Alfen Stock price
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = €265.76m | Revenue (TTM) = €485.58m
Market Cap = €265.76m | Estimated Revenue = €467.02m
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = €259.61m | Revenue (TTM) = €485.58m
Enterprise Value = €259.61m | Forward Revenue = €467.02m
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF) | ex SBC
📈 What is it?
EV/FCF compares a company’s enterprise value with its free cash flow. The metric therefore shows the multiple of current free cash flow at which a company is valued. EV/FCF ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted version.
🧮 How is it calculated?
EV/FCF ex SBC = Enterprise Value ÷ (Free Cash Flow (TTM) − SBC)
🏛️ Why is it important?
EV/FCF provides a valuation based on free cash flow and therefore complements earnings-based valuation metrics such as the P/E ratio. The ex SBC version additionally accounts for the economic impact of stock-based compensation and provides a more conservative view from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF means that enterprise value is low relative to current free cash flow. The reasons should always be considered in the context of the company and its industry.
- A high EV/FCF means that enterprise value is high relative to current free cash flow. This can, for example, reflect high growth expectations or temporarily weak cash generation.
- When SBC is positive and adjusted free cash flow remains positive, EV/FCF ex SBC is generally higher than the standard EV/FCF.
- The metric is particularly useful for companies with relatively stable and predictable cash flows.
- If free cash flow is negative or very low, EV/FCF has limited usefulness and should not be interpreted like a standard valuation multiple.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 SBC | in % Revenue
📈 What is it?
SBC (Stock-Based Compensation) refers to equity-based compensation granted by a company to its employees and executives. The percentage shows SBC relative to revenue.
🧮 How is it calculated?
SBC as % of Revenue = (SBC ÷ Revenue) × 100
🏛️ Why is it important?
Stock-based compensation is a real cost factor for shareholders. It can increase the number of shares outstanding and therefore dilute existing shareholders. The percentage of revenue shows how heavily a company relies on equity-based compensation and how significant this form of compensation is relative to the size of the business.
🧮 Calculation
🎯 What does this mean for investors?
- A lower figure is generally positive: Stock-based compensation is relatively small compared with the company's revenue.
- A high figure can indicate greater reliance on stock-based compensation and a higher potential risk of dilution. However, it is also important to consider whether the company offsets dilution through share buybacks.
- The trend over time should also be considered. A high but declining percentage presents a different picture from a persistently high or increasing percentage.
- A single-digit SBC-to-revenue ratio is not unusual among many growth-oriented and technology companies.
📘 SBC as % of FCF
📈 What is it?
SBC (Stock-Based Compensation) refers to equity-based compensation granted by a company to its employees and executives. The percentage shows SBC relative to free cash flow (FCF).
🧮 How is it calculated?
SBC as % of FCF = (SBC ÷ Free Cash Flow) × 100
🏛️ Why is it important?
Stock-based compensation is a real cost factor for shareholders. It can increase the number of shares outstanding and therefore dilute existing shareholders. The percentage of free cash flow shows how significant SBC is relative to the cash generated by the company. Since SBC is non-cash compensation, it is typically not deducted as a cash outflow when calculating FCF.
🧮 Calculation
🎯 What does this mean for investors?
- A lower value is generally favorable. Stock-based compensation is relatively small compared with the company's cash generation.
- A high value means that SBC represents a significant portion of the company's reported free cash flow, even though SBC itself is non-cash.
- The higher the value, the more significant SBC can be as an economic cost to shareholders, particularly when it results in share dilution.
📘 SBC Growth 1Y
📈 What is it?
SBC Growth 1Y shows how much a company's stock-based compensation has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
SBC Growth shows whether stock-based compensation is becoming more or less significant for shareholders. If SBC increases significantly, it can lead to greater shareholder dilution over time. At the same time, SBC is a non-cash expense that reduces earnings on the income statement but is added back in the cash flow statement.
🧮 Calculation
🎯 What does this mean for investors?
- A high positive value is generally negative, as rising SBC can increase the burden on shareholders, particularly through potential dilution.
- What matters is whether the development of SBC is sustainable over the long term. Some level of SBC is common among many growth and technology companies.
📘 Share Count Growth 1Y
📈 What is it?
Share Count Growth 1Y shows how much the number of shares outstanding has increased or decreased over a one-year period.
🧮 How is it calculated?
🏛️ Why is it important?
The number of shares determines how many shares the company's earnings and assets are distributed across. If the share count decreases, existing shareholders' relative ownership increases. If it increases, existing shareholders are diluted. The metric therefore makes dilution and share buybacks directly visible.
🧮 Calculation
🎯 What does this mean for investors?
- A negative value is generally positive, as the number of shares outstanding is decreasing.
- A positive value indicates dilution of existing shareholders.
