Legend Power Systems Corporate Update
Legend Power Systems reports significant progress across five strategic pillars aimed at driving growth. The company highlights key developments including: participation in the U.S. GSA Green Proving Ground program with upcoming SmartGATE installations; a Department of Defense letter of intent for 10 SmartGATE systems; expanding presence in the Energy Performance Contracting market; deepening collaboration with New York City's electrification initiatives; and pending GSA Multiple Award Schedule designation. The company reports record-breaking bookings, improving gross margins approaching 50%, and projects achieving EBITDA-positive operations in 2025. Management forecasts potential annual revenue exceeding $100 million within 3-5 years.
Legend Power Systems riporta significativi progressi su cinque pilastri strategici volti a stimolare la crescita. L'azienda mette in evidenza sviluppi chiave tra cui: partecipazione al programma U.S. GSA Green Proving Ground con prossime installazioni di SmartGATE; una lettera d'intenti del Dipartimento della Difesa per 10 sistemi SmartGATE; espansione della presenza nel mercato dei contratti per l'efficienza energetica; approfondimento della collaborazione con le iniziative di elettrificazione di New York City; e designazione pendente per il GSA Multiple Award Schedule. L'azienda riporta prenotazioni record, migliorando i margini lordi a quasi il 50%, e prevede di raggiungere operazioni positive per l'EBITDA nel 2025. La direzione prevede potenziali ricavi annuali superiori ai 100 milioni di dollari entro 3-5 anni.
Legend Power Systems informa sobre un progreso significativo en cinco pilares estratégicos destinados a impulsar el crecimiento. La empresa destaca desarrollos clave, incluyendo: participación en el programa U.S. GSA Green Proving Ground con futuras instalaciones de SmartGATE; una carta de intención del Departamento de Defensa para 10 sistemas SmartGATE; expansión de la presencia en el mercado de Contratación de Eficiencia Energética; profundización de la colaboración con las iniciativas de electrificación de la ciudad de Nueva York; y una designación pendiente para el GSA Multiple Award Schedule. La empresa reporta reservas récord, mejorando los márgenes brutos cerca del 50%, y proyectos para lograr operaciones con EBITDA positivo en 2025. La dirección prevé ingresos anuales potenciales que superen los 100 millones de dólares en un plazo de 3 a 5 años.
레전드 파워 시스템즈는 성장을 촉진하기 위한 다섯 가지 전략적 기둥에 걸쳐 중요한 진전을 보고합니다. 이 회사는 미국 GSA 그린 프로빙 그라운드 프로그램에 참여하여 곧 SmartGATE 설치를 포함한 핵심 개발을 강조합니다; 10대의 SmartGATE 시스템을 위한 국방부 의향서; 에너지 성과 계약 시장에서의 범위 확대; 뉴욕시의 전력화 이니셔티브와의 협력 심화; 그리고 GSA 다수 수상 일정 지정 대기. 회사는 기록적인 예약 실적과 50%에 가까운 총 마진 향상을 보고하며, 2025년에는 EBITDA가 긍정적인 운영을 달성할 것으로 예상합니다. 경영진은 향후 3~5년 내에 1억 달러를 초과하는 연간 수익을 예상합니다.
Legend Power Systems fait état de progrès significatifs sur cinq piliers stratégiques visant à favoriser la croissance. L'entreprise souligne des développements clés dont : la participation au programme U.S. GSA Green Proving Ground avec les prochaines installations de SmartGATE ; une lettre d'intention du Département de la Défense pour 10 systèmes SmartGATE ; l'élargissement de la présence sur le marché des contrats de performance énergétique ; un renforcement de la collaboration avec les initiatives d'électrification de la ville de New York ; et une désignation en attente pour le GSA Multiple Award Schedule. L'entreprise rapporte des réservations record, améliore ses marges brutes proches de 50% et prévoit des opérations positives en EBITDA d'ici 2025. La direction anticipe des revenus annuels potentiels dépassant 100 millions de dollars dans un délai de 3 à 5 ans.
Legend Power Systems berichtet über bedeutende Fortschritte in fünf strategischen Säulen, die auf Wachstum abzielen. Das Unternehmen hebt wesentliche Entwicklungen hervor, darunter: Teilnahme am U.S. GSA Green Proving Ground Programm mit bevorstehenden SmartGATE-Installationen; ein Absichtsschreiben des Verteidigungsministeriums für 10 SmartGATE-Systeme; Erweiterung der Präsenz im Markt für Energieeffizienzverträge; Vertiefung der Zusammenarbeit mit den Elektrifizierungsinitiativen von New York City; und die bevorstehende GSA Multiple Award Schedule-Auszeichnung. Das Unternehmen meldet Rekordbuchungen, verbessert die Bruttomargen auf fast 50% und plant, bis 2025 EBITDA-positive Operationen zu erreichen. Das Management prognostiziert potenzielle Jahresumsätze von über 100 Millionen Dollar innerhalb von 3-5 Jahren.
