Wallbox N.V.

Hello everyone and welcome to Wallbox's second quarter 2025 earnings conference call and webcast. At this time, all participant lines have been placed in a listen-only mode to prevent any background noise. After the speaker's remarks, there will be a question and answer session. Analysts who wish to ask a question can place themselves into the queue by pressing star 1. I would now like to turn the call over to Michael Wilhelm from Wallbox. Michael, please go ahead.

Thank you and good morning and good afternoon to everyone listening in. Thank you for joining today's webcast to discuss WorldWalk's second quarter 2025 results. This event is being broadcast over the web and can be accessed from the investor section of our website at investors.worldwalks.com. I am joined today by Henrique Asuncion, WorldWalk's CEO, and Luis Boada, WorldWalk's CFO. Earlier today, we issued our press release announcing results from the second quarter ended June 30th, 2025, which can also be 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 relating 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 in the annual report on Form 20F for the fiscal year ended December 31, 2024, filed on May 6, 2025. We will be presenting unordered financial statements in IFRS format that reflect 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 Enrique.

Thank you, Michael, and thanks, everyone, for joining us today. We will start today's call reviewing highlights from the second quarter 2025 and spend time discussing commercial wins, strategic achievements, 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 are focused on for the second half of the year. Q2 revenue was 38.3 million euros within our 37 to 39 million euros guidance range, up 2% compared to last quarter, but down 22% from a record high Q2 last year. The different revenue lines contributed similarly as the previous quarter, with the growth resulting from increased AC sales and so forth. Sales in Europe incrementally improved compared to last quarter, with countries such as Spain and Italy showing strong growth. But considering the selective market growth in the region, we are looking forward to improvements and further growth ahead. We are seeing sales accelerating with larger partners, and we have decided to selectively invest in parts of our sales structure to capture the renewed market growth with smaller customers. North America has remained a strong contributor as we continue to develop our position in this region with existing and new partners. DC sales have been flat quarter over quarter, but we signed new partnerships and already see the results in orders for the second half of the year. In total, during the second quarter, we delivered over 39,000 AC units and more than 140 DC units. Most importantly, we built a significant backlog for both AC and DC, which increased by more than 5 million euros. We aim to continue building our backlog to increase sales visibility and, as a result, improve our operational efficiency. Gross margin was 37.8% in the second quarter, which is within the 37-39% guided range. Compared to last quarter, the gross margin was stable as the revenue mix was similar as well. The additional gross margin improvements we are working on are not visible yet in the results. As we have been able to significantly reduce our inventory, which Luis will comment on later, this gives us an opportunity to improve gross margin in the future. On top of that, we continue to review our bill of material costs and are increasing our prices in certain regions. Improving the operational efficiency by right-sizing the organization remains on track. For the second quarter of 2025, labor costs and operating expenses are down 3% compared to last quarter and declined 25% compared to the same period last year. In the case of cash costs, which is defined as labor costs and OPEX excluding R&D activations, non-cash items, and one-off expenses, the result is even more impressive as we achieve a 35% year-over-year reduction. It is great to see our efficiency improve each quarter as we edge closer towards profitability. We are achieving this expanded efficiency meanwhile consciously taking care of how our setup is best serving our markets, business units, and allowing us to capture maximum growth. If this means we need to selectively invest in the sales structure or customer support, we are doing so, but always with a profitability and return on investment mindset. The second quarter 2025 adjusted EBITDA is within our guided range, landing at minus 7.5 million and reflecting a small improvement compared to last quarter. If we compare to the same period last year, adjusted EBITDA improved 33%. Our improvements towards operational break-even are consistent. However, our Q2 results could have been on the higher end of our guidance range. The main reason for this relative softness is a slower than expected decrease in operating expenses, which Luis will comment on. We are confident about our potential for the coming quarters. Overall, in the last couple of quarters, we have consistently been achieving our guidance reflecting our ability to control the business. This control is crucial as the European EV market resumes strong growth, allowing us to leverage the Wallbox platform. Wallbox has a leading setup with a full product portfolio, geographically diversified position with a targeted market approach and strong commercial partnerships. We believe the combination of these elements sets us up for success. For the second quarter of 2025, Europe contributed 26.1 million euros of consolidated revenue, or 68% of total top line. The European EV market has continued to recover well and show 30% growth year over year for the second quarter. We have seen this growth trend reflected in our performance in certain countries, but not across the board. We recognize the importance of focusing on capturing the growth now that the market improves. With our strategic positioning across Europe, with a complete product portfolio, we expect there are incremental growth opportunities in this region for the upcoming quarters. North America continued to be a cornerstone of our business performance and contributed 11.4 million euros, or 30% of the total revenue, same as last quarter. The EV market growth has slowed down in this region, decreased 5% compared to last year. But we continue to build out our position with our main partners such as Stellantis, Florida Power & Light, Ensol and Generac. In parallel, we aim to replicate this type of partnership with new partners and new regions. Both APAC and LATAM remain small regions for Wallbox, now contributing approximately €260,000 or 1% and 550,000 euros or 1% respectively for the quarter. These regions continue to have significant future potential. However, considering our efficiency efforts and refocus are not our top priorities. AC sales of 26.6 million euros, including ABL and Quasar, represented approximately 69% of our global consolidated revenue with a 4% improvement compared to last quarter and down 18% year over year. Compared to the record high quarter last year, the results in Europe have been weak, but with positive outliers in certain countries and a stronger outlook. For example, we have announced a collaboration with Powerball to deploy EV charging solutions across hotels in the Netherlands. The installation will feature Ballbox, EM4 and the Supernova DC fast chargers. This collaboration brings together wallbox and bands, charging technology, and