ADS-TEC Energy Reports Preliminary and Unaudited Financial Results

NÜRTINGEN, Germany--(BUSINESS WIRE)--ADS-TEC Energy PLC (NASDAQ: ADSE) (the “Company”), a global leader in battery-based energy storage and fast-charging systems, today announced its preliminary and unaudited condensed consolidated financial statements for the year 2025, covering the period ended December 31, 2025. Financial Overview 2025 was primarily a year of transition and strategic positioning. While reported financial figures were modest, the Company continued to execute in line with its long-term strategy and made meaningful progress toward building a scalable platform with recurring revenues. Our revenue declined from €110 million in 2024 to €31.6 million in 2025, primarily driven by the combined impact of the insolvency of a key customer in the legacy EV-charging hardware business and the ongoing strategic pivot toward new business models that had not yet been translated into revenue. Service revenues increased to €10.3 million in 2025, almost doubling compared to €5.6 million in 2024, reflecting continued expansion of the installed base and demonstrating the growing contribution of recurring revenue streams. Operating result was minus €56.7 million (compared to minus €8.6 million in 2024), reflecting the impact of lower revenues as well as an inventory write-down of €10.2 million, related to valuation adjustments in raw materials and finished goods. This development is consistent with the build-up of inventory in prior periods and the Company’s ongoing efforts to realign production and sales. Following the redemption of its senior secured convertible notes in November 2025 (amounting to $27.9 million), the Company maintained a cash position of €7 million at year-end, providing near-term liquidity to support its ongoing strategic initiatives. Business Development Overall, 2025 marked a transition in the Company’s business model, with a focus on developing and scaling additional business lines. The Company is repositioning its business from its traditional charging and service activities toward a more diversified model, which continues to include its core charging solutions while expanding into Commercial & Industrial (C&I), Own & Operate (O&O) activities with related revenue streams such as energy management and advertising, and service- and software-related offerings, as well as large scale battery projects. The Company’s strategy includes combining large scale battery projects with full or partial ownership, intelligent operation, and long-term services, supported by investments in scalable platform infrastructure to enable international expansion and improved operational control. The objective of this transition is to increase recurring revenues and build a more stable and scalable revenue base over time. This transition also reflects the Company’s efforts to address limitations of its legacy hardware-driven model, which was historically characterized by a limited number of larger transactions and production ahead of realized demand, resulting in inventory build-up and delayed deployment of systems. Charging: Demand for the Company’s charging solutions continues, notwithstanding lower sales in 2025. Customer purchasing patterns have evolved from large bulk orders toward more phased deployments, reflecting installation timelines, project complexity and execution considerations. As part of this development, the Company has expanded and diversified its customer base to more than 100 clients, with an increasing focus on blue-chip counterparties. While initial orders from new customers are typically smaller in size, this approach is expected to support more stable growth, improved margins and increased visibility across key geographies over time. Commercial & Industrial (C&I): Commercial activity commenced in Q3 2025 following the finalization of key partnerships and product availability, including long-term cooperation with one of the major world battery suppliers. The Company has made a deliberate shift toward a partnership-based model, reflecting a strategic response to earlier commercial and technical constraints in the delivery model and positioning the C&I business line for more sustainable and repeatable deployment going forward. Due to the timing of its launch, revenues in 2025 were still limited; however, the Company was able to build an order backlog of approximately €9 million, with deliveries beginning in 2026 and expected to contribute to revenues. Large scale battery project: About a year ago, the Company began developing a large scale battery project in southern Germany together with our C&I business with a planned multi-GW capacity. The project has made significant progress to date, including securing land, obtaining municipal approval and advancing grid connection arrangements. Based on the current timeline, the Company expects to reach ready-to-build status in 2026, subject to final construction permitting and finalization of a grid connection agreement; following which it intends to advance financing and evaluate potential strategic partnerships. Once operational, the project is expected to generate returns and support long-term cash flow generation. Own & Operate (O&O): Although growth was delayed by legacy financing constraints, the Company has established its first O&O installations, secured more than 150 locations, and brought initial systems into operation—supporting the development of recurring revenue streams through energy management features (e.g. trading) and advertising. Service: Service revenues are driven by the Company’s installed base, with more than 330 service contracts currently in place, typically with multi-year tenors of approximately eight years following a standard two-year warranty. These contracts provide recurring revenue visibility and support margins across business cycles. Service agreements are generally entered into in connection with hardware sales and are an integral part of the Company’s offering, including maintenance, monitoring, software updates and energy management services. Platform and scalability: The Company has completed a full SAP implementation, providing the necessary infrastructure to support international scaling, recurring revenue management, and improved operational control across its business lines. Financing: Following the redemption of the convertible note facility, the Company is evaluating alternative debt financing options to support its ongoing strategic initiatives, particularly a large scale battery project, as it progresses toward ready-to-build status and subsequent development. In this context, the