Pioneer Power Solutions(PPSI)

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Pioneer Power Secures City Contract for e-Boost Mobile Charging
Yahoo Finance· 2025-09-29 22:50
Pioneer Power Solutions, Inc. (NASDAQ:PPSI) is among the hidden penny stocks to buy now. According to a press release on September 25, the City of Long Beach, California, has awarded a $725,000 contract to Pioneer Power Solutions, Inc. (NASDAQ:PPSI) for its e-Boost mobile EV charging system. Placed through reseller partner AssetWorks, the order includes a 250kW e-Boost Mobile ’Stretch’ system for the flexible charging of Battle Motors EV sanitation trucks, along with medium and heavy-duty electric vehicle ...
Pioneer Power Receives e-Boost Order from the City of Long Beach, California
Businesswire· 2025-09-25 13:05
Pioneer Power Receives e-Boost Order from the City of Long Beach, California Share Order Valued at $725,000 Continues Growth into Public Works, Sanitation and Industrial Fleets Further Expanding Municipal Fleet Electrification e-Boost Mobile 'Stretch' Featuring 250kW of Level 3 Off-Grid EV Charging with Two 62.5kW ChargePoint Chargers with Power Modules on Two Separate Mobile Skids FORT LEE, N.J.--(BUSINESS WIRE)--Pioneer Power Solutions, Inc. (Nasdaq: PPSI) ("Pioneer†or the "Company†), a leader in the de ...
Pioneer Power Solutions (NasdaqCM:PPSI) FY Conference Transcript
2025-09-10 15:02
Summary of Pioneer Power Solutions FY Conference Call Company Overview - **Company**: Pioneer Power Solutions (NasdaqCM:PPSI) - **Focus**: The company has shifted its focus entirely to the eBoost power business, which specializes in mobile charging systems for electric trucks and buses after selling its switchgear business for $50 million in October 2024 [1][5]. Core Business and Offerings - **eBoost Power Business**: The eBoost system is a mobile charging solution that operates independently with its own power source, primarily targeting electric trucks and buses [1][4]. - **Recent Deliveries**: Notable contracts include units delivered to the Los Angeles Department of Transportation and the Los Angeles Unified School District, with significant orders for propane-driven units [2][3]. - **Market Position**: The company claims a first-mover advantage in the mobile charging market, with 90% of its units being trailer-based rather than truck-based [4]. Financial Performance - **Cash Position**: As of June 2025, the company reported $18 million in cash and zero bank debt, indicating a strong financial position [5][12]. - **Dividends**: The company paid a significant dividend of $16.7 million in January 2025, reflecting its commitment to returning cash to shareholders [5][13]. - **Revenue Growth**: Revenue for FY 2023 was $11.1 million, with projections for FY 2024 at $22.9 million and guidance for FY 2025 between $27 million and $29 million [11][12]. Market Opportunities - **Customer Base**: The current customer base includes government entities and municipalities committed to electric vehicle initiatives, such as the Port Authority of New York and New Jersey [6][7]. - **Emerging Markets**: The company is seeing increased demand from large package delivery companies and the robotaxi market, particularly as companies like Waymo expand their operations [8][15]. - **Future Growth**: Anticipated growth in the school bus depot business is expected to continue into 2026, driven by recent purchases before the expiration of incentives for electric school buses [11][15]. Industry Dynamics - **Competitive Landscape**: The company differentiates itself from competitors by offering high-capacity, mobile charging solutions that do not rely solely on battery power, which is often expensive and requires frequent recharging [4][6]. - **Service Revenue**: Service is a significant part of the business, with the company focusing on maintaining quality service while managing costs effectively [14][15]. Strategic Vision - **Long-term Goals**: The company aims to expand its offerings to include more permanent power solutions, addressing gaps in grid infrastructure and providing supplemental power where necessary [22][23]. - **Charger Agnostic Approach**: Pioneer Power Solutions does not manufacture chargers but provides power solutions that can work with various charging systems, enhancing flexibility for customers [23][24]. Additional Insights - **Operational Efficiency**: The company has maintained strong operating margins despite increased marketing and sales expenses during the launch phase of eBoost [12]. - **Recurring Revenue**: The company is exploring long-term leasing options with major clients, which could lead to increased recurring revenue streams [13][19]. This summary encapsulates the key points discussed during the conference call, highlighting the company's strategic focus, financial health, market opportunities, and industry positioning.
Pioneer Power Expands Mobile Power and Charging Footprint
Businesswire· 2025-09-09 13:05
Core Insights - Pioneer Power Solutions, Inc. has announced multiple new contract wins across various sectors, highlighting its expanding role in powering critical operations and electrification initiatives [1] Group 1: Company Developments - The company is recognized as a leader in the design, manufacture, service, and integration of distributed energy resources, power generation equipment, and mobile electric vehicle charging solutions [1] - The new agreements signify the company's commitment to enhancing its service offerings and expanding its market presence [1]
Pioneer Power Solutions, Inc. (PPSI) Q2 2025 Earnings Conference Call Transcript
Seeking Alpha· 2025-08-14 23:05
Core Viewpoint - Pioneer Power Solutions, Inc. reported strong financial results for the second quarter of 2025, continuing a positive trend in performance [4]. Group 1: Financial Performance - The company delivered strong financial results for Q2 2025, indicating ongoing growth and stability [4]. - The earnings conference call was held on August 14, 2025, to discuss these results and recent business highlights [3]. Group 2: Management Participation - The call featured key participants including Nathan Mazurek (Chairman and CEO), Walter Michalec (CFO), and Geo Murickan (President of Pioneer eMobility) [2]. - The conference included a Q&A session for participants to engage with management [2].
