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Pioneer Power Solutions(PPSI) - 2025 Q2 - Quarterly Results

Executive Summary Q2 2025 Performance Highlights 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 million1 Strategic Developments 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 States6 - 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 providers8 Company Overview About Pioneer Power Solutions, Inc. 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 solutions123 - The company serves applications in the utility, industrial, and commercial markets23 e-Boost Product Portfolio 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 sustainability24 - Launched in November 2021, e-Boost has become a market leader, delivering mobile, off-grid charging solutions with unparalleled lead times24 - It is trusted by electric bus and truck manufacturers, fleet management companies, municipalities, and EV infrastructure providers24 Detailed Financial Results - Q2 & H1 2025 Revenue Analysis 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-Boost9 Gross Profit and Margin Analysis 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 equipment10 Operating Loss from Continuing Operations 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 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 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 Balance Sheet Overview 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 payments14 - The Company had no bank debt as of June 30, 202514 2025 Outlook Full-Year 2025 Revenue Guidance 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 solution15 - Assumptions for the outlook include backlog orders translating into revenue, satisfactory completion and delivery of orders, and timely payment by customers17 Non-GAAP Financial Measures Definition and Purpose 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 fees72035 - These non-GAAP measures provide useful supplemental information about operating performance and enable comparison of financial trends and results between periods, independent of business performance2021 Reconciliation of Non-GAAP Measures 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 Earnings Conference Call Details 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 results17 - Dial-in numbers: 1-877-407-0789 (US) or 1-201-689-8562 (International), using confirmation code 1375525118 - 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 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 uncertainties25 - 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 litigation25 - 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-Q26 Contact Information Contact details for investor relations are provided for inquiries - Contact: Brett Maas, Managing Partner, Hayden IR27 - Phone: (646) 536-7331; Email: brett@haydenir.com27 Financial Statements Condensed Consolidated Statements of Operations 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 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 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 |