EVgo’s first-quarter financial report showcases a significant surge in the adoption of electric vehicles (EVs), signaling a promising trajectory for the industry. Despite investor apprehensions regarding demand, EVgo reported robust earnings before interest, taxes, depreciation, and amortization (EBITDA) of negative $7.2 million on sales totaling $55.2 million. This exceeded Wall Street’s projections, which anticipated a $13 million loss from sales of $52.4 million.
The notable 118% increase in sales compared to the previous year underscores the growing popularity of EVs, with EVgo’s charging network delivering a staggering 53 gigawatt hours of power to EVs—a remarkable 194% surge from the preceding year. This surge in demand is further highlighted by the company’s expansion, as it concluded the quarter with approximately 3,200 operational charging stalls—a 38% increase from the same period last year. Additionally, the average electricity delivered per stall saw a substantial surge of nearly 120% year over year, reaching approximately 17 megawatt hours.
The robust performance of EVgo reflects the increasing reliance of EV drivers on the company’s charging infrastructure. CEO Badar Khan expressed confidence in EVgo’s ability to achieve adjusted EBITDA breakeven by 2025, attributing this optimism to the enduring trend of long-term EV adoption.
EVgo reaffirmed its forecast of an EBITDA loss of around $39 million from sales of about $245 million in 2024, a projection in line with Wall Street’s expectations. Despite the positive financial results, EVgo’s shares have faced challenges, declining by approximately 44% year-to-date and 68% over the past 12 months, primarily due to concerns about slowing demand growth for EVs.
While U.S. sales of battery-electric vehicles experienced modest 3% year-over-year growth in the first quarter of 2024, down from a robust 40% growth in the previous quarter, EVgo’s performance remains closely linked to the overall EV market dynamics. With approximately 3.8 million all-electric vehicles now traversing U.S. roads—a substantial increase from about 2.4 million at the end of 2022—EVgo stands poised to leverage the expanding EV ecosystem and drive future growth.