Pioneer Power Solutions(PPSI) - 2025 Q2 - Earnings Call Transcript
2025-08-14 21:30
Financial Data and Key Metrics Changes - Revenue increased by 150% year over year to $8.4 million, driven by significant sales and rentals of the mobile EV charging platform, eBoost [4][13] - Non-GAAP operating income from continuing operations was $218,000, compared to a non-GAAP operating loss of $137,000 in the same quarter last year, marking a year-over-year improvement of $355,000 [14] - Net loss from continuing operations improved to $1.2 million from $1.7 million in the previous year [14] - Cash on hand decreased to $18 million from $41.6 million at the end of 2024, primarily due to a special cash dividend and tax payments [15] Business Line Data and Key Metrics Changes - The eBoost order for a large public school district significantly contributed to revenue growth, with gross profit on these units more than doubling in the second quarter [5][13] - The company delivered initial units under the SparkCharge agreement, which could be worth up to $10 million, reflecting increasing demand for mobile EV charging solutions [5] Market Data and Key Metrics Changes - Total backlog was approximately $18 million, a decline of 23% compared to the prior quarter due to fulfillment of larger orders [6][7] - The electric school bus market continues to show strong momentum, with the school district scheduled to receive an additional 600 electric school buses over the next two years [5] Company Strategy and Development Direction - The company is focused on scaling its core business and launching HomeBoost, a residential and light commercial power system, expected to expand its addressable market [8][9] - The company sees growth potential in autonomous mobility, particularly in the robotaxi segment, which aligns with its mobile charging platform [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the business and the demand environment, with a reaffirmation of revenue guidance for the full year of $27 million to $29 million [16][10] - The company is optimistic about the breadth and quality of future opportunities, particularly in government agencies and transit authorities [5][10] Other Important Information - The company is preparing to launch HomeBoost, which integrates a natural gas engine with optional DC fast charging, expected to be a key growth driver for 2026 and beyond [9] - Management emphasized the importance of operational efficiency and productivity gains in achieving profitability [10] Q&A Session Summary Question: Details on the eBoost order with the charging services company - Management explained that the order could be up to $10 million, with variables based on size and timing of delivery [22] Question: Insights on the sales pipeline and order visibility - Management noted that government agencies move at different paces, while private businesses tend to be quicker in decision-making [26] Question: Launch milestones for HomeBoost - The launch has been delayed due to internal adjustments, with expectations for orders to begin in 2025 and accelerate in 2026 [30] Question: Future margin expectations - Management indicated that margins should remain stable or improve, with no expected erosion [34] Question: Revenue concentration and market evolution - California remains the primary market, but success with HomeBoost could diversify revenue sources [40] Question: Competitive landscape for eBoost and HomeBoost - Management noted reduced competition in the eBoost space, while HomeBoost is being kept under wraps until fully ready for market [60][61]
Pioneer Power Solutions(PPSI) - 2025 Q2 - Quarterly Results
2025-08-14 20:06
[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q2 2025 Performance Highlights](index=1&type=section&id=Q2%202025%20Performance%20Highlights) Pioneer Power reported robust financial performance in Q2 2025, with revenue increasing **147%** year-over-year to **$8.4 million**, driven by high-value orders, gross profit more than doubled, and non-GAAP operating income from continuing operations showed significant year-over-year improvement Q2 2025 Key Financial Highlights | Metric | Q2 2025 | Q2 2024 | Change (YoY) | % Change (YoY) | | :------------------------------------ | :---------- | :---------- | :----------- | :------------- | | Revenue | $8.4 million | $3.4 million | +$5.0 million | +147% | | Gross Profit | $1.3 million | $641,000 | +$673,000 | +105% | | Gross Margin | 15.7% | 18.9% | -3.2% | - | | Operating Loss (GAAP) | $(1.7) million | $(1.7) million | $0 | 0% | | Non-GAAP Operating Income (Loss) | $218,000 | $(137,000) | +$355,000 | - | - First-half 2025 revenue grew **125%** to **$15.1 million**[1](index=1&type=chunk) [Strategic Developments](index=1&type=section&id=Strategic%20Developments) Pioneer Power secured a significant multi-year e-Boost award valued up to **$10 million** with a major Charging-as-a-Service provider, highlighting strong product collaboration and growing demand for mobile EV charging solutions, with continued focus on key electrification segments - Secured a watershed multi-year e-Boost award valued at up to **$10 million** in partnership with one of the largest Charging-as-a-Service (CaaS) providers in the United States[6](index=6&type=chunk) - Demand for Pioneer's solutions remains strong, driven by targeted marketing and sales efforts focused on segments actively investing in electrification, including state and local fleet operators, school districts, and robotaxi service providers[8](index=8&type=chunk) [Company Overview](index=4&type=section&id=Company%20Overview) [About Pioneer Power Solutions, Inc.](index=4&type=section&id=About%20Pioneer%20Power%20Solutions%2C%20Inc.) Pioneer Power Solutions, Inc. is a leading provider in the design, manufacture, integration, and service of distributed energy resources, power generation equipment, and mobile electric charging solutions for utility, industrial, and commercial markets - Pioneer Power Solutions, Inc. is a leader in the design, manufacture, integration, and service of distributed energy resources, power generation equipment, and mobile electric charging solutions[1](index=1&type=chunk)[23](index=23&type=chunk) - The company serves applications in the utility, industrial, and commercial markets[23](index=23&type=chunk) [e-Boost Product Portfolio](index=4&type=section&id=e-Boost%20Product%20Portfolio) e-Boost is Pioneer's flagship portfolio of smart, mobile EV charging solutions, launched in November 2021, establishing itself as a market leader by offering rapid, flexible, and sustainable off-grid charging solutions to a diverse client base - e-Boost is Pioneer's portfolio of smart, mobile EV charging solutions, known for its speed, flexibility, and sustainability[24](index=24&type=chunk) - Launched in November 2021, e-Boost has become a market leader, delivering mobile, off-grid charging solutions with unparalleled lead times[24](index=24&type=chunk) - It is trusted by electric bus and truck manufacturers, fleet management companies, municipalities, and EV infrastructure providers[24](index=24&type=chunk) [Detailed Financial Results - Q2 & H1 2025](index=2&type=section&id=Detailed%20Financial%20Results%20-%20Q2%20%26%20H1%202025) [Revenue Analysis](index=2&type=section&id=Revenue%20Analysis) Revenue for the second quarter of 2025 significantly increased by **147%** year-over-year, reaching **$8.4 million**, primarily driven by higher sales and rentals of the company's e-Boost mobile EV charging solutions Revenue Performance | Period | Revenue (in millions) | | :----- | :-------------------- | | Q2 2025 | $8.4 | | Q2 2024 | $3.4 | | Change | +$5.0 (147% increase) | - The increase in revenue was primarily due to an increase in sales and rentals of the Company's suite of mobile EV charging solutions, e-Boost[9](index=9&type=chunk) [Gross Profit and Margin Analysis](index=2&type=section&id=Gross%20Profit%20and%20Margin%20Analysis) Gross profit for Q2 2025 rose to **$1.3 million**, a **105%** increase from the prior year, mainly due to the significant increase in equipment sales and rentals, though the gross margin percentage decreased to **15.7%** from **18.9%** in Q2 2024 Gross Profit and Margin Performance | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :----------- | :---------- | :---------- | :----------- | | Gross Profit | $1.3 million | $641,000 | +$673,000 (105%) | | Gross Margin | 15.7% | 18.9% | -3.2% | - The increase in gross profit was primarily attributable to the significant increase in sales and rentals of the Company's equipment[10](index=10&type=chunk) [Operating