Pioneer Power Solutions (PPSI) Q1 2025 Earnings Call May 19, 2025 04:30 PM ET Company Participants Brett Maas - Managing PartnerNathan Mazurek - Chairman, Chief Executive OfficerWalter Michalec - Chief Financial Officer Conference Call Participants Rob Brown - Founding Partner & Senior Research AnalystNone - Analyst Operator Greetings and welcome to the Pioneer Power First Quarter twenty twenty five Earnings Conference Call. At this time, participants are in a listen only mode. A question and answer session ...

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]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-35212 PIONEER POWER SOLUTIONS, INC. (Exact name of registrant as specified in its charter) Delaware 27-1347616 (State or other jurisdiction of incorporation or o ...

Revenue Growth - Full year revenue for 2024 was $22.9 million, representing a 106% increase compared to $11.1 million in 2023[8] - Q4 2024 revenue reached $9.8 million, a 265% increase from $2.7 million in Q4 2023, primarily driven by increased shipments and rentals of mobile EV charging equipment[9] - Revenues for the year ended December 31, 2024, increased to $22,879 million, up from $11,116 million in 2023, representing a growth of 105%[33] Profitability - Gross profit for 2024 was $5.5 million, with a gross margin of 24%, compared to $2.2 million and a 20% gross margin in 2023[15] - Net income for 2024 was $31,855 million, a significant turnaround from a net loss of $1,898 million in 2023[33] - Basic earnings per share for 2024 was $2.97, compared to a loss of $0.19 per share in 2023[33] Operating Performance - Operating loss from continuing operations for 2024 was $(5.2) million, an improvement of approximately $1.8 million or 25% from $(7.0) million in 2023[16] - Non-GAAP operating income from continuing operations for 2024 was $1.7 million, compared to a non-GAAP operating loss of $(1.3) million in 2023, marking a year-over-year improvement of approximately $3.0 million[8] - Operating loss from continuing operations improved to $(5,248) million in 2024 from $(7,035) million in 2023[39] Cash and Assets - Cash on hand increased to $41.6 million at the end of 2024, compared to $3.6 million at the end of 2023, reflecting an increase of approximately $38.0 million[19] - Total current assets increased to $56,657 million in 2024 from $27,683 million in 2023, a growth of 104%[35] - Cash balance at the end of 2024 was $41,622 million, a substantial increase from $3,582 million at the end of 2023[37] Liabilities and Financial Obligations - Total liabilities rose to $30,522 million in 2024, up from $18,804 million in 2023, indicating increased financial obligations[35] Backlog and Future Guidance - The backlog as of December 31, 2024, was $19.8 million, up from $16.7 million a year earlier, indicating a year-over-year increase of $3.1 million[8] - The company reaffirmed its revenue guidance for 2025, expecting revenue between $27 million and $29 million[20] Research and Development - Research and development expenses for 2024 were $1,050 million, up from $885 million in 2023, indicating continued investment in innovation[39] Charging Sessions - The number of charging sessions increased to 14,500 in 2024, a 93% increase from 7,500 sessions in 2023[5] Investment Activities - The company reported a net cash provided by investing activities of $38,876 million in 2024, primarily from the sale of the PCEP business[37]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenue from continuing operations of $9.8 million, a significant increase of 265% compared to $2.7 million in the same quarter last year [24][25] - Full-year 2024 revenue from continuing operations reached $22.9 million, up 106% from $11.1 million in 2023 [28] - The net income from continuing operations for Q4 2024 was $759,000, compared to a net loss of $1.4 million in Q4 2023, marking a year-over-year improvement of approximately $2.1 million [27] - The company narrowed its loss from continuing operations for the full year 2024 to $3.3 million, an improvement from a loss of $6.3 million in 2023 [30] Business Line Data and Key Metrics Changes - The eBoost mobile charging platform generated $22.9 million in revenue for 2024, more than double the $11.1 million reported in 2023, reflecting a year-over-year growth of 106% [9][28] - The critical power segment incurred an operating loss of $1.1 million in Q4 2024, an improvement from a loss of $1.9 million in Q4 2023 [26] - The backlog for the critical power segment, including eBoost, was $19.8 million at the end of 2024, a 19% increase compared to the end of 2023 [14] Market Data and Key Metrics Changes - The company is focusing on government and quasi-government sectors, particularly in transit and school bus markets, which are driving new demand [40] - The markets with robust demand include transit buses, school buses, electric truck and van fleets, and large government and corporate fleets [18] Company Strategy and Development Direction - Following the sale of the Pioneer Custom Electrical Products unit, the company is now more focused on its critical power business, particularly the eBoost platform [7][22] - The company is expanding its product line with the launch of HomeBoost, targeting high-end residential and light commercial segments [15][16] - The company aims to diversify revenue streams and drive sustained long-term growth through innovation and market expansion [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving or surpassing the revenue guidance for 2025, reaffirming a target of $27 to $29 million [19][32] - The company is well-positioned to capitalize on the increasing need for flexible off-grid charging solutions, supported by zero debt and cash on hand of $41.6 million [18][30] - Management acknowledged potential macroeconomic uncertainties but indicated that the current demand from government clients is strong and unlikely to reverse [64] Other Important Information - The company declared a one-time special cash dividend of $1.50 per share, totaling $16.7 million, payable on January 7, 2025 [8][32] - The gross profit margin for Q4 2024 was 29%, an increase from 23% in the same quarter last year, primarily driven by the growth in the eBoost business [25][52] Q&A Session Summary Question: What is driving the strong backlog and growth in eBoost? - Management indicated that the largest customer segment is government-related, particularly for transit and school buses [40] Question: How is the service equipment mix looking for 2025? - The company expects to generate approximately $2.5 million in lease and rental revenue for 2025 [42] Question: Can you provide an update on the HomeBoost product? - Management mentioned that the HomeBoost product is being redesigned to enhance its aesthetic appeal and functionality for high-end residential and commercial users [46] Question: Should we expect gross margins to remain at 29% going forward? - Management noted that the gross margins are expected to remain stable or improve slightly, depending on the mix of product and service sales [52] Question: What is the outlook for 2025 given the strong backlog? - Management expressed confidence in the 2025 revenue guidance, indicating that the majority of the year’s revenue is already secured [57] Question: Are there any macroeconomic factors that could impact the outlook for 2025? - Management acknowledged that while macroeconomic factors could affect the overall market, the current demand from government clients is strong and committed to electric solutions [64]

