Wallbox N.V.

Hello, everyone, and welcome to Wallbox's second quarter 2026 earnings conference call and webcast. At this time, all participants' lines have been placed in listen-only mode to prevent any background noise. After the speaker's remarks, there will be an opportunity for 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.

Thank you and good morning and good afternoon to everyone listening in. Thank you for joining today's webcast to discuss Wallbox second quarter 2026 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 am joined today by Enric Asuncion, World Rocks CEO and Isabel López Trujillo, World Rocks CFO. Earlier today, we issued our press release announcing results from the second quarter ended June 30th, 2026, which can also be found on our website. Before we begin, I'd like to remind everyone that certain statements made on today's call are forward-looking that may be subject to risk and uncertainties relating to future events and or future financial performance of the company. Actual results could differ materially from those currently anticipated. The risk factors that may affect results are detailed in the company's most recent public filings with the SEC, including annual report on Form 20-F for the fiscal year ended December 31st, 2025, filed on April 9th, 2026. We will be presenting unannotated financial statements in IRS 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 quality results section, so you can more easily follow along with us today. So with that out of the way, I'll turn it over to Enric.

Thank you, Michael, and thanks everyone for joining us today. We will start today's call with an overview of our second quarter 2026 results, provide our perspective on order intake and backlog, and spend time discussing operational improvements. Isabel will offer a closer look at our financial results, key financial metrics, and our current financial position after the completion of the refinancing, including the new capital raise in the quarter. After, I will close the conversation to highlight what we are focused on for the upcoming quarters. Q2 revenue came in below our guided range at 23.9 million euros, down 19% compared to the previous quarter. During the quarter, we delivered approximately 22,900 AC units and 40 CDC units. Important to mention here is that this is not a demand problem, as order intake for our AC and DC products was up 11% compared to the first quarter, reflecting solid sequential momentum. In fact, as order intake exceeded revenue, we have been building a backlog rather than losing business, resulting in close to 12 million euros of total backlog. The gap between what we book and what we invoice is the result of operational constraints related to the final stages of our restructuring process in which we have been negotiating new terms with our vendors. This limited our ability to convert that improved order intake into shipments this quarter. The positive impact of building a backlog and part of our plan is enhanced visibility related to our supply needs and the possibility for more efficient, more reliable operations. Gross margin for the quarter was approximately 38%, at the low enough but essentially in line with our guided range of 38% to 40%. The sequential improvement of 70 basis points in gross margin was a good outcome given the softer top line, and a sign that our product mix and cost discipline held up even as volumes were constrained. Labor costs and operating expenses landed at 17.3 million euros, approximately flat compared to last quarter, but improving 29% year over year. The progress on the cost base reduction is flattening out as we continue to invest selectively in sales and service capacity to support the backlog bill while holding the line on our broader cost base. In addition, as mentioned in the last earnings call, We continue to see options to reduce costs by improving processes and systems, reduce complexity in our operations and centralize activities. Adjusted EBITDA loss for the second quarter of 2026 was 7.8 million euros, outside of our guidance range and wider than the 6 million euros loss in the first quarter, but approximately flat compared to the same period last year. This was driven by the loss of operating leverage on lower revenue, as just discussed, and not by deterioration in unit economics. Cross-margin held up, but with 23.9 million euros of revenue instead of the 33 to 36 million we guided to, we did not generate enough gross profit to absorb our cost base as planned. As the backlog converts into shipments in the coming quarters, we expect this operating leverage to work back in our favour. Although we did not achieve all our expectations in the second quarter, we have seen growth momentum in order intake, secure the longevity of the company with the completion of the refinancing process, including new capital, and improve the operations for near-term profitability improvement. The main driver to break through the profitability barrier is improved revenue levels, which are within reach as proven by the momentum increases investment in sales and services that are starting to show results. Europe, or EMEA, contributed 17.7 million euros of consolidated revenue, or approximately 74% of total topline. This reflects a 22% decrease compared to last quarter, again a reflection of the invoicing gap rather than weaker demand. Regarding AC and DC charges ordered intake, EMEA was a real bright spot, growing 14% sequentially. We also strengthened our