Commercial EV maker Lion Electric released its Q2 2022 earnings results today, showing another strong performance as demand grows for commercial EVs. Lion Electric is carving out a profitable market with a record number of vehicle deliveries and a growing line-up.
With over 12 years of experience, Lion Electric was one of the first to introduce all-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.
For example, the Clean School Bus program provides $5 billion to replace school buses with zero-emission models in the US. Canada has several incentives, including the Zero Emission Transit Fund (C$2.75 billion for electric public transit and school buses) and the Infrastructure Bank of Canada Debt Funding Plan, which provides another C$1.5 billion for electric school buses and transit.
Lion Electric already has over 700 vehicles on the road with a combined 10 million miles traveled. So far, the commercial EV maker’s products include trucks and buses.
Meanwhile, it has multiple tier 1 clients such as Amazon, Ikea, Student Transportation of America (STA), and First Student, yet the company plans to release six new products by the end of 2023, including a bucket truck (coming in the second half of 2022), ambulance, and utility vehicle.
Lion Electric is much more than just an EV maker, though. They provide an entire ecosystem to help customers smoothly transition to electric. With this in mind, Lion supplies infrastructure support (EV charging), financing solutions, customer experience (test driving), after-market support (analytics), and EV education.
The company is growing its addressable market ($110 billion), and Lion’s Q2 2022 earnings show it’s taking advantage of the opportunity.
Highlights from Lion Electric’s Q2 2022 earnings report
Lion Electric continues to see strong demand for its EV models. In Q2 2022, the company delivered a record 105 vehicles, including 90 buses and 15 trucks.
Deliveries rose 72% compared to last year with 61 deliveries. Furthermore, during the quarter, Lion received the first purchase order for ambulances (4). The vehicle order book is swelling with 2,357 medium and heavy-duty urban EVs – of the orders, 2,071 are for school buses, while 286 trucks were ordered worth around $575 million.
LionEnergy, the company’s infrastructure unit, also grew with 226 charging stations and services worth about $3 million.
In other Lion Electric news:
- The company is on track to produce its first school buses out of the Joliet factory by the end of this year.
- Significant progress is being made at the battery plant & innovation center. The first modules and battery packs are also expected by the end of 2022.
Revenue reached $29.5 million, up 76% compared to Q2 2021 revenue of $16.7 million. However, spending also grew significantly. Capital expenditures (CAPEX) increased to $44.3 million (up +1200% vs. Q2 2021) amid spending on the Joliet factory and battery center.
Overall, net earnings reached $37.5 million compared to a net loss of $178.5 million last year.
Lion Electric continues to grow its fleet while adding supportive services to boost its market. Its Q2 2022 earnings show the company is trending in the right direction as orders continue to pile up.
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Author: Peter Johnson