for this company, we need to continue to perform well as easily using our software continues to grow and we will have more and more of the fast charge that's in the field.

Today, we will like to provide you with another update on the innovation, we are working on to become the automate energy partner and in haste the value of our products for our customers.

Last quarter, we talk about our values and external charger is a tool and its capability forehand hate energy management.

Now we will like to comment on additional solutions, we are bringing to the market, enabling all of our charters to provide additional energy management functionalities.

Enric Asunción: Now, we would like to comment on additional solutions we are bringing to the market, enabling all our chargers to provide additional energy management functionalities. As mentioned earlier in the call, at the beginning of this year, we have introduced the Time-of-use tariffs feature, which allows customers to input different daily tariffs provided by their utility. This information can then be used to schedule charging sessions within the Wallbox app and give customers the opportunity to optimize their energy costs based on the different tariffs available. Currently, we have Time-of-use tariffs data from more than 40,000 customers, which allows these customers to extract more value from their charger and car. The next step, which we are introducing now, is the State of Charge feature, which provides the customer with insight into the battery level of the car and allows the customer to optimize the energy usage based on his driving needs.

As mentioned earlier the Nicole.

Beginning of this year, we have introduced at time of use that is features which allow customers to input different daily tonnage provided by their utility.

This information can then be used to schedule challenge sessions within the <unk> app and give customers the opportunity to optimize their energy cost based on the different that is available.

Currently we have five module studies data from more than 40000 customers, which allow these customers to us.

Enric Asunción: Currently, we have Time-of-use tariffs data from more than 40,000 customers, which allows these customers to extract more value from their charger and car. The next step, which we are introducing now, is the State of Charge feature, which provides the customer with insight into the battery level of the car and allows the customer to optimize the energy usage based on his driving needs.

Extract more value from their treasurer.

The next step, which we're introducing now.

State of <unk> feature we provided the customer with insight into the battery level of the car and allows the customer to optimize their energy usage based on its diabetes.

Combining the Wellbore energy meter at the hub Mou study from the utility.

Enric Asunción: Combining the Wallbox energy meter at the home, Time-of-use tariffs from the utility, the energy generation of solar panels, and the State of Charge of the car, the customer has all the elements to do energy management at the home, all powered by Wallbox. With this complete solution, we have more insights and control to support the customer with optimizing their energy usage, receiving tailored energy price recommendations, and, in the long term, enhancing their energy security with the implementation of the Quasar 2, which is enabled by this Wallbox infrastructure. In the future, we aim to leverage this infrastructure and this integrated Wallbox solution by introducing additional intelligence powered by AI for faster data processing and completely automatized smart charging.

The LNG in additional firm panels.

And the state of test on the car the customer has all the elements to do energy management of the home all power way World.

With this complete solution, we have more insight and control board the costumer with optimizing there and use it proceeding Taylor energy price recommendations and in the long term and hastening their energy security with implementation of a quasi too which is enabled by these was infrastructure.

In the future, we aim to leverage this infrastructure and leading breathable solution.

The roofing additional intelligence powered by AI or faster data processing and completely automatize a smartass.

Until now many of these features we just discussed have been provided in collaboration with partners.

Enric Asunción: Until now, many of these features we just discussed have been provided in collaboration with partners, but by centralizing more and more of these features within the Wallbox ecosystem, we take another step towards establishing Wallbox as a leading energy player. The EV market continued to perform well in Q3 of this year, and in our addressable market, which we define as all regions except China, 2.1 million EVs were sold, reflecting a 39% growth compared to the same period last year. Europe, the largest EV market, continues to recover well compared to the last two years and is up 41% compared to the same period last year. It is great to see this momentum with positive trends emerging for Wallbox in certain countries such as Spain, France, Belgium, and the UK. However, this rapid growth is not yet fully reflected in all countries and, therefore, in our results.

But may centralizing more and more of this feature within the automotive ecosystem, we take another step towards establishing <unk> as a leading energy player.

The market continued to perform well in the third quarter of this year.

In our addressable market, which we define as all regions, except China, $2 1 million Evs worse fall, reflecting a 39% growth compared to the same period last year.

Europe, the largest EV market continues to recover well compared to the last few years and he is up 41% compared to the same period last year.

It is great to see this momentum with positive trends emerging for walnuts interbank countries, such as Spain, France, Belgium, and the UK.

However, this rapid growth is not yet fully reflected in all countries.

And therefore in our results.

