Pioneer Announces e-Boost Order of $7.1 Million from One of the Largest U.S. School Districts
Pioneer Power Solutions (Nasdaq: PPSI) has secured a $7.1 million order from one of the largest U.S. school districts for 25 e-Boost Mobile units to power its electric school bus fleet. The order could exceed $8.0 million with planned contingency measures. Delivery is scheduled for Q1 2025. This will support the district's goal of phasing out traditional fuel sources and electrifying its fleet of over 1,000 buses, with the initial deployment serving 200 buses. The e-Boost units, featuring Level 2 AC chargers, will collectively deliver 30.7MWh of energy per night. The order was secured in collaboration with Eneridge Inc. following a competitive bidding process. Pioneer anticipates significant growth in 2025, driven by this order and a strong backlog. To meet demand, the company will form partnerships with national manufacturing firms to increase production capacity without costly facility expansions.
- Secured $7.1 million order with potential to grow over $8.0 million.
- Delivery scheduled for Q1 2025, ensuring timely revenue recognition.
- Supports the school district's goal to electrify its fleet by 2030.
- Order includes 25 units serving 200 buses, with 30.7MWh collective energy output per night.
- Competitive bidding win demonstrates strong market position.
- Anticipates significant growth in 2025, exceeding 2024 performance.
- Plans to form strategic partnerships to increase production capacity effectively.
- All revenue recognition from this order is deferred to Q1 2025, with no immediate impact on current financials.
- Dependence on contingency measures to achieve full $8.0 million order value introduces uncertainty.
- Potential production delays or disruptions if partnerships fail to materialize.
Insights
The $7.1 million order for 25 e-Boost Mobile units from Pioneer Power Solutions is a substantial financial win. It’s likely to boost PPSI’s revenue significantly for 2025, especially considering the possibility of additional contingency measures that could bring the total value to over
Additionally, the successful partnership with Eneridge Inc. and the competitive bidding process highlight Pioneer's ability to secure large-scale projects, which could lead to more contracts and potential market share growth in the rapidly expanding EV space. This news reinforces confidence in Pioneer's strategic direction and ability to execute large orders efficiently.
The order aligns with macro trends in the electric vehicle and renewable energy sectors. As one of the largest school districts in the U.S. transitions to electric school buses, this move highlights the growing demand for sustainable and off-grid charging solutions. It signals a broader shift in public transportation infrastructure towards electrification, driven by regulatory demands and environmental concerns.
This contract not only propels Pioneer's market presence but also positions it as a pivotal player in the ESB market, which is set to expand as more school districts adopt electric buses. Investors should be aware of the potential for recurring revenue and expansion opportunities in other districts and states.
The e-Boost Mobile units with Level 2 EV Chargers represent a technological advancement in mobile charging solutions for electric school buses. Each unit’s capacity to deliver 19.2kW and collectively 30.7MWh per night is impressive, showcasing the scalability and efficiency of Pioneer's technology. The ability to deploy these units on open trailers adds flexibility and rapid deployment capabilities, which are critical for large-scale implementation in different geographic locations.
This technology not only supports the immediate needs of the school district but also sets a precedent for future deployments, making it easier for other districts to adopt similar solutions. Investors should consider the long-term technological benefits and the first-mover advantage Pioneer holds in this niche market.
Expects Full Delivery of 25 Units in the First Quarter of 2025
e-Boost Mobile with Level 2 EV Chargers at Electric School Bus Depot (Photo: Business Wire)
The Company plans to deliver the systems throughout the first quarter of 2025. The systems will support the school district's efforts to meet local environmental requirements by phasing out traditional fuel sources at the school bus depot and expediting the transition to a fully ESB fleet. The initial deployment will serve approximately 200 EV buses, advancing the district's goal of electrifying its fleet of more than 1,000 ESBs. As one of the largest school districts in the country, it currently operates a vast fleet of more than 3,000 vehicles, including buses, trucks, cars and vans.
Geo Murickan, head of Pioneer eMobility, commented, “This order marks an important and exciting milestone for our eMobility business. Electrifying school transportation is central to the clean energy transition in local communities, and Pioneer’s mobile e-Boost solution has been proven again to be an integral piece of this energy transition."
