Ebusco is no better off than a year ago – the Dutch bus manufacturer still teetering on the brink of bankruptcy

The Netherlands-based Ebusco closed its 2024 fiscal year amid unprecedented financial and operational difficulties, and according to the annual financial report released on April 30, 2025, the company remains in crisis and continues to face a direct risk of bankruptcy – in fact, in certain areas, its condition has worsened compared to a year earlier. The financial statement is unequivocal: the company’s due liabilities exceed its available liquidity, while its only short-term financial support – a €22 million loan agreement – has partially failed. Despite proclaiming 2024 as the “year of renewal,” production was halted for months, hundreds of orders were canceled, and the company has essentially become inoperable without external financial resources.

Ebusco’s situation has become so severe that, as a result of the liquidity crisis, one supplier has already initiated bankruptcy proceedings against the company due to unpaid overdue invoices. Considering that the company’s debts significantly exceed its available cash reserves, any supplier could decide to initiate similar proceedings – something Ebusco would no longer be able to prevent, and which could lead to the company’s immediate bankruptcy. The fragility of the situation is well illustrated by the example of Van Hool. A supplier filed a garnishment against the Belgian manufacturer for an invoice of only ten thousand euros, which triggered a cascade of claims and ultimately accelerated the company’s collapse. In Ebusco’s case, there is a very real danger that a seemingly minor legal step could set off an unstoppable domino effect with fatal consequences.

The company’s financial performance plummeted in 2024. Annual revenue dropped to €10.7 million, compared to €102.4 million in 2023 – an 89% decrease. The primary causes of the decline were the production halt in the second half of the year and mass order cancellations. Ebusco lost contracts for more than 360 buses in 2024, with an additional 55 canceled in the first months of 2025. The manufacturer also lost its entire Swedish market. A significant portion of the canceled orders had not yet entered production, but 74 partially completed vehicles were reassigned to new customers. Among these, 21 buses will be taken over by Germany’s NIAG, 22 by the city of Rouen in France, and 31 by the Dutch EBS. The remaining 19 semi-finished vehicles are planned to be resold in the second half of the year.

The status of the order backlog is also a key factor for Ebusco’s future. At the end of 2024, the company had a total backlog of 581 buses, which, in theory, would ensure full production capacity utilization through the first half of 2026. This includes 336 firm orders and 245 call-off or optional items. For the Ebusco 2.2 model, the records include 79 firm contracts and 168 call-off options, while the newer Ebusco 3.0 model has 257 firm orders and 77 options. Due to financial risks, however, management decided not to list some of the optional orders in the official backlog to provide a more realistic picture of expected deliveries. Only 157 buses were delivered in 2024, and 48 new contracts were signed.

As a result of production issues and failed deals, Ebusco posted a loss of €200.8 million in 2024. Even disregarding extraordinary items – such as asset write-downs and interest expenses – the company still generated an EBITDA loss of €132.6 million, indicating that its operations are fundamentally loss-making. By the end of the year, the company’s cash reserves had dwindled to just €2.4 million, while outstanding payables far exceeded this amount – further emphasizing the company’s severe financial risk.

In February 2025, the company announced it had secured loan commitments totaling €22 million from three investors. However, one of the main investors, Green Innovation International, transferred only €5 million of the pledged €10 million – a breach of contract that also derailed additional financial agreements. The other two lenders – CVI Investments Inc. (€10 million) and De Engh B.V. (€2 million) – fulfilled their commitments, but without the full €22 million package, the company remains unable to fund its operations. The loans and interest must be repaid by August 15, further complicating Ebusco’s outlook.

Due to financial uncertainty, banks have indicated that they reserve the right to deny access to further credit lines, especially in light of the missed payments. The company is currently seeking alternative funding sources, but no concrete agreements have been reached. Management is also preparing to legally separate its energy storage and bus manufacturing divisions and is exploring the involvement of strategic partners – all in hopes of avoiding collapse.

Ebusco’s production model underwent a fundamental transformation in 2024. Instead of in-house manufacturing, the company implemented an external, contract-based model relying partly on Chinese manufacturing partners, aimed primarily at cost reduction and capital efficiency. As part of this shift, the Venray production facility is being closed and operations are being consolidated at the Deurne headquarters. The rationale behind this move was that maintaining in-house production was no longer sustainable given the company’s severe liquidity problems. Under the new model, Ebusco focuses solely on vehicle design and management, while actual assembly is handled by external Chinese partners.

However, the transition brought serious financial consequences. In 2024, Ebusco was forced to impair or fully write down more than €80 million in assets. One of the largest items was linked to the earlier acquisition of Pondus, a company developing lightweight composite bus chassis technology. At the time of the 2021 acquisition, Ebusco believed the company would generate significant future benefits, so the purchase price exceeded the actual asset value – the difference was recorded as goodwill, representing the anticipated future business value. However, the 2024 strategic shift cast doubt on the realization of this value, leading Ebusco to write off €39.3 million in goodwill, which immediately impacted the balance sheet as a loss.

Further impairments occurred as well: €8.4 million worth of manufacturing equipment became obsolete under the new model; the lease rights for the Venray site were devalued; and the rollout of a new enterprise management system was suspended – another costly development. Additionally, €26.2 million in inventory became worthless or unsellable due to production halts and order cancellations.

These losses directly contributed to the company’s €200.8 million annual loss in 2024 and significantly reduced Ebusco’s equity. While the new model promises long-term flexibility and lower costs, it has caused major asset devaluation and increased vulnerability in the short term. The company is now fully dependent on external manufacturing partners, heightening risks related to delivery and quality.

Although company leadership remains optimistic about the possibility of recovery, the report states unequivocally:

If the necessary liquidity is not secured in time, Ebusco will face an imminent bankruptcy situation.

The developments in the coming weeks could be decisive for the company’s future.