ELVA

• Strategic Milestones

  • Announced a new expanded long-term commercial agreement with Amazon, ElectroVaya's largest 2025 end customer, paired with a warrant transaction. The agreement creates strategic alignment, establishes a framework for broader collaboration in robotics and stationary energy storage (with advanced discussions already ongoing), and supports potential future demand growth across markets.
  • Launched the Elva Pulse 1500, the first product in a new modular stationary energy storage portfolio purpose-built for high-power applications, especially AI data centers with rapidly fluctuating power demand. The product delivers up to 2.88 MWh of energy and 9 MW of power, with a full discharge in under 30 minutes, making it one of the highest power density containerized storage systems commercially available. It leverages ElectroVaya's proven ceramic separator technology, is targeting UL certification completion in Q1 2027 calendar, and is eligible for the U.S. Section 48E investment tax credit (including domestic content bonuses). Initial deliveries are targeted for Q2 2027 calendar from the Jamestown facility, and production reservations are open now.
  • The Jamestown manufacturing facility build-out is progressing steadily: dry room construction is complete, site infrastructure upgrades are ongoing, and major manufacturing equipment build is finished. An 8-week full line factory acceptance test will begin in 7-10 days at the Korean equipment supplier's site, with ElectroVaya's Jamestown operations team participating directly to test full-speed operation before shipping. Startup is on track for 2027.

• Product & Technology Development

  • Completed UL2580 safety certification for six models of next-generation high voltage battery systems for outdoor all-season material handling, removing a key barrier to commercialization. 800-volt high voltage system deliveries, originally scheduled for fiscal 2026, have been delayed to Q1 fiscal 2027 due to supply chain constraints, but all orders remain committed. The 800-volt architecture is common across vehicle and stationary storage applications.
  • Progressed solid-state battery development: currently producing 1Ah cells targeting 5Ah capacity, with early testing indicating potential for 700 Wh/L volumetric energy density, a highly competitive performance level. Next-generation thinner ceramic separator development is advancing at lab scale, with potential to improve cell energy density and reduce manufacturing costs, and could be deployed across all product lines once mature. Niobium oxide fast-charging battery development is ongoing, with a 24V 20C (under 3-minute charge/discharge) module currently being commissioned for performance and safety testing, targeted at data center storage and robotics applications.
  • Diversified new market expansion: defense shipments are recurring and growing, with a new 800V 100kWh hybrid battery delivered to a major defense contractor; commercial robotics deliveries have continued through the quarter, with additional expansion potential via the Amazon relationship; the Japan Sumitomo Corporation partnership for heavy industrial and construction equipment is progressing, with material deliveries expected to start in fiscal 2027; ElectroVaya is participating in a $5 million U.S. DOE-funded energy storage research project led by Binghamton University.

• Financial Position

  • Generated $8.6 million in positive operating cash flow for the quarter, ended Q3 with $13.1 million in unrestricted cash and $7.8 million available under the existing credit facility, for total adequate liquidity to support expansion plans. Net working capital is $65.9 million with a current ratio of 7.5, representing a much stronger liquidity position than the prior year.

• Full fiscal 2026 normalized revenue guidance is revised downward to $70-$73 million, from prior expectations, due to timing shifts: approximately $5 million in high voltage system deliveries and some material handling project deliveries have been pushed from fiscal 2026 to early fiscal 2027 due to supply chain constraints and customer implementation delays. Management emphasizes these are timing shifts, not lost business, and all delayed orders remain committed.
  • Revenue from the Jamestown facility and Elva Pulse is expected to begin in Q2 calendar 2027, which is ElectroVaya's fiscal Q3 2027, following plant startup and validation in Q1 calendar 2027.
  • Management expects 2027 fiscal year to see stronger material handling growth than 2026, driven partially by increased demand from the expanded Amazon relationship.
  • High voltage battery systems are expected to become a meaningful revenue contributor starting in fiscal 2027. Material handling will remain the largest revenue segment in fiscal 2027, with robotics and high voltage growing as new capacity comes online. Significant scalable growth across all new verticals is expected in 2028, when Jamestown is fully operational and new products are fully ramped.
  • Management expects to maintain current strong gross margins through fiscal 2026 and into 2027, with the 45X manufacturing tax credit expected to add a couple of percentage points of additional margin once Jamestown is operational.

