Original-Research: LION E-Mobility AG (von NuWays AG): BUY

Classification of NuWays AG to LION E-Mobility AG

Company Name:	LION E-Mobility AG
ISIN:	CH0560888270
Reason for the research:	Update
Recommendation:	BUY
from:	27.10.2025
Target price:	EUR 2.90
Target price on sight of:	12 months
Last rating change:
Analyst:	Christian Sandherr

LION E-Mobility looks set to report Q3 results on November 11th, which should confirm that thecompany has passed the operational trough. Here is what to expect: Following a challenging FY24 with a mere € 17m sales (-70% yoy), sales in H1 already stood at €10.4m, +70% yoy. Thanks to better order momentums at key mobility customers, the group’s top lineshould show further consecutive improvement during H2. Revenues in Q3 are seen to come in ataround € 6m (eNuW: 9M sales of € 16.4m, +32% yoy). At the same time, EBITDA is expected to bepositive at € 0.2m (eNuW: 9M sales of € 0.5m vs € -6m in previous year) due to continued tight costcontrol and an improving top line. Taking into account the expected 9M results and furtherimprovements during Q4, LION’s FY25e guidance of € 28-35m sales and “clearly positive EBITDA” looks achievable , in our view (eNuW: € 32m sales and € 0.3m EBITDA). Looking beyond FY25, LION is seen to remain on a growth path driven by both segments, Mobilityand Storage. Here is why: Mobility: To recap, LION operates a state-of-the-art factory, capable of an annual output of some 40kbattery packs, which is currently highly underutilized due to cautious order behaviour and severalinsolvencies amongst customers during the past two years. Yet, the tide is turning as (1) thecompetitive landscape has consolidated and (2) key customers such as Karsan from Turkey arequickly expanding their customer basis. Further, the anticipated launch of the new NMC+ battery pack , which offers a significantly higherenergy density compared to the current version, should allow LION to address a broader set ofpotential customers. Importantly, we would also expect most of the company’s existing customers toswitch to the NMC+ pack going forward. Storage: In April this year, LION entered into a strategic partnership with LeapEnergy in order tosecure access to assembled BESS solutions (i.e. large number of LFP-based battery packs installedin TEU containers). Combined with LION’s internal integration and service know-how as well asmarket access, the company is able to offer a one-stop-shop solution to the rapidly emerging energystorage market. For instance, LION already announced a partnership with MünchnerSolarkraftwerke, which currently has a pipeline of over 40 large-scale hybrid (PV + BESS) projects.The biggest bottleneck should be grid connection approvals, hence why we expect potential revenuerecognition from the Münchner Solarkraftwerke partnership to span over several years, starting withH2 2026. Still, sales from the Storage segment are seen to account for roughly a quarter ofgroup sales in FY25e and could reach half in FY26e . Overall, LION looks set to be able show notable top line growth for several year thanks to its uniqueset up and a growing project pipeline, which should enable sustainable cash generation and hencealso turn the balance sheet around. BUY with an unchanged € 2.90 PT You can download the research here: lion-e-mobility-ag-2025-10-27-previewreview-en-7d4d0 For additional information visit our website: https://www.nuways-ag.com/research-feed Contact for questions: NuWays AG - Equity Research Web: www.nuways-ag.com Email: research@nuways-ag.com LinkedIn: https://www.linkedin.com/company/nuwaysag Adresse: Mittelweg 16-17, 20148 Hamburg, Germany ++++++++++ Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte. Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse. ++++++++++