By Alberto Alerigi SAO PAULO (Reuters) -Brazilian motor maker Weg is set to begin selling made-in-Europe EV battery chargers to that same market next year, while it also looks to ramp up planned investments in Mexico to meet rising demand for electrical parts there, executives said on Friday. "We already started EV charge operations in Europe, and starting next year, we will have products on the market manufactured in Europe," Weg's Managing Director of Digital and Systems Carlos Grillo said in a present ...

Financial Data and Key Metrics Changes - Q1 2025 revenue was €37.6 million, meeting guidance but down 13% year over year and almost flat compared to the previous quarter [6][29] - Gross margin improved to 38.1%, within the guided range of 37% to 39%, reflecting a 634 basis point improvement from the last quarter [9][30] - Adjusted EBITDA loss for Q1 2025 was €7.8 million, the best result since becoming a public company, representing a 42% improvement year over year [12][32] - Labor costs and operating expenses decreased by 13% quarter over quarter and 23% year over year [11][30] Business Line Data and Key Metrics Changes - AC sales in Europe were down 14% year over year, while North America saw a 142% year over year growth, contributing €11.4 million or 30% of total revenue [15][14] - DC fast charging sales increased by 41% compared to the previous quarter, with over 36,000 AC units and more than 100 DC units delivered in Q1 [8][30] - Software and services generated €8 million in revenue, representing 21% of total revenue and a 60% increase year over year [20] Market Data and Key Metrics Changes - The European EV market showed solid growth of 21% year over year, contributing €25.5 million or 68% of total revenue [13] - North America contributed €11.4 million, with significant growth driven by AC and DC charger sales [14] - APAC and LATAM regions contributed approximately €600,000 and €480,000 respectively, indicating potential for future growth [15] Company Strategy and Development Direction - The company is focused on cost savings and expanding sales, leveraging a newly implemented business unit structure to improve efficiency [11][12] - There is a commitment to rightsizing the organization and expanding gross margins while stabilizing sales and building a strong backlog [12][27] - The company aims to become a global leader in recharging energy management solutions, with a focus on optimizing existing platforms and partnerships [37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about stabilizing sales and building a strong backlog, despite a volatile macro environment impacting the automotive supply chain [27][38] - The company remains cautious about the impact of tariffs and economic uncertainty on the EV market, while believing in the long-term growth potential of EVs [26][27] - Future guidance for Q2 2025 includes expected revenue in the range of €37 million to €39 million and a gross margin between 37% and 39% [38] Other Important Information - The company has surpassed 100,000 chargers produced in Arlington, Texas, enhancing its production flexibility and supporting local job growth [28] - The partnership with Nissan for a home EV charging program in Canada is expected to simplify the charging journey for EV owners [17] Q&A Session Summary Question: Thoughts on ABL integration and industry consolidation opportunities - Management reported successful integration with ABL, achieving significant synergies and operational efficiency improvements, with a focus on cross-selling products across Europe [41][43] Question: Additional traction for Quasar beyond Kia - Management indicated ongoing efforts to drive demand for Quasar in Europe, with expectations for new partnerships and customer interest following recent events [51][52] Question: Competitive landscape and market opportunities - Management highlighted the competitive advantage in the US market due to local manufacturing and a focus on delivering comprehensive solutions, while noting challenges faced by competitors [56][58] Question: Expectations for product mix and its impact on margins - Management discussed the current gross margins for fast charging and home/business segments, emphasizing a strategy to reduce inventory and improve operational efficiency [65][66]