The transcript does not break out separate revenue and contribution percentage figures for individual product segments. Overall company performance for Q3 2026 was: total revenue of $17.7 million, up from $17.1 million year-over-year (YoY); gross margin of 34.9%, up 410 basis points YoY; adjusted EBITDA of $3.7 million, up 27% YoY, with an adjusted EBITDA margin of 20.7%; net profit of $0.3 million, down from $0.9 million YoY; operating profit of $0.8 million, down from $1.9 million YoY due to higher SG&A and non-cash stock-based compensation. Nine-month ended June 30 2026 performance was: total revenue of $51.3 million, up 18.5% YoY from $43.3 million; gross margin of 33.8%, up from 30.8% YoY; adjusted EBITDA of $8.5 million, up 56% YoY; operating profit of $4.3 million, up 37% YoY; net profit of $2.4 million, up from $1.3 million YoY. Positive gross margin expansion came from a mix of higher-margin defense and prototype shipments, plus gradual structural improvements from economies of scale and better supplier pricing for core material handling products.

• All forward-looking statements regarding new product commercialization, demand growth, and facility startup are subject to inherent risks that could cause actual results to differ materially from expectations, including supply chain delays, certification timelines, customer order timing, and manufacturing ramp challenges.
  • Quarterly revenue variability can occur due to customer delivery scheduling, supply chain constraints, and the resource allocation required to launch new product lines, which currently prioritizes long-term growth over near-term quarterly revenue maximization.
  • The non-cash accounting adjustment for Amazon's warrants will reduce reported revenue over the vesting period, though the impact is non-cash and will be adjusted separately in adjusted EBITDA reconciliations. The ultimate level of share dilution from the warrants depends on future share price, milestone achievement, and settlement method, but is expected to be meaningfully lower than the 20% notional warrant coverage.
  • New technology development (including solid-state and niobium oxide batteries) carries technical risk, and considerable development and scale-up work remains before these technologies can be commercialized.

Q: What is the current scope of the Elva Pulse pipeline and when will it impact the P&L? What is the timing of first revenue from Jamestown? / A: Management states the pipeline of potential projects is substantial, and successful conversion of even a portion would fully book 2027 production. One large hyperscale data center project could take the full planned annual output. Certification is ongoing, and initial deliveries will ramp starting in Q2 2027 calendar year. First revenue from Jamestown will align with this timeline: plant startup and validation will occur in Q1 2027 calendar, with revenue starting in Q2 2027 (ElectroVaya's fiscal Q3 2027).

Q: What is your 2027 outlook for material handling, and what will the product mix look like across end markets that year? / A: Management expects 2027 to be a much stronger year for material handling than 2026, with growth driven by increased demand from the expanded Amazon relationship. Material handling will remain the largest revenue segment in 2027. Robotics demand is already accelerating, and high voltage battery demand has proven stronger than expected. Limited existing production capacity in Mississauga constrains near-term high volume output of these new products, so full scalable growth across all new verticals will come in 2028 when Jamestown capacity is online.

Q: What is driving gross margin improvement, and how will the 45X manufacturing credit impact margins at Jamestown? / A: While the quarter benefited from a mix of higher-margin defense and prototype shipments, these were not material to overall revenue. The core driver of gradual margin improvement is growing purchasing power leading to better supplier pricing, paired with increased manufacturing floor efficiency. Once operational, the 45X tax credit is expected to add a couple of percentage points of additional margin, depending on final accounting treatment.

Q: How does ElectroVaya's Elva Pulse compare to incumbent LFP and lithium titanate technology for data center energy storage? / A: Incumbent LFP systems are designed for 2-4 hour discharge, have low power delivery limits, and must be dramatically oversized to meet data center peak power requirements, increasing total customer cost and space use. Elva Pulse's high power design handles data center load profiles far more efficiently. Lithium titanate offers high power but is roughly twice as expensive as ElectroVaya's technology, while Elva Pulse delivers comparable power density at lower cost with higher energy capacity. ElectroVaya's upcoming niobium oxide solution will also be more competitive than lithium titanate.