Earnings call transcript: Subtech Q2 2025 revenue beats forecasts, stock steady

Subtech reported robust Q2 2025 results, with revenue of 383 million NOK, a 13% year-over-year increase that exceeded forecasts, and record EBITDA of 44 million NOK, up 29% year-over-year, alongside a 2 percentage point gross margin improvement to 41%. This strong financial performance was primarily driven by robust demand in the European EV market, which saw 27% growth in plug-in vehicle sales, and the company's strategic expansion in key markets. Subtech maintains an optimistic outlook for continued profitable growth, supported by a strong order backlog and a stable stock performance near its 52-week high.

Analysis

Zaptec AS (ZAP) reported a strong second quarter for 2025, demonstrating significant operational leverage and market share momentum. The company exceeded revenue forecasts, posting 383 million NOK against an expected 376.62 million NOK, representing a 13% year-over-year increase. Profitability metrics were particularly robust, with a record quarterly EBITDA of 44 million NOK, up 29% YoY, and a gross margin expansion of two percentage points to 41%. This margin improvement is attributed to a favorable product mix, including the higher-margin Zaptec Go II, and lower production costs. Crucially, the company's 30% YoY growth in order intake (445 million NOK) outpaced the 27% growth in its core European EV plug-in market, signaling potential market share gains. The balance sheet has strengthened considerably, marked by a fourth consecutive quarterly reduction in inventory, a net cash position of 166 million NOK, and total liquidity of 466 million NOK. A firm order backlog of 567 million NOK provides strong revenue visibility, supporting management's optimistic guidance for continued profitable growth for the remainder of 2025.

Key Decisions for Investors

• Given the strong earnings beat, record EBITDA, and an order intake growth that surpasses the underlying market, investors may consider the results as a strong validation of Zaptec's scalable business model and competitive positioning.
• Investors should monitor the gross margin trend and order backlog in coming quarters as key indicators of sustained profitability and revenue visibility, particularly as the company expands in major markets like the UK and Germany.
• The strengthening balance sheet, with a net cash position of 166 million NOK and reduced inventory, lowers operational risk and provides financial flexibility for growth or potential increases in shareholder returns.
• With the stock trading near its 52-week high, new investors should assess valuation, while existing holders may see the 2.06% dividend yield and positive operational momentum as a reason to maintain their positions.