Kempower: Updated strategy's broad strokes are in line with expectations

Translation: Original published in Finnish on 5/25/2026 at 9:00 am EEST.

On Monday, Kempower published its updated strategy and new financial targets for 2026–2030. The company targets 15–25% annual revenue growth (CAGR) and an operative EBIT margin of 10–15% by 2030. The targets and strategic priorities, such as geographical diversification and growing the service business, are in line with our previous expectations. The company will host a Capital Markets Day tomorrow, where it will present its updated strategy in more detail.

Financial targets in line with our expectations

Kempower's new revenue target is an average annual growth rate (CAGR) of 15–25% between 2025 and 2030. This is based on the company's estimate that the DC fast charging market will more than double to over 10 BEUR by the end of the decade. The growth target is in line with our own expectations, as our current forecasts anticipate ~21% annual growth for the company during the target period

In terms of the operative EBIT margin, the company targets 10-15% by 2030. This is also in line with our forecasts, and we estimate the level to be neutral compared to market expectations. Regarding dividend distribution, the company confirmed it would not pay dividends in the short term, which is fully expected for a rapidly growing company.

Strategy focuses on geographical balance and service growth

The company's "Kempower 2.0" strategy is built around three key changes. Geographically, the company aims to reduce its dependence on Europe (~82% of revenue in 2025) and increase its foothold in North America and the Asia-Pacific region. This is also important for achieving growth targets, as, for example, the passenger car charging network in the Nordic countries is at a clearly more mature stage than many of the company's other core markets.

Another significant focus area is to grow the service and aftermarket business. Currently, the aftermarket accounts for only about 5% of revenue, but the company expects it to grow faster than equipment sales as the installed base expands. We expected the strategy to emphasize the importance of recurring revenue streams, such as the ChargEye software, spare parts, and maintenance services.

The third change concerns the operational focus: the company is shifting from platform and capacity building towards sustainable profitability and disciplined execution. In our view, the company currently has production capacity for significantly higher volumes than at present, which should enable strong earnings scalability as volumes grow.

Eyes on tomorrow's Capital Markets Day

While the release provided a clear framework for the coming years, we expect the company to present concrete measures for implementing the strategy and achieving the financial targets at tomorrow's Capital Markets Day. Kempower's Capital Markets Day begins at 2:00 PM EET, and presentations can be viewed here.

It will be particularly interesting to hear about the company's plans in the heavy-duty transport segment, which was not specifically highlighted in this morning's release, but which we believe is one of the key market growth drivers. In addition, we are looking for more information on how the competitive situation has developed in the company's core markets.