- A declining share count is not automatically positive: It also matters at what price the shares are repurchased and how the buybacks are financed.
📘 Shareholder Yield
📈 What is it?
Shareholder Yield measures how much capital a company returns to shareholders or uses to reduce debt relative to its market capitalization. It goes beyond dividend yield by also including share buybacks and debt reduction.
🧮 How is it calculated?
🏛️ Why is it important?
Dividend yield only tells part of the story. Companies can also return capital through share buybacks, while reducing debt can strengthen the balance sheet. Shareholder Yield combines all three components into one metric, giving investors a broader view of how a company uses its capital.
🧮 Calculation
🎯 What does this mean for investors?
- A higher Shareholder Yield generally indicates more capital being returned to shareholders or used to reduce debt.
- The mix matters: dividends, buybacks, and debt reduction can affect shareholders in different ways.
- Share buybacks are most beneficial when shares are repurchased at attractive valuations.
- Investors should also consider whether dividends, buybacks, and debt reduction are sustainable over time.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🧮 Calculation
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF) | ex SBC
📈 What is it?
Free cash flow shows how much cash remains after a company has covered its operating and capital expenditures. FCF ex SBC additionally deducts stock-based compensation (SBC) to adjust the cash flow for the effect of non-cash SBC.
🧮 How is it calculated?
Free Cash Flow ex SBC = Operating Cash Flow − SBC − Capital Expenditures (CAPEX)
🏛️ Why is it important?
FCF reflects a company’s actual financial strength – independent of reported accounting earnings. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction. FCF ex SBC also deducts stock-based compensation and shows how much cash generation remains after SBC.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow indicates that a company has strong financial strength – independent of reported earnings.
- It is often a solid basis for sustainable dividends and share buybacks.
- Declining FCF can be a warning sign, even if reported earnings remain stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🧮 Calculation
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🧮 Calculation
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net Margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free Cash Flow Margin | ex SBC
📈 What is it?
The Free Cash Flow Margin shows how much free cash flow a company generates relative to its revenue. In simplified terms, free cash flow is calculated as operating cash flow minus capital expenditures. The Free Cash Flow Margin ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted metric.
🧮 How is it calculated?
Free Cash Flow Margin ex SBC = (Free Cash Flow − SBC) ÷ Revenue × 100
🏛️ Why is it important?
The Free Cash Flow Margin shows how efficiently a company converts its revenue into free cash flow. Strong free cash flow can provide financial flexibility for dividends, share buybacks, debt repayment, or further investments. The ex SBC version additionally accounts for the economic impact of stock-based compensation and therefore provides a more conservative view of cash generation from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A high Free Cash Flow Margin shows that a company converts a high proportion of its revenue into free cash flow.
- This can provide greater financial flexibility for dividends, share buybacks, debt repayment, or investments.
- The Free Cash Flow Margin ex SBC additionally accounts for potential shareholder dilution from stock-based compensation.
- The long-term trend is particularly important. Declining margins can, for example, result from higher investments, changes in working capital, or weaker operating performance.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
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Alfen Stock Analysis
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Alfen Events
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AUG
19
Q2 2026 Earnings Call
about one month ago
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StocksGuide Free
Alfen — Q2 2026 Earnings Call
1. Management Discussion
Hello. Welcome to the Alfen 2026 Half Year Results Conference Call hosted by Michael Colijn, CEO; and Bart Meussen, Interim CFO. [Operator Instructions] And I would now like to hand the call over to Michael Colijn. Mr. Colijn, please go ahead.
Thank you, Elba. Good morning, everybody, and welcome to Alfen's 2026 Half Year Earnings Call. Thank you all for taking the time to join us. I'm Michael Colijn, CEO of Alfen, and I'm delighted to be leading this trading update with you today. Before we start, let me introduce Bart Meussen, who joined us as Interim CFO on the 1st of July and is with us on this call for the first time.
With his appointment, continuity of the finance function and financial leadership is safeguarded. Bart joined at a demanding moment and has made a strong start. He has been closely involved in preparing the results we are presenting today. As such, he will take you through our financial performance and join me during Q&A. It has been a pleasure working with Bart these first few weeks.
Let me give the word to Bart for a short introduction.
Yes. Thank you, Michael, and good morning, everyone, also from my side. I joined indeed Alfen as the interim CFO on the 1st of July and got a warm welcome by the team. I've been working closely with Michael, the Alfen management team and the finance department over the last weeks.
The first weeks here, I have and you said it already have gone straight into the half year. Like also what's written in the short announcement, I had careers at companies such as KPN, Philips and most recently I served at BAM as CFO of the Netherlands. In all those assignments, I gained extensive experience and knowledge on finance leadership, business transformation and organizational change.
What I found is a finance organization that knows its business well and a company with a clear sense of what it is building with many strong and dedicated professionals. My focus is on continuity, making sure the finance function keeps delivering and that, for example, you receive the same quality and consistency of reporting you are used to.