Loss from Continuing Operations](index=2&type=section&id=Operating%20Loss%20from%20Continuing%20Operations) The operating loss from continuing operations remained consistent at **$(1.7) million** for both the second quarter of 2025 and 2024 Operating Loss from Continuing Operations | Period | Operating Loss (in millions) | | :----- | :--------------------------- | | Q2 2025 | $(1.7) | | Q2 2024 | $(1.7) | [Net Loss from Continuing Operations](index=2&type=section&id=Net%20Loss%20from%20Continuing%20Operations) Net loss from continuing operations improved by **$0.5 million**, decreasing from **$(1.7) million** in Q2 2024 to **$(1.2) million** in Q2 2025 Net Loss from Continuing Operations | Period | Net Loss (in millions) | | :----- | :--------------------- | | Q2 2025 | $(1.2) | | Q2 2024 | $(1.7) | | Change | +$0.5 (improvement) | [Overall Net Loss](index=2&type=section&id=Overall%20Net%20Loss) The company's overall net loss for Q2 2025 was **$(1.3) million**, an improvement from **$(2.3) million** in Q2 2024, despite including a loss from discontinued operations Overall Net Loss | Period | Net Loss (in millions) | Loss from Discontinued Operations (in millions) | | :----- | :--------------------- | :---------------------------------------------- | | Q2 2025 | $(1.3) | $(0.1) | | Q2 2024 | $(2.3) | $(0.6) | [Financial Position](index=2&type=section&id=Financial%20Position) [Balance Sheet Overview](index=2&type=section&id=Balance%20Sheet%20Overview) As of June 30, 2025, Pioneer Power held **$18.0 million** in cash and **$23.9 million** in working capital, with the decrease in cash primarily due to a **$16.7 million** special cash dividend payment and income tax payments, and no bank debt reported Key Balance Sheet Metrics | Metric | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :------------- | :-------------------------- | :------------------------------ | | Cash on Hand | $18.0 | $41.6 | | Working Capital | $23.9 | $26.7 | - The decrease in cash on hand is primarily due to a one-time special cash dividend payment of **$16.7 million** on January 7, 2025, and federal and state income tax payments[14](index=14&type=chunk) - The Company had no bank debt as of June 30, 2025[14](index=14&type=chunk) [2025 Outlook](index=2&type=section&id=2025%20Outlook) [Full-Year 2025 Revenue Guidance](index=2&type=section&id=Full-Year%202025%20Revenue%20Guidance) Management reaffirms its full-year 2025 revenue guidance of **$27 million** to **$29 million**, projecting approximately **20%** year-over-year growth, assuming no revenue contribution from the new HOMe-Boost solution and based on backlog translation, satisfactory order completion, and timely customer payments Full-Year 2025 Revenue Guidance | Metric | Guidance | | :-------------------- | :--------------- | | Full-Year 2025 Revenue | $27 million - $29 million | | Year-over-year Growth | Approximately 20% | - The revenue projection for 2025 assumes no contribution from Pioneer's new HOMe-Boost solution[15](index=15&type=chunk) - Assumptions for the outlook include backlog orders translating into revenue, satisfactory completion and delivery of orders, and timely payment by customers[17](index=17&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) [Definition and Purpose](index=3&type=section&id=Definition%20and%20Purpose) Pioneer Power utilizes non-GAAP operating income (loss) from continuing operations, which excludes corporate overhead, R&D, depreciation/amortization, and non-recurring professional fees, providing investors with supplemental information on operating performance and facilitating period-over-period comparisons, though it is not a substitute for GAAP measures - Non-GAAP operating income (loss) from continuing operations excludes corporate overhead expenses, research and development expenses, depreciation and amortization expenses, and non-recurring professional fees[7](index=7&type=chunk)[20](index=20&type=chunk)[35](index=35&type=chunk) - These non-GAAP measures provide useful supplemental information about operating performance and enable comparison of financial trends and results between periods, independent of business performance[20](index=20&type=chunk)[21](index=21&type=chunk) [Reconciliation of Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) The company provides a detailed reconciliation of GAAP operating loss from continuing operations to non-GAAP operating income (loss) from continuing operations for the three and six months ended June 30, 2025, and 2024, outlining specific adjustments Reconciliation of Non-GAAP Measures (in thousands) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | H1 2025 (in thousands) | H1 2024 (in thousands) | | :------------------------------------ | :------ | :------ | :------ | :------ | | GAAP operating loss from continuing operations | $(1,708) | $(1,735) | $(4,055) | $(3,461) | | Corporate overhead expenses | 1,003 | 1,124 | 2,188 | 2,289 | | Research and development expenses | 534 | 238 | 614 | 449 | | Depreciation and amortization expenses | 301 | 168 | 582 | 296 | | Non-recurring professional fees | 88 | 68 | 181 | 99 | | **Non-GAAP operating income (loss) from continuing operations** | **$218** | **$(137)** | **$(490)** | **$(328)** | [Corporate Information](index=3&type=section&id=Corporate%20Information) [Earnings Conference Call Details](index=3&type=section&id=Earnings%20Conference%20Call%20Details) Pioneer Power's management will host a conference call on Thursday, August 14, 2025, at 4:30 p.m. Eastern Time to discuss the second quarter 2025 financial results, with details for live participation via phone and webcast, as well as replay access, provided - Management will host a conference call on Thursday, August 14, 2025, at 4:30 p.m. Eastern Time to discuss Q2 2025 financial results[17](index=17&type=chunk) - Dial-in numbers: 1-877-407-0789 (US) or 1-201-689-8562 (International), using confirmation code 13755251[18](index=18&type=chunk) - A live webcast will be accessible at https://viavid.webcasts.com/starthere.jsp?ei=1729486&tp_key=b546ab240d[19](index=19&type=chunk) [Forward-Looking Statements and Risk Factors](index=4&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) This press release contains forward-looking statements subject to various known and unknown risks and uncertainties, many beyond the Company's control, including operational, economic, competitive, and regulatory factors, with investors advised to review SEC filings for detailed information - Forward-looking statements are not guarantees of future performance and are subject to various known and unknown risks and uncertainties[25](index=25&type=chunk) - Key risks include the Company's ability to successfully operate post-E-Bloc divestiture, increase revenue and profit, general economic conditions, competition, dependence on two customers, potential loss of key personnel, raw material price increases, backlog realization, labor disputes, changes in government regulations, stock liquidity, pandemics, and litigation[25](index=25&type=chunk) - More detailed information about risk factors is available in the Company's filings with the U.S. Securities and Exchange Commission (SEC), including Forms 10-K and 10-Q[26](index=26&type=chunk) [Contact Information](index=4&type=section&id=Contact%20Information) Contact details for investor relations are provided for inquiries - Contact: Brett Maas, Managing Partner, Hayden IR[27](index=27&type=chunk) - Phone: (646) 536-7331; Email: brett@haydenir.com[27](index=27&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The unaudited condensed consolidated statements of operations present the company's financial performance for the three and six months ended June 30, 2025, and 2024, detailing revenues, cost of goods sold, gross profit, operating expenses, and net loss Condensed Consolidated Statements of Operations (in thousands, except per share amounts) | | For the Three Months Ended | | | For the Six Months Ended | | | :------------------------------------ | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | | June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | | Revenues | $8,370 | $3,395 | $15,110 | $6,710 | | Cost of goods sold | 7,056 | 2,754 | 13,648 | 5,534 | | Gross profit | 1,314 | 641 | 1,462 | 1,176 | | Selling, general and administrative | 2,488 | 2,138 | 4,903 | 4,188 | | Research and development | 534 | 238 | 614 | 449 | | Total operating expenses | 3,022 | 2,376 | 5,517 | 4,637 | | Operating loss from continuing operations | (1,708) | (1,735) | (4,055) | (3,461) | | Interest income, net | 183 | 20 | 431 | 51 | | Other