We believe we can better capitalize on this trend going forward with the influence of our sales teams.

Enric Asunción: We believe we can better capitalize on this trend going forward with the reinforcement of our sales teams. Long-term commitment to carbon emissions reduction is essential, with many European countries, including Spain and France, and various organizations convened under the political initiative ChargeUp Europe, pushing to uphold the EU's 2035 zero-emissions target, not only to decarbonize transport but also to remain competitive globally in the long term, as many indicators show that the future is electric. In the case of the North American market, different elements impacted the growth in Q3, which was up 22% compared to last year. First, the Canadian market has been soft all year due to 100% tariffs on Chinese-made cars and the end of the iZEV incentive program. This softness was offset by strong growth in the US.

Long term commitment to carbon emissions reductions as essential with many European countries, including Spain and France.

Various organizations.

Under the political initiatives pay charts Europe.

Into a hold of us could be 35 zero emissions target.

Not only to Decarbonize transport, but also to remain competitive globally in the long term as many indicators show that the future is electric.

In the case of the North American market different elevens impacted the growth in Q3.

Which was up 22% compared to last year.

First the Canadian market has been soft all year due to higher 100% tariff on Chinese made cars and the end of the IV incentive program.

Is southwest was offset by strong growth in the U S market during the quarter.

Which was driven by the prevailing FX as consumers took advantage of the disappearing selling the tax credit at the end of September.

Enric Asunción: market during the quarter, which was driven by the prevaging effect as consumers took advantage of the disappearing 30-day tax credit at the end of September. As mentioned during our last evening's call, in the US, EV sales still significantly depend on incentives and in addition to the charging sentiment under the new administration, we believe that in the short and mid-term, the EV market will be impacted. Therefore, we work closely together with our key commercial partners to maintain our residential EV sales, but also shifting our focus more towards commercial AC sales and further accelerating our DC sales, as these categories are less correlated with EV sales and more with the charging demand of the existing fleet. The fastest-growing EV market was the rest of the world, which includes APAC and LATAM, with 63% year-over-year growth.

As mentioned during our last earnings call in the U S. <unk> sales still significantly a ban on incentives and in addition to its housing sentiment and under the New administration, we believe that in the short and midterm the market will be impacted.

Therefore, we work closely together with our key commercial partners to maintain our acquisition of <unk>.

It also shifting our focus more towards commercial AC sales and further accelerating our VC sales as these categories are less correlated with TV sales and more with the charging demand of existing fleet.

The fastest growing new market, whilst the rest of the world, which includes APAC and Latam with 53% year over year rule.

We continue on refocusing resources.

Enric Asunción: As we continue refocusing resources on Europe and North America, we have not been able to benefit from this growth, but it does underline the potential of these markets in the future, as mentioned earlier in this call. Luis, I will turn it over to you to comment further on our financial details.

And on Europe, and North America, we have not been able to benefit from <unk>, but it underlines the potential of these markets in the future as mentioned earlier in this call.

Lewis I'll turn it over to you to comment further on our financial details.

Thank you and Rick good morning, and good afternoon to everyone.

Operator: Thank you, Enrique. Good morning and good afternoon to everyone. The Q3 revenue was softer than expected and landed at EUR 35.5 million, outside our guided range but did improve 2% year-over-year. There were different factors impacting the top line, but the largest factor was lower-than-expected AC sales in all global regions. DC sales performed very well, growing 34% compared to the same period last year and up 40% sequentially. This pro category was responsible for seeing mild growth in Europe and double-digit growth in North America. Gross margin improved significantly with 200 basis points, landing at 39.8% and exceeding our guided range. The positive trend resulted from improved bill of materials, the impact of carbon credits, higher prices, and a reduction of warranty costs.

Luis Boada: Thank you, Enrique. Good morning and good afternoon to everyone. The Q3 revenue was softer than expected and landed at EUR 35.5 million, outside our guided range but did improve 2% year-over-year. There were different factors impacting the top line, but the largest factor was lower-than-expected AC sales in all global regions. DC sales performed very well, growing 34% compared to the same period last year and up 40% sequentially. This pro category was responsible for seeing mild growth in Europe and double-digit growth in North America. Gross margin improved significantly with 200 basis points, landing at 39.8% and exceeding our guided range. The positive trend resulted from improved bill of materials, the impact of carbon credits, higher prices, and a reduction of warranty costs.

The third quarter revenue was softer than expected and landed at $75 5 million.

