Pioneer Power Solutions, Inc. Q1 FY2025 earnings call

• First quarter revenue was $6.7 million, doubling from the prior year, driven by the initial completion of 10 e-Boost units for a large school district. - Backlog increased to $23.2 million, up 18% from the prior quarter. - Introduced HOMe-Boost, a new residential/light commercial power system set to launch in the second half of 2025. - GAAP net loss from continuing operations for Q1 2025 was $2.1 million compared to $1.7 million in Q1 2024. - Non-GAAP operating loss from continuing operations for Q1 2025 was $989,000 compared to $319,000 in Q1 2024. - Reaffirmed full-year 2025 revenue guidance of $27 million to $29 million.

The primary segment is e-Boost. First quarter revenue was $6.7 million, more than doubling from the prior year. Gross profit in Q1 was $148,000 with a gross margin of approximately 2%. The backlog at the end of Q1 was $23.2 million, an increase of 18% compared to the prior quarter. A new residential/light commercial power system called HOMe-Boost was announced in March 2024, which is a game-changing solution for energy resilience and fast charging.

• Reaffirmed full-year 2025 revenue guidance of $27 million to $29 million.

• Margins in Q1 were affected by start-up costs due to the initial production of e-Boost units. - Uncertainty about the longevity of the e-Boost market if grid connection issues are resolved more quickly than anticipated.

Q: On the margin in the quarter, how do you see margins recovering and where do you think you can get the margins to for this product line?

A: The last quarter was indicative of the start-up margin issue. The second half of the year should see improved margins as they get past the initial large order of 25 units. Margins should recover to something similar to the fourth quarter of the prior year.

Q: On the e-Boost pipeline and HOMe-Boost pipeline, how is the pipeline shaping up?

A: e-Boost pipeline has dozens of discussions with municipalities, etc., with a cutoff of end of June for 2026 bookings. HOMe-Boost is still launching in the back half, with 50% of management's mind space focused on it as they believe it could be a large product.

Q: How do you view the e-Boost market longevity and comparison to diesel?

A: Grid gap issue is expected to continue for at least five years due to difficulties in getting grid connections. e-Boost is cheaper than diesel for charging electric buses and vehicles.