Allego N.V.

Third-quarter 2023 total revenue increased 28.2% to EUR28.6 million from EUR22.3 million a year ago; for the first nine months, revenue was EUR96.8 million, up 33% from EUR73 million. Charging revenue rose to EUR22 million from EUR14.4 million, while services revenue declined to EUR6.6 million from EUR7.9 million. Gross profit improved to EUR5.4 million from a EUR4.6 million loss, and operational EBITDA was EUR2.6 million versus a EUR3.1 million loss last year. Net loss was EUR43.1 million versus EUR22.1 million, and cash and cash equivalents were EUR28.8 million at quarter-end. For 2023, Allego narrowed guidance to revenue of EUR180 million-EUR185 million, operational EBITDA of EUR30 million-EUR35 million, and energy sold of 215-220 GWh.

Mathieu Bonnet framed the quarter as evidence that Allego’s shift toward charging revenue is working, citing stronger utilization, more ultrafast stations, and recurring revenue from the owned network. He emphasized that Europe remains a strong EV market and pointed to October’s milestone of more than 1 million charging stations in a single month as confirmation of network momentum. His tone was upbeat and confident, with repeated references to improved margins, a growing pipeline, and the company moving faster toward free cash flow positive.

Ton Louwers highlighted that gross profit improved to EUR5.4 million from a EUR4.6 million loss, operational EBITDA rose to EUR2.6 million from a EUR3.1 million loss, and the improvement was driven by lower energy prices, PPAs, and higher customer pricing. He said SG&A was EUR36.7 million, with the increase “almost completely” due to non-cash share-based payment expenses, and finance costs were EUR9.9 million due to derivatives, warrant liabilities, and higher interest on senior debt. Cash and cash equivalents were EUR28.8 million, down from EUR83 million, mainly because of EUR48 million of CapEx, and PP&E was EUR157.5 million. He also noted the warrant exchange/redemption closed on October 3, 2023, simplifying the capital structure.

Analysts focused on why Q4 service revenue should be much higher and why full-year guidance moved toward the low end of the range. Management said the Q4 step-up is timing-related, with large projects such as Carrefour in Germany and another OEM project being recognized in the quarter, while the lower-end guidance reflected delays in the Carrefour project and later grid connections that pushed some charging station installations into Q4 and 2024. On pricing, management said it had raised prices significantly in 2022 but then reduced prices by about 15% globally starting in July 2023 to support market share and utilization.