Pioneer Power Reports Financial Results for Third Quarter 2024
Pioneer Power Solutions (NASDAQ: PPSI) reported Q3 2024 results, highlighting a 130% revenue growth in its Critical Power segment to $6.4 million. The company sold its PCEP business unit for $50 million and declared a special dividend of $1.50 per share. The Critical Power segment achieved a gross margin of 24% and operating income of $211,000. Backlog increased 200% to $24.0 million. Overall consolidated revenue decreased 4.7% to $10.9 million, with a net loss of $1.1 million. The company projects 2025 revenue between $27-29 million, representing approximately 25% growth.
Pioneer Power Solutions (NASDAQ: PPSI) ha riportato i risultati del terzo trimestre 2024, evidenziando una crescita dei ricavi del 130% nel suo segmento Critical Power, raggiungendo i 6,4 milioni di dollari. L'azienda ha venduto la sua unità di business PCEP per 50 milioni di dollari e ha dichiarato un dividendo straordinario di 1,50 dollari per azione. Il segmento Critical Power ha raggiunto un margine lordo del 24% e un reddito operativo di 211.000 dollari. Il backlog è aumentato del 200% arrivando a 24,0 milioni di dollari. I ricavi consolidati complessivi sono diminuiti del 4,7% a 10,9 milioni di dollari, con una perdita netta di 1,1 milioni di dollari. L'azienda prevede per il 2025 ricavi compresi tra 27 e 29 milioni di dollari, rappresentando una crescita di circa il 25%.
Pioneer Power Solutions (NASDAQ: PPSI) informó los resultados del tercer trimestre de 2024, destacando un crecimiento del 130% en los ingresos de su segmento Critical Power, alcanzando los 6,4 millones de dólares. La compañía vendió su unidad de negocio PCEP por 50 millones de dólares y declaró un dividendo especial de 1,50 dólares por acción. El segmento Critical Power logró un margen bruto del 24% y un ingreso operativo de 211,000 dólares. El backlog aumentó un 200% hasta alcanzar los 24,0 millones de dólares. Los ingresos consolidados totales disminuyeron un 4,7% a 10,9 millones de dólares, con una pérdida neta de 1,1 millones de dólares. La compañía proyecta ingresos para 2025 entre 27 y 29 millones de dólares, lo que representa un crecimiento de aproximadamente el 25%.
Pioneer Power Solutions (NASDAQ: PPSI)는 2024년 3분기 실적을 발표하며 Critical Power 부문에서 130%의 매출 성장률을 기록하여 640만 달러에 도달했다고 밝혔습니다. 회사는 PCEP 사업 부문을 5천만 달러에 판매하고 주당 1.50달러의 특별 배당금을 선언했습니다. Critical Power 부문은 24%의 총 마진과 211,000달러의 운영 수익을 기록했습니다. 백로그는 200% 증가하여 2400만 달러에 도달했습니다. 전체 통합 매출은 10.9백만 달러로 4.7% 감소했으며, 순손실은 110만 달러에 달했습니다. 회사는 2025년 매출을 2700만 달러에서 2900만 달러로 예상하며, 이는 약 25%의 성장을 의미합니다.
Pioneer Power Solutions (NASDAQ: PPSI) a publié les résultats du troisième trimestre 2024, mettant en avant une croissance de 130% des revenus dans son segment Critical Power, atteignant 6,4 millions de dollars. L'entreprise a vendu son unité commerciale PCEP pour 50 millions de dollars et a déclaré un dividende spécial de 1,50 dollar par action. Le segment Critical Power a réalisé une marge brute de 24% et un revenu opérationnel de 211 000 dollars. Le carnet de commandes a augmenté de 200% pour atteindre 24,0 millions de dollars. Les revenus consolidés ont globalement diminué de 4,7% pour s'élever à 10,9 millions de dollars, avec une perte nette de 1,1 million de dollars. L'entreprise projette un chiffre d'affaires entre 27 et 29 millions de dollars pour 2025, représentant une croissance d'environ 25%.
Pioneer Power Solutions (NASDAQ: PPSI) hat die Ergebnisse für das 3. Quartal 2024 bekannt gegeben, wobei ein Umsatzwachstum von 130% im Segment Critical Power auf 6,4 Millionen Dollar hervorgehoben wurde. Das Unternehmen verkaufte seine PCEP-Geschäftseinheit für 50 Millionen Dollar und erklärte eine Sonderdividende von 1,50 Dollar pro Aktie. Das Segment Critical Power erzielte eine Bruttomarge von 24% und ein Betriebsergebnis von 211.000 Dollar. Der Auftragsbestand nahm um 200% zu und erreichte 24,0 Millionen Dollar. Der konsolidierte Gesamtumsatz fiel um 4,7% auf 10,9 Millionen Dollar, wobei ein Nettoverlust von 1,1 Millionen Dollar verzeichnet wurde. Das Unternehmen prognostiziert für 2025 einen Umsatz zwischen 27 und 29 Millionen Dollar, was einem Wachstum von etwa 25% entspricht.
