Electrovaya, Inc. Q2 FY2025 earnings call

• Financial performance: Q2 2025 saw $15M revenue, up 40% y-o-y, over 30% gross margins, net profit of over $800,000, eight consecutive quarters of positive adjusted EBITDA.
• Financing: Closed $51M direct loan from EXIM Bank of the US for Jamestown lithium-ion cell manufacturing and $20M working capital facility from Bank of Montreal, reducing cost of capital.
• Order intake: Over $25M in new orders during Q2, with momentum continuing into current quarter.
• Jamestown progress: On track for mid-next year cell production, nearly all key equipment purchased, material vendors qualified, avoiding Chinese supply chains.
• Labs division: Progress on solid-state battery efforts with pouch cell cycling and scaling processes.

In Q2 2025, Electrovaya reported revenue of $15 million, which is a 40% year-over-year increase. Gross margins were over 30%. The material handling segment is the bulk of the business, but there is growing interest in robotic applications and high-voltage battery products. Revenue contribution breakdown wasn't explicitly given by product segment, but material handling is the main vertical with significant orders, and other sectors like construction, energy storage, and robotics are showing increasing interest.

• Management remains on track to exceed $60M revenue for fiscal 2025.
• Confident in further growth into next fiscal year based on strong order visibility.
• Jamestown cell production expected to be mid-next year, with key equipment purchased and material vendors qualified.

• Potential future disruptions from supply chains, as Electrovaya avoided Chinese supply chains but still faces possible uncertainties.
• Tariff uncertainties affecting material prices in the short term before Jamestown cell production is fully operational.
• Market volatility that could impact margins and growth projections.

Q: Are the $25 million in new orders all from the material handling segment?

A: $25M is from material handling, with further orders from other sectors; material handling is the bulk but other sectors show increasing interest.

Q: How has the new US administration's policies impacted discussions with customers?

A: Accelerated interest in products, made Electrovaya more competitive, customers seeking long-term partners, and increased interest in energy storage space.

Q: When will the EXIM Bank loan be drawn down?

A: It's a draw-based facility; will be drawn when purchase orders are due for payment to avoid unnecessary interest.

Q: Will there be an uptick in operating expenses with Jamestown facility?

A: Majority will be COGS.

Q: What about the pipeline for 2026?

A: Already has significant orders in hand for 2026, with visibility improving, and communication from major end users indicating larger orders in 2026 than 2025