Newsfilter article unlocker

Okay thank you all for joining everybody can hear me great okay thank you for joining I'll click through this some of you I recognize that some of you are more informed some of your current shareholders I know we have a breakout session later but feel free to interrupt or ask anything you want in the middle I'll just wait for the door to close okay so I'm going to start So Pioneer Power, just to give it a little history, going back probably six, seven years ago, we were a larger, more integrated manufacturer of electrical equipment, primarily transformers, switchgear, and some other products. We sold our transformer business in 2019 for $67 million at that time. That business was doing in excess of $100 million a year. We used that cash to pay off whatever debt we had at that time and kept some of that money and really invested that money in the two remaining businesses that we had. One was an engine generator service business based in Minneapolis. The other was a switchgear business based in Los Angeles. We sold the switchgears business about 18 months ago for $50 million in cash, kept some of that, paid some taxes. We also did $1.50 a share dividend out to the shareholders in January of 2025. So we were left with really our engine generator service business. In 2021, as part of our investment and sort of reformatting of that business, we came out with a product line called eBoost, which is a mobile charging system, a mobile high-capacity charging system. The idea was to address and attack what was then, in 2021, a very robust market for electric trucks and buses. You have there in the first picture, you have a project, the largest to date that we did for mobile charging for the Los Angeles Unified School District, 25 250 kilowatt systems with eight chargers hanging off each trailer in order for them to charge. and they continue to charge their electric school buses that they received specifically, in their case, was from BYD. We also, at the end of 2025, we unveiled two new product lines. One we call Primus, which is a pre-engineered 1.2 megawatt power system using primarily natural gas generators in tandem with battery systems, integrated barrier systems the idea was in 2025 when I developed it was to really go after the modular data center market the NVIDIA chip the new Blackwell chip is an 800 volt DC 1.2 megawatt per rack so the idea was that you know we're too small to attack the hyperscalers but somebody adding one rack, two racks, 10 racks, a university, hospital, whatever it might be, somebody adding on to an existing data center needing supplemental power, this is a pre-engineered system ready for them. I actually didn't expect to get any orders in, I expected to get some orders in 2026, not ship anything. Fortunately, which we announced several months ago, probably in May or so. We got a large order, two systems, $3 million each, $6 million for ultimately for two FedEx transit hubs in California where they can't get enough power. One we're aiming to deliver this quarter. We don't have too many days left. And the second one to deliver in the fourth quarter. We call that system Primus. We also unveiled at the end of last year, in 2025, we unveiled a sort of home version of our e-boost business, which we call PowerCore, which is a 100% resilient, 100% prime-rated unit for the luxury or the larger home. It's in three sizes, 45 kilowatts, 150 kilowatths, and 250 kilowatks, which is quite large for the normal home. We're talking about homes in excess of 10,000 square feet. This is the eBoost platform. This is how it looks officially. We do it any way the customer wants. We do by skid. we do it as an integrated truck, we do it by trailer, we'd do it by pod. In reality, the truck was our first prototype. We called it the GOAT generator on a truck. That was to date the first and last truck-based unit that we did. 90% of everything that we did since then has been on a trailer. This is the most recent numbers for us. We're We're still sitting on $10.7 million of cash. We have zero bank that we don't even have a leased copier. We've issued over $17 million in dividends since 2021, and we think that we're sufficiently capitalized at least for the next 12 months without any dilution. some things that we've done in some jurisdictions that are more, I guess, from a governmental point of view, more committed to a completely carbon-free, zero-emissions future. We set up a franchisee at the end of 2025 in the United Arab Emirates. He actually just received the first unit from us. It was quite a long, long journey. I think the unit meandered the Middle East for almost four months before he finally received it actually last week due to the situation there. We expect this particular partner of ours, we expect them to be a very strong user of units in the next several years. They already have the contracts for the equivalents, although Waymo is there as well, but the equivalence of Waymo, Dubai Taxi, basically 80% of their business is Abu Dhabi and Dubai and a few other places, but the United Arab Emirates is committed to going zero emissions on or before 2030, and he is very, very well. Their business called Savvy Charging, it's not a secret, is very well positioned to capitalize on that. Track record, or what we've done in just the e-boost business, the Port Authority of New York, New Jersey, continues to be a very strong customer, a strong repeat customer for their electric shuttles and buses and other vehicles that they are using to both shuttle their own personnel and passengers around Newark, JFK, and LaGuardia airports, many transit agencies, school district. We talked about Los Angeles Unified School District, many others. That is basically the market for the e-boost business today. It's trucks and buses. So far, it's been more on the bus side, transit agencies that have been the more active purchasers of this equipment. Primus, we talked about that. FedEx, this was our first, and really it started with a bang. We expect FedEx themselves to let go to us several other orders in the next couple of months. We have a super active pipeline. We've probably bid well over $200 million in projects just in the last 90 days, given the at least initial sort of, I guess, exposure