income, net | 297 | - | 320 | 40 | | Loss before income taxes | (1,228) | (1,715) | (3,304) | (3,370) | | Income tax benefit | - | - | - | - | | Net loss from continuing operations | (1,228) | (1,715) | (3,304) | (3,370) | | (Loss) income from discontinued operations, net of income taxes | (100) | (568) | 1,047 | 52 | | Net loss | $(1,328) | $(2,283) | $(2,257) | $(3,318) | | Basic loss per share | $(0.12) | $(0.21) | $(0.21) | $(0.32) | | Diluted loss per share | $(0.12) | $(0.21) | $(0.21) | $(0.32) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The unaudited condensed consolidated balance sheets provide a snapshot of the company's financial position as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets (in thousands) | ASSETS | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :------------------------------------ | :-------------- | :---------------- | | Cash | $17,999 | $41,622 | | Accounts receivable, net | 4,884 | 7,826 | | Inventories | 5,783 | 6,068 | | Prepaid expenses and other current assets | 658 | 1,141 | | **Total current assets** | **29,324** | **56,657** | | Property and equipment, net | 5,371 | 6,503 | | Operating lease right-of-use assets | 413 | 530 | | Financing lease right-of-use assets | 413 | 221 | | Investments | 2,240 | 2,000 | | Lease receivable and other assets | 1,354 | 40 | | **Total assets** | **$39,115** | **$65,951** | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | Accounts payable and accrued liabilities | $4,056 | $4,543 | | Current portion of operating lease liabilities | 178 | 244 | | Current portion of financing lease liabilities | 144 | 109 | | Deferred revenue | 923 | 991 | | Consideration due to buyer | - | 3,347 | | Income taxes payable | 107 | 4,079 | | Dividend payable | - | 16,665 | | **Total current liabilities** | **5,408** | **29,978** | | Operating lease liabilities, non-current portion | 248 | 301 | | Financing lease liabilities, non-current portion | 279 | 121 | | Other long-term liabilities | 141 | 122 | | **Total liabilities** | **6,076** | **30,522** | | Total stockholders' equity | 33,039 | 35,429 | | **Total liabilities and stockholders' equity** | **$39,115** | **$65,951** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The unaudited condensed consolidated statements of cash flows detail the cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activities | For the Six Months Ended June 30, 2025 (in thousands) | For the Six Months Ended June 30, 2024 (in thousands) | | :------------------------------------ | :------------------------------------- | :------------------------------------- | | Net loss | $(2,257) | $(3,318) | | Net cash used in operating activities | $(3,963) | $(1,379) | | Net cash used in investing activities | $(2,940) | $(614) | | Net cash (used in)/ provided by financing activities | $(16,720) | $4,923 | | (Decrease)/ increase in cash | $(23,623) | $2,930 | | Cash, beginning of year | $41,622 | $3,582 | | Cash, end of year | $17,999 | $6,512 |
Pioneer Power Solutions(PPSI) - 2025 Q2 - Quarterly Report
2025-08-14 20:02
[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited condensed consolidated financial statements and management's financial analysis [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including operations, balance sheets, cash flows, and equity changes, with accounting notes [Unaudited Condensed Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) This statement details the company's revenues, costs, and net loss for the three and six months ended June 30, 2025 and 2024 Unaudited Condensed Consolidated Statements of Operations (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $8,370 | $3,395 | $15,110 | $6,710 | | Cost of goods sold | $7,056 | $2,754 | $13,648 | $5,534 | | Gross profit | $1,314 | $641 | $1,462 | $1,176 | | Operating expenses | $3,022 | $2,376 | $5,517 | $4,637 | | Operating loss from continuing operations | $(1,708) | $(1,735) | $(4,055) | $(3,461) | | Net loss | $(1,328) | $(2,283) | $(2,257) | $(3,318) | | Basic loss per share | $(0.12) | $(0.21) | $(0.21) | $(0.32) | | Diluted loss per share | $(0.12) | $(0.21) | $(0.21) | $(0.32) | [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) This statement presents the company's assets, liabilities, and stockholders' equity as of June 30, 2025, and December 31, 2024 Unaudited Condensed Consolidated Balance Sheets (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Cash | $17,999 | $41,622 | | Total current assets | $29,324 | $56,657 | | Total assets | $39,115 | $65,951 | | Total current liabilities | $5,408 | $29,978 | | Total liabilities | $6,076 | $30,522 | | Total stockholders' equity | $33,039 | $35,429 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement outlines the company's cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 Unaudited Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(3,963) | $(1,379) | | Net cash used in investing activities | $(2,940) | $(614) | | Net cash (used in)/provided by financing activities | $(16,720) | $4,923 | | (Decrease)/increase in cash | $(23,623) | $2,930 | | Cash, end of year | $17,999 | $6,512 | [Unaudited Condensed Consolidated Statement of Changes in Stockholders' Equity](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Stockholders'%20Equity) This statement details changes in common stock, additional paid-in capital, and accumulated deficit for the periods ended June 30, 2025 and 2024 Unaudited Condensed Consolidated Statement of Changes in Stockholders' Equity (in thousands, except shares) | Metric (in thousands, except shares) | June 30, 2025 | June 30, 2024 | | :----------------------------------- | :------------ | :------------ | | Common Stock Shares (outstanding) | 11,095,266 | 10,917,038 | | Additional paid-in capital | $35,285 | $38,724 | | Accumulated deficit | $(2,257) | $(22,947) | | Total stockholders' equity | $33,039 | $15,788 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the company's accounting policies, business organization, revenue recognition, and other financial disclosures [1. BUSINESS ORGANIZATION, NATURE OF OPERATIONS, RISKS AND UNCERTAINTIES](index=8&type=section&id=1.%20BUSINESS%20ORGANIZATION,%20NATURE%20OF%20OPERATIONS,%20RISKS%20AND%20UNCERTAINTIES) This note describes the company's business, its single operating segment, liquidity position, and key operational risks - Pioneer Power Solutions, Inc. designs, manufactures, services, and integrates distributed energy resources, power generation equipment, and mobile EV charging solutions, serving utility, industrial, and commercial markets[18](index=18&type=chunk) - The Company operates as a single reportable segment: Critical Power Solutions, following the sale of its Electrical Infrastructure business in October 2024[19](index=19&type=chunk) - As of June 30, 2025, the Company had **$17,999 thousand in cash** and **$23,916 thousand in working capital**, primarily from the PCEP sale, and expects this to be sufficient to fund operations for the next twelve months[24](index=24&type=chunk)[25](index=25&type=chunk) - The Company faces risks from rising interest rates, inflation, foreign currency fluctuations, geopolitical developments (Russia-Ukraine, Israel-Hamas conflicts), and changes in U.S. policy, which could impact demand, supply channels, and overall financial performance[26](index=26&type=chunk) [2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=9&type=section&id=2.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note confirms no material changes to accounting policies and outlines the assessment of new accounting guidance - No material changes to significant accounting policies since the Annual Report for the year ended December 31, 2024[29](index=29&type=chunk) - The Company is assessing the impact of new accounting guidance: ASU 2023-09 (Income Tax Disclosures, effective Jan 1, 2025), ASU 2024-03/2025-01 (Expense Disaggregation Disclosures, effective after Dec 15, 2026/2027), and ASU 2025-04 (Share-Based Customer Payments, effective after Dec 15, 2026)[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) [3. REVENUES](index=12&type=section&id=3.