- Record-breaking bookings achieved with improving gross margins approaching 50%
- Projected EBITDA-positive operations by 2025
- DoD letter of intent received for 10 SmartGATE systems installation
- Selected for GSA Green Proving Ground program from 800+ applicants
- Anticipated GSA Multiple Award Schedule designation within 60 days
- 55 Gen III SmartGATE systems performing above expectations
- Extended sales cycles in Energy Performance Contracting market (6-12 months)
- Not yet EBITDA positive
Vancouver, British Columbia--(Newsfile Corp. - December 3, 2024) - Legend Power Systems (TSXV: LPS), is excited to provide a detailed update on our extraordinary progress. This year has been transformative for Legend Power Systems, with tangible wins across five strategic pillars that form the backbone of our growth strategy. Each of these pillars represents a standalone opportunity to drive significant revenue growth, but together, they form a synergistic foundation that will likely catapult us to over
We are transitioning from dozens of SmartGATE installations annually to hundreds, and ultimately to thousands per year, in the near future. This shift is underpinned by strong execution, proven solutions, and a growing pipeline of wins and opportunities. The accomplishments we've already achieved demonstrate our ability to deliver, and we are confident that our trajectory is not just upward but transformative.
Strategic Pillar 1: U.S. General Services Administration (GSA) Green Proving Ground Program
The U.S. GSA Green Proving Ground (GPG) program represents a watershed moment for Legend Power Systems. In 2022, we were selected as one of only eight participants out of more than 800 applicants—a testament to the innovation and impact of our SmartGATE platform. The GPG program was designed to identify and evaluate cutting-edge technologies capable of reducing energy consumption and improving building performance across the GSA's massive portfolio of over 3 billion square feet of facilities.
As part of this program, we are installing two SmartGATE systems: the first at a border facility in December 2024 and the second at a prominent building in the Federal Triangle in Washington, D.C., early in the first quarter of 2025. These installations are critical steps toward developing a broad based deployment plan within the GSA's extensive property portfolio.
The program also includes a pivotal collaboration with Oak Ridge National Laboratory which is developing a comprehensive model to quantify not only energy savings but also the significant impact of improved power quality on maintenance, repairs, and the lifespan of critical building systems. This model will serve as a template for property owners and operators nationwide, demonstrating how power optimization enhances efficiency, uptime, and long-term building value. We are anticipating this report to be publicly available during calendar 2025 and drive broader tangible models for understanding the impact of improving the quality of power on long term system reliability and lifetime. This will firmly quantify this critical part of the SmartGATE value proposition.
The GSA's embrace of SmartGATE technology is a transformative milestone that positions Legend Power Systems to unlock enormous potential within federal government facilities. With the GSA overseeing more than 3 billion square feet of real estate, our involvement in their Green Proving Ground program serves as a robust endorsement of our technology's effectiveness and reliability. This validation extends far beyond the GSA itself, establishing a precedent that will encourage broader adoption across other federal, state, and municipal agencies.
The federal government's rigorous evaluation and procurement standards often set the benchmark for other sectors. As SmartGATE technology is deployed and proven effective within the GSA's extensive portfolio, it not only strengthens our foothold in government markets but also acts as a powerful catalyst for adoption in private and commercial sectors. When organizations in industries like commercial real estate, multifamily housing, big-box retail, and education see the federal government leveraging SmartGATE to improve energy efficiency, reduce costs, and extend the lifespan of critical systems, they gain confidence in the value proposition and reliability of our solutions.
This broader market validation accelerates decision-making for non-governmental clients, reducing perceived risks and shortening sales cycles. It also enhances our brand equity, making SmartGATE synonymous with power optimization and long-term value creation. In this way, the GSA's adoption of our technology not only drives exponential growth within their portfolio but also opens doors to a much larger ecosystem of opportunities across public and private sectors, creating a ripple effect that propels us toward our long-term growth goals.
Strategic Pillar 2: United States Department of Defense (DoD)
The Department of Defense represents one of the most demanding and expansive infrastructure portfolios in the world. In mid-2024, we received a letter of intent from the DoD to install 10 SmartGATE systems at a key military base plagued by recurring power issues that disrupted critical operations.
This initial deployment focuses on 10 of the most critical buildings on a base with over 80 large facilities. These installations will address immediate challenges, with additional phases planned to expand the solution across the broader base. The DoD's infrastructure challenges—spanning thousands of buildings across multiple continents—underscore the necessity of reliable, efficient power management.
Recently, another major military base issued an energy performance contract to an Energy Service Company (ESCO), explicitly mandating the inclusion of SmartGATE to address ongoing power issues at over 1,000 buildings on site. This direct requirement validates our position as an essential part of military infrastructure modernization efforts and provides a blueprint for further adoption across DoD facilities globally.
