The fourth quarter of 2023 brought electric school bus manufacturer Lion Electric a substantial revenue increase of $60.4 million with the delivery of 188 vehicles. However, that growth was tempered by losses – some associated with the company’s decision to indefinitely delay production of the LionA and LionM mini-buses.
Lion Electric’s 2023 in Review
For fiscal year 2023, Lion reported a robust financial performance, marked by a revenue surge of $113.6 million compared to the previous fiscal year, reaching a total of $253.5 million. This increase was attributed to the delivery of 852 vehicles, up from the previous year. LionEnergy’s order book included 132 charging stations
The year wasn’t without its hurdles. Despite the revenue surge, Lion Electric experienced a gross loss of $5.5 million, indicating operational challenges and cost-related issues. The decision to indefinitely delay the commercial production of LionA and LionM minibuses, coupled with a write-down of inventory worth $9.8 million, suggested complexities and uncertainties in the electric vehicle market. These setbacks, alongside increased finance costs and a net loss of $103.8 million, underscored the intricacies of balancing growth with operational efficiency and financial sustainability.
In November, the same time the company announced delayed production of the LionA and LionM buses, the company laid off about 100 employees – mostly night-shift workers at the Lion facility in Saint-Jerome.
Looking Ahead to Lion’s Electric Future
Lion Electric's CEO Marc Bedard acknowledged the hurdles faced during the fiscal year. Despite these challenges, Bedard expressed optimism and outlined a strategic focus on driving growth in orders and deliveries in 2024, while emphasizing prudent cost control measures.
"2023 has been a year of significant progress, marked by record vehicle deliveries and revenue, which translated into positive adjusted gross margins, and also by several achievements, including the construction and operation of our two new factories and the start of commercial production of our Lion5 electric truck and our LionD electric school bus,” Bedard said in a news release. “However, this past year has not been without its challenges, particularly as it relates to a volatile incentive environment that slowed down the pace of orders and deliveries.”