Outside our guidance range did improved 2% year over year.

There were different factors impacting the top line, but the largest factor was lower than expected sales in all global regions.

D C sales performed very well growing 34% compared to the same period last year and up 40% sequentially.

This broke up there what he was responsible for seeing mild growth in Europe and double digit growth in North America.

Gross margin improved significantly to 100 basis points, Nonlegal 39, 8% and exceeding our guided range.

The positive trend resulted from improved bill of materials.

Impact of carbon credits.

<unk> prices and a reduction of warranty cost.

Bill of material is improving due to the switch to a new technology platform for selected AC products.

Operator: The bill of material is improving due to the switch to a new technology platform for selected AC products, which, in parallel, is improving their reliability and, therefore, reducing the warranty costs. We expect this impact to be more clearly visible as we continue to reduce our inventory and start to deliver these new products. A new item contributing positively to our gross margin stems from carbon credits generated in the Canadian market through our existing products. The proceeds from these credits are reinvested into the EV market, offsetting discounts on our new products. The impact of higher prices resulted from the new-generation Supernovas sold in the US, which have better margins compared to the older versions. Overall, we believe there are different levers we can pull to stabilize gross margins and find additional improvements in the future.

Luis Boada: The bill of material is improving due to the switch to a new technology platform for selected AC products, which, in parallel, is improving their reliability and, therefore, reducing the warranty costs. We expect this impact to be more clearly visible as we continue to reduce our inventory and start to deliver these new products. A new item contributing positively to our gross margin stems from carbon credits generated in the Canadian market through our existing products. The proceeds from these credits are reinvested into the EV market, offsetting discounts on our new products. The impact of higher prices resulted from the new-generation Supernovas sold in the US, which have better margins compared to the older versions. Overall, we believe there are different levers we can pull to stabilize gross margins and find additional improvements in the future.

Which in parallel is improving the reliability and therefore, reducing the warranty costs were.

We expect this impact we more clearly visible as we continue to reduce our inventory and start to deliver these new products.

And new item contributing positively to our gross margin stems from current credits generated in the Canadian market to our existing products.

The proceeds from these credits are reinvested into the EBIT market offsetting discounts on our new products.

The impact of higher prices resulted from the new generation supernova sold in the U S, which have better margins compared to the older versions.

Overall, we believe there are different levers, we can pull to stabilize gross margins and find additional improvements in the future.

Q3, labor cost and operating expenses totaled $22 9 million, representing a 28% improvement compared to the same period last year.

Operator: Q3 labor costs and operating expenses totaled €22.9 million, representing a 28% improvement compared to the same period last year. We continue to right-size the organization while investing in our sales organization, as explained by Enrique. The key objective is to improve top-line revenue but to remain lean in our operations. Cash costs, which are defined as labor costs and OpEx, excluding R&D capitalization, non-cash items, and one-off expenses, declined even further, down 34% year-over-year. Considering the significant efficiency measures implemented over the past two years, we are pleased that we continue to identify new areas for optimization. Consolidated adjusted EBITDA loss for the quarter was €6.9 million, slightly outside the guided range. This represents an 8% improvement versus the prior quarter, continuing the positive sequential trend observed throughout the year.

Luis Boada: Q3 labor costs and operating expenses totaled €22.9 million, representing a 28% improvement compared to the same period last year. We continue to right-size the organization while investing in our sales organization, as explained by Enrique. The key objective is to improve top-line revenue but to remain lean in our operations. Cash costs, which are defined as labor costs and OpEx, excluding R&D capitalization, non-cash items, and one-off expenses, declined even further, down 34% year-over-year. Considering the significant efficiency measures implemented over the past two years, we are pleased that we continue to identify new areas for optimization. Consolidated adjusted EBITDA loss for the quarter was €6.9 million, slightly outside the guided range. This represents an 8% improvement versus the prior quarter, continuing the positive sequential trend observed throughout the year.

We continue to rightsize the organization, while investing in our sales organization has explained by Andrey <unk>.

The key objective is to improve top line revenue, but to remain lean in our operations.

Cash costs, which is defined as labor costs in opex, excluding R&D capitalization noncash items and one off expenses declined even further down 34% year over year.

Considering the significant efficiency measures implemented over the past two years. We are pleased that we continue to identify new areas for optimization.

Consolidated adjusted EBITDA loss for the quarter was $6 9 million euros.

Slightly outside of the guided range.

This represents an 8% improvement versus the prior quarter.