My second focus is to support the ongoing transformation with everything that is needed to be done on short term. I really look forward to speaking with you later in the call and to meet many of you over the course of the coming months. Michael, back to you.
Thank you, Bart. Let me share what we can say about the situation at this moment in time. The Supervisory Board process is ongoing, and Bart will continue in the role until a permanent appointment is made, and we will update you in due course.
Moving on to today's agenda, which is structured to give you a comprehensive view of the developments during the first half of '26. I'll begin with the highlights. We'll then dive into each of our 3 business lines. Bart will follow with our financials, and we will conclude with our outlook before we open the floor for the questions-and-answer session.
I'm pleased to report that Alfen delivered a solid first half of '26 with revenue reaching EUR 261.5 million, representing a 23.6% increase compared to the first half of '25. This growth was driven primarily by our energy storage system business and continued momentum in our smart grid solutions. Our adjusted gross margin for the period was EUR 68.3 million or 26.1% of revenue compared to EUR 61.6 million or 29.1% of revenue in the first half of '25.
The margin percentage decline is attributable to a business unit mix shift towards energy storage systems. The underlying margins in each of our business units remain healthy and are performing within their expected ranges.
Turning to profitability. Our adjusted EBITDA increased to EUR 16.4 million compared to EUR 13 million in the first half of '25. Our adjusted EBITDA margin improved to 6.3% from 6.1% in the prior year. I'm also excited to announce that we appointed business unit directors for all business units, representing a next step in our transformation. This solid first half reinforces our confidence in our full year guidance, which we're reiterating today. We expect revenue to be between EUR 435 million and EUR 475 million with an adjusted EBITDA margin of 4% to 7% and capital expenditure below 4% of revenue.
As we've indicated previously, our revenue is front-loaded in '26, particularly in energy storage systems. The first half results demonstrate that we're executing well operationally, while we position Alfen for its next phase. Moving on to the business unit review. I'm pleased to report that our Smart Grid Solutions business delivered strong performance in the first half of '26, with revenue reaching EUR 111.6 million, representing a 14.9% increase compared to the first half of '25. We saw growth across the board with the majority attributable to an increase in project business with notable mentioning that our transport distribution stations are now a structural part of this.
But we also saw an increase in revenue from grid operators in the first half, driven by a stable quarter-over-quarter pattern. As a reminder, last year, 2 grid operators adjusted their forecast downwards after Q1 for which we had to correct in the remainder of the year. 69% of revenue came from the grid operator products and 31% from projects.
Operationally, we delivered 1,716 substations during the period, 1,199 in the Netherlands and 517 in Finland. The sharp increase in Finnish substations is attributable to a higher demand. Gross margin performance remained within the expected range at 22.9%, up from 22.4% in the prior year. This improvement was primarily driven by the higher share of project sales in our revenue mix.
Looking at the market dynamics, we are seeing structural grid congestion continuing to drive the substantial need for grid expansions, something that is increasingly recognized by governments across Europe. At European level, we saw the electrification action plan published in July, aiming to accelerate the electrification of transport, buildings and industry.
The objective is to reduce Europe's dependence on fossil fuels, strengthen energy security and competitiveness and ultimately increase electricity share of the final consumption to around 46% by 2040. This requires not only more electrified transport, buildings and industry, but also the charging infrastructure, energy storage and electricity grids needed to support that transition. Relevant for our Smart grid solutions business is that it identified grid capacity as a key constraint to electrification and therefore, urges member states to boost grid investments and accelerate permitting.
Looking at the Netherlands specifically, we are starting to see regulators move from designing measures towards execution with a regional approach targeting spatial planning, site development and permitting. This is further evidenced by the new fast track regime for grid projects that shortens the appeal procedures from October this year.
However, the short-term reality is more balanced with the known key constraining factors still impacting our smart grid solutions clients today, and therefore, we do not expect a volume impact in the current year, but these developments are expected to translate into orders and deliveries over time.
Moving over to EV charging. We faced a decline in the first half with revenue down 17% to EUR 51.1 million, which is in line with expectations as we renew our portfolio. Our performance reflects similar dynamics to those discussed last quarter. First, the gradual ramp-up of features on our new product continued impacting order volume, although less so in the last few months.
Second, uneven order patterns in the public segment; and third, the competitive pressure in the home charging segment, which will stay with us throughout this year until we introduce our new charger for residential segment. Our adjusted gross margin was 39.9% compared with 44.1% in the prior year. This is around the midpoint of the expected gross margin range of 35% to 45% and reflects the introduction of new charger models and ongoing sales campaigns.
