Opportunities and Challenges After a Loss Year
The Swiss company specializing in energy meters is facing a potential revaluation after a difficult year in 2024. This could be positively influenced by a potential deal. Rapid electrification and particularly consumption measurement are essential for modern energy contracts and grid technology.
Regionally Diverse Developments
During the last business period, the company recorded a decline in revenue, resulting in a loss of 171 million dollars. The losses are mainly due to write-downs of corporate investments. While the business in the USA is thriving, the company is withdrawing from the European charging station business and plans to sell its activities in Europe, the Middle East, and Africa. These steps are intended to lead to cost reductions but are not yet fully completed.
Rising Demand Despite Challenges
Three main factors support a reevaluation of the stock: first, the growing demand for corresponding grid technologies; second, an order backlog that increased by nearly 23 percent; and third, discussions of a larger business deal among industry professionals. A successful restructuring focusing on the US market could contribute to improving the balance sheet.
Smart Meter Discussion in Germany
In Germany, the use of smart meters – intelligent energy meters – is being discussed. Despite a high approval rate of 61 percent among households, consumers and startups view the high costs as a barrier. Companies like GWAdriga and regiocom are, however, advancing the development of new technologies for meter reading.
In summary, the Swiss specialist is in a critical transformation phase. By focusing on more profitable markets and strategic divestitures, positive effects on the company’s value may soon become apparent, which is particularly interesting for investment-minded investors.