%20REVENUES) This note details the company's principal products and services, disaggregated revenue by discipline, and significant customer concentration - The Company's principal products and services include distributed energy resources, power generation equipment, and mobile electric vehicle charging solutions, primarily from its Critical Power business[39](index=39&type=chunk)[41](index=41&type=chunk) Disaggregated Revenue by Discipline (in thousands) | Revenue Discipline | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Products (ASC 606) | $4,213 | $838 | $7,985 | $1,947 | | Services (ASC 606) | $2,289 | $2,174 | $4,734 | $4,055 | | Sales-type lease revenue (ASC 842) | $1,410 | $- | $1,410 | $- | | Fixed lease revenue (ASC 842) | $458 | $383 | $981 | $708 | | **Total Revenue** | **$8,370** | **$3,395** | **$15,110** | **$6,710** | - Customer concentration risk is significant: for the three months ended June 30, 2025, two customers accounted for **31% and 19% of revenue**; for the six months, two customers accounted for **34% and 13%**. One customer represented **53% of total outstanding receivables** as of June 30, 2025[52](index=52&type=chunk)[53](index=53&type=chunk) [4. INVENTORIES](index=14&type=section&id=4.%20INVENTORIES) This note provides a breakdown of the company's inventory components, including raw materials and work in process Inventory Components (in thousands) | Component | June 30, 2025 | December 31, 2024 | | :------------ | :------------ | :---------------- | | Raw materials | $4,235 | $4,899 | | Work in process | $1,548 | $1,169 | | **Total inventories** | **$5,783** | **$6,068** | [5. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES](index=15&type=section&id=5.%20ACCOUNTS%20PAYABLE%20AND%20ACCURRED%20LIABILITIES) This note details the composition of accounts payable and accrued liabilities, including insurance, compensation, and warranty costs Accounts Payable and Accrued Liabilities (in thousands) | Component | June 30, 2025 | December 31, 2024 | | :------------------------ | :------------ | :---------------- | | Accounts payable | $3,255 | $3,054 | | Accrued liabilities | $801 | $1,489 | | **Total** | **$4,056** | **$4,543** | - Accrued liabilities primarily consist of accrued insurance (**$106 thousand** vs **$462 thousand**), accrued compensation and benefits (**$197 thousand** vs **$453 thousand**), and accrued warranty costs (**$212 thousand** vs **$117 thousand**) as of June 30, 2025, and December 31, 2024, respectively[60](index=60&type=chunk) [6. STOCK-BASED COMPENSATION](index=15&type=section&id=6.%20STOCK-BASED%20COMPENSATION) This note summarizes stock option activity and the associated stock-based compensation expense for the reporting periods Stock Option Activity (Six Months Ended June 30, 2025) | Metric | Value | | :------------------------ | :------------ | | Outstanding as of Jan 1, 2025 | 561,476 | | Forfeited/expired | (10,642) | | Outstanding as of June 30, 2025 | 550,834 | | Weighted average exercise price | $4.18 | | Weighted remaining contractual term | 4.80 years | | Aggregate intrinsic value | $199 | - Stock-based compensation expense was **$2 thousand** for Q2 2025 (down from **$96 thousand** in Q2 2024) and **$15 thousand** for YTD 2025 (down from **$321 thousand** in YTD 2024)[61](index=61&type=chunk) [7. INCOME TAXES](index=16&type=section&id=7.%20INCOME%20TAXES) This note explains the company's income tax provision, effective tax rate, and the impact of recent tax legislation - The Company recorded no income tax provision for the three and six months ended June 30, 2025, resulting in an effective tax rate (ETR) of **0%**, primarily due to a full valuation allowance on deferred tax assets and non-deductible permanent items[62](index=62&type=chunk)[67](index=67&type=chunk) - The Company applied the discrete method for interim income tax provision calculation due to earnings volatility and unreliable full-year forecasted income[64](index=64&type=chunk) - The 'Make Rural America and Main Street Grow Again Act' (One Big Beautiful Bill Act), enacted July 4, 2025, includes retroactive provisions for **100% bonus depreciation** and expensing R&D, but its effects are considered a nonrecognized subsequent event for Q2 2025 and are not expected to materially impact near-term cash tax obligations due to the Company's net operating loss position and valuation allowance[65](index=65&type=chunk)[66](index=66&type=chunk)[68](index=68&type=chunk) [8. DISCONTINUED OPERATIONS](index=17&type=section&id=8.%20DISCONTINUED%20OPERATIONS) This note details the sale of the Electrical Infrastructure segment and the resulting net income or loss from discontinued operations - On October 29, 2024, the Company sold its Electrical Infrastructure segment (PCEP) for **$48,000 thousand cash** and **$2,000 thousand in equity**, retaining an equity interest in Pioneer Investment LLC[69](index=69&type=chunk)[72](index=72&type=chunk) - The Company finalized a net working capital adjustment with the PCEP buyer on April 16, 2025, resulting in a **$1,147 thousand reduction in consideration** due to the buyer and a payment of **$2,200 thousand**[69](index=69&type=chunk) Net (Loss) Income from Discontinued Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net (loss) income from discontinued operations | $(100) | $(568) | $1,047 | $52 | [9. EQUITY-METHOD INVESTMENT](index=18&type=section&id=9.%20EQUITY-METHOD%20INVESTMENT) This note reports the income recognized from the company's equity method investment in Pioneer Investment LLC - The Company recorded income from its equity method investee (Pioneer Investment LLC) of **$297 thousand** for the three months ended June 30, 2025, and **$240 thousand** for the six months ended June 30, 2025[73](index=73&type=chunk) [10. BASIC AND DILUTED (LOSS) EARNINGS PER SHARE](index=18&type=section&id=10.%20BASIC%20AND%20DILUTED%20(LOSS)%20EARNINGS%20PER%20SHARE) This note presents the basic and diluted loss per share from continuing and discontinued operations, along with anti-dilutive securities Basic and Diluted Loss Per Share | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Loss per share from continuing operations (Basic & Diluted) | $(0.11) | $(0.16) | $(0.30) | $(0.32) | | (Loss) earnings per share from discontinued operations (Basic & Diluted) | $(0.01) | $(0.05) | $0.09 | $- | | **Basic loss per share** | **$(0.12)** | **$(0.21)** | **$(0.21)** | **$(0.32)** | | **Diluted loss per share** | **$(0.12)** | **$(0.21)** | **$(0.21)** | **$(0.32)** | Anti-Dilutive Securities Excluded from EPS Calculation | Security | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Stock options | 550,834 | 654,313 | 384,166 | 269,500 | [11. BUSINESS SEGMENT AND GEOGRAPHIC INFORMATION](index=19&type=section&id=11.%20BUSINESS%20SEGMENT%20AND%20GEOGRAPHIC%20INFORMATION) This note identifies the company's single reportable segment, geographic revenue distribution, and customer concentration - The Company operates as a single reportable segment, Critical Power Solutions, which provides mobile high-capacity charging equipment, power generation equipment, and aftermarket field services[76](index=76&type=chunk) Revenues by Geographic Location (in thousands) | Country | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | United States | $8,255 | $3,395 | $14,881 | $6,710 | | Canada | $115 | $- | $229 | $- | | **Total** | **$8,370** | **$3,395** | **$15,110** | **$6,710** | - Customer concentration remains high, with two customers accounting for **31% and 19% of revenues** for the three months ended June 30, 2025, and **34% and 13%** for the six months ended June 30, 2025[79](index=79&type=chunk)[80](index=80&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's analysis of financial performance, liquidity, and capital resources, highlighting revenue growth and profitability [Business Overview](index=22&type=section&id=Business%20Overview) This section outlines Pioneer Power Solutions' core business activities, including product development and market expansion strategies - Pioneer Power Solutions designs, manufactures, integrates, services, and sells distributed energy resources, on-site power generation equipment, and mobile EV charging solutions to utility, industrial, and commercial markets[88](index=88&type=chunk) - The Company aims to grow through internal investments in product development and expansion of manufacturing, engineering, sales, and marketing personnel[89](index=89&type=chunk) [Recent Developments](index=22&type=section&id=Recent%20Developments) This section discusses the 'One Big Beautiful Bill Act' and its expected non-material impact on the company's tax obligations - The 'One Big Beautiful Bill Act,' enacted July 4, 2025, includes retroactive changes to U.S. corporate tax provisions, such as **100% bonus depreciation** and expensing R&D expenditures[91](index=91&type=chunk) - Due to the Company's net operating loss (NOL) position and full valuation allowance, these tax provisions are not expected to materially impact near-term cash tax obligations or financial statement