Core Viewpoint - Conduit Power, LLC has secured financial agreements with Diamondback Energy, Inc. and Granite Ridge Resources for the development of 200 megawatts of new natural gas power generation assets aimed at supplying energy and ancillary services to ERCOT, Texas's largest power grid operator [1]. Group 1 - Conduit Power is developing 200 megawatts of new natural gas power generation assets [1]. - The agreements involve collaboration with Diamondback Energy and Granite Ridge Resources [1]. - The energy produced will be sold to the Electric Reliability Council of Texas (ERCOT) [1].

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $302.4 million, a 97% increase year-over-year and a 10% increase sequentially from Q4 2024 [26][7] - Adjusted gross margin for Q1 2025 was 26.5%, reflecting a decline due to the roll-off of prior year benefits and a higher mix of international projects [29][30] - Net income attributable to common stockholders was $2.3 million, compared to a net loss of $11.3 million in the prior year [31] - Adjusted EBITDA was $40.6 million, representing an adjusted EBITDA margin of 13.4% [30] Business Line Data and Key Metrics Changes - Delivered volume increased by 143% year-over-year, achieving the second-largest quarter of volume shipped since Q2 2023 [27][7] - Domestic order book grew over 9% in Q1 2025, with over 40% of the order book set to be delivered in the remaining quarters of 2025 [8][9] - New product offerings, such as Omnitrac and Skylink, accounted for 15% of revenue and 30% of new bookings in Q1 [9] Market Data and Key Metrics Changes - The order book remained resilient at $2 billion despite near-term policy-related headwinds [7][36] - North America represented approximately 65% of revenue, with a mix shift impacting gross margins [28] - International markets, particularly Europe, are performing as expected with solid growth anticipated in 2025 [14] Company Strategy and Development Direction - The company is focused on maintaining operational agility and delivering long-term value amidst a rapidly evolving policy environment [6] - Continued investment in talent and technology is aimed at enhancing customer engagement and product innovation [8][20] - The company is actively engaging with policymakers to support energy tax credits and address regulatory uncertainties [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of fundamentals and the resilience of the company despite near-term volatility [6] - The company reaffirmed its full-year 2025 guidance, expecting revenue between $1.05 billion and $1.15 billion [36] - Management noted that while utility-scale solar remains a low-cost energy source, regulatory uncertainties may lead to project delays [11] Other Important Information - The company ended the quarter with a cash balance of approximately $348 million and total liquidity of about $510 million [32][34] - Free cash flow for the period was a use of $15.4 million, driven by working capital investments [30] - The company is exploring additional markets for international expansion, including the Middle East [15] Q&A Session Summary Question: Can you provide more color on the growing interest in VCAs? - Management is in active discussions with customers about longer-term commitments and will announce VCAs as they are finalized [42][44] Question: What is the guidance for Q2 revenue? - Specific guidance for Q2 has not been provided, but the first half is expected to account for about 55% of total revenue [46][47] Question: Can you discuss the size of orders and lead times? - Lead times remain industry-leading at fourteen weeks, with ongoing discussions about potential early pull-ins for 2025 [50][51] Question: How is the company managing cash use and term loans? - The company has successfully amended its revolving credit facility and is considering options for managing term loans [61][62] Question: What is the exposure to battery cell pack challenges? - Most components needed for projects are already in the country, minimizing risk for 2025 projects [76] Question: How are steel pricing and bookings expected to impact margins? - Steel prices are expected to increase, which will translate into higher ASPs for future bookings [85][86]

2024 Financial Highlights - Record annual revenue reached $1.47 billion[7] - Record annual non-GAAP gross margin was 28.7%[7] - Full-year positive cash flow from operating activities was generated at $92 million[7] - The service business achieved non-GAAP profitability every quarter[7] 2024 Commercial Performance - Healthy product backlog of $2.5 billion[7] - Significant new agreements were made with SVP and AEP[7] - The largest islanded microgrid in CA was established[7] - The world's largest single site fuel cell project, 80MW with SK Eternix, was announced[7] 2024 Financial Results (YoY Comparison) - Q4 2024 revenue increased by 60.4% to $572 million, compared to $357 million in Q4 2023[9] - Full year 2024 revenue increased by 10.5% to $1.474 billion, compared to $1.333 billion in 2023[9] - Q4 2024 non-GAAP gross margin was 39.3%, a 11.9 percentage point increase from 27.4% in Q4 2023[9] - Full year 2024 non-GAAP gross margin was 28.7%, a 2.9 percentage point increase from 25.8% in 2023[9] - Full year 2024 non-GAAP operating income was $108 million, compared to $19 million in 2023[9] Backlog - Product backlog remained at $2.5 billion[12] - Service backlog increased by 6% to $9.6 billion[12] 2025 Guidance - Total revenue is projected to be between $1.65 billion and $1.85 billion[15] - Non-GAAP gross margin is expected to be approximately 29%[15] - Non-GAAP operating income is projected to be between $135 million and $165 million[15]