From a production perspective, we delivered approximately 53,700 in the first half of 2026, representing a 12.3% decrease compared with the 61,200 charge points delivered in the first half of '25. The average sales price decreased due to more competitive pricing strategies. But here is what gives me confidence. We are not standing still, and we've taken decisive action to address these challenges head on with a comprehensive set of strategic initiatives introduced on this call last quarter.
And let me share with you the progress against these initiatives. On the product development front, we are on schedule to launch our new home charging solution, specifically designed to address this competitive market in that segment. For our Plus models, we have introduced new features and are rolling out the next update in the next few weeks, amongst others, solar charging, the availability of the latest OCPP protocol for smart charging and an upgrade of Alfen's own smart charging network capabilities.
These together are significant steps in the right direction. What I'm particularly excited about is that we are rolling out our digital strategy. The Eve Control platform launched last month, and we have since then handled the first service requests remotely through the platform. This platform combines asset management capabilities for our customers with efficient service handling. It saves both Alfen and our customers valuable time and resources.
This renewed approach with connected chargers allows us to scale effectively through digitalization without adding complexity to the organization. I would now like to dive deeper into the market context. Across Europe, battery electric vehicle registrations continue their upward trajectory. European battery electric vehicle registrations grew 35% in the first half. More than 1 in 5 new cars in Europe is now fully electric, 22% against 17% a year ago.
Similar to our market update last quarter, the country-specific picture remains mixed. In our core markets, major car markets are driving European growth figures, while the Netherlands and Belgium are on the lower end of the spectrum, reflecting their mature market status. Conversely, Alfen's expanding markets are demonstrating strong momentum with Italy and Spain showing robust year-on-year improvements in battery electric vehicle registrations.
Current geopolitical tensions have created a reacceleration of demand in 2026, with fuel price hikes driving renewed consumer interest in electric mobility. At the same time, we are seeing renewed policy support across the European markets this year. As a result, this positively influences the total cost of ownership, which was already compelling for battery electric vehicles compared to internal combustion engine counterparts.
This is starting to become a reality for all vehicle segments as new models hit the market that are cheaper and deliver superior performance. It further reinforces our view that electric vehicle adoption will increasingly be driven by consumer adoption rather than regulatory support alone. In all, we are on an undeniable path towards electric transport, and this will translate to sustained demand for charging infrastructure across all our European markets in the coming years. While we are currently renewing our portfolio, we expect to benefit again from this momentum in the coming years.
Moving to Energy storage, where we saw a result of strong execution during the first half of the year. Revenue reached EUR 98.8 million, representing an 88% increase compared to the first half of '25. This significant growth was primarily driven by achieving major milestones in 2 of Alfen's largest projects to date, complemented by positive momentum for our mobile storage systems, which grew significantly in revenue compared to the first half of last year.
More specifically, we have seen an increase in traction against the second half of last year, mostly coming from large power rentals that rent our systems to replace traditional diesel gensets for a variety of use cases, including construction sites, events or grid services.
Our gross margin for the period was 22.8%, which positions us comfortably above the midpoint of our expected range of 15% to 25%. I want to provide some context here. In the first half of '25, our gross margin was elevated to 28.5% due to one-off items, including the release of project contingencies.
Turning to our backlog and pipeline. At the end of the first half, we had EUR 93 million in our backlog with EUR 37 million scheduled for delivery in '26 and the remaining EUR 56 million for '27. The underlying pipeline remains healthy and the pace at which orders are converted reflects the lumpiness inherent in our project-based business rather than a change in underlying demand.
To give you some color, we recorded approximately EUR 30 million of new order intake since the end of the second quarter, including EUR 6 million in mobile storage orders that can be executed in the second half of '26, given their shorter order to revenue cycle. During the second half of the year, we will focus on filling the order book for next year. The trajectory is expected to be consistent with our year-on-year revenue growth ambition.
Now let me address timing dynamics candidly. Given typical project time lines and component lead times for utility scale energy storage systems, the natural window for converting pipeline opportunities into 2026 revenue is very tight. In July, Alfen and CATL announced a partnership to deploy sodium-ion battery storage across Europe. It extends our cooperation we have had with CATL for years now into a new battery technology.
Sodium-ion technology is promising and aligns with our view of where the market is heading. The raw materials are more widely available compared to lithium, about 1,000x more abundant. Its safety performance is strong. It is able to operate reliably across a much wider temperature range and the expected service life is long. The energy density is slightly lower, but for stationary storage systems, that is acceptable and often not the primary buying criterion. With this technology, we aim to diversify our portfolio, meaning that sodium-ion complements our lithium-ion offering.
Let me also share some details on timing. We expect to bring our first sodium-ion project to market from the second half of '27, starting with pilots. This does not yet change what you see in the numbers today. What it does change is our position for the years thereafter. 2 technologies, 2 supply routes and the engineering capability behind both. In short, we aim to be the frontrunner in the European market and are convinced that having access to this technology puts us ahead of the curve.
