Kempower Q1'26 preview: Strong growth expected from a weak comparison period

Source: Inderes & Modular Finance (consensus: 7 analysts)

 Translation: Original published in Finnish on 4/24/2026 at 7:35 am EEST.

Kempower will publish its Q1 interim report on Wednesday, April 29. We expect revenue to have grown significantly from the weak comparison period, supported by a strong order book. While our forecast for the operating result remains slightly negative in the seasonally slower quarter, we believe profitability will improve as volumes increase.

A strong order book drives revenue growth

We expect Kempower's Q1 revenue to be 56.5 MEUR, which would represent a 30% increase from the weak comparison period. Although Q1 is typically a seasonally slower quarter for the company, revenue is supported by a strong order book. However, it should be noted that the revenue level is also dependent on the timing of deliveries.

We will also closely monitor the development of new orders in the report, and we expect the number of orders to have grown by ~25% from the comparison period. We estimate that growth came especially from Europe outside the Nordics, where EV sales have developed strongly, and from North America, where there has been an investment backlog due to the high number of EVs relative to fast chargers. On the other hand, demand for electric vehicles in North America has been sluggish, which could dampen demand for chargers. In addition to the growth in the passenger car segment, we believe that heavy transport is also becoming an increasingly significant market driver. In this segment, Kempower has achieved important references, such as the record-breaking charging depot charger deliveries for EV Realty in California, USA.

Cost-efficiency and scalability improve results

We estimate Q1 EBIT to have been -1.8 MEUR. Although the result is still negative in our forecast, it is a clear improvement from the comparison period's -7.3 MEUR. Profitability is supported by improved cost scalability driven by revenue growth, as the company's fixed cost structure is already geared for a significantly higher volume than at present.

On the other hand, our estimated year-on-year weakening of the gross margin limits the strength of the profitability improvement. In our view, the company's efforts to increase market share in Europe outside the Nordics have contributed to the recent decline in margin levels. The company initiated production efficiency measures late last year, the effects of which are likely to become more apparent in later quarters.

2026 outlook in focus

Kempower has guided that 2026 revenue will grow by 10–30% and operative EBIT will improve significantly from 2025. We believe the company has set a rather broad guidance range as a precaution and consider it likely that revenue growth will be between 20-30%. However, we do not expect the company to change its guidance at this point in the year, as much depends on developments in the latter half of the year. According to the company, market growth prospects in Continental Europe have strengthened, although the outlook for the Nordic countries and the United States still involves uncertainty. Many charging operators are also partly dependent on private credit financing, so on the earnings day, we will be listening for indications of whether the challenges in that financing segment are reflected in charging operators' investments. At least the company's pre-silent call did not provide any indications of this.

Spring Capital Markets Day to provide new guidelines

Kempower will host a Capital Markets Day at the end of May, where the company will likely update its new financial targets. We expect the new strategy to emphasize heavy-duty transport charging solutions, software, and the growth of the services business even more strongly. In our view, Kempower has strong competitiveness particularly in the heavy-duty transport segment, so the outlook for this segment will be of particular interest in the strategy and at the Capital Markets Day.