ADS-TEC Energy — Positive progress in 2024

ADS-TEC Energy (NASDAQ: ADSE)

Last close As at 11/02/2025

USD15.00

0.46 (3.16%)

Market capitalisation

USD773m

More on this equity

Research: Industrials

ADS-TEC Energy — Positive progress in 2024

ADS-TEC reported record revenue, albeit below previous guidance, despite 2024 being a more challenging period for EVs and associated infrastructure-related companies and some revenue deferrals into FY25. Strategic progress has laid the foundation for some potentially significant roll-out programmes. In addition, the company has announced plans to develop longer-term, more stable business revenues through value-added services, aimed at helping customers operate their infrastructure and maximise commercial potential. We will update our forecasts on publication of the detailed FY24 results.

David Larkam

Written by

David Larkam

Analyst, Industrials

Alternative energy

Preliminary results

12 February 2025

Price $15.00
Market cap $772m

€/$1.05

Gross cash/(debt) at end FY24

€22.7m

Shares in issue

51.5m
Free float 55.8%
Code ADSE
Primary exchange NASDAQ
Secondary exchange N/A
Price Performance

Business description

ADS-TEC Energy makes battery storage-based energy platforms. These buffer systems enable consistent, high-power delivery for systems such as EV charging.

Analyst

David Larkam
+44 (0)20 3077 5700

ADS-TEC Energy is a research client of Edison Investment Research Limited

PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Year end Revenue (€m) PBT (€m) EPS (EUc) DPS (EUc) P/E (x) Yield (%)
12/22 26.4 (13.6) (33.10) 0.00 N/A N/A
12/23 107.4 (26.9) (56.50) 0.00 N/A N/A

The preliminary results do not include full financials, which will be published with the FY24 results due in April (FY23 released 30 April 2024). Sales increased slightly compared to the record FY23, despite the well documented difficulties facing the market and ADS-TEC having to resolve a customer difficulty by going direct to the affected end-customers, which delayed double-digit-million revenues into FY25. Sales were therefore below management guidance. The company achieved its maiden gross profit of more than €10m and a significant improvement in EBITDA, with growth in the high double-digit percentage range compared to 2023. The group had cash and cash equivalents of €22.7m at the year end.

ADS-TEC made good progress in FY24 despite the volatility of the EV market. The service division grew by around 180%, benefiting from the increasing installed base and the ability to provide spares and additional services. Strong progress was made in international business (outside Germany) with the number of clients increasing from 18 to 55 (up over 200%). The nascent American business made significant progress with the agreement to scale an existing customer supermarket charging network and a strategic partnership with Parkland Corporation, a large multinational group with convenience stores in 26 countries across the Americas. The latter will see ChargeBox ultra-fast charging units installed in the network with the potential for significant roll-out programmes post proof of concept.

The company has announced a further strategic development in its business model as it looks to build a recurring revenue service-orientated business rather than operating purely through product sale and aftermarket. This will involve offering turnkey solutions and managed services such as fast charging systems management, energy trading and large-scale advertising. This will enable customers to minimise costs and maximise revenue through the leverage of ADS-TEC’s experience in the market and ecosystem. ADS-TEC will benefit from additional revenue stream opportunities. Further, management expects to finalise the first framework agreements for several hundred locations in Germany in Q125. We expect this to significantly enhance medium-term financials but it may require developing additional equipment financing streams. We will update our forecasts with the release of the detailed full year results.

General disclaimer and copyright

This report has been commissioned by ADS-TEC Energy and prepared and issued by Edison, in consideration of a fee payable by ADS-TEC Energy. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright 2025 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or sol icitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

More on ADS-TEC Energy

View All

Industrials

ADS-TEC Energy — Positive progress in 2024

Industrials

ADS-TEC Energy — Progressing to plan

Latest from the Industrials sector

View All Industrials content

Research: TMT

Atea — Q4 delivers in challenging markets

Atea’s solid Q424 results illustrate how management continues to navigate challenging markets successfully. Atea’s prospects look more positive for 2025, with IT infrastructure trends remaining strong. Demand seems to have stabilised and changes in the customer mix during 2024 should make current-year margin comparables easier. Consensus forecasts suggest the shares trade at a discount to peers, yet a strongly cash-generative Q424 leaves Atea with a strong balance sheet, supporting an attractive dividend yield by sector standards.

Continue Reading

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free