income tax expense[92](index=92&type=chunk) [Description of Business Segment](index=22&type=section&id=Description%20of%20Business%20Segment) This section describes the company's single reportable segment, Critical Power Solutions, and its product and service offerings - Following the sale of the PCEP business unit in October 2024, the Company now operates with one reportable segment: Critical Power Solutions[93](index=93&type=chunk) - The Critical Power business provides mobile EV charging solutions (e-Boost), power generation equipment, and services (preventative maintenance, repairs, fuel polishing, remote monitoring) under the Pioneer eMobility and Pioneer Critical Power (Titan) brand names[93](index=93&type=chunk) [Critical Accounting Estimates](index=22&type=section&id=Critical%20Accounting%20Estimates) This section confirms no material changes to the company's critical accounting estimates during the reporting period - There were no material changes to the Company's critical accounting estimates during the three and six months ended June 30, 2025[94](index=94&type=chunk) [RESULTS OF OPERATIONS](index=24&type=section&id=RESULTS%20OF%20OPERATIONS) This section analyzes the company's financial performance, including revenues, gross profit, operating expenses, and net loss for the reporting periods [Overview of June 30, 2025, and 2024, Operating Results](index=24&type=section&id=Overview%20of%20June%2030,%202025,%20and%202024,%20Operating%20Results) This overview summarizes the company's key operating metrics, including revenues, gross profit, operating expenses, and net loss Summary of Operating Results (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues (Critical Power Solutions) | $8,370 | $3,395 | $15,110 | $6,710 | | Gross profit | $1,314 | $641 | $1,462 | $1,176 | | Total operating expenses | $3,022 | $2,376 | $5,517 | $4,637 | | Operating loss from continuing operations | $(1,708) | $(1,735) | $(4,055) | $(3,461) | | Net loss | $(1,328) | $(2,283) | $(2,257) | $(3,318) | [Backlog](index=24&type=section&id=Backlog) This section reports the revenue backlog for the Critical Power business and its progression over recent quarters - Revenue backlog for the Critical Power business decreased by **$9,366 thousand**, or **34.4%**, to **$17,885 thousand** as of June 30, 2025, compared to **$27,251 thousand** as of June 30, 2024[99](index=99&type=chunk) Backlog Progression (in thousands) | Quarter End | Critical Power Solutions | Discontinued operation | Total order backlog | | :--------------- | :----------------------- | :--------------------- | :------------------ | | June 30, 2025 | $17,885 | $- | $17,885 | | March 31, 2025 | $23,231 | $- | $23,231 | | December 31, 2024 | $19,762 | $- | $19,762 | | September 30, 2024 | $24,038 | $42,112 | $66,150 | | June 30, 2024 | $27,251 | $39,670 | $66,921 | [Revenue](index=25&type=section&id=Revenue) This section analyzes the company's revenue growth by major product category, highlighting the impact of mobile EV charging solutions Revenue by Major Product Category (in thousands, except percentages) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Variance | % Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Variance | % Change | | :------- | :------------------------------- | :------------------------------- | :------- | :------- | :----------------------------- | :----------------------------- | :------- | :------- | | Equipment | $6,081 | $1,221 | $4,860 | 398.0% | $10,376 | $2,655 | $7,721 | 290.8% | | Service | $2,289 | $2,174 | $115 | 5.3% | $4,734 | $4,055 | $679 | 16.7% | | **Total Revenue** | **$8,370** | **$3,395** | **$4,975** | **146.5%** | **$15,110** | **$6,710** | **$8,400** | **125.2%** | - Total revenue from the Critical Power segment increased significantly by **146.5%** to **$8,370 thousand** for Q2 2025 and by **125.2%** to **$15,110 thousand** for YTD 2025, primarily driven by increased sales and rentals of mobile EV charging solutions (e-Boost)[101](index=101&type=chunk)[102](index=102&type=chunk) [Gross Profit and Margin](index=25&type=section&id=Gross%20Profit%20and%20Margin) This section examines changes in gross profit and margin, attributing decreases to an unfavorable sales mix and higher production costs Gross Profit and Margin (in thousands, except percentages) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Variance | % Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Variance | % Change | | :----- | :------------------------------- | :------------------------------- | :------- | :------- | :----------------------------- | :----------------------------- | :------- | :------- | | Gross profit | $1,314 | $641 | $673 | 105.0% | $1,462 | $1,176 | $286 | 24.3% | | Gross margin % | 15.7% | 18.9% | (3.2)% | | 9.7% | 17.5% | (7.8)% | | - Gross margin decreased to **15.7%** for Q2 2025 (from **18.9%**) due to an unfavorable sales mix, and to **9.7%** for YTD 2025 (from **17.5%**) primarily due to lower margins on initial eMobility units from higher production costs during process refinement[103](index=103&type=chunk)[104](index=104&type=chunk) [Operating Expenses](index=26&type=section&id=Operating%20Expenses) This section analyzes changes in selling, general and administrative (SG&A) and research and development (R&D) expenses Operating Expenses (in thousands, except percentages) | Expense Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Variance | % Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Variance | % Change | | :--------------- | :------------------------------- | :------------------------------- | :------- | :------- | :----------------------------- | :----------------------------- | :------- | :------- | | Selling, general and administrative | $2,488 | $2,138 | $350 | 16.4% | $4,903 | $4,188 | $715 | 17.1% | | Research and development | $534 | $238 | $296 | 124.4% | $614 | $449 | $165 | 36.7% | | **Total operating expense** | **$3,022** | **$2,376** | **$646** | **27.2%** | **$5,517** | **$4,637** | **$880** | **19.0%** | - Selling, general and administrative (SG&A) expenses increased by **16.4%** for Q2 2025 and **17.1%** for YTD 2025, primarily due to higher trade show costs, commissions, and professional fees[106](index=106&type=chunk)[107](index=107&type=chunk) - Research and development (R&D) expenses increased by **124.4%** for Q2 2025 and **36.7%** for YTD 2025, driven by development activities for mobile e-Boost EV charging solutions[108](index=108&type=chunk) [Operating Loss from Continuing Operations](index=26&type=section&id=Operating%20Loss%20from%20Continuing%20Operations) This section details the operating loss from continuing operations, noting the impact of sales, rentals, gross profit, and SG&A expenses Operating Loss from Continuing Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Variance | % Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Variance | % Change | | :----- | :------------------------------- | :------------------------------- | :------- | :------- | :----------------------------- | :----------------------------- | :------- | :------- | | Operating loss from continuing operations | $(1,708) | $(1,735) | $27 | 1.6% | $(4,055) | $(3,461) | $(594) | (17.2)% | - Operating loss from continuing operations decreased by **1.6%** for Q2 2025 due to increased sales and rentals, but increased by **17.2%** for YTD 2025 primarily due to decreased gross profit and higher SG&A expenses[109](index=109&type=chunk)[110](index=110&type=chunk) [Non-Operating Income from Continuing Operations](index=27&type=section&id=Non-Operating%20Income%20from%20Continuing%20Operations) This section reports on interest income and other non-operating income, including gains from equity method investments Non-Operating Income (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Interest Income | $183 | $20 | $431 | $51 | | Other Income, net | $297 | $- | $320 | $40 | - Interest income increased significantly due to cash on hand[111](index=111&type=chunk) - Other income increased primarily due to a gain on the equity method investment[113](index=113&type=chunk) [Provision for Income Taxes](index=27&type=section&id=Provision%20for%20Income%20Taxes) This section explains the company's 0% effective tax rate, attributed to a full valuation allowance and discrete tax provision method - The Company recorded a **0% effective tax rate** for both the three and six months ended June 30, 2025, and 2024, primarily due to a full valuation allowance on deferred tax assets and the use of the discrete method for tax provision calculation[114](index=114&type=chunk)[115](index=115&type=chunk) [Net