commercial reach in the region this quarter. In May, we announced a partnership we print out by Lyft to support tax certification across Germany, France, the UK, Ireland and Spain, giving fleet operators and individual drivers access to Pulsar Max, Pulsar Pro and EM4 charging solutions depending on their needs. We see this kind of channel partnership as an important way to convert our growing backlog into durable recurring demand. In addition, we are also seeing our net promoter score improve and our response times on spare parts get faster. We are not yet where we want to be on this, but we are making progress, and we are dedicating additional resources to our priority markets, which are Spain, France, Benelux and Germany, alongside North America. North America contributed 5.6 million euros, or approximately 23% of total revenue. reflecting a decrease of 16% compared to last quarter and approximately 55% compared to the same period last year. The slowdown can partly be attributed to the softer North American EV market, which is down 22% compared to the same period last year. Orderly intake of AC and DC products in the region was approximately flat versus the first quarter, essentially stable and consistent with normal seasonality. We are increasingly reliant on a small number of large key accounts with a stable, if smaller, base of long-tail customers. We expect a stronger contribution from large accounts in the second half of the year. LATAM was a revenue highlight this quarter, growing 64% sequentially, although from a small base, landing at €615,000 or approximately 3%. APAC sales continue to be almost negligible, similar to last quarter. Both regions remain small for volvos at this moment, but the strong residual improvement in LATAM shows how effectively selected distribution partners can contribute to sales growth. AC sales, including AVL and Quasar, total 15.8 million euros, or approximately 66% of global consolidated revenue, down 25% versus last quarter. However, order intake for AC overall was 22.6 billion euros, up 6% sequentially, with AC Europe and rest of world the clear driver, as order intake there was up 26% quarter over quarter, while AC North America order intake declined modestly. As discussed, the revenue decline reflects the timing gap between that ordered intake and our ability to ship an invoice against it this quarter, rather than a change in underlying demand. We also launched the new Pulsar Pro across the European Union this quarter. Purpose built to simplify EV charging reimbursement for drivers, employers, fleets and property managers through integrated MID-certified energy metering. Corporate vehicles account for around 60% of new car registrations across the EU, and we believe Pulsar Pro is well positioned to capture this workplace and share charging opportunity. DC sales landed at 1.6 million euros, or approximately 7% of revenue, down 37% versus last quarter. Again, largely a function of the same supply side timing constraints. The bright side is the DC order which grew 80% sequentially to 3 million with DC Europe and rest of the world more than doubling versus the first quarter. Our DC customer base is also diversifying as we are seeing more orders from smaller customers and becoming less dependent on a handful of large charge point operators than we were in the past. We also completed the first real world redeployment of our Supernova power ring architecture in Europe this quarter. Installing a shared fast charging system at port decisions. The product is capable of delivering up to 400 kW to a single vehicle with a shared system capacity of up to 720 kW. Given the order intake trend, we are optimistic about the contribution Power Ring can make to DC growth as we move through the second half of the year. Software, services, and others generated 6.5 million euros, or approximately 27% of total revenue, 8% versus last quarter. Electromaps continue to be a standout, growing strongly again both sequentially and year-over-year, and this category overall gives us a growing high-margin base of recurring revenue that is largely insulated from the hardware supply dynamics affecting AC and DC this quarter. In our addressable market, which we define as all regions except China, approximately 2.5 million EVs were sold during the second quarter, up 20% sequentially and up 30% year over year. Europe, our largest market, sold approximately 1.36 million EVs in the quarter, up 18% sequentially and up 28% year over year. The continued strong growth in the underlying market is consistent with the 14% sequential growth we saw in our EMEA order intake this quarter. North America sold approximately 373,000 EVs, up 12% sequentially, though still down 22% year-over-year, as the market continues to digest the removal of incentives and tax credits discussed on prior calls. The sequential improvement is an encouraging signal that the market may be stabilizing. Rest of World, which includes APAC and LATAM, was again the strongest growth pocket in our decibel market, up 65% sequentially and up over 150% year-over-year, though it remains a small part of our current business given our deliberate decision to prioritize resources elsewhere. Overall, the EV transition continues to progress. and the market backlog this quarter has been supportive. This positive market trend provides Wallbox with plenty of opportunity to reaccelerate growth as investments in sales and services and improved operations are starting to pay off. Isabel, over to you.