Now I'll give the word to Bart to talk you through our financial performance.
Yes. Thank you, Michael. I'll now walk you through our financials, starting with the second quarter figures. Revenue came in at EUR 131.7 million, representing a 22.3% increase compared to the EUR 107.7 million in the prior year. Similar to the first quarter, growth is primarily driven by a strong performance in energy storage and Smart Grid Solutions.
Our group adjusted gross margin reached EUR 34.2 million, equal to 26% of revenue compared with an adjusted gross margin of EUR 32.4 million or 30.1% in Q2 2025. The percentage decline reflects our business unit mix shift towards energy storage systems, which typically carries different margin characteristics than our other business units. This mix shift was consistent with our expectations.
Our EBITDA was EUR 4.2 million in Q2 2026 compared to EUR 5.4 million in Q2 2025. The adjusted EBITDA performance increased in absolute terms from EUR 7.6 million in Q2 last year to EUR 8.2 million this year. The adjusted EBITDA percentage as share of revenue declined from 7% to 6.3%, which is attributable to the business unit mix shift.
Looking at our half year income statement, I'll walk you through the key financial metrics and how they compare to our performance in the first half of 2025. Starting with our top line, we delivered a revenue level increase of 23.6% to EUR 261.5 million compared with the EUR 211.5 million in the prior year.
As previously indicated, revenue is front-loaded this year and this first half performance reflects that pattern. Our adjusted gross margin reached EUR 68.3 million, representing 26.1% of revenue compared with EUR 63.4 million or 30.1% in H1 2025. Again, the group percentage is lower due to the business unit mix shift.
At business unit level, underlying performance remains solid with margins within the expected ranges. No adjustments were made in the gross margin during H1 2026. Moving to our operational costs. Adjusted personnel expenses increased by 6.1% to EUR 40.1 million, mostly due to labor agreement indexations of roughly 5% since June 2025.
Let me touch briefly upon personnel expenses, which we expect to be higher in the second half of this year. During a transition of this kind, the old and the new organization exist side-by-side for a period. Some roles are still being positioned. Interim agreements are in place while permanent appointments are completed, and we are recruiting and onboarding into the new structure.
In addition, we are investments -- we are investing in capabilities ahead of the revenue it supports, such as software and project management, which, as you know, are a deliberate part of the strategy direction. This effect is planned for, and we expect it to fade out over the course of next year as the transition completes and the new organization settles.
Adjusted other operating expenses decreased by 4.3% to EUR 11.5 million compared with EUR 12.1 million in H1 2025 as a result of strict cost control measures, which we will continue. EBITDA was EUR 11 million in H1 2026 compared to EUR 9.6 million in H1 2025, our prior year. We adjusted for one-off costs in the first half year, I'll sum them up for you.
First, we have recognized one-off cost of EUR 3.5 million related to the restructuring we announced in February. This amount was primarily driven by settlement agreements and therefore, impacting personnel expenses. Second, we took EUR 1.7 million one-off transformation costs, which covers nonpersonnel-related transformation-linked costs, for example, advisory costs, therefore, impacting other operating costs.
And third, EUR 0.2 million share-based payments associated with our long-term incentive plans. You have seen the details in our semiannual report. Together, they totaled EUR 5.4 million special items, which brings us to an adjusted EBITDA performance of EUR 16.4 million, representing an improvement in absolute terms from EUR 30 million in the comparable prior year period.
Adjusted EBITDA as a share of revenue increased slightly from 6.1% to 6.3%. Our net loss improved from EUR 1.3 million in H1 2025 to a loss of EUR 0.5 million in the first half of this year. When adjusting though for one-off costs and special items after tax, net profit amounted to EUR 3.6 million compared to EUR 1.3 million in the prior year period. This represents an improvement in our underlying profitability.
Looking then at our balance sheet position at the end of June of this year, starting with the asset side. Noncurrent assets remained stable, reflecting our continued investment in our operational infrastructure to support our growth strategy. Current assets showed an increase of our accounts receivable position due to the front-loaded first half of the year.
Furthermore, I'd like to point out the significant reduction in inventory, which directly contributed to cash generation during H1 2026. This led to a substantial increase in cash and cash equivalents rising from EUR 26.7 million at year-end 2025 to EUR 51.1 million as of June 30, 2026.
Moving to the liability side of the balance sheet. Noncurrent liabilities remained broadly stable. Our debt position, including lease liabilities, decreased by EUR 4.5 million following scheduled repayments. Provisions increased as a result of restructuring measures implemented during H1 2026. The current liabilities increased primarily driven by a EUR 30.5 million increase in trade payables, which contributed positively to our working capital position. This reflects the timing of our energy storage system projects.
