Original-Research: LION E-Mobility AG (von NuWays AG): BUY

Classification of NuWays AG to LION E-Mobility AG

Company Name:	LION E-Mobility AG
ISIN:	CH0560888270
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 3.2
Target price on sight of:	12 months
Last rating change:
Analyst:	Christian Sandherr

 Blockbuster Q4 results closed FY25 on a high note

Q4 revenue soared by 267% yoy to € 12m (eNuW: € 11.8m), due to recovering customer demandfrom bus manufacturers in North America and Karsan. EBITDA doubled to € 5.1m from € 2.5m inthe previous Q4, based on higher profitability within the orders processed. This led to an excellentEBITDA margin of 42.5%, which we view as partly driven by customer-specific, urgency-relatedpricing and therefore not fully indicative of the sustainable run-rate.

FY25 revenue rose by 67.5% yoy to € 28.3m (eNuW: € 28.1m), due to the significant demandacceleration in Q4, meeting the guidance of € 28m to € 35m. The positive EBITDA of € 7.5m(eNuW: € 5.1m) showed a marked improvement over € -3.6m a year prior. The implied EBITDAmargin came in at 26.4%, largely driven by improved procurement efficiency and the positive one-offeffects in Q4.

LION made significant progress in its turnaround. The Operating CF improved considerably from€ -8.9m in FY24 to € 7.7m. Total debt was reduced by approx. € 6.8m (eNuW) through theconversion of convertible bonds held by shareholders into equity. This strengthened the equity ratiofrom 22.0% in FY24 to 38.1% in FY25.

Mobility: In FY25, utilization of its state-of-the-art factory improved as demand strengthened. Initialdeliveries of the new NMC+ battery packs commenced in Q4. With a maximum annual productioncapacity of approximately 40k battery packs still largely underutilized, the company is well positionedto support the continued ramp-up of the NMC+ rollout in FY26e. Given the product’s superiortechnological profile, we expect a broad transition of existing customers to NMC+, alongside a likelyexpansion of the customer base.

Storage: In April 2025, LION formed its strategic partnership with LeapEnergy, which gave LIONaccess to assembled BESS solutions. Now offering one-stop-shop solutions (product, integration andafter-market services), LION can successfully address the rapidly emerging energy storage market.

The total project pipeline of >7.5 GWh (not signed yet), represents revenue potential of € 280m(eNuW) at low double-digit EBITDA margins (eNuW: 10-12%). Installation on its first grid-scaleproject in Germany (20 MW/h) with potential sales of € 750k (eNuW) is scheduled for Q1 2026.

Looking to FY26e, revenue is projected to grow by approx. 30% to € 36.4m (eNuW), driven bystrong mobility product momentum and opportunities in storage opening up with new partnershipsformed in 2025. FY26e guidance: revenue of above € 35m. With a rising storage contribution in theproduct mix, we anticipate lower margins (15.6% vs. 26.5%). EBITDA is expected to normalize to €5.7m (eNuW) following a stronger one-off contribution in FY25. FY26 guidance: strongly positive EBITDA.

With achieving sustainable cash generation in FY25 under ongoing cost control efforts and improvedprocurement, the company should continue to gradually turn the balance sheet around as it scalesup. Maintaining BUY with an unchanged € 3.20 PT, based on DCF.

You can download the research here: lion-e-mobility-ag-2026-04-07-update-en-580a8
For additional information visit our website: https://www.nuways-ag.com/research-feed

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben analysierten Unternehmen befindet sich in der vollständigen Analyse.
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