Strategic Pillar 3: Energy Performance Contracts (EPC) with Energy Service Companies (ESCOs)
The Energy Performance Contracting (EPC) market, valued at US
The EPC process is both rigorous and rewarding. It begins with preliminary proposals and vendor selection, advances through the investment-grade audit (IGA) phase, and concludes with final awards and project funding. While this process can be lengthy, projects that reach the IGA stage have a high probability of closing within 6–12 months, ensuring a consistent and reliable pipeline of revenue. The Company has multiple deals currently in the final stages of awards and funding approval.
A recent highlight in this sector is our success with a school district in the Southwest United States, a region grappling with severe power challenges that disrupted daily operations and impacted the district's ability to educate its students effectively. Frequent disruptions and power quality issues plagued the district, leading to significant downtime for classrooms, unreliable performance of critical systems, and costly damage to sensitive equipment.
Through a partnership with a leading ESCO, Legend Power Systems deployed SmartGATE technology across several schools in the district. The results were transformative. Power reliability and quality were restored, enabling the uninterrupted operation of critical educational and administrative systems. Additionally, the deployment ensured the protection and extended lifespan of newly installed equipment, including state-of-the-art HVAC systems, IT infrastructure, and advanced learning technologies.
These improvements not only stabilized the district's day-to-day operations but also enhanced the learning environment for students, allowing the focus to return to education rather than troubleshooting power issues. The district's success story has garnered attention from neighboring districts and other educational institutions facing similar challenges, further expanding our pipeline of opportunities in the education sector.
More broadly, ESCOs are increasingly recognizing that addressing power quality is fundamental to the long-term success of energy efficiency projects. SmartGATE's ability to optimize power and protect equipment ensures that these projects meet performance guarantees and deliver the expected savings over their lifetime. As a result, we are seeing accelerated adoption and an influx of larger contracts, particularly in sectors where operational reliability and cost control are paramount.
With proven successes like this in the education sector and beyond, Legend Power Systems is well-positioned to continue driving growth in the EPC market, leveraging our technology to deliver measurable value and long-term resilience for clients across industries.
Strategic Pillar 4: City of New York
Legend Power Systems' engagement with the City of New York began in 2018, and our collaboration has deepened through participation in the NYC IDEA program, where our solutions underwent extensive validation. The City of New York recently announced a US
The ecosystem of engineering firms, electrical contractors, and switchgear providers involved in these projects has already opened doors to additional eight-figure opportunities, further cementing our role as a critical partner in New York City's electrification efforts.
Strategic Pillar 5: GSA Multiple Award Schedule (MAS)
We are on the cusp of securing a GSA MAS designation, expected within the next 60 days. This designation is pivotal, streamlining the procurement process for federal agencies and dramatically expanding our access to government markets.
For shareholders, the implications are profound. The GSA MAS will accelerate all the opportunities discussed above while delivering tangible financial benefits, including increased revenue, improved profit margins, and enhanced cash flow through faster payment cycles. Strategically, it enhances our visibility and reputation among government agencies at all levels, positioning Legend Power Systems as a trusted and reliable supplier.
Company Performance and Outlook
Our recent results underscore the success of our strategy. We have achieved record-breaking bookings this year, spanning new geographies and vertical markets that reflect intentional diversification. These wins have been accompanied by a significant improvement in Gross Margins, which are steadily returning to historical levels near
The performance of our 55 Gen III SmartGATE systems currently in the field continues to exceed expectations, driving strong customer satisfaction and repeat business. Our backlog positions us to achieve EBITDA-positive operations in 2025, with a robust pipeline to sustain growth well beyond.
Importantly, while the green investing sector has faced political challenges, Legend Power Systems' value proposition transcends political narratives. By delivering lower costs, increased profitability, and reduced risk, we provide enduring value rooted in traditional business fundamentals.
A Transformative Vision for Legend Power Systems
The opportunities we have secured are not hypothetical; they are wins already achieved, with execution underway. Our five strategic pillars, individually powerful, combine to create a transformative engine of growth.
With a proven technology, a growing pipeline, and a clear path to
Thank you for your trust and partnership as we continue this remarkable transformation.
About SmartGATE
SmartGATE is an industry-leading, turnkey solution that identifies and fixes underperformance and waste in the electrical system of a commercial building. These performance issues often impact key areas of commercial real estate metrics including occupant safety and satisfaction as well as financial performance. This waste can also lead to higher operating costs, lower net operating income and other potential financial risks to the building owner, including adverse tenant experiences.
About Legend Power Systems Inc.
Legend Power Systems Inc. (www.legendpower.com) provides an intelligent energy management platform that analyzes and improves building energy challenges, significantly impacting asset management and corporate performance. Legend's proven solutions support proactive executive decision-making in a complex and volatile business and energy environment.
For further information, please contact:
Jonathan Lansky, Director
+1 416 417 7664
lansky.j@icloud.com
Sean Peasgood, Investor Relations
+ 1 647 503 1054
sean@sophiccapital.com
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This Press Release may contain statements which constitute "forward-looking information", including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company's future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including the Company's quarterly and annual Management's Discussion & Analysis, which may be viewed on SEDAR+ at www.sedarplus.ca. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results to not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements other than as may be required by applicable law.
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FAQ
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