Forsee Power revenue falls 74.8% to €20.4 million in first half
Key Facts
Forsee Power said revenue in the first half ended June 30, 2026 fell 74.8% year on year to €20.4 million, reflecting a sharp contraction in heavy-duty vehicle activity. EBITDA swung to a loss of €11.8 million, after the company reported a profit of €2.2 million in the same period of 2025. The EBITDA margin was negative 57.7%, compared with a positive 2.8% a year earlier. The consolidated net loss also widened to €18.7 million from €11.1 million, while operating income recorded a loss of €16.5 million versus €5.2 million. The company said the decline in activity weighed on results despite the implementation of cost-cutting measures under its REPOWER27 plan.
The heavy-duty vehicle segment was the main source of the contraction, with revenue falling to €13.3 million in the first half of 2026 from €72.8 million a year earlier. By comparison, revenue from light vehicles and industrial applications declined to €7.1 million from €8.1 million. Forsee Power attributed the weak activity to the end of key supply contracts in the bus sector, as well as delayed investment decisions and programmes at some customers. It added that technical problems at some manufacturers, unrelated to batteries, delayed the launch of several programmes and affected production volumes. These factors show how weaker orders and the timing of programme execution combined with a decline in revenue from the largest segment.
REPOWER27 measures cut staff costs by €4.0 million, or 24.9%, to €12.1 million during the period. But the company said cost savings did not fully offset the impact of lower production volumes, leaving operating profitability under pressure as revenue fell. The cost reduction is part of a plan the company announced in November 2025, which targeted savings of about €20 million through cost cuts and industrial reorganisation. At the time, it said its commercial tender portfolio stood at €1.2 billion and that it expected activity to recover gradually from late 2026. The first-half results show that the expected improvement in activity has not yet been reflected in reported revenue.
Available cash fell from €11.8 million at the start of the first half to €2.2 million on June 30, with negative operating cash flow of €1.9 million. In July, shareholders SPI, Eurazeo and Noria provided advances of €4 million, to be settled in shares as part of a planned capital increase. These advances were not included in available cash at the end of June. A €6 million payment from tranche A of a European Investment Bank loan was also deferred to June 2028, and repayment of inventory financing was extended to March 2028. These steps provide financing and extend the schedule for obligations, while liquidity reported at the end of June remains low.
In another move to strengthen resources, Varroc approved the acquisition of a 45% stake in Forsee Power India on October 26. The company expects its non-strategic asset disposal programme, including the India transaction, to generate more than €20 million in cash. It said transactions representing more than half that amount are expected to be completed by December 31, 2026. The company links its stated target of reaching EBITDA breakeven in 2027 to very strong growth and further cost cuts. The target remains an announced ambition, while current figures show an operating loss and a sharp decline in revenue. The company said its first-half financial statements had not been subject to a limited review by the statutory auditors.
The first-half results follow 2025, when Forsee Power reported annual revenue of €120.5 million, compared with €151.8 million in 2024, and EBITDA swung to a loss of €3.1 million from a profit of €0.8 million. The company then attributed the revenue decline mainly to lower heavy-duty vehicle activity and fewer orders from two long-standing customers. Data for the first nine months of 2025 also showed revenue of €105 million, down 7%, with the company citing delays to major programmes and lower cell prices. The company had linked its forecast of a gradual recovery from late 2026 to its tender portfolio and cost-cutting plan. The 2026 results put that path to the test, as the company looks to complete asset disposals before year-end and move closer to its 2027 breakeven target.