Wallbox N.V.

Thank you, Charlie, and good morning and good afternoon to everyone listening in.

Thank you for joining today's webcast to discuss Wallbox first quarter 2025 results. This event is being broadcast over the web and can be accessed from the investor section of our website at investors.wallbox.com. I'm joined today by Henrique Ascension, Bulwark's CEO, and Louise Bouada, Bulwark's CFO. Earlier today, we issued our press release announcing results from the first quarter ended March 31st, 2025, which can be also found on our website. Before we begin, I would like to remind everyone that certain statements made on today's call are forward-looking, that may be subject to risks and uncertainties related to future events and or the future financial performance of the company. Actual results could differ materially from those anticipated. The risk factors that may affect results are detailed in the company's most recent public filings with the SEC, including the annual report on Form 20F for the fiscal year ended December 31st, 2024, filed May 6th, 2025. We will be presenting unallotted financial statements in IFRS format that reflects management's best assessment of actual results. Also, please note that we use certain non-IFRS financial measures on this call, and reconciliations of these measures are included in the presentation posted on the investor section of our website. Also, a copy of these prepared remarks can be obtained from the investor relations website under the quarterly results section, so you can more easily follow along with us today. So with that out of the way, I will turn it over to Enric.

Thank you, Michael, and thanks, everyone, for joining us today. We will start today's call reviewing highlights from the first quarter 2025 and spend time discussing commercial wins, recent product introductions, and the EV market. Luis will offer a closer look at our financial results and our key financial metrics before I close the conversation to highlight what we're focused on for the remainder of the year. Q1 revenue was 37.6 million euros, meeting the guidance range we provided in our last earnings call. and almost flat compared to last quarter, but down 13% year-over-year. If we look at the main drivers, there have been certain regions and product categories performing well to offset weaker results in others. North America continues to deliver strong year-over-year performance across all fronts, AC chargers, DC fast chargers, and installation services. Compared to last year, Europe has been down in all product categories. But as the EV market is starting to improve, we expect to ramp up sales in the upcoming quarters. We have seen signs of improvements in the UK, France, and Belgium compared to last quarter. In general, we are reaching stability and control as we consistently grow with key accounts and building meaningful backlogs, especially in the home and business segments. DC fast charging sales remain volatile and are dependent on large orders, resulting in adult growth instead of steady increase. However, we continue to onboard new customers, with the most recent example, Francis Energy in the US. As the market evolves and customer expectations rise, we are committed to delivering the optimal DC fast charging solution. In total, during the first quarter, we delivered over 36,000 AC units. and more than 100 DC units. I'll shortly share more detail on key milestones and customer wins across both our home and business and fast charging segments. Overall, we are confident in our commercial position with the right customers, the right products, and the right distribution partners in place to drive continued growth. Growth margin was 38.1% in the first quarter. which is within the 37% to 39% guided range. The results reflect a 634 basis point improvement compared to last quarter. The positive impact was mainly due to product mix and the impact of cross-selling of AVL products. There remains room for improvement of the gross margin through the revision of hardware, but the speed to reach that improvement is constrained by the existing high inventory levels. Luis will provide additional detail regarding this initiative shortly. Labor costs and operating expenses have decreased again quarter over quarter, now down 13% and have declined 23% compared to the same period last year. In the case of cash costs, which is defined as labor costs and OPEX excluding R&D activation, non-cash items, and one-off expenses, the result is even more impressive. and we achieved a 32% year-over-year reduction. The newly implemented business unit structure introduced last year has proven effective in managing costs, providing greater insight and control. We have maintained consistent revenue levels while significantly improving organizational efficiency. Our strategy remains focused on identifying cost savings and expanding sales in parallel, as the business unit structure is now also beginning to support revenue growth. The first quarter 2025 adjusted EBITDA has been our best result since becoming a public company, landing at minus 7.8 million euros and slightly better than the guidance provided last quarter. This result represents an improvement of 42% compared to last year and a solid proof point that we're executing well on the items we can control as we progress to become a profitable company. Looking ahead, I am increasingly optimistic as we stabilise sales, build a strong backlog and seek new opportunities for growth. At the same time, we remain disciplined in right-sizing organisation and expanding gross margins as we continue to scale revenue. For the first quarter of 2025, Europe contributed €25.5 million of consolidated revenue, or 68% of total revenue. The