Ebusco is looking for further cost saving measures as it will not achieve positive EBITDA in 2024

Ebusco says its current guidance of revenue in excess of €325 million combined with a positive EBITDA in 2024, released in March 2024, is no longer achievable.

The change of strategy, heading towards assembly process (with partner in China) with only bus finalization to be done in Deurne, Netherlands, is said to have “encountered start-up inefficiencies” that “have delayed production compared to the initial plan and will take for the remainder of 2024 to resolve”.

Ebusco has then taken the decision to prioritise customer orders that are currently on assembly lines and in the Pre Delivery Inspection (PDI) to focus on maximum speed of delivery of buses that are close to completion. Furthermore, the Executive Team is in the process to identify additional cost savings on top of the initiated plans. Headed by Michiel Peters, a start has been made to the refinement of the medium- and long-term strategy which will be presented during the Capital Markets Day in November 2024.

Ebusco new strategy, slower than expected

“The strategic shift to re-introduce working with contract manufacturers has proven to be the right choice as we see an acceleration in assembly time – Ebusco states in a press note -. The number of buses delivered year-to-date has increased to 90 (vs. 66 in the first half of 2023) and is expected to accelerate in the second half of the year.

The OEM says, “This strong operational performance and the resulting market demand enables Ebusco to plan its production well into 2025”.

Earlier this year, Ebusco introduced a revised organisational structure. Following the appointment by the Annual General Meeting in May, Roald Dogge has started as COO on 1 June 2024. Michiel Peters has already started his onboarding at Ebusco in preparation of his role as Co-CEO and Chairman of the Executive Team. The CTO and CHRO roles have been filled with internal candidates.