power goes to renewable energy power infrastructure to support the growing demand for sustainable mobility in the Netherlands. Besides, we are working on ramping up sales with new products such as the Pulsar ProSocket and the Pulsar MaxSocket, with orders from Rexel, Sonepad, Libra, and others. AC sales in North America remain strong, growing 9% year over year. As mentioned before, we have continued to expand the scope of the activities with our commercial partners in the region. In addition, we delivered the first units of Quasar 2, contributing more than 100,000 euros in this quarter. This is a very exciting step for Wallbox and our partners, as we spearhead bidirectional charging, allowing us to create more value beyond driving your EV. Shortly, I will provide more about this milestone. DC has been the weakest link in our results compared to the same quarter last year. But after a weak performance in the second half of last year, we believe it has now stabilized and we expect that its performance will improve in the upcoming quarters. DC sales in the second quarter landed at 4.2 million euros or 11% of sales, the same contribution to our total result as last quarter. After a period with a conservative approach from CPO customers regarding the rollout of their infrastructure, we see opportunities to grow again with our existing partners and new partners, and we saw our backlog for the second half of the year grow accordingly. Recently, we announced the expansion of our partnership with Ensol, which provides EV charging infrastructure in Texas, Florida, and Georgia. Initially, this partnership was focused on installing Wallbox Pulsar line of AC chargers at residential and commercial sites. The new phase extends our partnership into easy fast charging for the first time, centered around Wallbox Supernova Charger, now certified under both CTEP and NTEP standards. Overall, the upward trend we see in the DC sales compared to last quarter is exciting, both for top-line growth and margin improvement. Software, services, and others have been the best performing business activities compared to the same period last year, growing 27% year-over-year these activities generated 7.6 million euros or 20% of the total revenue. Specially software shows strong performance compared to last quarter, mainly driven by Electromaps, our EMSP service. The growing European EV market is creating more demand for public charging, which we can see in the increase of charging sessions managed by our software. Installation services continue to be the largest contributor of this category, but less than last quarter. Overall, we are happy to see that the category Software, Services and Others is performing well and is contributing significantly to the overall business performance. On our last earnings call, we commented on the pre-orders opening for Quasar 2 and the importance of this product as part of our smart energy solutions. Now, the first units have been installed in Menifee, California. This groundbreaking project in collaboration with Wallbox, Kia and the University of California Irvine has the goal of accelerating EV infrastructure and enabling fully electric energy resilient communities. We are very excited about these developments as our mission is to be the ultimate energy player and we believe these developments bring us closer to that reality. The Quasar 2 puts our customers in charge of their energy choices and offers innovative solutions such as backup power, and smart charging to create value. Bringing this product live requires significant research and development efforts internally, but also in collaboration with automotive partners to develop the product, standards, and protocols we know today, lowering the threshold on investment for wide-scale application in the future. After all these efforts, we are happy that the product is being installed and is already delivering real value to customers and communities across the US. In addition, As part of our smart energy solutions, we have launched virtual power plants in California and New York through our partnership with LEED. The initiative is part of Wallbox Rewards, a newly launched smart charging program that enables Wallbox users to earn incentives by contributing to reach flexibility through their EV home chargers. We are going to leverage our installed base by connecting an aggregated pool of thousands of residential chargers with local energy programs. which will help utilities manage demand peaks, balance the variability of renewable generation, and improve overall grid stability. On top of the financial incentives to contribute to grid stability, users will enjoy the benefit of charging when electricity is cleaner and more affordable. The EV sales in our addressable market, which we define as all regions except China, continues to show growth in the second quarter and strengthens our belief that the future is electric. Promotion reported 1.9 million EVs sold in Europe, North America and the rest of the world combined, which represents a 23% increase compared to last year. The rest of the world and Europe both show approximately 30% growth compared to the same period last year, while the North American market contributed negatively with a 5% decrease year over year. Europe is showing a strong recovery due to a large range of more affordable vehicles and government support in certain countries. We are excited to see this turnaround and we believe it will provide us with tailwinds as Europe remains our largest market. While this recovery does differ per country and is not across the board, we see strong growth in countries that historically had low adoption of EVs such as Spain. In the second quarter of 2025, more than 66,000 EVs were sold in Spain, which is more than EVs leading countries such as Norway, Belgium, and Netherlands. This is reflecting how quick the EV transition can accelerate in terms of absolute numbers once large car markets in our addressable scope are becoming electric. For the North American region... In the U.S., the EV market is about to lose key subsidies, such as the 30D tax credit, and is facing changing emission policies. In 2025, approximately 50% of EVs sold in the U.S. have been eligible for the 30D tax credit, according to Road Motion. The removal of these credits and the changing sentiment under the new administration are expected to have an impact on the EV market. Nevertheless, we are confident regarding our capabilities to continue growing in the US this year due to our strategic partners and the visibility on sales. However, we recognize the volatility and its potential impacts for future growth. Historically, Europe was the initial frontrunner of the VE adoption. Then, the North American market proved to be the largest growth opportunity. And now, Europe is recovering fast. This market dynamics are another proof point of the importance of being geographically diversified and the reason why we focus and redistribute our resources to cope with regional EV market volatility. If we look at our total addressable market, the EV market has been consistently growing and we believe the EV transition is on an irreversible path. However, adapting to the market dynamics with a flexible and resilient organizational structure is key until markets become more mature. Our objective is to have the right organization set up, capture growth where it takes place, and achieve profitability. Luis, I'll turn it over to you to comment further on our financial details.