Electrovaya Inc. Q1 FY2026 earnings call

• Q1 provided a strong start with significant revenue growth, improved margins, and maintained profitability. - Strengthened balance sheet via operational performance, financial partner support, and equity raise in Nov 2025. - Core material handling: New OEM integrated high-voltage battery systems to start commercial deliveries in March 2026; deliveries to defense contractor for new vehicle platform. - Robotics: Initiated commercial deliveries of 48-volt battery system; in discussions with additional OEMs. - Airport ground support equipment: Testing continues with potential long-term opportunity. - Established Japanese subsidiary for Asia Pacific growth. - Product development: Rapid charging power cell, energy storage systems for 800-volt DC, next-gen ceramic separator technology. - Jamestown expansion: Commenced facility upgrades, delivered dry room equipment, hiring key personnel.

Revenue for Q1 2026 was $15,500,000, a nearly 40% year-over-year increase from $11,100,000. Gross margins improved to 32.9% from 30.5% in the prior year. EBITDA was approximately $2,000,000, and net income was over $1,000,000. Positive cash flow from operations was $1,700,000 compared to cash used of $300,000 in the prior year. The company ended Q1 with positive net working capital of $51,900,000 and a current ratio of 6.0.

• Reaffirmed revenue guidance of 30% growth for fiscal 2026. - Anticipate continued momentum into Q2 and rest of fiscal year. - Expect revenue from Jamestown facility to start in fiscal 2027, with potential cell contribution in last quarter of 2026.

• Forward-looking statements involve risks and uncertainties; actual results may differ from expectations. - Factors include market trends, competitive position, and risks detailed in press release, Annual Information Form, and Management Discussion and Analysis.

Q: Update on customers in sales funnel and velocity of sales activity.

A: Material handling has large Fortune 100/500 customers with good visibility; robotics has partners shipping batteries, with discussions with additional OEMs.

Q: Timing on stationary storage pilots and potential customers.

A: Pilots for standardized high-power product, including government-backed project; 800-volt DC system in development with electricity generation companies.

Q: Defense vs robotics as revenue drivers.

A: Robotics expected to be larger than defense in current year, but both significant.

Q: CapEx outlook for Jamestown, workforce hiring.

A: Expect CapEx spend on Ex-Im loan before end of fiscal year, hiring experienced personnel for manufacturing.

Q: Revenue contribution from Jamestown facility.

A: No cell revenue in fiscal 2026, potential battery system revenue in fiscal 2026 Q4.

Q: 45X tax credits impact.

A: Anticipate $10 per kWh for module production initially, switching to $35 per kWh for cell production when cell output reaches certain speed.

Q: Upside to 30% growth guidance.

A: Growth based on backlog and front log, with potential from airport ground equipment and new product developments.

Q: Solid state battery milestones.

A: Equipment for solid state cells arrived, scaling up cells from April, potential sampling soon.

Q: Class three MHE product margins.

A: Customer-driven, designed to maintain margins using aspects of robotic battery systems.

Q: Ceramic separator development.

A: Focus on making thinner, higher thermal stability, using new materials; domestically scaling production.

Q: Ground service equipment opportunity.

A: Received pilot orders, looking at large-scale deployment with first airline.

Q: Gross and operating margin outlook.

A: Modest margin improvement, significant margin change with Jamestown cell production and 45X tax credits; semiconductor costs not major impact.

Q: Military spending percentage and margins.

A: Defense margins expected higher, but scaling slowly due to testing and certification.