PowerCell Sweden AB (publ)

PowerCell said second-quarter revenue fell 46% year over year excluding the one-off IP/royalty effects from last year. Gross profit margin was about 10%, versus management’s view that a more normal quarter would have been around 25%. Order intake was SEK 86 million, up from SEK 50 million in Q1. Management also said operating cash flow was positive in the quarter, and cash stood at SEK 76 million. Looking forward, management said the 2026 cost actions should show effects in the second half of 2026 and leave the company with a cost base fit for 2027; the ECL order is around SEK 30 million, will be fully delivered in 2026, and the company also signed 9 MW of orders in the last 2.5 weeks. The non-binding ECL memorandum covers future capacity of around 300 MW, but management said it is not guidance and carries no committed volume or revenue.

Richard Berkling framed the quarter as weak but consistent with the volatile market PowerCell had already warned about, stressing that revenue timing is lumpy and that order intake is the better indicator right now. He said the company is responding by becoming more focused, right-sizing the organization, and concentrating on marine and power generation as the two growth pillars. His tone was cautious but constructive: he repeatedly said the company is better positioned than in prior years and that customer activity and quotation requests are rising.

Anders Düring highlighted that the headline decline in the quarter is partly distorted by last year’s IP/royalty comparison, but still said the margin pressure was real. He pointed to the specific quarter-level gross margin of about 10% and said a normal quarter would have been closer to 25%, because extra delivery-related costs hit profitability during a sensitive customer phase. He also emphasized that operating cash flow was positive despite a very small top line, and said the SEK 76 million cash position is a natural result of the current business situation, with no near-term concern and spending being managed carefully. He added that cost reductions are already in place during 2026 so the company can enter 2027 with an appropriate cost base.

On cash, an analyst asked about the SEK 76 million cash balance and whether PowerCell would raise cash; management said it is managing spending carefully and is not worried about the near future. Another question focused on the Bosch royalty and China: Richard said he expects revenues from the Chinese hydrogen market in the second half of 2026, and that Bosch is PowerCell’s partner and sales channel in China. An analyst also asked about the increase in right-of-use assets and lease liabilities, but management did not answer it in detail on the call and said it would follow up afterward.