Company has engaged advisors to explore a potential EUR 125 million bond issuance or direct loan with a tenor of three to five years. Building for the Future Although revenue from the EV charging business declined significantly in 2025, the Company expects demand to support a gradual recovery in the charging business, driven by continued EV adoption and the ongoing need for charging infrastructure. The Company also anticipates that fleet and corporate demand may contribute to EV market growth in the coming years. The Company has established a C&I sales pipeline, which is expected to progressively translate into revenues as projects are executed. In addition, the Company continues to advance the development of its large scale battery project and expects to reach ready-to-build status in 2026, which represents a key milestone toward the project’s subsequent development and commercialization. Own & Operate business is expected to start contributing to the Company’s revenues, as installations are rolled out and become operational. Service revenues are expected to continue to grow, supported by the expansion of the installed base and associated service contracts. In line with its strategic priorities to implement a sustainable long-term capital structure, the Company is assessing financing options to support its future business over time, which may include bonds, bilateral loans or other debt facilities. Preliminary and Unaudited Consolidated Financial Statements Income Statement 2025 2024 EURk preliminary and unaudited Revenue 31.559 110.013 Cost of sales (47.842 ) (90.585 ) Gross profit (loss) (16.283 ) 19.428 Research and development expenses (8.488 ) (8.971 ) Selling and general administrative expenses (32.797 ) (31.588 ) Impairment gains (losses) on trade receivables, contract assets, and other investments (55 ) (58 ) Other income 2.264 14.530 Other expenses (1.334 ) (1.949 ) Operating result (56.694 ) (8.608 ) Finance income 60.788 24 Finance expenses (59.542 ) (88.883 ) Share listing expenses - - Net finance result 1.246 (88.859 ) Result before tax (55.447 ) (97.467 ) Income tax benefits (expenses) 257 (491 ) Result for the period (55.190 ) (97.958 ) Balance Sheet 2025 2024 preliminary and unaudited Assets EURk Intangible assets 12.910 20.529 Right-of-use assets 2.981 3.273 Property, plant, and equipment 7.614 6.195 Other investments and other assets 169 179 Trade and other receivables (non-current) - 12 Deferred tax assets 15 - Non-current assets 23.689 30.188 Inventories 51.010 63.666 Contract assets - 40 Trade and other receivables (current) 8.563 28.479 Cash and cash equivalents 6.987 22.858 Current assets 66.560 115.043 Total assets 90.249 145.231 2025 2024 preliminary and unaudited Equity and liabilities EURk Share capital 5 5 Capital reserves 332.907 245.298 Other equity 613 1.043 Retained earnings (344.347 ) (289.156 ) Total equity (10.822 ) (42.810 ) Lease liabilities (non-current) 1.866 2.336 Loans and borrowings (non-current) 54.808 119.581 Trade and other payables (non-current) 214 209 Contract liabilities (non-current) 2 265 Other provisions (non-current) 747 2.132 Deferred tax liabilities 1.345 1.670 Non-current liabilities 58.982 126.193 Lease liabilities (current) 1.322 1.144 Loans and borrowings (current) 5.010 13.333 Trade and other payables (current) 20.652 34.963 Contract liabilities (current) 11.955 6.809 Income tax liabilities (current) 75 14 Other provisions (current) 3.075 5.586 Current liabilities 42.089 61.849 Total liabilities 101.071 188.042 Total equity and liabilities 90.249 145.231 Cash Flow 2025 2024 EURk preliminary and unaudited Result for the period (55.190 ) (97.958 ) Depreciation and amortization 10.588 6.699 Finance income excluding foreign currency (gains) losses (60.788 ) (24 ) Finance expense 0 82.222 Share listing expense 59.542 - Non-cash effective foreign currency gains 22 6.352 Stock compensation 2.655 3.866 Gain (loss) on disposal of property, plant, and equipment 115 2 Change in trade receivables not attributable to investing or financing activities 7.544 7.052 Change in inventories 11.818 (24.359 ) Change in trade payables (14.367 ) 12.929 Change in contract assets 40 (40 ) Change in contract liabilities 4.906 (462 ) Change in other investments and other assets (341 ) 101 Change in other provisions (3.996 ) (13.063 ) Change in other liabilities 394 (116 ) Income tax expenses (benefits) (257 ) 491 Interest received 395 24 Income taxes paid (15 ) (3 ) Cash flow from operating activities (36.934 ) (16.287 ) Purchase of property, plant, and equipment (2.883 ) (958 ) Investments in intangible assets, including internally generated intangible asset (399 ) (445 ) Proceeds from sale of property, plant, and equipment 20 107 Cash flow from investing activities (3.262 ) (1.296 ) Proceeds from borrowings, shareholder contribution, and loans 6.275 13.966 Proceeds from Convertible Loan 38.156 Proceeds from issues of shares and other equity securities 661 776 Proceeds from the issue of warrants presented as financial liabilities 9.000 - Repayment of loans and borrowings (11.225 ) Proceeds from the exercise of warrants 26.950 9.260 Repayment of shareholder loans (22.026 ) - Repayment of Convertible Loan (21.231 ) Repayment of lease liabilities (1.273 ) (996 ) Interest paid (12.517 ) (1.183 ) Cash flow from financing activities 23.995 10.598 Net decrease (-) / increase in cash and cash equivalents (16.201 ) (6.985 ) Cash and cash equivalents at the beginning of the period 22.858 29.162 FX effects 331 681 Net cash and cash equivalents at the end of the period 6.987 22.858 About ADS-TEC Energy Based on more than ten years of experience with lithium-ion technologies, ADS-TEC Energy develops and produces battery storage solutions and fast charging systems including their energy management systems. Its battery-based fast-charging technology enables electric vehicles to charge ultra-fast even with weak power grids and is characterized by a very compact design. The Company, based in Nürtingen, Baden-Württemberg, was nominated for the German Future Prize by the Federal President and was included in the "Circle of Excellence" in 2022. The high quality and functionality of the battery systems is due to a particularly high level of in-depth development and in-house production. With its advanced system platforms, ADS-TEC Energy is a valuable partner for car manufacturers, energy supply companies and charging station operators. More information at: www.ads-tec-energy.com Forward-looking StatementsRead the full story here

ADS-TEC Energy Reports Preliminary and Unaudited Financial Results

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