Struggling electric bus manufacturer Ebusco secures €12 million

Dutch electric bus manufacturer Ebusco is receiving a capital injection of a total of twelve million euros from five existing investors. The sum is intended to finance operations until the second quarter of 2027. Shortly before, Ebusco had to postpone the payment of October salaries due to its strained liquidity situation.

Electric single decker bus Ebusco 3.0

Image: Ebusco

Ebusco‘s new financing marks an important step for the struggling electric bus manufacturer, but it does not yet signal a permanent resolution. As Ebusco announced on Wednesday, two strategic investors and three other existing shareholders have committed to providing a total of €12 million for new shares. The capital measure remains subject to approval by the general meeting.

The new shares are to be issued at a price of five cents each, totalling 240 million new shares. Of the €12 million, €8 million will come from the two strategic investors, Rhein Holding and Green Innovation International. A further €4 million will be provided by existing shareholders De Engh, CVI Investments (Heights), and Peter Bijvelds Holding. This is not the first rescue measure from the investor circle: Rhein Holding had already injected €6 million into Ebusco in August.

Payout planned in six tranches

The fresh capital is to be disbursed in six tranches, aligned with the company’s liquidity needs. The final payment of €1 million is scheduled for February 2027. With the new equity, Ebusco aims to finance ongoing operating costs and complete existing bus orders.

A particular focus is on the order from Rouen. The French metropolitan region has repeatedly ordered e-buses from Ebusco but has been waiting for some time for 68 units of the Ebusco 3.0 model, according to a report by news outlet _Paris-Normandie_. To complete this order, Ebusco announced in October a separate production support package worth €5.86 million from a subsidiary of strategic partner Gotion—the Chinese battery manufacturer, whose largest shareholder is VW and which itself has been a strategic investor in Ebusco since November 2024. The Ebusco 3.0 won the Innovation Award at Busworld 2019 in Brussels and is said to be one of the first companies to beat diesel-powered buses on price.

Currently, bus production—which Ebusco has largely outsourced to China—is progressing extremely slowly. In the third quarter of 2026, Ebusco delivered just three buses. Since the beginning of the year, only 19 units have been delivered. As of 30 September, the order backlog still stood at 195 buses, of which only 77 were firm orders, and 118 were cancellable.

To complicate matters further: less than half of the new €12 million capital injection will benefit the operational business. Instead, part of the funds will be used to repay a bridging loan of €7.1 million agreed in April 2026, which matures on 1 December 2026.

Funds expected to last until Q2 2027

Based on current liquidity planning, Ebusco expects the financing to last until the second quarter of 2027. However, this assumes that all committed funds are received in full and on time. The company notes that if cash flow developments are less favourable, additional capital may be required.

In parallel, Ebusco continues to work on securing working capital financing of around €30 million. However, the conclusion of this so-called working capital facility, which the company had already announced in August, is not yet guaranteed.

Salaries had to be deferred

The urgency of Ebusco’s need for fresh capital became clear on Tuesday when the company announced that it had to defer the payment of October salaries. While negotiations with a group of core shareholders on short-term financing options were well advanced, they had taken longer than expected, the company stated.

The now-announced capital injection is the result of these negotiations. Ebusco has not yet specified when the committed funds will actually arrive or when the outstanding salaries can be paid.

The capital measure still requires approval from an extraordinary general meeting, which Ebusco intends to convene before the end of 2026. For the first quarter of 2027, the company also plans a so-called repair offer, allowing additional shareholders to purchase shares at the same price of five cents each. The volume is expected to amount to up to €5 million.

Restructuring remains challenging

Ebusco has been grappling with significant financial and operational problems since 2024. Production stoppages, delays, and the resulting cancellations of bus orders — such as 23 units by Potsdam’s transport operator in Germany — have led to declining revenues and high losses. In November 2024, the company had to conduct a capital increase to secure its liquidity.

As part of the restructuring, Ebusco has revised its business model: instead of producing buses in-house, the company now has the vehicles largely assembled by contract manufacturers. The workforce has also been significantly reduced.