PowerCell (PCELL) Q1 2026 earnings summary

Executive summary

• Q1 2026 results missed expectations, with net sales at SEK 46.9m, down 37% year-over-year due to delayed deliveries, postponed orders, and lower royalty revenues, reflecting anticipated volatility and uneven order conversion.

• Gross profit fell to SEK 10.5m with a margin of 22.4%, impacted by lower license fee income and currency effects.

• Operating income was SEK -40.4m and net income SEK -39.8m, reflecting increased R&D costs and lower sales.

• Management remains focused on readiness, adaptability, and cost control amid geopolitical and infrastructure challenges.

• The company joined major EU-funded projects (GAMMA and MiNaMi) to advance hydrogen fuel cell technology for maritime use.

Financial highlights

• Net sales: SEK 46.9m (Q1 2025: SEK 74.1m), a 37% decrease year-over-year.

• Gross margin: 22.4% (Q1 2025: 37.1%), with improvement in rolling 12-month margin due to a significant IP deal with Bosch in June 2025.

• Operating income: SEK -40.4m (Q1 2025: SEK -12.3m); net income: SEK -39.8m (Q1 2025: SEK -15.7m).

• Operating cash flow: SEK -92.7m (Q1 2025: SEK -79.3m); cash and cash equivalents at quarter-end: SEK 23.8m; available liquidity including credit facility: SEK 73.8m.

• SEK 30 million loan conversion into revenue in Q2 2025 and SEK 28 million project financing reported.

Outlook and guidance

• Management expects continued market uncertainty, volatility, and uneven order conversion in 2026.

• Strategy focuses on maintaining operational flexibility, defending break-even in low-demand scenarios, and scaling up if demand accelerates.

• Underlying demand for energy resilience and low-emission solutions remains strong, especially in marine, data centers, and distributed energy.