Pioneer Power Solutions, Inc. Q2 FY2025 earnings call

• Strong financial results for Q2 2025 with revenue at $8.4M and non-GAAP operating income of $218,000.
• Execution on the 25-unit e-Boost order for a large school district, with more units to be provided as the district receives additional electric school buses.
• Initial units delivered under the SparkCharge agreement, reflecting growing demand for mobile EV charging solutions.
• Broad opportunities in government agencies, transit authorities, robotaxis, ports, and package delivery for electrification.
• Electric school bus market and robotaxi segment as key growth areas.
• Backlog of approximately $18M at the end of Q2 2025, with a strong sales pipeline.
• Preparation to launch HOMe-Boost in H2 2025, integrating gas engine and DC fast charging for residential and light commercial use.

In the second quarter of 2025, Pioneer Power's revenue increased 150% year-over-year to $8.4 million. The primary driver was the e-Boost mobile EV charging platform, with significant growth from the 25-unit e-Boost order for a large school district. Gross profit on e-Boost units more than doubled in the second quarter. Additionally, initial units were delivered under the SparkCharge agreement, which is potentially worth up to $10 million. The company is also preparing to launch the HOMe-Boost residential and light commercial power system in the second half of 2025, which integrates a natural gas engine with optional DC fast charging.

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

• Forward-looking statements subject to risks and uncertainties causing actual results to differ.
• Potential impact of federal budget cuts on incentives for EV adoption.
• Competition in the EV charging space, with some competitors facing challenges but still a factor.

Q: On the e-Boost order with SparkCharge, could you provide more color on how the sizing and rollout work?

A: The variables are sizing and timing. There's fixed pricing for buying and leasing, and inventory is held for a 24-month period. We try to fix parameters with the customer over that period.

Q: How does the pipeline mature and what's the timing for orders to provide visibility into next year?

A: We'll make announcements for significant events. Government agencies move slowly, while private businesses move faster. It's a mix of different paces.

Q: What's the margin outlook for the HOMe-Boost product?

A: HOMe-Boost should move gross margins up, with longer-term targets of 30%+ as the business mix evolves.

Q: Can you explain the $1.4 million cash usage related to sales-type lease origination?

A: That was from a capital lease with a customer, and leasing opportunities are something we want to grow under the right circumstances.

Q: How is backlog defined?

A: Backlog is non-cancelable purchase orders expected to be delivered in less than 12 months.

Q: What's the competition like for e-Boost and HOMe-Boost?

A: For e-Boost, there's less competition as some charging competitors face challenges. For HOMe-Boost, there's currently no significant competition.

Q: Do you see potential for your product in data center backup power?

A: Current units are too small for data center backup power; we have a 6% equity stake in Voltaris, a related business.