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Original-Research: LION E-Mobility AG - from NuWays AG

15.08.2025 / 09:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQ

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The issuer is solely responsible for the content of this research. The

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Classification of NuWays AG to LION E-Mobility AG

Company Name: LION E-Mobility AG

ISIN: CH0560888270

Reason for the research: Update

Recommendation: BUY

from: 15.08.2025

Target price: EUR 2.90

Target price on sight of: 12 month

Last rating change:

Analyst: Christian Sandherr

H1 underpins confidence in successful op. turnaround; chg.

Following a particularly weak FY24 with plunging sales amid largely

distressed end markets (falling battery prices with the resulting "wait and

see" mentality of customers and several insolvencies) LION looks set to have

passed the trough, in regards to reported figures and new project

developments. H1 sales of EUR 10.4m were up 71% yoy as the company benefitted

from the cyclical upturn in demand for battery-packs used in mobility

solutions.

More importantly, management was able to turn the bottom-line around,

improving EBITDA from a EUR 4.8m loss a year ago to a positive EUR 1.3m thank

to a tight grip on costs, the absence of development costs for the new

chemistry cells but mainly positive implications from a better fix-cost

coverage. The EBITDA margin for H1 stood at 12.1%, clearly ahead of our

estimates for FY25 (0.9%). Operating cash flow also turned positive, EUR 3.3m

compared to a EUR 5.8m deficit last year thanks to the notably improved

operational performance as well as further optimized inventory levels.

Thanks to good visibility through the order book which should allow a

continuation of the momentum, management confirmed its FY25 guidance of EUR

28-35m sales (eNuW: EUR 32m) and positive EBITDA (eNuW: break-even).

Strategic partnership with LeapEnergy to unlock access to the thriving but

highly competitive energy storage market. This deal grants LION exclusive

BESS distribution and service rights in major European markets and Canada,

diversifying beyond e-mobility into a fast-growing segment. Combining

LeapEnergy's manufacturing scale with LION's integration expertise and

market access creates new, scalable revenue streams, strengthens growth

visibility, and enhances the investment case through portfolio expansion and

improved margin potential. This bodes well with the announced strategic

partnership with Münchner Solarkraftwerke, which has over 40 hybrid (PV +

BESS) projects in its pipeline. As most of those projects are at an early

stage, potential revenue recognition will span over several years, starting

with H2 2026 (eNuW).

Immersion cooled LIGHT battery update. While the project with the premium

OEM is experiencing delays due to adjustments to their Innovation project

(~1 year as mentioned during the earnings call), LION launched a

new/additional development project with a German truck manufacturer looking

to create an electric truck that can sufficiently recharge its battery

during mandatory breaks to cover the distance between two mandatory breaks.

Further, LION is testing integration with advanced heat exchanger and pump

technology.

Our take: LION's H1 performance with a return to profitability and positive

cash flows underscores the likelihood of a successful operational

turnaround. This coupled with BESS sales gaining momentum during the next

few years, LION looks well positioned to sustainably generate cash and hence

also turn the balance sheet around.

BUY with a EUR 2.9 PT based on DCF.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=ab0f580d8fcc6e96925fa9bea7c0d1aa

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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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschlu

bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befinden sich in der vollständigen Analyse.

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2184368 15.08.2025 CET/CEST

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