Our borrowings position improved considerably. We moved from a net debt position of EUR 20.7 million at the last day of last year to a net cash position of EUR 6.2 million at June 30, 2026. This represents a swing of nearly EUR 27 million. Equity remains solid, supported by our improved profitability in the period, providing a stable foundation for our continued growth investments.
Overall, our balance sheet demonstrates the effectiveness of our working capital initiatives and positions us well to execute on our strategic priorities for the remainder of 2026. Let me now take you through our working capital development, which showed a healthy development over the first half. Our working capital decreased by EUR 23.1 million during H1 2026, an improvement that was the primary driver behind our strong operating cash flow of EUR 36.5 million compared to EUR 10.8 million in the same period.
Breaking this down into the key components. Inventory decreased by EUR 19.7 million compared to end of last year, primarily driven by the energy storage battery allocation for a larger project. Looking at the mobile storage side, with strong mobile sales in the second quarter, we made a significant step in structurally bringing down battery inventory that was on the books with us for some time now.
For EV charging inventory decreased slightly, whereas Smart grid solutions, the inventory of it increased. This increase is related to higher stock levels to bridge summer period and Alfen Elkamo in Finland to cope with increased production levels over there. Since we are discussing inventory, I'd like to mention that in comparing to the last years, we are not anticipating a further reduction for the remainder of this year.
Trade and other receivables as well as trade payables showed an increase triggered by the activity level in the first half of this year. The combined effect is therefore limited. We remain focused on sustainable cash generation from our EBITDA results and working capital management needed to execute on our strategic priorities.
And with that, I'd like to hand back the call to Michael.
Thank you, Bart. Let me update you on our leadership changes that were made in line with our new organizational model. During the second quarter, we announced management changes in line with our new business unit structure. With the appointment of 3 business unit directors, the leadership of our business units is now complete. Each unit will be led by a dedicated director accountable for its performance and its development.
Stephanie Schockaert has been appointed as Business Unit Director for Energy Storage Systems. Stephanie has been with Alfen since 2017 and previously served as Sales Director for the business unit. She knows our customers, projects and the market deeply. Eva Hatzidemou has been appointed as Business Unit Director for EV charging. Eva brings over 25 years of international leadership experience in the energy and mobility sectors.
And finally, Evert Kooijstra has been appointed Business Unit Director for Smart Grid Solutions. Evert brings more than 25 years of senior leadership experience across technology, e-mobility and finance. Together with the appointment of our new HR Director, Marieke Hoorneman, I'm confident that we have the business leadership to guide us in the next phase of our transformation. On the right side of the page, we have outlined our new governance structure.
Now turning to our outlook. The solid performance in the first half reinforces our full 2026 guidance. Therefore, we reiterate our guidance in full, expect revenue to be between EUR 435 million and EUR 475 million. Our adjusted EBITDA margin guidance for '26 is between 4% and 7%, and our CapEx is expected to remain below 4% of revenue.
On business line level, Smart Grid Solutions revenue is anticipated to increase for both grid operator products and projects. While we're making every effort to restore EV charging revenue to growth for our 2026 planning, we assume a reduction as we upgrade our portfolio and services. For Energy storage, we anticipate year-on-year growth, while our revenue distribution remains consistent with the front-loaded pattern we communicated during the last 2 updates. I want to be as transparent as possible on where that leaves us for the second half of the year.
The second half will be softer than the first half, resulting in a lower top line compared to the second half last year and the first half this year. As a consequence, we expect this to affect our adjusted EBITDA in the remainder of the year. For 2027, we remain confident that the transformation, combined with our outlined growth strategies will reignite consistent profitable growth, resulting in year-over-year improvements in both revenue and adjusted EBITDA margin.
Lastly, we are convinced that the European energy system will continue to electrify over the coming decades. Alfen's 3 complementary business units are strategically positioned at the heart of the transition towards electrification. And with that, Alfen aims to be the go-to company when battling grid congestion. 2026, as we said previously, is our transformation year, focused on establishing the capabilities and market position that will drive long-term profitable growth. The progress we've made in the first half year reinforces our confidence in executing this successfully. The future, we believe, is electric.
Thank you. We'll now open the floor for questions from our analysts.
[Operator Instructions] Our first question comes from Nikita Papaccio from Deutsche Bank.
2. Question Answer
I would have 2. The first one is on your charging business. I mean you're targeting now for 2027 year-on-year improvement and maybe in the long term, returning to initial margins we saw a couple of years back. Do you think that you need the huge turnaround in the chargers to hit this margin level? And especially with the new home charger, do you think that the margin or the gross margin of the business will deteriorate with this new charger?
Or is it as competitive or as profitable as it was -- as the other products were? The second one is on your guidance for the clarification on the margin we should think of in H2. Are there any mitigation measures in H2 to limit the impact from lower top line and also higher personnel costs?