- Critical Power segment revenue grew 130% YoY to $6.4 million
- Backlog increased 200% to $24.0 million
- Sale of PCEP business unit for $50 million
- Special dividend of $1.50 per share announced
- Critical Power segment turned profitable with $211,000 operating income
- Gross margin improved from 16% to 24% in Critical Power segment
- Company projects 25% revenue growth for 2025
- Consolidated revenue decreased 4.7% to $10.9 million
- Net loss of $1.1 million compared to net income of $1.0 million YoY
- Operating loss of $1.1 million vs income of $940,000 YoY
- Working capital decreased from $9.4M to $9.1M since December 2023
Insights
Pioneer Power's Q3 results and strategic moves reveal significant transformation. The sale of PCEP for
The transition to focus solely on Critical Power and eMobility, particularly the e-Boost platform, positions PPSI strategically in the growing EV infrastructure market. The
The e-Boost platform's market traction is evident through multiple successful deployments, including the BC Hydro contract worth
The strategic focus on eMobility solutions, backed by fresh capital from the PCEP sale, positions Pioneer to capitalize on the rapidly growing EV charging infrastructure market, particularly in areas where grid connections are challenging or cost-prohibitive.
Critical Power Business Segment Revenue Up
Declares One-time Special Cash Dividend of
Guides to
On October 29, 2024, the Company announced that it had sold its Pioneer Custom Electrical Products, LLC (“PCEP”) business unit to Mill Point Capital LLC (“Mill Point”), a middle-market private equity firm located in
Also, as a result of the sale, the Company’s Board of Directors declared a one-time special cash dividend of
Nathan Mazurek, Pioneer’s Chairman and Chief Executive Officer, commented, “Our Critical Power business segment delivered outstanding year-over-year revenue growth of
Financial Highlights from the Company’s Critical Power Business Segment for the Three Months Ended September 30, 2024 (Unaudited):
-
Revenue was
$6.4 million 130% as compared to$2.8 million -
Gross profit was
$1.5 million 24% , as compared to$439,000 16% , during the third quarter of 2023. -
Income from operations was
$211,000 $621,000 $832,000 -
Backlog was
$24.0 million 200% as compared to$8.0 million
Recent Business Highlights
-
Sold its PCEP business unit for
$50 million -
Completed and delivered multiple e-Boost units to satisfy a contract with BC Hydro and Power Authority recognizing approximately
$3.0 million - Delivered two e-Boost units to SparkCharge, Inc. (“SparkCharge”) as part of a groundbreaking collaboration launched in August of this year and expects to deliver approximately 10 more e-Boost units in 2025.
- Executed multiple lease extensions with our top three e-Boost leasing customers.
Mazurek continued, “We have narrowed our focus to our Critical Power business and the broad opportunities in the mobile EV charging market to fuel our future growth. As a result of our innovative solutions, e-Boost is now synonymous with reliable and sustainably powered, off-grid mobile EV charging solutions. We believe we have a robust backlog of orders, our collaboration with SparkCharge is exceeding expectations and we have the capital to take this Critical Power and eMobility business to new heights. We expect strong double-digit revenue growth and an increase in profitability for 2025.”
Third Quarter 2024 Consolidated Financial Results (Unaudited)
Revenue
Consolidated revenue for the three months ended September 30, 2024, was
Gross Profit/Margin
Consolidated gross profit for the third quarter of 2024 was
Operating Income (Loss)
For the three months ended September 30, 2024, loss from operations was
Net Income (Loss)
The Company’s net loss during the three months ended September 30, 2024, was
Balance Sheet Summary
As of September 30, 2024, the Company had
Subsequent to the quarter end, the Company received net cash proceeds of approximately
2025 Outlook
Management withdraws its financial guidance for 2024 given the sale of the Company’s PCEP business unit on October 29, 2024.
Management expects revenue of
The foregoing projected outlook constitutes forward-looking information and is intended to provide information about management's current expectations for the Company's 2025 fiscal year. Although considered reasonable as of the date hereof, this outlook, and the underlying assumptions may prove to be inaccurate. Accordingly, actual results could differ materially from the Company's expectations as set forth herein. See "Forward-Looking Statements."
In preparing the above outlook, the Company assumed, among other things, (i) that the Company’s backlog orders will translate into revenue, (ii) that the Company will be able to satisfactorily complete and deliver all orders and (iii) the timely payment by customers for all billings. This section includes forward-looking statements. See "Forward-Looking Statements."
Earnings Conference Call:
Management will host a conference call Monday, November 18, 2024, at 4:30 p.m. Eastern Time to discuss Pioneer’s third quarter 2024 financial results with the investment community.
Anyone interested in participating should call 1-877-407-0789 if calling within
A replay will be available until Monday, December 2, 2024, which can be accessed by dialing 1-844-512-2921 if calling within
The call will also be accompanied live by webcast over the Internet and accessible at https://viavid.webcasts.com/starthere.jsp?ei=1696559&tp_key=fb977214c6.
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 operate its business after the divestiture of its E-Bloc business, (ii) the Company’s ability to successfully increase its revenue and profit in the future, (iii) general economic conditions and their effect on demand for electrical equipment, (iv) the effects of fluctuations in the Company’s operating results, (v) the fact that many of the Company’s competitors are better established and have significantly greater resources than the Company, (vi) the Company’s dependence on two customers for a large portion of its business, (vii) the potential loss or departure of key personnel, (viii) unanticipated increases in raw material prices or disruptions in supply, (ix) the Company’s ability to realize revenue reported in the Company’s backlog, (x) future labor disputes, (xi) changes in government regulations, (xii) the liquidity and trading volume of the Company’s common stock, (xiii) an outbreak of disease, epidemic or pandemic, such as the global coronavirus pandemic, or fear of such an event, (xiv) risks associated with litigation and claims, which could impact our financial results and condition, and (xv) the Company’s ability to 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/20241114221404/en/
Brett Maas, Managing Partner
Hayden IR
(646) 536-7331
brett@haydenir.com
Source: Pioneer Power Solutions, Inc.
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