Loss per Share from Continuing Operations](index=27&type=section&id=Net%20Loss%20per%20Share%20from%20Continuing%20Operations) This section presents the net loss from continuing operations and the corresponding basic and diluted loss per share Net Loss from Continuing Operations per Share | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss from continuing operations | $(1,228) | $(1,715) | $(3,304) | $(3,370) | | Basic and diluted loss per share from continuing operations | $(0.11) | $(0.16) | $(0.30) | $(0.32) | [Income (loss) from Discontinued Operations](index=27&type=section&id=Income%20(loss)%20from%20Discontinued%20Operations) This section reports the income or loss from discontinued operations, primarily influenced by the PCEP Sale working capital adjustment Income (Loss) from Discontinued Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Loss from discontinued operations, net of tax | $(100) | $(568) | $1,047 | $52 | - The **$1,047 thousand income** from discontinued operations for the six months ended June 30, 2025, was primarily due to finalizing the net working capital adjustment from the PCEP Sale[121](index=121&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=28&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section discusses the company's cash position, working capital, cash flow activities, and future funding expectations - As of June 30, 2025, the Company had **$17,999 thousand in cash**, primarily from the PCEP Sale, and paid a one-time special cash dividend of **$16,665 thousand** on January 7, 2025[122](index=122&type=chunk) Cash Flow Summary (Six Months Ended June 30, in thousands) | Activity | 2025 | 2024 | | :------- | :-------- | :-------- | | Operating | $(3,963) | $(1,379) | | Investing | $(2,940) | $(614) | | Financing | $(16,720) | $4,923 | - Working capital decreased to **$23,916 thousand** as of June 30, 2025, from **$26,679 thousand** as of December 31, 2024[129](index=129&type=chunk) - The Company expects its current cash balance and operating cash flows to be sufficient to fund operations for the next twelve months, with cash requirements primarily for operating activities, capital improvements, and product development[131](index=131&type=chunk) [Capital Expenditures](index=30&type=section&id=Capital%20Expenditures) This section reports the company's additions to property and equipment for the six months ended June 30, 2025 and 2024 Additions to Property and Equipment (in thousands) | Period | 2025 | 2024 | | :----- | :--- | :--- | | Six months ended June 30 | $740 | $614 | [Known Trends, Events, Uncertainties and Factors That May Affect Future Operations](index=30&type=section&id=Known%20Trends,%20Events,%20Uncertainties%20and%20Factors%20That%20May%20Affect%20Future%20Operations) This section identifies factors that may impact future operations, including industry cyclicality, raw material prices, geopolitical conflicts, and policy changes - Future operating results are subject to quarterly variations due to the cyclical nature of the electrical equipment industry, changing customer requirements, and fluctuations in raw material prices (copper, steel, aluminum)[135](index=135&type=chunk) - Ongoing geopolitical conflicts (Russia-Ukraine, Israel-Hamas) and rising global inflation could adversely impact macroeconomic conditions, market volatility, and the Company's business[135](index=135&type=chunk) - Changes in U.S. policy regarding tariffs, trade, taxation, and the regulatory environment may also affect the Company's operations[135](index=135&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there are no applicable quantitative and qualitative disclosures about market risk for the reporting period - The Company has no applicable quantitative and qualitative disclosures about market risk[136](index=136&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) This section addresses the effectiveness of disclosure controls and internal control over financial reporting, identifying a material weakness and outlining remediation [Evaluation of Disclosure Controls and Procedures](index=31&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section concludes that disclosure controls were not effective due to a material weakness, despite management's additional financial analyses - Management, including the CEO and CFO, concluded that disclosure controls and procedures were not effective as of June 30, 2025, due to an identified material weakness[137](index=137&type=chunk) - Despite the material weakness, management performed additional analyses and concluded that the unaudited condensed consolidated financial statements fairly state the financial position, results of operations, and cash flows in conformity with U.S. GAAP[137](index=137&type=chunk) [Material Weakness in Internal Control over Financial Reporting](index=31&type=section&id=Material%20Weakness%20in%20Internal%20Control%20over%20Financial%20Reporting) This section identifies a material weakness in internal control over financial reporting due to insufficient accounting personnel and lack of segregation of duties - A material weakness in internal control over financial reporting exists due to the lack of sufficient accounting personnel, leading to an inability to maintain proper segregation of duties[139](index=139&type=chunk) - This material weakness was present as of December 31, 2024, and continued to exist as of June 30, 2025[139](index=139&type=chunk) [Management's Plan to Remediate the Material Weakness](index=31&type=section&id=Management's%20Plan%20to%20Remediate%20the%20Material%20Weakness) This section outlines management's plan to remediate the material weakness through external engagement, ERP implementation, enhanced controls, and additional hiring - Management's remediation plan includes engaging external third parties, implementing a new ERP system for systemic enforcement of segregation of duties, enhancing process-level and general IT controls within the new ERP, and hiring additional accounting and finance personnel[140](index=140&type=chunk)[143](index=143&type=chunk) - The Company is committed to a strong internal control environment, but full implementation and confirmation of effectiveness will take time, and the material weakness will persist until remediation steps are fully tested[141](index=141&type=chunk) [Changes in Internal Control over Financial Reporting](index=31&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) This section confirms no other material changes in internal control over financial reporting beyond the identified material weakness - Other than the material weakness described, there have been no other changes in internal control over financial reporting during the three months ended June 30, 2025, that materially affected or are reasonably likely to materially affect internal control over financial reporting[142](index=142&type=chunk) [PART II. OTHER INFORMATION](index=32&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers other required disclosures, including legal proceedings, risk factors, equity sales, defaults, and exhibits [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The Company is not aware of any material legal proceedings or threatened litigation that could adversely affect its business - The Company is not aware of any material legal proceedings, threatened or pending litigation, or proceedings contemplated by governmental authorities that could have a material adverse effect on its business[145](index=145&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) This section highlights significant customer concentration as a key risk that could adversely affect the company's business and financial results - A significant portion of the Company's revenues has historically been concentrated and derived from a few customers, posing a risk of adverse effects on business, financial condition, and operating results if business from these customers is lost[147](index=147&type=chunk) - For the three months ended June 30, 2025, two customers accounted for **31% and 19% of revenues**; for the six months, two customers accounted for **34% and 13% of revenues**[148](index=148&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section indicates that there were no unregistered sales of equity securities or use of proceeds to report for the period - There were no unregistered sales of equity securities or use of proceeds to report[151](index=151&type=chunk) [Item 3. Defaults Upon Senior Securities](index=33&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities during the reporting period - There were no defaults upon senior securities[152](index=152&type=chunk) [Item 4. Mine Safety Disclosures](index=33&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are not applicable to the Company - Mine safety disclosures are not applicable to the Company[153](index=153&type=chunk) [Item 5. Other Information](index=33&type=section&id=Item%205.