European EV market showed fully growth of 21% compared to the same period last year, which is exciting to see considering the market softness of last year. We expect this positive momentum to support an upward trend in selling over the coming quarters. Europe remains our largest region and we are committed to leveraging our position now that the EV market is starting to trend in the right direction again. North America was again a strong region for Wallbox and contributed 11.4 million euros, or 30% of the total revenue. This represents a 142% year-over-year growth compared to the first quarter of 2024. The positive results in North America resulted from our activities across the board, including Pulsar AC sales, Supernova DC charging sales, and installation services. Besides, we secured large orders from key accounts as the US EV market continues to grow. Both AIPAC and LATAM remain small regions for Volvo, but continue to have significant future potential, now contributing approximately €300,000 or 1% and €480,000 or 1% respectively. AC sales of €25.6 million, including ABL, represented approximately 68% of our global consolidated revenue, down 14% year-over-year and slightly lower compared to last quarter. weaker AC sell-in in Europe during the first quarter was offset by a stronger-than-expected AC sell-in in North America, along with one of the best quarters of cross-selling ADLs EM4. We continue to leverage the success of the EM4 outside Germany. Examples include Tetra Pak, a global leader in food packaging, where we secured a project in Spain involving 48 EM4 chargers with Electrum-absorbable licenses showcasing our full 10K solution. Additionally, we launched a pilot project with Total Energies, one of the world's largest energy companies deploying the EM4 solution in Belgium. This quarter's success in North America is partly attributable to a significant order from one of our key accounts, Free2Move, the charger subsidiary of Stellantis, which also contributes to our backlog for the next quarter. This order serves as a major milestone and demonstrates their ambition to support EV adoption. In addition, this month, we announced a new partnership in North America with another large car manufacturing company, Nissan. Together with Nissan, we are launching a nationwide home EV charging program in Canada, which allows EV owners to purchase a Wallbox Pulsar Plus home charger. The program is designed to simplify the home charging journey and make it more accessible to a broader audience. Another product that is outperforming our expectations is the recently launched Pulsar ProSocket, which is already showing strong market traction. We mentioned this product briefly during our last earnings call, but now that the order book is open, we're starting to build a significant backlog. The Pulsar ProSocket is a refined version of our already successful Pulsar platform, designed to meet customer demands, including connectivity requirements, and is already performing strongly in markets like in the UK. PC sales improved significantly in the first quarter, growing 41% compared to the previous one, now landing at 4 million euros or 11% of sales. This is a promising improvement, but does not yet reflect the full potential of the Supernova platform. Our CPO customers remain conservative in the role of the infrastructure, and as we believe, profitability is a high priority. Customer product demands for reliability and functionalities keep increasing. However, it is great to work with both existing and new customers, including names such as Believe, LoopHera, PlugInVest, Francis Energy, and Enso. We have sold a similar amount of units as the last quarter, but improved revenues due to the increased sales of new generation chargers with higher charging power and better margin profile. In addition, we are continuing to develop our portfolio by securing new rectifications that expand our addressable market. while also offering adjacent services such as energy management and compatibility with back-end battery solutions. In the next session, I will provide additional details. Software, services, and others continue to be important revenue drivers, consistent with the last quarter, generating 8 million euros in the first quarter. This represents 21% of total revenue and a 60% increase compared to the same period last year. Within this category, software continues to grow steadily, with 55% year-over-year growth. However, installation services have been the primary driver, increasing by 110% compared to the same period in 2024, largely due to the rollout of the State of Washington condominium program. Diversifying into these activities is important not only to capture growth, but more importantly to support our customers with adjacent services where needed. As briefly mentioned during this earnings call, we continue to develop our DC Fast Charging portfolio while strengthening our position in this segment. This includes new versions of our Supernova platform that can charge faster, are more reliable, and can help secure the best return on investment. However, our focus extends beyond charging speed, with even greater emphasis placed on safety, transparency, and compliance. This quarter, we achieved both the California Type Evaluation Program certification and the National Type Evaluation Program certification, marking an important milestone in our North American expansion. These certifications are a key requirement for EV chargers involved in the sale of electricity, ensuring they display essential traction details, including the amount of electricity dispensed, the unit price, and the total cost. These achievements allow Wallbox to expand its fast-charging resolutions, not only