Finnish electric vehicle charging manufacturer Kempower reported mixed third-quarter results, showing both promising growth and market challenges. The company saw order intake surge 45% and revenue grow 41%, yet its stock declined as full-year guidance was lowered.
Chief Financial Officer Jukka Kainulainen expressed satisfaction with the company's performance despite market headwinds. "The third quarter was actually very strong," he stated. "We are a growth company, so sales growth is what matters most. Importantly, we have returned to profitability and positive cash flow."
The EV charging market has faced significant challenges over the past year, with customer inventories filling up and Kempower itself slipping into loss territory earlier. Kainulainen noted that while excess inventories remain in the market, particularly in Europe, conditions are improving. "It's a good sign that we're now receiving significant orders from previous customers who haven't placed orders for two years," he added.
Kempower has been gaining market share in the competitive fast-charging equipment sector, securing dozens of new customers including prominent charging operators like Allego, Circle K, and EV Realty. When asked about pricing strategy, Kainulainen indicated flexibility: "Let's say that because our profit margin is so good, we have more room to be flexible than some competitors."
The lowered full-year guidance reflects timing issues, with some strong orders scheduled for delivery next year rather than in the current period. This highlights the volatile nature of the emerging EV infrastructure market.
Market consolidation appears inevitable in the charging sector. Kainulainen observed that the operator field is concentrating, with strongest players gaining market share. "Consolidation is happening and will continue over the next year or two," he predicted. Among equipment manufacturers, he noted some companies may not remain healthy, creating acquisition opportunities.
North American markets show particular promise, with fast-charging station installations doubling in the third quarter. Kempower's US factory provides a strategic advantage, enabling participation in government projects requiring local manufacturing content. "We've truly broken through there," Kainulainen said. "The investment is gradually paying for itself."
The company's situation reflects broader trends in the Nordic clean tech sector, where firms must balance rapid growth with sustainable business models. Kempower's ability to maintain pricing power while expanding internationally demonstrates the strength of Finnish engineering and manufacturing expertise in competitive global markets.
For international readers, Kempower's journey illustrates how Nordic companies are navigating the transition to electric mobility. The company's focus on both European and North American markets shows the global nature of the EV revolution, while its manufacturing strategy highlights the importance of local production requirements in different regions.
What comes next for Kempower and the charging industry? The coming quarters will reveal whether current inventory issues resolve and if the promised consolidation creates stronger, more sustainable market players. The company's US expansion and ability to secure government contracts may prove crucial for long-term success.