Translation: Original published in Finnish on 7/23/2026 at 9:16 am EEST.

Source: Inderes & Modular Finance (consensus: 7 analysts)

Kempower reported its Q2 result today. The earnings report fell short of expectations, as orders came in significantly lower than forecast. In contrast, the gross margin exceeded expectations, despite being under pressure in previous quarters. The upper end of the growth guidance was also slightly revised downward. The company implemented cost-saving measures in production earlier this year and has now also launched a 5 MEUR program to streamline fixed costs, which will align the organization’s structure with current demand and the priorities of the new strategy. 

Softness in orders

Kempower's new orders in Q2 were 70 MEUR, down 6% year-on-year. Orders were clearly below estimates (we estimated 20% growth, consensus 14%). According to the company, orders were weighed down by the consolidation of the charge point operator customer base and their prioritization on improving network utilization and profitability rather than expanding the charging network. There were delays in the closing of some larger deals. Electric vehicle registrations grew by 27% in Europe in H1 and declined by 22% in North America, but the trend in installations was somewhat opposite. We continue to view the market’s growth outlook as attractive as the number of electric vehicles increases, but the development of charging networks does not always keep pace with the growth in the number of vehicles. Kempower mentioned that activity with fleet customers has remained strong.

Gross margin better than expected

Revenue was also 11% lower than our estimate, though we do not consider this to be as significant as orders. The gross margin improved compared to the beginning of the year, though it did decline from the strong level seen a year ago (Q2’26: 47.2%, Q1’26: 45.4%, Q2’25: 50.6%). In our opinion, this is a favorable sign, as the market has been anxious about the continuation of the downward margin trend. It also indicates the success of the company's efficiency measures. Operative EBIT was -1.9 MEUR, which was only relatively slightly below estimates (ours/consensus: 0.6/0.1 MEUR), supported by a good gross margin.

Upper end of guidance decreased, company steps up efficiency measures

The company lowered its revenue growth guidance to 10-25% for 2026 after order development fell short of expectations. Operative EBIT is expected to improve significantly further from the comparison period. Additionally, the company announced a 5 MEUR program to streamline fixed costs and align its cost structure with slower revenue growth. These cost savings will begin to take effect toward the end of the year and are expected to be fully realized by the end of H1'27. The company has already implemented a production efficiency program with a savings target of over 10 MEUR and has now realized some of the efficiency gains (4 MEUR), which was also reflected in the Q2 margin.