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:	Sarah Hellemann

FY25: Significant progress on balance sheet de-risking

Yesterday, LION released its full year report for 2025. While its operating performance had already been indicated by preliminary figures, further details confirmed a successful rollover of a majority of the company's debt. Key insights in detail:

Revenue rose by 67.4% yoy to € 28.3m (eNuW). Customer demand came in stronger throughout the year. Additionally, customers pre-stocked on battery packs from the previous generation ahead of the NMC+ products in the mobility segments, on account of which Q4 revenue came in significantly accelerated. EBITDA turned positive, with € 6.5m significantly ahead of € -3.6m in the previous year, given commercial momentum strengthening. The overall margin came in at 22.8%. LION generated a net profit of € 2.3m. The improvements put the result considerably ahead of the previous year's loss of € 6.6m.

The operating CF materially strengthened throughout the year, coming in at € 8.4m compared to € -9m in the previous year. This was mainly driven by stronger earnings and trade payable invoices not due until the new year. We view these trade payables as related to the high activity in Q4, implying a positive one-off of approx. € 6.7m.

Equity ratio significantly strengthened. LION raised its equity ratio from 22.1% in FY24 to 36.7% in FY25 through a reduction of bank liabilities by € 2.6m, with one bank loan of € 8m remaining with amended covenants now considered long-term financed. Its anchor shareholder showed continued support through adaptations in shareholder loans made. An outstanding shareholder loan of € 6m was reduced to € 4.5m, including € 2m of accrued interest accumulated through two equity conversions. From a novation of trade payables into an interest-bearing loan, the company took out another shareholder loan of € 2.5m. We view this as material progress towards de-risking LION's balance sheet ahead of the ongoing ramp-up of NMC+ production and BESS activities.

LION has reached a critical commercial inflection point across segments, supported by a strengthened balance sheet. In Mobility, the NMC+ ramp-up is expected for H2 26. Mind you, first prototypes were tested and qualified by existing customers in Q4 25. This month, LION announced that its FY26 order book was nearly filled and that FY27 was also filling up, partially driven by defence orders. The first NMC+ battery cells are scheduled to arrive in June/early July and the conversion of the production line is well underway. Hence, production of the NMC+ packs is seen to commence in July. In Storage, BESS sales are anticipated to pick up as the company is in advanced talks with clients. Commercial progress was already shown in May with first containers on the ground in Germany (project value € 750k) and a second construction phase planned for FY27e (project value € 1.5m).

LION confirmed its guidance of more than € 35m in sales and a strongly positive EBITDA. As outlined above, we expect a significant pick-up of commercial activity from H2 2026 onwards, reflecting in our projections of € 36m (eNuW) in sales for FY26e and € 5.7m (eNuW) in EBITDA. Hence, we reiterate our BUY recommendation at € 3.2, according to DCF.
 

You can download the research here: lion-e-mobility-ag-2026-06-26-previewreview-en-cb2c9
For additional information visit our website: https://www.nuways-ag.com/research

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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