Continuing the positive sequential trend observed throughout the year.

The variance to guidance was primarily driven by softer topline performance as all other key variables met or exceeded expectations.

Operator: The variance to guidance was primarily driven by softer top-line performance, as all other key variables met or exceeded expectations. To reach positive adjusted EBITDA, the reacceleration of revenue growth remains critical, a goal we are pursuing by reinforcing our sales organization and strengthening commercial execution. We ended the quarter with approximately EUR 27.7 million in cash equivalents, and financial instruments. Loans and borrowings totaled EUR 179 million, representing a slight sequential decrease and consisting of EUR 67 million in long-term debt and EUR 112 million in short-term debt. During the quarter, as part of our constructive ongoing conversations, we reached a standstill agreement with the majority of our banking pool, temporarily suspending payments of principal and interest. This agreement provides a stable framework to facilitate the development of a long-term solution of our existing debt and for our capital structure in general.

Luis Boada: The variance to guidance was primarily driven by softer top-line performance, as all other key variables met or exceeded expectations. To reach positive adjusted EBITDA, the reacceleration of revenue growth remains critical, a goal we are pursuing by reinforcing our sales organization and strengthening commercial execution. We ended the quarter with approximately EUR 27.7 million in cash equivalents, and financial instruments. Loans and borrowings totaled EUR 179 million, representing a slight sequential decrease and consisting of EUR 67 million in long-term debt and EUR 112 million in short-term debt. During the quarter, as part of our constructive ongoing conversations, we reached a standstill agreement with the majority of our banking pool, temporarily suspending payments of principal and interest. This agreement provides a stable framework to facilitate the development of a long-term solution of our existing debt and for our capital structure in general.

To reach positive adjusted EBITDA, the Reacceleration of revenue growth remains critical.

We are pursuing by reinforcing our sales organization and strengthening commercial execution.

We ended the quarter with approximately $27 7 million in cash cash equivalents and financial instruments.

Loans and borrowings totaled 179 million euros.

Representing a slight sequential decrease and consisting of 67 million euros in long term debt.

$112 million in short term debt.

During the quarter as part of our constructive ongoing conversations we reached a standstill agreement with the majority of our banking pool Tampa.

Temporarily suspending payments of principal and interest.

This agreement provides a stable framework to facilitate the development of a long term solution of our existing debt and for our capital structure in general.

Our objective is for the remaining debt holders to join these discussions as we work toward a structure that aligned with world workspace business plan and long term growth objectives.

Operator: Our objective is for the remaining debt holders to join these discussions as we work toward a structure that aligns with Wallbox's business plan and long-term growth objectives. CapEx was light again this Q3 and landed at €0.3 million, of which negative €0.1 million was related to investments in property, plant, and equipment. The reason for the negative impact of PPE investments is an accrual adjustment during Q3 and stricter cost controls, which resulted in higher efficiency gains than expected. Compared to the same period last year, CapEx investment decreased 82%. Inventory continued to trend downward, totaling €50.8 million at the end of Q3. This represents a 34% year-over-year reduction and a 10% decrease versus the previous Q2, equivalent to approximately €6 million.

Luis Boada: Our objective is for the remaining debt holders to join these discussions as we work toward a structure that aligns with Wallbox's business plan and long-term growth objectives. CapEx was light again this Q3 and landed at €0.3 million, of which negative €0.1 million was related to investments in property, plant, and equipment. The reason for the negative impact of PPE investments is an accrual adjustment during Q3 and stricter cost controls, which resulted in higher efficiency gains than expected. Compared to the same period last year, CapEx investment decreased 82%. Inventory continued to trend downward, totaling €50.8 million at the end of Q3. This represents a 34% year-over-year reduction and a 10% decrease versus the previous Q2, equivalent to approximately €6 million.

Capex was light again, this quarter and landed at <unk> 3 million of which negative <unk> 1 million was related to investments in property plant and equipment.

The reason for the negative impact of PPE investments is an accrual adjustment during the quarter and stricter cost controls, which resulted in higher efficiency gains unexpected.

Compared to the same period last year Capex investment decreased 82%.

We mentally continued to trend downward totaling $58 million at the end of Q3. This represents a 34% year over year reduction and a 10% decrease versus the previous quarter equivalent to approximately $6 million.

We're pleased with this progress as we continue to release cash from operations.

