Electric vehicle maker Lion Electric today released its second-quarter 2022 earnings results, which showed another strong performance as demand for commercial electric vehicles grew. Lion Electric is creating a profitable market with a record number of vehicle deliveries and a growing portfolio.
With over 12 years of experience, Lion Electric was one of the first to offer fully electric, medium and heavy-duty urban vehicles. In other words, the company is building an all-electric fleet to help reduce carbon emissions in the transportation sector.
Transportation contributes the most emissions by sector in both the United States (27%) and Canada (24%), Lion’s primary markets. Not only that, but both governments are investing heavily to bring him down.
For example, the Clean School Bus Program provides $5 billion to replace school buses with zero-emission models in the United States. Canada has several incentives, including the Zero Emission Transit Fund ($2.75 billion CAN for electric public transportation and school buses) and the Canada Infrastructure Bank debt financing scheme, which provides another C$1.5 billion for electric school buses and transit.
Lion Electric already has more than 700 vehicles on the road with a total of 10 million miles driven. To date, the commercial electric vehicle maker’s products include trucks and buses.
Meanwhile, it has many Tier 1 customers such as Amazon, Ikea, Student Transportation of America (STA), and First Student, yet the company plans to launch six new products by the end of 2023, including a bucket truck (comes in a second) Half 2022), an ambulance, and a utility vehicle.
Lion Electric is much more than just a maker of electric vehicles. They provide a complete ecosystem to help customers seamlessly transition to electrification. With this in mind, Lion provides infrastructure support (EV charging), financing solutions, customer experience (test drive), post-market support (analytics), and EV education.
The company is working to grow its target market ($110 billion), and Lion’s Q2 2022 earnings show it is taking advantage of this opportunity.
Highlights from Lion Electric’s Q2 2022 earnings report
Lion Electric continues to see strong demand for its EV models. In the second quarter of 2022, the company delivered 105 vehicles, including 90 buses and 15 trucks.
Births are up 72% compared to last year with 61 births. Furthermore, during the quarter, Lion received its first purchase order for ambulances (4). Vehicle orderbook swells with 2,357 urban medium and heavy-duty electric vehicles—of orders, 2,071 are for school buses, while 286 trucks are ordered, valued at approximately $575 million.
LionEnergy, the company’s infrastructure unit, has also grown, with 226 charging stations and services valued at approximately $3 million.
In other Lion Electric news:
- The company is on track to produce its first school bus from the Juliet factory by the end of this year.
- Great progress is being made in the battery factory and innovation center. The first modules and battery packs are also expected by the end of 2022.
Revenue was $29.5 million, an increase of 76% over second-quarter 2021 revenue of $16.7 million. However, spending grew significantly. Capital Expenditures (CAPEX) increased to $44.3 million (up + 1,200% compared to Q2 2021) amid spending on the Joliet Plant and Battery Center.
Overall, net profit was $37.5 million compared to a net loss of $178.5 million last year.
Lion Electric continues to grow its fleet while adding supporting services to boost its market. Q2 2022 earnings show the company is heading in the right direction as the order backlog continues.
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