Pioneer Power Announces e-Bloc and Related Product Orders in Excess of $10 Million

Rhea-AI Summary

Pioneer Power Solutions, Inc. (Nasdaq: PPSI) has announced the receipt of four new orders valued at over $10 million in aggregate for its e-Bloc and related products, which are expected to bolster revenue for 2024 and into 2025. The orders include contracts for EV charging infrastructure, solar microgrid, titanium smelter, and a large utility provider.

Insights

Market Research Analyst

Pioneer Power Solutions' announcement of new orders valued at over $10 million signifies a strategic advancement within the electrical power systems and EV charging solutions sector. This development is particularly notable given the current global emphasis on green energy and infrastructure. The company's ability to secure contracts with diverse clients, including an EV charging infrastructure developer, a solar microgrid developer, a titanium smelter and a large utility provider, demonstrates a robust and versatile business model.

The distributed power generation market is rapidly growing, driven by the need for reliable and efficient energy solutions across industrial and commercial sectors. Pioneer's expansion into this market, underscored by the new orders, indicates potential for increased market share and revenue growth. The strategic timing of these deliveries, starting in the second quarter of 2024 and extending into 2025, suggests a forward-looking approach that may provide financial stability and sustained growth for Pioneer Power Solutions.

Financial Analyst

The receipt of orders valued in excess of $10 million is a significant financial milestone for Pioneer Power Solutions. It not only boosts the company's backlog but also enhances revenue visibility for the fiscal years 2024 and 2025. This is pivotal for investor confidence as it reflects the company's competence in converting its pipeline into tangible sales, a key indicator of operational efficiency and market competitiveness.

Investors should note the potential impact on the company's earnings per share (EPS) and cash flow projections. Given the scale and diversity of the new orders, there is an implication of increased production scale which could lead to improved economies of scale and potentially higher margins. However, investors should remain cognizant of the execution risks and the capital expenditures associated with fulfilling these large-scale orders.

Energy Sector Analyst

The reported orders align with the broader industry trend towards distributed energy resources and the electrification of transportation. Pioneer Power's engagement with a major international U.S. airport for the installation of a solar microgrid reflects the sector's transition towards sustainable energy solutions. This transition is bolstered by the increasing demand for EV charging infrastructure, a market that is expected to grow exponentially as electric vehicle adoption accelerates.

Furthermore, the collaboration with a large titanium smelter and a natural gas distribution provider indicates Pioneer Power's strategic penetration into various energy-intensive industries. The company's ability to provide customized solutions like the IPCs with paralleling switchgear for low voltage distribution is indicative of its technical expertise and adaptability to industry-specific requirements. This diversification of client base could mitigate sector-specific risks and provide a buffer against market volatility.

Tops Off Strong 2023 with Additional Sales to Further Bolster Growth in 2024

FORT LEE, N.J.--(BUSINESS WIRE)-- Pioneer Power Solutions, Inc. (Nasdaq: PPSI) (“Pioneer”, “Pioneer Power” or the “Company”), a leader in the design, manufacture, service and integration of electrical power systems, distributed energy resources, power generation equipment and mobile electric vehicle (“EV”) charging solutions, today announced that it has received four new orders, as further described below, valued in excess of $10 million in the aggregate for its e-Bloc and related products.

The Company expects to deliver and install these orders beginning in the second quarter of 2024.

Nathan Mazurek, Pioneer's Chairman and Chief Executive Officer, said, “Increasingly, we are converting our pipeline of new business opportunities into sales, and these orders announced today further increase our expected revenue for 2024 and into 2025. The distributed power generation market is lacking solutions that can meet the consumption needs of industrial and commercial customers. Demand is extremely robust, and we continue to evolve our platforms to address the increasing demand.”

EV Charging Infrastructure Developer

An EV charging infrastructure developer awarded Pioneer Power a contract to provide the double ended substation for the EV charging platform at a site located in Rialto, California. The customer is expected to deploy the solution at additional sites over the course of the next 12 months. This customer provides turnkey solutions for charging infrastructure and services to enable fleets to transition to electric transportation. We believe Pioneer’s distributed power grid solution will allow for easy installation and access to power the EV charging platform. The Company expects the order will be completed and delivered in the second quarter of 2024.

Solar Microgrid

An additional order was received from a developer of solar microgrids for Pioneer’s e-Bloc Low Voltage Power Distribution system. The order will be used in support of a solar microgrid installation at a major international U.S. airport located in the northeast. Pioneer will deliver its e-Bloc to the developer. This system is expected to provide power for EV charging needs in airport parking facilities. The Company expects to deliver the solution during the second half of 2024.

Large Titanium Smelter

A third order was received from one of the largest titanium smelters in the world, which is the only supplier with production facilities in both the United States and Europe. This customer is building a new castings plant in West Virginia. Pioneer will provide the main power switchgear for the new casting facility. The Company expects to complete and deliver the order in the third quarter of 2024.

Large Utility Provider

A fourth order was awarded to Pioneer by one of the nation’s largest natural gas distribution providers serving the western U.S. Pioneer will provide multiple IPC’s (electrical buildings) with paralleling switchgear for low voltage distribution. The Company expects to complete and deliver the order in 2025.

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 electric 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 federal securities laws. 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, and (xiii) risks associated with litigation and claims, which could impact our financial results and condition.

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 U.S. Securities and Exchange Commission (“SEC”), 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/20231227942836/en/

Brett Maas, Managing Partner

Hayden IR

(646) 536-7331

brett@haydenir.com

Source: Pioneer Power Solutions, Inc.

FAQ

What is the company name and ticker symbol for Pioneer Power Solutions, Inc.?

The company name is Pioneer Power Solutions, Inc. and the ticker symbol is PPSI.

What is the value of the new orders received by Pioneer Power Solutions, Inc.?

The new orders received are valued at over $10 million in aggregate.

What types of products are included in the new orders received by Pioneer Power Solutions, Inc.?

The new orders include contracts for EV charging infrastructure, solar microgrid, titanium smelter, and a large utility provider.

When are the orders expected to be completed and delivered?

The orders are expected to be completed and delivered in the second quarter of 2024, the second half of 2024, and the third quarter of 2024, as well as in 2025.

What is the focus of Pioneer Power Solutions, Inc.'s business?

Pioneer Power Solutions, Inc. is a leader in the design, manufacture, service, and integration of electrical power systems, distributed energy resources, power generation equipment, and mobile EV charging solutions.