Original-Research: LION E-Mobility AG (von NuWays AG): BUY

Classification of NuWays AG to LION E-Mobility AG

Company Name:	LION E-Mobility AG
ISIN:	CH0560888270
Reason for the research:
Recommendation:	BUY
Target price:	EUR 3.2
Target price on sight of:	12 months
Last rating change:
Analyst:	Christian Sandherr

Q1 burdened by temporary effects, operating CF strong

LION published Q1 prelims, which were marked by a weak on top-line and bottom-line as the company in in the midst of transitioning its battery pack production to the next generation. In detail:

Q1 revenue of € 3.3m was down 50% yoy. In preparation for the currently ongoing transition to a NMC+ battery pack production, key customers of the legacy NMC pack partially stock-piled products in Q4 (explaining the particularly strong finish to FY25). Those pull-forward effects are now reverting.

Q1 EBITDA remained positive, despite the wark top-line. On lower capacity utilization, EBITDA fell by 80% yoy to € 0.3m (eNuW: € 1.7m), partially mitigated by a reduction in personnel expenses of € 0.2m. Net income remained almost positive, falling only to € -0.1m (Q1 2025 € 0.6m). Converted shareholder loans (debt to equity swap) allowed for lower financing expenses.

Operating Cash Flow tripled to € 3m (Q1 2025 € 1m), reflecting continued cost discipline and improved payment conditions with suppliers (working capital releases).

Mobility in operational transition. Production of SE09 NMC battery packs was halted in order to prepare for the transition to NMC+ battery packs, featuring higher energy density. Necessary plant adjustments are currently ongoing. By June, LION should be able to produce first NMC+ packs with the ramp up planned for Q3. Importantly, key customers such as Karsan and Lion Electric have already committed to using them within their current models. LION (together with its integration partner Mandril) will also work on upgrading BMW i3s battery packs.

Storage to deliver increased revenues from H2 26 onwards, based a first BESS project sale in Q4 2025 (eNuW: project value of € 750k in sales), which is scheduled to go into operation in summer 2026. A second project in Germany is currently in final negotiations for 5 MW/10MWh with delivery scheduled for 2026, included in the 7.5 GWh project pipeline (not yet signed). This pipeline represents revenue potential of € 280m (eNuW) at low double-digit EBITDA margins (eNuW: 10-12%) and comprising more than ten customers.

Over recent months, LION has strengthened its sales team specifically dedicated to BESS, while LEAPENERGY is intensifying its activities in Germany. Grid connection approvals in Germany remain a key bottleneck as authorities are trying to navigate between capacity investors aiming at energy price arbitrage strategies and those aiming at contributing positively to the network.

Looking into defense. LION is currently working on several defense-related inquiries concerning new applications to LION Smart's high-performance battery technology. In our view, these have the potential to diversify revenue and profitability streams in the mid- to long-term, if feasible from a technological perspective.

FY26 guidance of € 35m confirmed. From current developments the company expects a significant portion of its FY26 revenues to be recognized in H2 26. We regard this as reasonable assuming the ramp up proceeds as planned.

Maintaining BUY with a PT of € 3.20, based on DCF.

You can download the research here: lion-e-mobility-ag-2026-05-15-update-en-53b52
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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Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben analysierten Unternehmen befindet sich in der vollständigen Analyse.
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