Operator: We are pleased with this progress as we continue to release cash from operations, and the lower inventory levels position us to replenish at a more efficient bill of materials, supporting further gross margin improvement in the coming quarters. In recent quarters, we have been focused on stabilizing Wallbox's financial position. While we have made strong progress across multiple fronts, further improvements remain ahead. We will continue to prioritize sales expansion, operational excellence, disciplined cash management, inventory reduction, and limited CapEx investment, alongside constructive ongoing discussions with our banking partners to establish a long-term capital structure as soon as possible. Enrique, I will turn it back to you to provide some closing commentary.

Luis Boada: We are pleased with this progress as we continue to release cash from operations, and the lower inventory levels position us to replenish at a more efficient bill of materials, supporting further gross margin improvement in the coming quarters. In recent quarters, we have been focused on stabilizing Wallbox's financial position. While we have made strong progress across multiple fronts, further improvements remain ahead. We will continue to prioritize sales expansion, operational excellence, disciplined cash management, inventory reduction, and limited CapEx investment, alongside constructive ongoing discussions with our banking partners to establish a long-term capital structure as soon as possible. Enrique, I will turn it back to you to provide some closing commentary.

And the lower inventory levels position us to replenish at the more efficient bill of materials supporting further gross margin improvement in the coming quarters.

In recent quarters, we have been focused on stabilizing <unk> financial position.

While we have made strong progress across multiple fronts further improvements remain ahead we.

We will continue to prioritize sales expansion operational excellence.

Disciplined cash management inventory reduction and limited Capex investment.

Alongside constructive ongoing discussions with our banking partners to establish a long term capital structure as soon as possible.

And I'll turn it back to you to provide some closing commentary.

Thank you Luis the headquarter Indentified resolved, where mix revenue coming in below expectations, but well exceeding expectations of growth quality and efficiency gains and operational improvement overall.

Enric Asunción: Thank you, Luis. The Q3 2025 results were mixed. Revenue came in below expectations, but overachieving expectations on gross margin, efficiency gains, and operational improvement. Overall, I believe we are still heading in the right direction, especially considering statistic achievements, such as constructive progress with our banking partners, but we are now looking to accelerate this moment. The EV transition continues to move forward, though at different speeds in different regions, and after a period of right-sizing the organization, we have identified where to invest in our sales organization to capitalize on that growth. In parallel, we continue to expand and improve our leading product portfolio by commercializing our bidirectional solution, Quasar 2, introducing a revolutionizing DC fast-charging concept, and launching new software features to develop the ultimate energy management solution.

Overall I believe we are still heading in the right direction, especially considering strategic achievements such as constructive progress with our banking partners, but we are now looking to say at this moment.

David transition continues to move forward, though at different speeds in different regions and after a period of right sizing. The organization, we have identified where to invest in our sales organization to capitalize on that growth.

In parallel we continue to expand and improve our leading product portfolio, while commercializing our weighted external solution quasar to introducing are revolutionizing DC fast charging concept on launching new software features level of the automate energy management solution.

All of this give us a solid platform.

Enric Asunción: All of this gives us a solid platform, together with our strong commercial partnerships, to continue to drive revenue growth and progress toward profitability. Even though we are not yet where we want to be, the positive trend is clearly visible, and we make incremental steps each quarter. With that, I would like to discuss next quarter's guidance. For Q4 2025, we have the following expectations: revenue in the €36 million to 39 million range, gross margin between 38% and 40%, and negative adjusted EBITDA between €6 million and 4 million. With that, we are ready to take questions from our analysts.

Together with our strong commercial partnerships to continue to drive revenue growth and progress towards profitability.

Even though we are not yet where we want to we the positive trend is clearly visible and we may see incremental steps each quarter with that I would like to discuss next quarter's guidance.

The fourth quarter of which 25, we have the following expectations.

Revenue in the three 6 million to 39 million Euro range.

Gross margin between 38% and 40%.

And negative adjusted EBITDA between 6 million euros, and 4 million euros.

With that we're ready to take questions from our analysts.

Certainly.

At this time, we will be conducting a question and answer session.

Operator: Certainly. At this time, we will be conducting a question-and-answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Your first question for today is from George Gianarikas with Canaccord Genuity.

If you would like to ask a question. Please press star one on your telephone keypad.

A confirmation tone will indicate your line is in the question queue.

You May press Star two if you would like to remove your question from the queue.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

One moment, please while we poll for questions.

Your first question for today is from George <unk> with Canaccord Genuity.

Hi, everyone. Thank you for taking my question.

