This article first appeared on GuruFocus .
Release Date: November 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Zaptec ASA ( FRA:6I4 ) reported a 23% increase in revenue compared to the same period last year, indicating strong financial performance.
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The company achieved a record number of charger installations in September, with even higher numbers in October, pointing to robust future growth.
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Order intake increased by 35%, and the order backlog strengthened by 44%, showcasing strong demand for Zaptec's products.
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The company has normalized its inventory, which is expected to further reduce in the fourth quarter, driving robust cash flow and improved liquidity.
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Zaptec ASA ( FRA:6I4 ) has reinforced its leadership in core markets, particularly in Norway, and has seen significant growth in major European markets.
Negative Points
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The third quarter is seasonally affected by lower activities due to summer breaks, impacting overall performance.
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Despite strong growth, the gross margin remained at 39%, similar to the previous year, indicating limited improvement in profitability.
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The company expressed dissatisfaction with the pace of growth in some major markets, indicating potential challenges in market penetration.
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The share-based bonus program impacted operating expenses, adding NOK5 million to costs in the quarter.
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Zaptec ASA ( FRA:6I4 ) is still working to normalize its inventory levels, which have been excessive since 2023 due to market fluctuations.
Q & A Highlights
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Q: Can you elaborate on the factors driving the strong revenue growth in Q3? A: Kurt Ostrem, CEO, explained that the strong revenue growth, which increased by 23% compared to the same period last year, was driven by robust EV sales across Europe, particularly in core markets like Norway. The company also saw record installations in September and October, indicating strong future growth prospects.
Q: How has the order intake and backlog evolved in the third quarter? A: Eirik Haerem, CFO, noted that the order intake increased by 35%, and the backlog strengthened by 44% compared to the previous year. This growth is attributed to strategic preorders that provide visibility and allow for better production planning.
Q: What measures are being taken to sustain and improve gross margins? A: Eirik Haerem, CFO, highlighted that sustaining a strong gross margin is a priority. The company has achieved this through targeted supply chain efforts and introducing higher-margin products. They plan to increase gross margins further with higher deliveries of new products like the Zaptec Go 2.
Q: How is Zaptec addressing inventory management and liquidity? A: Eirik Haerem, CFO, stated that the company has been working to normalize inventory levels since 2024, reducing it by NOK74 million in Q3. This has contributed to a strong cash flow and improved liquidity, with NOK532 million available to support future growth.
Q: What are the strategic initiatives for expanding into new markets? A: Kurt Ostrem, CEO, mentioned that Zaptec is focusing on strategic sales initiatives and launching new product features to expand into major European markets like Benelux, UK, Germany, and France. They expect these efforts to yield results in 2026.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