Thank you, Nikita, for your question. I will take the first question on the EV charging business, and Bart will answer the guidance question second. Regarding the EV charging business, as I said earlier, we are using '26 to transform the business by developing new hardware, launching our digital platforms and making sure that we are prepared for future growth in that area again.
The home charger, which is under development is not only the hardware itself, but it is also the first step for us to renew our position in all 3 segments, which are home, business and public because it uses the same software platform that we're rolling out now. And as such, I expect that rollout across those 3 to also keep stable our position there, and it will help to improve profit, but it will also make sure that we get our footing back in our growth.
Regarding the long-term outlook, everything we're doing today is about building our platform stable that is really future-proof with all the features that we need to compete head on in a competitive market.
Yes. And now coming back to the first question, Nikita, you asked. So good first half year. As we just mentioned, we reiterate the outlook. We said also front-loaded here, which means Michael said in his introduction, a softer second half of the year. Market provides us still challenges, both challenges and opportunities. So we keep that outlook. And obviously, with a softer half year, there's this dynamic of the leverage effect, the ability of the organization to cover the organizational costs.
And the labor cost linked to the transformation. And obviously, it's our full focus to your question, to win tenders not only for next year, but also for this year, drive sales, keep our strict cost control and when it comes to more cash, keep a strict focus on our working capital. And that is what we have been doing, and that's what we will continue to do for the remainder of the year.
The following question comes from David Kerstens from Jefferies.
I have 2 questions. First on your Smart grids business, you had a strong momentum in the first half of the year driven by the project business leading to higher margins, but not yet that much from grid debottlenecking, which you don't expect to impact revenues in the second half of the year. But the question is, will you be able to maintain the momentum you had in the first half with revenues of over EUR 55 million? Should we assume that will also be reachable for the second half of the year?
Then the second question is on a follow-up on the personnel expenses. The EUR 40 million in the first half, you said will be higher in the second half. Can you give an indication how much higher? And can you give an indication roughly what the impact is of the transformation that then will disappear in 2027? And what would be a normalized level for personnel expenses given your current headcount?
Thank you, David. I think I'll take the first question, and Bart will take the second question. Regarding your SGS question, I'm really delighted with the question. One of the things that we are doing this year with a focus is to make sure that we are as predictable as possible. And in terms of the SGS business, we would expect that it will be a predictable smooth ride for the remainder of the year, meaning that we would see continuation of revenues as planned.
Yes, exactly. And when it comes to the personnel cost, your second question, indeed, personnel costs second half of the year higher than the first half of the year, really linked to the transformation effort, which is broad and we are fully into it.
Personnel costs, H1 also higher than H1 last year, but obviously, that is not only transformation, but also the inflation, the labor agreement component, roughly 5% coming in. These figures have been included in the outlook of this year, which we reiterated and an outlook for 2027, we don't give at this moment.
And just to clarify, the EUR 40 million is adjusted for the restructuring charge, right? And that is the basis for guidance for the second half. The EUR 40 million will be higher in the second half of the year.
Yes. So we make a distinction between the one-off restructuring cost of EUR 3.5 million linked to the transformation program and the running cost just in our P&L of the launch we mentioned.
The following question comes from Luuk Van Beek from Degroof Petercam.
First of all, a question about your EV chargers. You mentioned a new home charge. A couple of questions about that. So one is when do you expect that to start to improve your revenues? And also, how long do you think it will take you to roll it out to the other end markets and basically use the new platform for all of your chargers?
Furthermore, I was wondering there if the production of the new charge will be more efficient, so that will support your gross margin? And on energy storage systems, I was wondering if H2 will also be front-end loaded or that we should expect the orders to be delivered more evenly between Q3 and Q4?
Okay. Thank you, Luuk, for those questions. Again, I think the first question I will take and Bart will take the second question. Regarding EV charging, we expect to see the full impact of the new home charger in 2027. And all our chargers will also move to that new platform in 2027. So we should really reap the benefits of having a unified platform across our EV charging business.
With production costs, of course, when we designed the new charger, we kept in mind that we are in a competitive market and that we need to see the ability to compete head on in the coming years. And it's an ongoing effort. It's not a one-off. But obviously, we're aware that competition is strong, and we intend to be also competing with everybody else in that market.
Yes. And coming back to the backlog question for our Battery Systems, that business unit, EUR 56 million by the end of June backlog for next year 2027. Since then, we've seen -- we scored additional orders already, not only for this year, but also especially for next year.
And yes, then we recognize a healthy pipeline. And the idea is to get some wins from that in the course of the coming months and quarters. We're confident that we will end up with at least the level we had last year same period, that was around EUR 20 million.
Yes, but I was asking about the split between Q3 and Q4. Is there [indiscernible]?
Yes. So we don't provide details now over the exact month and quarters. And that also relates to the lumpiness of this business. You can just win several small orders or a bigger order that immediately has an impact, a smaller order on the backlog. Of course, the sooner the better, of course.