that we got because of this particular project. Again, we're pushing mostly in the modular data center market, but we continue to get, just like FedEx, enterprises that need power. They need it now. They want a system where they can integrate batteries, and we continue, too, to serve that. These are, I guess, the tailwinds. This is the data that fuels what we're doing. You're familiar with a lot of it. You could, you know, you hear it at other presentations. The EV market, we were never really in the passenger vehicle side of it, but really it was always trucks and buses. That's definitely not as robust as it was a few years ago when we unveiled the e-boost business. Nevertheless, it's kind of steadied itself out For us, at about a $10 million a year rate, we're holding a little firmer on our pricing as well, so hopefully we continue to see the margins improve there. The big mover for us is Primus. I think once we ship these units, I think the data will prove itself. The margins, the profitability of it will be a dramatic change in what we're doing, even despite our less than big sales numbers. We expect to do about 25 million this year. We haven't announced guidance for next year yet, but we are expecting it to be well above that for next years. 18.4 million dollars in backlog. You can see that as we were kind of burning off some of the old business as Primus started to come up, Our backlog has been driven up and we continue backlog for us. It's always been a very important indicator of where the next six to 12 months are. Backlog for us has always been the same definition from when we first went public. It's non-cancelable purchase orders that we expect to ship in the next 12 months. That's the revenue. That's where we are. 2023 was 11. We had a huge year for the e-boost business in 2024 when we shipped the Los Angeles school district job. Less growth, but still strong growth in 2025. We'll be down a little bit from that for 2026, probably about $25 million, and then hopefully a huge step up again for us. Summary, we talked about it, we've always been generating cash, we have strong working capital, we had zero bank debt, we a history of returning cash to the shareholders, I'm still the single largest shareholder at about 28% of the float. This is the team, myself, our CFO, Walter Mihalik, several of the people working probably Mahalik. Several of the people working probably for me have been working directly for me for over 15 years collectively. We don't like to think in terms of centuries of experience, but it starts to add up. We think that we're well positioned. We thing when we came out with the eBoost business, it was a powerful platform that the market had not seen. We kind of formalized a way to do mobile charging basically Primus is a derivative of that without the charging so the experience that we gained in the marketing and integration of these products we transfer to a super strong and robust business that we are very excited about. Any questions? Please. Say again, what the two finance orders are actually going to be used for? Yeah, so their particular use is, you know, unbeknownst to myself before this happened, And again, it's not a secret, FedEx is an early adopter or purchaser of the Tesla Semi, the large trailer, all electric trailer. It requires a 1.2 megawatt charge at a time. So they have the chargers that they bought from Tesla that are fixed, but they have no way, the utility Southern California Edison told them that we can't give you the power to do it. So this is their solution for doing this. It was kind of a little bit of a bake-off. There were three others besides us competing for it. It really wasn't all on price. In the end, we weren't the cheapest solution, but we were the solution that they were most comfortable going with. And so far, I think that their choice is gonna be validated for both of us as they let go some more. So, that's gonna happen. It's happening, yeah. You're gonna deliver one this month and one in the fourth quarter, whatever. Well, yeah, And what is your opinion as to the most likely area of demand for these things in the next 12 to 24 months? Yeah, so, yeah I think in the next, let's use easy, not that 12 or 24 are perfect units, but I'd say in the next 12 months, it's going to be more like this. So users that are looking for to stack one megawatt type systems, whether one or more, I think non-data center users, whether it's gonna be mining or other industrial applications where they just can't get the power that they need quick enough and they want they're gonna just do on-site generation I think if you go if you pass 12 months I think it's going to be driven by the modular data center market for us completely totally yeah lack of availability yeah that that's what it is they cannot get it you know you could do whatever you want it's not available not not at that size anymore they are they are in a regime you know and it is a regime they're in a regime where it's going all electric so they are using it for passenger cars. All vehicles. It's taxi fleets, it's bus fleets it's robo taxi fleets. I'd say those three probably make up ninety five percent of what they're doing. It it's the original e-boost business it's exactly what it is. They're using smaller versions because we were only you know we were almost never using I mean, we're almost never applying to passenger cars. They are. So they wanted to use smaller versions for passenger cars and the more traditional version for the buses. So you're literally going to ship these things over? No. So after this, we'RE not going to do it because it's not a competitive. It's a crazy thing. So we're actually setting up probably to do IT with a third party, get the power package done per our spec in either Turkey or something close and ship it to them. And they actually want to learn how to integrate it themselves. They're going to buy the trailer separately. They're gonna buy their own chargers separately. So it's something that I had discounted, but the company is called Savvy Charging. They're fantastic. They're happening, yes. They're happenin', they invest, they raise more money for, you know, to continue to grow, so they have all the right features. Any other questions, comments? Okay. Thank you.