throughout California, but also nationwide, complementing our existing residential charging offerings and positioning us to take part in major infrastructure projects. With the recently announced partnership with Francis Energy, a leading charging operator in the U.S., we also immediately started selling the newly CTEP-certified Supernova. We're excited regarding this commercial milestone and we expect to be able to leverage this momentum by securing more new customers. In addition to speed, safety, and compliance with key certifications, at Wallwalk, we also develop complementary solutions within our DC fast charging portfolio to help customers optimize their charging infrastructure. One example resulting from our strategic partnership with Generac is a fully integrated charging solution that combines advanced DC fast charging battery energy storage, and intelligent power distribution. The system features supernova charging capabilities of up to 240 kilowatts, along with scalable battery storage of up to 21 megawatt hours provided by Prada, a generic company. For customers, this end-to-end charging and storage solution provides many advantages, including reduced lead dependency, accelerated site deployment, and optimized energy usage for an improved charging experience. Another important product milestone I would like to highlight is the opening of pre-orders for the Quasar 2, our next-generation bidirectional DC charger. Following the UL certification secured earlier this year, we have now launched pre-orders in collaboration with our partner Kia, designed to enable bidirectional capabilities for Kia EV9 drivers. Quasar 2, when combined with our Wallbox Power Recovery Unit, has the potential to offer up to 12 kilowatts of power for both charging and discharging, and can provide backup power to home for up to three days. Features such as vehicle-to-home integration, solar compatibility, installation, and backup power make it a key part of our smart energy portfolio. The relevance of this technology was underscored during last week's widespread blackouts in Spain and Portugal, where concerns about grid stability and energy resilience came sharply into focus. Waze R2 empowers users to take control of their energy usage, enhance self-sufficiency, and secure energy supply during power outages. We're excited about this launch with Kia as a foundational step for what we believe will be a transformative solution in the Volvo energy landscape. The first quarter shows solid year-over-year growth in EV sales in our addressable market, which we define as all regions except China. providing an exciting proof point for our belief that EVs are here to stay and provide a large growth opportunity. Promotion reported 1.7 billion EVs sold in Europe, North America, and the rest of the world combined, which represents a 20% growth compared to last year. The rest of the world is the fastest growing region, starting at a lower starting point, with Europe not far behind while the North American market growth has been slower. We believe the drivers of this growth include the availability of more affordable EVs and positive uptake due to increased government support in Europe. However, it remains important to note that certain demand can be temporarily accelerated or slowed due to factors such as the reaction of customers to changes in subsidies, new emission standards, tariffs, or other conditions outside our control. We underpin again our belief that the EV market will grow this year but we think the EV sales in the first quarter might have been inflated by EV sales pushed by manufacturers into 2025 to start strong in a year where car manufacturers need to comply with new emission standards. Looking forward, we remain conservative due to the volatile macro environment which we expect will impact the wider automotive supply chain. Specifically, the impact of tariffs on the EV market still needs to be assessed as the relatively new EV supply chains can be particularly vulnerable due to the reliance on rare earth materials at an already higher price point than its ICE alternatives. Overall, it is clear that EV market volatility remains. The industry's sensitivity to shift in the macro environment will remain until the industry reaches a more mature state. Still, the continuous growth of the EV fleet is an indicator that we are on an irreversible path. At Wallbox, the current market environment reinforces, rather than alters, our commitment to right-sizing the organization, in line with evolving market conditions, even if those remain a moving target. We remain optimistic that by focusing on the factors within our control, we can continue to grow revenue, streamline costs, and move closer to profitability. Regarding the impact of tariffs on Wallbox, we have been able to respond well Due to our flexible footprint, we produce facilities in different regions and our localized supply chain with multiple vendors. We believe that the current environment is too volatile to make investments or move production lines, but we continue to look for opportunities to improve our flexibility to quickly adapt to changing policies. One important milestone we celebrated in the past quarter underpinning our flexible footprint is that we surpassed 100,000 chargers produced in Arlington, Texas. it then became operative in 2022. As our results show, the North American market becomes more and more important, and by investing in domestic production, WorldWalks reaffirms its dedication to American businesses, supports local job growth, and provides the agility required to serve the rapidly expanding energy market nationwide and across borders. Luis, I'll turn it over to you to comment further on our financial details.