Electrovaya Inc. Q4 FY2025 earnings call

• Fiscal 2025 was a significant year with strong profitable growth, major balance sheet improvements, and continued execution of long-term technology roadmap. - Grew revenue by over 40% year-over-year and achieved first full year of profitability. - Secured a $25 million facility from Bank of Montreal and a $51 million direct loan from EXIM. - Expanded institutional investor base with approximately $40 million in gross proceeds from equity issuances. - Advancing technology platform with initiatives like rapid charging cell development, next-generation separator technologies, solid-state battery development, and expanding Electrovaya lab site. - Commercial progress in material handling with over 10,000 systems deployed globally; scaling into new verticals including robotics, airport ground equipment, energy storage, defense, and targeting recurring revenue opportunities. - Jamestown construction progressing well, supporting supply chain resilience and U.S. manufacturing incentives.

For the quarter ended September 30, 2025, revenue was $20.5 million compared to $11.6 million in the prior year. Full year 2025 revenue was $63.8 million compared to $44.6 million in the prior year, a 43% growth. Gross margin for the quarter was 31%, an increase of 530 basis points over the prior year. Full year gross margin was 30.9% compared to 30.7% in the prior year. Operating profit for Q4 was $2.4 million compared to $0.7 million in the prior year. Full year operating profit was $5.5 million compared to $0.7 million in the prior year. Net profit for Q4 was $2 million compared to a net loss of $0.1 million in the prior year. Full year net profit was $3.4 million compared to a net loss of $1.5 million in the prior year. Adjusted EBITDA for Q4 was $3.4 million compared to $1.5 million in the prior year. Full year adjusted EBITDA was $8.8 million compared to $4.1 million in the prior year.

• Expect to exceed 30% growth in 2026. - Material handling to be 80-85% of 2026 revenue, new verticals 10-15%. - Jamestown continues to draw down on loans, with payments starting later. - Energy storage pilot in 2026, commercial scale in 2027. - New verticals like robotics have key customers with reliable forecasting, defense has collaboration visibility, while airport ground equipment has trial with a major airline with binary potential.

• Uncertainties in supply chains, increasing prices, and tariffs. - Vertical markets being less mature with uncertain outcomes. - Binary nature of some verticals like airport ground equipment where outcomes could be a multimillion dollar revenue source or very small. - Potential delays or changes in customer decisions affecting backlog and revenue projections.

Q: Eric Stine asked about expecting 10%-15% from new verticals in fiscal '26 and ranking of verticals.

A: Rajshekar Gupta said robotics has key customers with reliable forecasting, defense has collaboration visibility, airport ground equipment has trial with a major airline but is binary.

Q: Colin Rusch asked about ESS applications and competitive landscape in robotics.

A: Rajshekar Gupta said ESS has interest from data centers for 30-minute backup, robotics product is fast charging with potential to go head-to-head with supercapacitors.

Q: Jeffrey Campbell asked about LFP chemistry applications and Energy-as-a-Service progress.

A: Rajshekar Gupta said LFP has niche applications, Energy-as-a-Service is progressing with a third-party logistics company.

Q: Theophilos Genzebu asked about rapid charging milestones in robotics and backlog funding.

A: Rajshekar Gupta said development work ongoing, John Gibson said backlog is healthy but guiding is difficult with verticals.

Q: Craig Irwin's representative asked about transition of capacity from Mississauga to Jamestown.

A: Rajshekar Gupta said Mississauga and Jamestown are complementary, not a zero-sum game.

Q: Amit Dayal asked about aggressive sales efforts and market share in energy storage.

A: Rajshekar Gupta said focus is on certifications and high-quality products in energy storage, targeting noncommoditized parts of the market.