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Beam's Q1 Loss Wider Than Expected, Revenues Decline Y/Y

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Beam Global (BEEM - Free Report) reported an adjusted loss of 32 cents per share in the first quarter of 2025, wider than the Zacks Consensus Estimate of a loss of 16 cents. The company had incurred a loss of 21 cents per share in the year-ago quarter. The company reported net sales of $6.3 million in the quarter, which missed the Zacks Consensus Estimate of $15 million and fell from the year-ago quarter’s $14.6 million.

The year-over-year decline in revenues was primarily due to uncertainty surrounding the U.S. government's zero-emission vehicle strategy.

Gross profit in the first quarter was $0.5 million (8% of sales) compared to gross profit of $1.5 million (10% of sales) in the corresponding quarter of the prior year. The year-over-year decline in gross profit was due to a non-cash expense of $1 million related to depreciation and amortization of intangible assets from the AllCell acquisition. 

Operating expenses rose to $16 million from $4.5 million reported in the corresponding quarter of 2024 due to $10.8 million of goodwill impairment. 

As of March 31, 2025, the company had a total backlog of $6.3 million.

As of March 31, 2025, the company had cash of $2.5 million, down from $4.6 million as of Dec. 31, 2024. The company is debt-free and has a $100 million line of credit available. 

In the three months ended Dec. 31, 2024, net cash used for operating activities was $1.8 million compared to $3 million for the same period in 2024. For 2025, the company remains optimistic about its plan to achieve positive cash flow.

In the first quarter of 2025, the company delivered EV ARC units, ARC Mobility trailers, energy storage systems, lighting poles and smart city infrastructure solutions to various locations across California, Arizona, Colorado, Florida, Michigan and Oregon, as well as internationally to Croatia, Serbia, Spain and Romania.

The company grew its European sales network by adding three new distribution partners, Seltis Glass Design S.R.L., Evrosimovski Consulting Ltd. and BBA International. It also entered the Middle Eastern market through a partnership with Solvana and launched the BeamPatrol collaboration with Zero Motorcycles, with two BeamPatrol units at the MotoGP event in Austin to support electric motorcycle demonstrations. BEEM expanded its presence in Romania with first EV ARC sales through a Romanian reselling agent, Seltis Glass Design SRL.

Beam’s Zacks Rank & Key Picks

BEEM carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the auto space are Ferrari N.V. (RACE - Free Report) , Strattec Security Corporation (STRT - Free Report) and Michelin (MGDDY - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for RACE’s 2025 sales and earnings implies year-over-year growth of 12.37% and 4.8%, respectively. EPS estimates for 2025 and 2026 have improved 51 cents and 64 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for STRT’s fiscal 2025 sales and earnings implies year-over-year growth of 3.49% and 8.11%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 73 cents and 91 cents, respectively, in the past seven days.

The Zacks Consensus Estimate for MGDDY’s 2025 sales and earnings implies year-over-year growth of 37.06%. EPS estimates for 2025 and 2026 have improved 2 cents and 14 cents, respectively, in the past 30 days.

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