We recently compiled a list of the 12 Best Stocks to Own for Grandchildren. Targa Resources Corp. is one of them. Targa Resources Corp. (NYSE:TRGP) is a leading midstream energy company with extensive infrastructure that connects North American natural gas and natural gas liquids (NGLs) to key domestic and international markets. Its core operations in gathering, processing, and transporting hydrocarbons provide fee-based revenue streams, offering resilience and stability for long-term investors. In Septe ...

Financial Data and Key Metrics Changes - In Q4 2024, revenue from continuing operations was $9.8 million, a 265% increase from $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 company narrowed its loss from continuing operations in 2024 to $3.3 million, compared to a loss of $6.3 million in 2023, marking a year-over-year improvement of approximately $3 million [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 in 2023, reflecting a year-over-year growth of 106% [9][28] - The critical power segment incurred an operating loss of $5.2 million in 2024, an improvement from a loss of $7 million in 2023 [29] Market Data and Key Metrics Changes - The company reported a total backlog of $19.8 million at the end of 2024, a 19% increase compared to the end of 2023 [14] - The markets most active for the company include transit buses, school buses, electric truck and van fleets, and large government and corporate fleets [18] Company Strategy and Development Direction - The company plans to focus on its critical power business, particularly the eBoost platform, and aims to diversify revenue streams to drive sustained long-term growth [13][19] - The launch of the HomeBoost product is targeted at high-end residential and light commercial segments, with plans to provide whole-home backup power and advanced EV charging capabilities [16][17] 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 optimistic about the demand driven by rapid EV adoption and the increasing need for mobile and off-grid charging solutions [18] Other Important Information - The company sold its Pioneer Custom Electrical Products unit for $50 million, which included a cash payment of $48 million and an equity stake in Millpoint Capital [7][22] - A one-time special cash dividend of $1.50 per share was declared, returning $16.7 million to shareholders [8][32] 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 entities, particularly for transit and school buses [40] Question: How is the service equipment mix looking for 2025? - The company budgeted $2.5 million in lease and rental revenue for 2025, with expectations to potentially exceed that amount [42] Question: Can you provide an update on the HomeBoost product? - The HomeBoost product is being redesigned to enhance its aesthetic appeal and is targeted at high-end residential users and small businesses requiring reliable power solutions [46][47] Question: Should gross margins around 29% be expected going forward? - Management noted that the gross margins are expected to remain stable or improve, driven by a favorable mix of product and service revenues [51][52] Question: Are there any macroeconomic factors that could impact the outlook for 2025? - Management acknowledged that while macroeconomic factors could affect the business, the current demand from government entities for electric solutions is strong and unlikely to reverse [64]