And one quick follow-up question on the OpEx. You mentioned that personnel expenses will go up in H2. Is there any special movement in OpEx you expected versus H1?
Sorry, on the order OpEx, you mean?
Yes the order operating cost?
No, we just -- that is under control. We continue to do a good cost control like we have done in the past, but also in H1 2026. So no significant movements there.
[Operator Instructions] The following question comes from Ruben Devos from Kepler Cheuvreux.
My first question is to follow-up on a prior question. I think regarding the personnel costs in the second half. So it will step up, but then normalize in '27. I think around in 2024 when you had this restructuring or rightsizing it was said that you had around EUR 13 million of net savings with a payback under a year. I think now you sort of provisioned EUR 4.5 million of restructuring -- so my question is what do you expect that to deliver in annual savings?
Yes. So in contrary maybe to the program you mentioned a few years ago, this is -- this has not been and we have communicated that earlier in our call, program to reduce FTEs is really to reallocate FTEs and building up capabilities. And in that sense, the business case is a quantitative one, you could say, and not by definition related to financial impact.
Okay. And regarding smart grids, Finland was about 500 of the 1,700 total. So quite a big contributor. Should we now think of Elkamo as a structural growth driver in [indiscernible] I mean in Finland, is it still largely concentrated with Fingrid? Or is more of the volume coming from a broader range of operators? And I guess, how sustainable is that trend you've seen in Finland moving into '27?
Thanks, Ruben. I think that the observation is correct that Elkamo did a significant chunk of the SGS business in the last half year. And we're very pleased with that. I think we've taken some measures to make sure that we can maximize the benefits of the Elkamo business. What I can say here is that the business is delivering to a general market trend to a wide range of customers.
And what we believe we see is a general grid revamp across Europe with investment in expanding the grid, renewing old transformer substations and making more available also for the addition of renewable energy into the grid. And we're benefiting from that. Obviously, we've been extremely active to also reap as much of that as possible. Elkamo forms part of the Alfen business, and we will continue to drive it as we do our other STS business as well.
Okay. And in the Netherlands, I think the investment plans, they seem to be stepping up quite strongly. You also are pointing to a fast track regime for larger projects as of October. You don't expect any volume impact this year yet, but of course, interested about how you see that regulatory changes translating into actual orders. Are you seeing any signs of, let's say, tender activity already or framework discussions for '27?
So I think this is a good question. By nature, I'm an optimist, and I'm always pushing for faster. We've mentioned before that we see the regulatory changes coming, and we see laws in progress. But I haven't seen anything concrete yet that immediately accelerates this market or spurs it on that you can have double-digit growth.
What I do see is that the general trend and readiness for everyone in this market is increasing, and we are looking to be part of that, and we're ready to do that whenever it happens. But I think that it is -- there are 2 elements. The regulatory battle is being fought and I think it will be solved.
After that has been solved, immediately comes the question, do we have enough structural as an industry, not specifically Alfen, but also the grid company, do we have enough structural capacity for executing on that growth because installers need training. So we expect a steady, predictable growth there, but not a big boom to come very quickly.
It appears there are no more questions. So I will hand the word back over to Mr. Colijn for any closing remarks.
Thank you, Elba. Thank you all for your time. As a reminder, I want to point out that from next quarter onwards, we will publish our results on the morning of the earnings call instead of the evening on the day before, starting with our Q3 trading update on the 4th of November. Looking forward to speaking to you then.
You may now disconnect.
Financial data from Alfen
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 486 486 |
7%
7%
100%
|
|
| - Direct Costs | 316 316 |
7%
7%
65%
|
|
| Gross Profit | 170 170 |
8%
8%
35%
|
|
| - Selling and Administrative Expenses | 79 79 |
5%
5%
16%
|
|
| - Research and Development Expense | - - |
-
-
|
|
| EBITDA | 26 26 |
187%
187%
5%
|
|
| - Depreciation and Amortization | 23 23 |
15%
15%
5%
|
|
| EBIT (Operating Income) EBIT | 3.10 3.10 |
117%
117%
1%
|
|
| Net Profit | 0.66 0.66 |
104%
104%
0%
|
|
In millions EUR.
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Alfen Stock News
Company Profile
Alfen NV is a holding company, which engages in the development, production, and sale products, systems and services related to the electricity grid. It focuses on smart grid solutions, electronic vehicle charging equipment, and energy storage systems businesses. It operates through the following geographical segment: The Netherlands, Finland, and Belgium. The company was founded in 1937 and is headquartered in Almere, the Netherlands.
StocksGuide Premium
| Head office | Netherlands |
| CEO | Mr. Roeleveld |
| Employees | 923 |
| Founded | 2015 |
| Website | alfen.com |