Murickan added, "Knowing that this off-grid solution is easily deployable, can be scaled up or down and replicated throughout the country, will facilitate collaboration between ESB manufacturers and school districts across the nation, ultimately enhancing and expanding the US Federal Infrastructure School Bus program. Successfully deploying over 200 electric school buses amidst these concurrent transitions required a forward-thinking school district leadership team with the vision, innovative spirit and execution expertise to achieve their ambitious goal of a fully electric fleet by 2030.”
e-Boost secured this order in collaboration with its channel partner, Eneridge Inc. (“Eneridge”), following a competitive bidding process involving multiple vendors and various charging technologies. The bid evaluation considered factors such as cost, delivery time and ability to meet rigorous design and performance standards for sustainability, noise reduction, mobility, and resilience, as well as local support. The award consists of 25 e-Boost Mobile units, each featuring 8 - Level 2 - AC chargers, capable of delivering 19.2kW of power to charge electric school buses overnight. Mounted on open trailers for seamless deployment, these units will provide a total of 1.2MWh of energy per night, collectively delivering 30.7MWh of energy to a fleet of 200 buses every night.
"Pioneer is honored to be part of this groundbreaking initiative, led by a visionary school district," shared Nathan Mazurek, CEO and Chairman of Pioneer Power Solutions, Inc. "Electrifying school bus transportation has been a key focus of the Infrastructure and Energy Act in recent years. This project highlights e-Boost’s potential to fast-track sustainability initiatives for school districts, yielding benefits for both students and the broader community. This reaffirms Pioneer's investment in and commitment to the e-Boost business and decision to allocate significant resources and aggressive marketing. We see a rapid growth trajectory, driven by e-Boost’s continued innovation in addressing diverse aspects of electric vehicle adoption across the US and Canada.”
The receipt of this order, combined with the current backlog for Q1 2025, positions the Pioneer eMobility business unit for significant growth in 2025, exceeding its expected 2024 performance. To support this expansion, the business unit will form strategic, geographically aligned partnerships with national manufacturing firms, thereby increasing production capacity and enabling Pioneer to meet growing demand while avoiding costly facility expansions and potential production delays or disruptions. This approach aligns with Pioneer's overall goals to grow its eMobility business efficiently, invest in sustainable solutions and drive innovation, further solidifying its commitment to a greener future.
About Eneridge Inc.
Eneridge Inc. is a Los Angeles County-based small business that operates as a turnkey solutions provider of EV hardware, software network platform, installation and maintenance to clients who want to own and operate EV charging stations. Eneridge also owns and operates its own EV charging stations under the FLITWAY brand, fully integrated to its advanced network platform. To learn more about Eneridge, please visit its website at https://www.eneridge.com/
About Pioneer Power Solutions, Inc.
Pioneer Power Solutions, Inc. is a leader in the design, manufacture, integration, refurbishment, service and distribution of electric power systems, distributed energy resources, power generation equipment and mobile EV charging solutions for applications in the utility, industrial and commercial markets. To learn more about Pioneer, please visit its website at www.pioneerpowersolutions.com.
Forward-Looking Statements:
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) the Company’s ability to successfully increase its revenue and profit in the future, (ii) general economic conditions and their effect on demand for electrical equipment, (iii) the effects of fluctuations in the Company’s operating results, (iv) the fact that many of the Company’s competitors are better established and have significantly greater resources than the Company, (v) the Company’s dependence on two customers for a large portion of its business, (vi) the potential loss or departure of key personnel, (vii) unanticipated increases in raw material prices or disruptions in supply, (viii) the Company’s ability to realize revenue reported in the Company’s backlog, (ix) future labor disputes, (x) changes in government regulations, (xi) the liquidity and trading volume of the Company’s common stock, (xii) an outbreak of disease, epidemic or pandemic, such as the global coronavirus pandemic, or fear of such an event, (xiii) risks associated with litigation and claims, which could impact our financial results and condition and (xiv) the Company’s ability to regain and maintain compliance with the continued listing requirements of the Nasdaq Capital Market.
More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual and Quarterly Reports on Form 10-K and Form 10-Q, respectively. Investors and security holders are urged to read these documents free of charge on the SEC’s web site at www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240611795234/en/
Brett Maas, Managing Partner
Hayden IR
(646) 536-7331
brett@haydenir.com
Source: Pioneer Power Solutions, Inc.
FAQ
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