George Gianarikas: Hi, everyone. Thank you for taking my question. I sort of wanted to focus on market share, particularly in Europe. You gave some explanation around some product issues that you may have had. Can you just sort of talk about how that market share is trending and how you expect it to trend over the next few quarters? Thank you.

I sort of wanted to focus on market share, particularly in Europe.

Give us some explanation around some product issues that you may have had but can you just sort of talk about how that market share is trending and how you expect it to trend over the next few quarters. Thank you.

Hi.

Good morning news and rig.

Enric Asunción: Hi, George. Good morning. This is Enrique. It depends on the product line and the country. I will say that a big part of the growth in EV sales that we share, first of all, it's based on PHEVs and EVs, and PHEVs, obviously, is a big part of the EV sales, or at least 50%. The attachment rate of PHEVs versus EVs in terms of chargers is not the same. Normally, an EV has an attachment rate of 80% with an EV charger, and therefore, this user charges at work or in a public space if they don't have a home charger. The same happens with PHEVs, where the attachment is around 30%, so it's lower attachment.

So.

It depends on the on the product line in the country.

I will say that a big part of.

Growth in EV sales that we share first of all it's based on the Atvs rovs on the ATB, though it is a big part of the API sales or at least 50%. So the attachment rate on on Atvs vessels.

In terms of TV at the same so normally RGB has.

An attachment rate of 80% with Andy with Targa.

And therefore.

This user charges at work or anabolic space.

They don't have a home charger.

And the same happens with <unk>, where that activity is around 30%. So it's lower attachment and also I think is important to remind that some of these <unk>.

Enric Asunción: Also, I think it's important to remark that some of these Chinese EV manufacturers, like Tesla, are bringing their own products, and they, therefore, don't include it in our market share assessment when we look at the serviceable market. With all in all, in general, we believe that in countries like Spain, France, Belgium, the UK, and Germany, our market share remains stable or trending up. Markets like Benelux, sorry, Netherlands, Italy, and the Nordics, we've seen this quarter a trend going down. If we look at the overall Europe, it will depend on the EV sales, but in general, what we are trying to do, given all these operational headwinds we've seen this last quarter with the change of platforms and so on, is to maintain it or to increase market share moving forward in AC.

Chinese EV manufacturers.

Like like Tesla are bringing their own products.

Products.

And they therefore.

But we don't include it in our in our market share assessment, but when we look at this as service.

Serviceable market.

With an all in general we believe that in countries like Spain.

<unk>, Belgium, the U K.

In Germany, our market share remains stable or trending up.

And markets like.

Ben Luxe, sorry, Netherlands.

Italy and the Nordics.

We've seen this quarter.

At them going down so.

If we look at the overall Europe.

It will depend on the EV sales, but in general what we are trying to given all these operational headwinds we've seen this last quarter with the change of platform Russell one is to maintain it or to increase market share moving forward in AC.

Thank you and maybe just to focus on.

George Gianarikas: Thank you. Maybe just to focus on the last question on the balance sheet, you mentioned the stance of the agreement. When should we expect maybe a little bit more of a formal announcement from the company around what should happen with the €179 million in debt? Thank you.

Last question on the balance sheet you mentioned this.

The standstill agreement when should we expect.

Maybe some a little bit more of a formal.

So from the company around what.

It should happen with the.

179.

$9 million euro in that thank you.

Yeah.

Hi, George I'll take that one.

Luis Boada: Hi, George. I'll take that one. As we announced, the standstill matures as of 9 December, that's what we're working towards.

As we announced the standstill.

Matures the ninth of December and so that's what we're working towards.

[noise].

So we should expect some sort of.

Michael Wilhelm: We should expect some sort of news between now and 9 December. Is that the guidance?

George Gianarikas: We should expect some sort of news between now and 9 December. Is that the guidance?

News between now and the night of December is that guidance.

Correct.

Okay.

Luis Boada: Correct.

Thank you.

Michael Wilhelm: Okay. Thank you.

George Gianarikas: Okay. Thank you.

Youre welcome.

Luis Boada: You're welcome.

Okay, and there was it from us today.

Michael Wilhelm: Okay. That was it from us today. Thank you all for joining. We hope you found today's call a good use of your time. Let us know if we can help you in any way.

Thank you all for joining we hope you found today's call good use of your time.

Let us know if we can help you in any way.

This concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation.

Operator: This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

Q3 2025 Wallbox NV Earnings Call

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