%20Other%20Information) This section states that there is no other information to report for the period - There is no other information to report[154](index=154&type=chunk) [Item 6. Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section provides an index of exhibits filed or furnished with the Quarterly Report on Form 10-Q, including certifications and XBRL documents Exhibit Index | Exhibit No. | Description | | :---------- | :----------------------------------------------------------------------- | | 31.1* | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | | 31.2* | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | | 32.1** | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | | 32.2** | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | | 101.INS* | Inline XBRL Instance Document | | 101.SCH* | Inline XBRL Taxonomy Extension Schema Document | | 101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | | 101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | | 101.LAB* | Inline XBRL Taxonomy Extension Labels Linkbase Document | | 101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | | 104* | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
Pioneer Power Solutions(PPSI) - 2025 Q1 - Earnings Call Transcript
2025-05-19 21:32
Financial Data and Key Metrics Changes - First quarter revenue more than doubled to $6,700,000, an increase of 103% compared to $3,300,000 in the same quarter last year [4][13] - Gross profit for Q1 was $148,000, resulting in a gross margin of approximately 2%, down from a gross profit of $535,000 and a 16% gross margin in the prior year [13] - Operating loss from continuing operations was $2,300,000, compared to a loss of $1,700,000 in the same quarter last year [14] - Net loss from continuing operations was $2,100,000, compared to a net loss of $1,700,000 in the prior year [15] - Total backlog at the end of Q1 was $23,200,000, an increase of 18% compared to the previous quarter [6] Business Line Data and Key Metrics Changes - The primary contributor to revenue growth was the completion of 10 eBoost units for a major public school district, part of a larger order for 25 units [4][5] - The sales pipeline for eBoost solutions is expanding, with active discussions with municipalities and major delivery providers [7][8] Market Data and Key Metrics Changes - The company is seeing increased demand for mobile EV charging solutions, particularly in the context of municipalities transitioning to electric fleets [8][34] - HomeBoost, a new residential and light commercial power system, is expected to drive growth and innovation starting in 2026 [9][10] Company Strategy and Development Direction - The company aims to improve gross margins as production efficiencies are realized with ongoing orders [6][14] - HomeBoost is positioned as a premium product, with a focus on energy resilience and fast charging for residential and light commercial markets [9][10] - The company is exploring partnerships and distribution channels to enhance market reach, especially for HomeBoost [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in recovering margins in the second half of the year as production processes improve [21] - The company reaffirmed its revenue guidance for 2025, expecting total revenue between $27,000,000 and $29,000,000 [16] - Management noted that the current market gap for grid connections is expected to persist for at least five more years, indicating sustained demand for mobile solutions [34] Other Important Information - The company incurred a one-time special cash dividend payment of $16,700,000, impacting cash reserves [15][16] - The HomeBoost product launch is anticipated in the second half of 2025, with no impact on 2025 revenue guidance [25] Q&A Session Summary Question: How do you see margins recovering? - Management indicated that margins should improve in the second half of the year as production processes become more efficient [21] Question: How is the eBoost pipeline shaping up for 2026 revenue? - Management noted that a reasonable cutoff for closing deals to impact 2026 bookings would be around June [22][23] Question: Is HomeBoost suitable for users with solar panels? - Management confirmed that HomeBoost can operate in island mode, allowing users to disconnect from the grid if they have a natural gas connection [29] Question: How long will the eBoost market last? - Management believes the demand for mobile solutions will continue to grow due to challenges in obtaining grid connections [34] Question: How is the distribution network evolving? - Management highlighted the importance of channel partners and distributors to reach municipalities and states effectively [48] Question: What focus will the company have in 2026? - Management indicated that HomeBoost is expected to occupy a significant portion of their focus and resources moving forward [51][53]
Pioneer Power Solutions(PPSI) - 2025 Q1 - Earnings Call Transcript
2025-05-19 21:30
Financial Data and Key Metrics Changes - First quarter revenue more than doubled to $6,700,000, an increase of 103% compared to $3,300,000 in the same quarter last year [13] - Gross profit for Q1 was $148,000, with a gross margin of approximately 2%, down from a gross profit of $535,000 and a 16% gross margin in the prior year [13] - Operating loss from continuing operations was $2,300,000, compared to a loss of $1,700,000 in the first quarter of the previous year [14] - Net loss from continuing operations was $2,100,000, compared to a net loss of $1,700,000 in the same quarter last year [15] - Total backlog at the end of Q1 was $23,200,000, an increase of 18% compared to the prior quarter [6] Business Line Data and Key Metrics Changes - The primary contributor to revenue growth was the initial completion of 10 eBoost units for a major public school district, part of a larger order for 25 units [4][5] - The sales pipeline for eBoost solutions is expanding, with active discussions with municipalities, transit authorities, and major delivery providers [7] Market Data and Key Metrics Changes - The company is experiencing increased demand for on-site power solutions, particularly in the electric vehicle charging sector [4] - The HomeBoost platform is positioned to meet growing energy demands in residential and light commercial markets [9] Company Strategy and Development Direction - The company aims to improve gross margins as production efficiencies are realized with ongoing orders [6][14] - HomeBoost is expected to be a significant growth driver in 2026 and beyond, with a focus on launching the product in the second half of 2025 [10][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in recovering margins in the second half of the year as production processes improve [22] - The company reaffirmed its revenue guidance for 2025, projecting total revenue between $27,000,000 and $29,000,000 [15] Other Important Information - Cash on hand as of March 31, 2025, was $25,800,000, down from $41,600,000 at the end of 2024, primarily due to a special cash dividend [15] Q&A Session Summary Question: How do you see margins recovering? - Management indicated that margins should improve in the second half of the year as production processes become more efficient [22] Question: How is the eBoost pipeline shaping up for 2026 revenue? - Management noted that June is a reasonable cutoff for closing deals that would contribute to 2026 bookings [24] Question: Is HomeBoost suitable for users with solar panels? - Management confirmed that HomeBoost can operate in island mode, allowing users to disconnect from the grid if they have a natural gas connection [31] Question: How long will the eBoost market last? - Management believes the demand for mobile solutions will continue to grow due to challenges in obtaining grid connections [35] Question: How is the distribution network evolving? - Management highlighted the importance of channel partners and distributors in reaching municipalities and states, indicating a need for more intermediaries [50] Question: What is the focus for 2026 regarding HomeBoost? - Management stated that HomeBoost is occupying a significant portion of their attention, with plans to contract manufacturing to focus on design and marketing [55]