LION E-Mobility AG: Research Update and Future Outlook

LION E-Mobility AG faced a challenging FY24, with preliminary sales plunging by 70% year-over-year, resulting in €16.9 million, significantly below expectations. The decline was attributed to weakened demand in key sectors, including electric mini buses and battery solutions. The company reported a negative EBITDA of € -4.2 million, though Q4 showed a positive EBITDA due to gains from divesting its stake in TÜV SÜD Battery Testing.

The company began 2025 on a positive note, with Q1 sales reaching €6.4 million and demonstrating a positive EBITDA. LION E-Mobility AG forecasts a continued positive trajectory throughout FY25, anticipating sales between €28 million and €35 million, alongside a break-even EBITDA.

LION continues to expand its portfolio, with plans to introduce new high-energy battery packs and develop a 540kWh battery for trucks. Despite challenges, the company remains optimistic about future opportunities and maintains a 'BUY' rating with a target price of €3.20.