Pioneer Power Solutions, Inc. (PPSI) Q4 2024 Earnings Conference Call April 15, 2025 04:30 PM ET Company Participants Brett Moss - Host, Hayden IRNot Provided - Investor Relations Representative (Introductions)Nathan Masaryk - Chairman and Chief Executive OfficerWalter Michalik - Chief Financial OfficerOperator - Teleconference Operator Conference Call Participants Rob Brown - Analyst, Lake Street Capital MarketsSamir Joshi - Analyst, HC Winrate Brett Moss This time, all participants are in a listen-only mo ...

Business Focus and Strategy - The company sold its Pioneer Custom Electrical Products Corp. business unit in October 2024, resulting in a focus on its Critical Power Solutions segment[14]. - The company aims to improve business processes to deliver consistency, quality, and value to customers, supporting its growth strategy[21]. Customer and Revenue Insights - For the year ended December 31, 2024, 87% of sales were to U.S. customers and 13% to Canadian customers, with the 20 largest customers representing approximately 74% of consolidated revenue[25]. - Approximately 22% of sales in 2024 were made to INF Associates, LLC, indicating reliance on key customers for revenue[26]. Revenue Backlog and Growth Opportunities - Revenue backlog as of December 31, 2024, was approximately $19,762, compared to $16,668 as of December 31, 2023, driven by increased orders for mobile EV charging solutions[27]. - The global electric vehicle market is projected to reach $803 billion by 2027, with North America estimated to reach $194 billion, reflecting a significant growth opportunity for the company[23]. Research and Development - Research and development costs for mobile EV charging solutions amounted to $1,050 in 2024, up from $885 in 2023, indicating a focus on innovation[30]. Service Network and Maintenance - The company services over 2,400 generators owned by more than 900 customers across the United States, highlighting its extensive service network[16]. - The company maintains a network of field service partners to ensure quick-response, 24/7 service capabilities for power generation equipment[16]. - The company is actively marketing preventive maintenance services to national accounts, including major retailers and telecommunications companies, to drive internal growth[19].

Financial Results - Pioneer Power Solutions, Inc. announced preliminary unaudited financial results for Q4 and full year ended December 31, 2024[5] - The press release was issued on February 19, 2025, detailing the company's financial performance[5] - The financial statements and exhibits are included in the report, with Exhibit 99.1 being the press release[7] Regulatory Information - The report is not deemed "filed" under the Securities Exchange Act of 1934, and is for informational purposes only[6] Company Information - The company is listed on the Nasdaq Stock Market under the trading symbol PPSI[3]

Group 1 - Pioneer Power Solutions (NASDAQ: PPSI) sells mobile propane-powered DC fast charging (DCFC) stations under the e-Boost brand [1] - The e-Boost stations are designed for use in remote locations and off-grid situations, providing a quick way to add range to electric vehicles [1]

Financial Results - Pioneer Power Solutions, Inc. reported financial results for Q3 2024, with a significant business update provided on November 14, 2024[2] Dividends - The company declared a one-time special cash dividend of $1.50 per share, totaling approximately $16.5 million based on current shares outstanding[4] - The dividend will be paid on January 7, 2025, to stockholders of record as of December 17, 2024, funded by proceeds from the sale of the Electrical Infrastructure Equipment segment[4]