Finnish electric vehicle charging infrastructure company Kempower reported its second-quarter results for 2026 on Thursday, revealing improved profit margins that were offset by softer-than-expected order intake. The Helsinki-listed firm, a key player in the European EV charging market, said profitability had strengthened due to cost controls and operational efficiencies, but investors focused on the decline in new orders, sending shares lower in early trading.
Kempower posted a gross margin of 38% for the quarter, up from 34% in the same period last year, driven by lower raw material costs and improved manufacturing yields. However, order intake fell 12% year-on-year, with the company pointing to delayed decision-making by fleet operators and charging network customers amid economic uncertainty and slower EV adoption in some European markets.
For UK investors and pension holders with exposure to the clean energy sector, the results offer a cautionary signal. London-listed peers such as SSE's charging division and private firms in the EV infrastructure space could face similar headwinds if demand softens further. The FTSE 100's renewable energy and industrial indices have already been under pressure this month, with the FTSE All-Share Index down 1.4% since the start of July, partly on concerns about the pace of the green transition.
Analysts at Berenberg noted that Kempower's margin improvement was encouraging but warned that the order slowdown suggests near-term growth may be limited. "The market is in a wait-and-see phase, with customers holding back on large capital commitments," they said in a note. "For UK investors, this reinforces the view that the EV charging sector remains a long-term story, but short-term volatility is likely."
The broader context is that UK Government targets for EV charging point installation remain ambitious, with a goal of 300,000 public chargers by 2030. However, private sector investment has been patchy, and Kempower's results may amplify concerns about whether the pace of rollout can meet demand. The company said it expects a recovery in orders later in the year, but did not provide a specific timeline.